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HomeMy WebLinkAboutWATER PLANT # 1 - Warranty Deed - Hale-Mills Realty, Inc. - 0 BLACKHAWK BLVD , PI1778297 U7/29/88 00071115g. L778297 $ , 0 n WARRANTY DEED I •)—TO—I S05 THE STATE OF TEXAS ) I KNOW ALL MEN BY THESE PRESENTS : COUNTY OF HARRIS ) THAT HALE-MILLS REALTY, INC. , a Texas corporation, by and through its duly authorized Officer, of the County of Harris and State of Texas, herein styled Grantor, for and in consideration of the sum of TEN DOLLARS ($10 . 00) and other valuable considera- tion to the undersigned paid by the Grantee herein named, the receipt of which is hereby acknowledged, has GRANTED, SOLD AND CONVEYED and by these presents does GRANT, SELL AND CONVEY unto the CITY OF FRIENDSWOOD, a Texas municipal corporation, of the County of Harris, State of Texas, herein styled Grantee, all of the following described real property in Harris County, Texas, el, to-wit: 0. 2447 acre (or 10, 657 square feet) of land out of an 0. 5226 "l!fl/ acre tract in Reserve "G" , Block 19 , FOREST BEND SUBDIVISION, SECTION 3 , in Harris County, Texas, according to the plat of said subdivision recorded in Volume 180, Page 73 , Harris County Map Records ; said 0 . 2447 acre of land being more particularly described by metes and bounds in Ex- hibit "A" attached hereto and made a part hereof for all purposes. TO HAVE AND TO HOLD the above described premises, together with all and singular the rights and appurtenances thereto in anywise belonging, unto the said Grantee, its successors and as- signs forever; and Grantor does hereby bind its successors and assigns to WARRANT AND FOREVER DEFEND all and singular the said premises unto the said Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof. - This conveyance is made and accepted subject to all restrictions, easements, rights of way, all oil, gas and other mineral reservations and royalty interests, all oil , gas and other mineral leases, maintenance and assessment charges and any liens securing same, set back lines, zoning laws, ordinances of N IZ3 TO 1506 municipal and other governmental authorities, and all covenants and agreements, if any, relating to the hereinabove described property, but only to the extent the same are in force and effect and shown of record in the office of the County Clerk of Harris County, Texas, and subject to any and all leases, recorded or unrecorded, and the rights of Lessees thereunder. Taxes for the current year have been prorated as of the date hereof and taxes for the year 1988 and all subsequent years are assumed by Grantee herein. EXECUTED this i7 day of -- , 1988 . HA -MILLS REALTY, INC. 7(1 BY: Name p 'me R, //1/ E. /-7/a/E?_ Title it.Q it/PA./7 THE STATE OF TEXAS) COUNTY OF HARRIS) Th ' s n rument was acknowledged before_me on the day , of ;c , 1988 , by - Ji �/ L , /e , the ___ Pifrlj�L of HALE MILLSREALT , INC . , a Texas corporation, for and on behalf o said cor ation. ota lic - State of Texas (seal) R. L. BUCKALEW Name of Notary typed or printed Notary Public in and for Commission expires s• the State of Texas My Commission Expires 7•22-92 Address o °'`Gra'r"ittte D /30 p o cc,% pi-/ekieistAJ cr -j-'ie as 775176 After recording return to: PREPARED IN THE LAW OFFICES OF: WARREN C. BROWN, ATTORNEY BAILEY-BLUM & LIPPER 1919 Smith, Suite 860 Houston, Texas 77002 713/652 0957 • 12.E 70-1507 Alma LEDERER/MILLER & ASSOCIATES REGISTERED CIVIL ENGINEERS LAND SURVEYORS 2601 West Main;Suit°201 Houston,Texas 77098 (713)529-9124 • 2990 Richmond Ave., Suite 105 February 24, 1988 FIELD NOTES (Water Plant 'Site for City of Friendswood) 0.2447 Acre (or 10,657 square feet) of land out of an 0.5226 acre • tract in Reserve "G", Block 19, Forest Bend Subdivision, Section 3, in Harris County Texas, according to the plat of said subdivision recorded in Volume 180, Page 73, Harris County Map Records, said 0.2447 acre of land being more parti- cularly described as follows: COK4ENCING FOR REFERENCE at the northeast corner of Reserve "G" and the northeast corner of an 0.7471 acre tract, on the curved west right-of-way line of Blackhawk Blvd. , 100 feet wide: THENCE in a southerly direction with the east line of Reserve "G" and said west right-of-way line with a curve to the right having a radius of 1950.00 feet, a central angle of 6° 10' 13" and an arc length of 210.00 feet, (the chord of said arc bears South 20 06' 01" East 209.90 feet) , to the southeast corner of said 0.7471 acre tract and the northeast corner of said 0.5226 acre tract for the Northeast Corner and PLACE OF BEGINNING of the 0.2447 acre tract herein described; THENCE continuing in a southerly direction with said line and said curve to the right having a radius of 1950.00 feet, a central angle of 0° 35' 21" and an arc length of 20.05 feet, (the chord of said arc bears South 16° 43' 14" East 20.05 feet) , to a point for corner; THENCE in westerly and southerly directions within said 0.5226 acre tract with the following two (2) courses and distances: 1. South 77° 24' 33" West along a line parallel with and located 20.00 feet southerly from the northerly line of said 0.5226 acre tract 158.81 feet to a point for corner, and 2 . South 12° 15' 27" East 69.87 feet to a point for corner on the south line of said 0.5226 acre tract; THENCE South 81° 12 ' 44" West with said south line 65.00 feet to the south- west corner of said 0.5226 acre tract; THENCE North 38° 51 ' 25" West 95.41 feet to the north west corner of said 0.5226 acre tract and the southwest corner of said 0.7441 acre tract on the southeast line of a 30-foot wide Texas Pipeline Company pipeline easement described in deed recorded in Volume 7211, Page 281, Harris County Deed Records; THENCE North 77° 24' 33" East with the common line between said 0.5226 acre and 0.7471 acre tracts 264.45 feet to the PLACE OF BEGINNING. Chalmers R. Miller , , ,, Registered Public Surveyor No. 4222. ., • • • M176059. _Sc< < �A, .e jc,Id7c „.•' ' c • • r - r. ; , = 148=6 i = i 862 05/30/89 00237502 M176059 $ 11.00 EASEMENT THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS : COUNTY OF HARRIS § THAT the undersigned, Hale/Associates , Inc. , hereinafter called "Grantor, " for and in consideration of the sum of ten dollars ($10 .00) and other good and valuable consideration, to it in hand paid by the City of Friendswood, a duly and legally chartered (Jjj municipal corporation of the Counties of Galveston and Harris , State of Texas , hereinafter called "Grantee," the receipt and sufficiency of which is hereby acknowledged, has (subject to the conditions hereafter stated) GRANTED, SOLD, and CONVEYED, and by these presents does GRANT, SELL, and CONVEY unto the said grantee, its successors and assigns and legal representatives a temporary easement over and across the tract of land described on Exhibit "A" attached hereto and made a part hereof. Said temporary easement shall be for the purpose of storing equipment, materials , and supplies relating to and associated with the construction by Grantee of certain potable water facilities on property (Project Site) located adjacent to such temporary easement . It is hereby agreed and understood that the temporary easement granted hereby shall expire within sixty (60) days following the completion of such construction upon the Project Site, or by February 28 , 1990 , whichever first occurs . In addition to the foregoing, Grantee takes such temporary easement subject toct)ttre 31T12 3gS following terms and conditions : co' J 6� UN �g�9 cz 0Fi CC . KS J C"y v, 11_` ar� 6,-a-$ - , loft ' �.L c-a `)\ 14 8-61 - 1863 1 . Grantee agrees to indemnify Grantor, to the extent permitted by law, from all liability for claims from any party for any type of damages occurring during the period of time such temporary easement is under Grantee' s control . 2 . Grantee agrees that it will establish grades and elevations on the Project Site which will substantially comply with the preliminary plans prepared by Wayne Smith & Associates dated January 1989 and in no event will the development of Grantee' s potable water system result in surface water drainage from the Project Site to the area within said temporary easement following completion of the project . 3 . Grantee will, during the period of time in which this temporary easement is in effect , strip the area within the temporary easement of weeds , grass , roots , etc. , to dirt level and will place a minimum of four inches (4") of crushed limestone or stabilized shell over the entire temporary easement and grade same so that no ponding will occur thereon. TO HAVE AND TO HOLD the above-described temporary easement, together with all and singular the rights and appurtenances thereto in anywise belonging, including all necessary rights of ingress , egress , and regress , unto the said Grantee, its successors and assigns . And Grantor does hereby bind itself, its successors and assigns to warrant and forever defend, all and singular, the said temporary easement and rights unto the said Grantee , its successors and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof. 2 '14 8-6171864 IN WITNESS WHEREOF, this instrument is executed this 15th of May , 1989 . HALE/ASSOCIATES, IN . y: 1/1‘: ale, President THE STATE OF TEXAS § COUNTY OF GALVESTON § This instrument was acknowledged before me on this 15ttt" day of May , 1989 , by Billy E. Hale , President of HALE/ASSOCIATES, INC . , a Texas corporation, on behalf of said corporation. Notary Pub c t tate of Texas COMM ',ONO Notary rut",bate of Tamil . t vy Gomm+�s35r rX;�liw€�M';} ii 16"� 000d.q by Lov�,tt A�ancy,La wvt M�►11 b4Y I t GRANTEE: City of Friendswood Commission Expires: 8/9/89 109 Willowick Friendswood, Texas 77546 FILED FOR RECORD 8:30 A.M. ;MAY 3 01989 County Clerk, Harris County, Texas 3 EXHIBIT "A" Field Notes May 4, 1989 0.2779 acre (12, 107 square feet) of land out of an 0.5226 acre tract in Reserve "G", Block 19, Forest Bend Subdivision, Section 3, in Harris County Texas, according to the plat of said subdivision recorded in Volume 180, Page 73, Harris County Map Records, said 0.2779 acre of land being more particularly described as follows: COMMENCING FOR REFERENCE at the northeast corner of Reserve "G" and the northeast corner of an 0.7471 acre tract, on the curved west right-of-way line of Blackhawk Boulevard, 100 feet wide: THENCE in a southerly direction with the east line of Reserve "G" and said west right-of--way line with a curve to the right having a radius of 1950.00 feet, a central angle of 6 degrees 10 minutes 13 seconds and an arc length of 210.00 feet, (the chord of said arc bears South 20 degrees 06 minutes 01 seconds East 209.90 feet) , to the southeast corner of said 0.7471 acre tract and the northeast corner of an 0.5226 acre tract of which the tract herein described is a part; THENCE continuing in a southerly direction with the east line of Reserve "G" and said west right-of-way line with a curve to the right having a radius of 1950.00 feet, a central angle of 0 minutes 35 seconds 21 minutes and an arc length of 20.05 feet, (the chord of said arc bears South 16 degrees 43 minutes 14 seconds East 20.05 feet) , to the Northeast Corner and PLACE OF BEGINNING of the 0.2779 acre tract herein described; THENCE continuing in a southerly direction with said line and said curve to the right having a radius of 1950.00 feet, a central angle of 2 degrees 22 minutes 23 seconds and an arc length of 80.76 feet (the chord of said arc bears South 15 degrees 14 minutes 22 seconds East 80.76 feet) , to a point for corner; THENCE South 81 degrees 12 minutes 44 seconds West a distance of 162.90 feet to a point for corner; THENCE North 12 degrees 35 minutes 27 seconds West a distance of 69.87 feet to a point for corner; THENCE North 77 degrees 24 minutes 33 seconds East a distance of 158.81 feet to the PLACE OF BEGINNING and containing 0.2779 acres. f . • RESIRN;ISINVEEIia pANOUNNF011C 9EUN9C1l U ANY PRCVl510N HEREot C%OR RACE F ie Numba� THE STATE OF TEXAS Was Ft�ED b fine;end Was S ent ecean r ntbeis CO I Lett)F H dRRthat te s;inaReco ds of Real P�optltl 01 $eQuen�en U,c In ine 01ncia1 Public duly RE�6RDs on4 p 1989 Occny, viiv 3 a11....s1/401 c HARRIS COUNTY,TEX UNT'?CLERK 1 *Y i4�0� ,4't CITY OF FRIENDSWOOD ATTN: DELORIS McKENZIE CITY SECRETARY 109 WILLOWICK FRIENDSWOOD,TEXAS 77546 i °t�se�`, PAUL W. SCHRADER ��1 ��'-= Maya a 1 9LE12cIi.woocL 1 Councilmen - •i� :.��.•.<,•, £?Ltg of RON RITTER „,,,•,..,- ROBERT WICKLANDER .. e;n;/•`;•, EVELYN NEWMAN ,`. �` ;.%• i?.;. p 109 WILLOWICK 713/482.3323 PHYLLIS J.LEE '�� 4 FRIENDSWOOD, TEXAS 77546-3898 JAN JORDAN December 29, 1988 JOE PRIHODA • ANNETTE A. BRAND 1®l City Manager `_ City Secret , DELORIary CMC Tm_ Mr. Robert Graham Trustee Forest Bend Limited 6855 LaJolla Scenic Drive LaJolla, CA 92037 Dear Mr. Graham: The City of Friendswood requests a 20 foot wide temporary construction easement along the northwest boundary of Bay Meadows Apartment Complex, address of 17201 Blackhawk Blvd. , Friendswood, Texas. The purpose of the temporary construction easement is to provide us access to a utility easement along the back property lines of the lots bordering your property. This temporary construction easement will facilitate the contractor's access to the utility easement and will facilitate construction. We request the temporary construction easement be granted for a 30 day period, beginning on a date which is currently unknown. We will contact you in the future regarding that beginning date and give you two weeks' notice of the date on which use of the temporary construction easement will begin. Use of the temporary construction easement will occur within the 1989 calendar year. The temporary construction easement area will be returned to it's natural condition, replacing any sod and repairing any other damage that may occur or be caused by the construction work. In addition, any fencing that may be removed or damaged will be replaced or repaired. I am enclosing two originals of this letter. Please countersign one and return it to the City. If you have any questions regarding this, please contact Duane Hengst, City Engineer, at 713-482-4438. Sincerely, 0aul W. Schrader Mayor Att De oris McKenzi , C City Secretary Accepted: Robert Graham, Trustee Date Forest Bend Limited / �►'1 W� PAUL W. SCHRADER A`. :• Mayor h: ::c:ly £?LLL, O9tLE2cLtWO Oc, RON RITTER �.''''\'. .LL ` ROBERT WICKLANDER "�� \ ` r /j H EVELYN NEWMAN ;• ` 109 WILLOWICK 7131482.3323 PHYLLIS J. LEE �_ FRIENDSWOOD, TEXAS 77546-3898 JAN JORDAN JOE PRIHODA 1, ANNETTE A. BRAND • 1®l i City Manager �`�: " December 29, 1988 DELORIS McKENZIE,CMC •t s=_, .I City Secretary Mr. Billy Hale Hale Associates 11621 Southwest Freeway Houston, TX 77031 Dear Mr. Hale: As you may recall, the City of Friendswood purchased a portion of a lot you own on Blackhawk Boulevard in Forest Bend subdivision in the City of Friendswood for use in the City's surface water system. We are currently having the engineering plans drawn and preparing the surface water project for bidding and construction. We would like to make the remaining portion of this lot, which you still awn, available for the duration of construction to the contractor of our water plant as lay-dawn yard. As Duane Hengst, City Engineer, discussed with you previously over the telephone, the City will provide four inches of crushed limestone or other base material over the lot when the project is complete, in consideration for your allowing us to use the lot as our lay-down yard. I have enclosed two original copies of this letter. If this agreement is satisfactory to you, please countersign below and return one copy to us. Sincerely, Waul1141h44.14 --W. Schrader Mayor Att s : . De o 's McKenzie, CMC City Secretary Accepted: Billy Hale Date • \\\\\1111111111111111/II/,,,'/ .„e0,, Harris County Appraisal District =_ 1 Ps -41 RECORDS MAINTENANCE DIVISION 2800 North Loop West April 20, 1989 P.O. Box 920975, Houston, Texas 77292-0975 Telephone 713-683-9200 *Tax Year 1988 RE: Proration Under Section 26. 11 , Tax Code: Acquisition by Government Dear Assessor-Collector: The following property was acquired by City of Friendswood on Jul 29. 1989 from Hale Mills Inc. 11621 Southwest Frwy Houston, Tx 77031 and will be shown as exempt property for the next year. Please use the information below to prorate taxes for the year in which the transaction occurred . NEW LEGAL DESCRIPTION PARENT LEGAL DESCRIPTION Res G 3-1 Blk 19 Res G 3 Blk 19 Forest Bend Sec 3 Forest Bend Sec 3 JURISDICTION NEW ACCOUNT NUMBER PARENT ACCOUNT NUMBER Clear Creek ISD (027) 1962336 1962335 Harris County (040) 1043990000045 1043990000033 H.C. WCID #108 *(621 ) -0- 10831020008 *Inactive 1986 Land Value to be prorated: $ 11 ,990 r;:m 1'47: !IV E D Improvement Value to be prorated : $ 0 Jr Total Value to be prorated : $ 11,990 f P9 1 8 (989 Number of days taxable to prior owner : 211 CITY. OF FRIENDSW00D Exemptions applicable to prior owners None Should you need additional information please call the Records Maintenance Division, Harris County Appraisal District, at 683-9200. Sincerely yours, Kenneth E. Graeber APPROVED BY: Chief Appraiser •es‘e{e. Records Maintenance Division Records Maintenance Division cc: Exemption Division 32 SCAN BY ACCT REAL PROPERTY APPRAISAL DATA 04/07/89 09: 10:25 TAX YEAR 88 NEXT SCREEN -- ACCOUNT 040 1043990000033--- YEAR ACCOUNT CREATED 84 HMSD % OF VALUE OOO SPCL O PID 27-02754.0-02.0-059.0-0/000-001-7 DISABLED VET [ 1 ] O% [2] O% CERT ON ROLL U 01/00 NAME / ADDRESS MTS ARB APPR 07/30/88 HALE MILLS INC 1987 CENTER 50 NOTICED 04/25/88 11621 SOUTHWEST FREEWAY TAX DEFERRED?-- ) SHIFTED/CAMA REPORT CLASS C3 AG-TYPE HCAD U 1043990000033 HOUSTON TX MAP FACET - ZIP 77031-0000 AGENT OOOOO GROUP OOOOO MTL OOOOO DESCRIPTION FIDUCIARY *** VALUES *** TR 3 IN RES G BLK 19 1984 CURRENT PREVIOUS FOREST BEND 3 LAND 23030 23030 AG/TIMBER O O IMPROVEMENT O O ACREAGE 0.5270 RENDERED 10000 10000 PROPERTY LOCATION NEW CONST. O O BLACKHAWK TOTAL MKT 23030 23030 NOTES: ZIP 00000-0000 OVRR JUSTIFIED 51 33 SCAN BY ACCT RELATED JURISDICTION DATA SCREEN 04/07/89 09: 40:45 NEXT SCREEN -- HCAD ACCOUNT 4043990000033--- BASE INIT YEAR 84 CENTER 50 EXPAND YEAR REFERENCES SPLITS [R/S/J] CODE ACCOUNT ACTV INACTV EXIST EXIST - 000- 1043990000033 84 99 - 027- 1962335 84 99 - 040- 1043990000033 84 99 - 624- 40831020008 84 86 I v E IL _ D - - - A�� D � ��n �. .` � u ^�wo CITY OF FRIENDSWOOD •I23=TU=15UT Ada LEDERER/MILLER & ASSOCIATES REGISIEI2EUCIVn E NCR JEfAS LANdSU17VEY012S 26Ol-West-Mein;&cite-291- Houston, lexos 77098 (713)529-9124 2990 Richmond Ave..Sulle 105 February 24 , 1988 • FIELD NOTES 1 . (Water Plant Site for City of Friendswood) 0.2447 Acre (or 10,657 square feet) of land out of an 0.5226 acre • tract in Reserve "G", Block '19, Forest Bend Subdivision, Section 3, in Harris County Texas, according to the plat, of said subdivision recorded in Volume 180, Page 73, Harris County Flap Records, said 0.2447 acre of land being more parti- cularly described as follows: CO1IIENCING FOR REFERENCE at the northeast corner of Reserve "G" and the northeast corner of an 0. 7471 acre tract, on the curved west right-of-way line of Blackhawk Blvd. , 100 feet wide: • THENCE in a southerly direction with the east line of Reserve "G" and said west right-of-way line with a curve to the right having a radius of 1950.00 feet, a central angle of 6° 10' 13" and an arc length of 210.00 feet, (the chord of said arc bears South 20° 06' 01" East 209.90 feet) , to the southeast corner of said 0. 7471 acre tract nn3 the northeast corner of said 0.5226 acre tract for the Northeast Corner and PLACE OF BEGINNING of the 0.2447 acre tract herein described; • 111ENCE continuing in a southerly direction with said line and said curve to the right having a radius of 1950.00 feet, a central angle of 0° 35' 21" and an arc length of 20.05 feet, (the chord of said arc bears South 16° 43' 14" East 20.05 feet) , to a point for corner; THENCE in westerly and southerly directions within said 0.5226 acre tract with the following two (2) courses and distances: 1. South 77° 24' 33" West along a line parallel with and located 20.00 feet southerly from the northerly line of said 0.5226 acre tract 158.81 feet to a point for corner, and 2. South 12° 15' 27" East 69.87 feet to a point for corner on the south line of said 0.5226 acre tract; THENCE-South 81° 12 ' 44" West with said south line 65.00 feet to the south- west corner of said 0.5226 acre tract; IIIENCE North 38° 51 ' 25" West 95.41 feet to the north west corner of said 0.5226 acre tract and the southwest corner of said 0. 7441 acre tract on the southeast line of a 30-foot wide Texas Pipeline Company pipeline easement described in deed recorded in Volume 7211, Page 281 , Harris County Deed Records; THENCE North 77° 24' 33" East with the common line between said 0.5226 acre and 0.7471 acre tracts 264.45 feet to the PLACE OF BEGINNING. 7684 �l'`�' •• i �7 Chalmers R. Hiller , �,, •. % Registered Public Surveyor No. 4222. 1 _ - PURCHASER'S S1'ATEMEN•r • • cF No.: 87-7165 .. FROM: h al Mi], s gea1ty Inc. .To: City Of Friendswood JPERTY _ .2447 acres in Forest Bend Subdivision 'URCHASE PRICE S29 . 306. 75 / PLUS: CHARGES Filing fees to County Clerk: S 10. 00 S Loan charges and fees due to S S $ S S Loan transfer fee or assumption fee S Fees to LAWYERS TITLE COMPANY OF HOUSTON . Title Policy:Owner 151.00 Mortgagee Binder Escrow _2 .. f10 Msngr. Serr. Restrict copies —Grrarant-,y.jep 3- 00 -$ 381.00 Tax certificates: State and County S City and School S 70 .00 Other S Survey fee to S •Attorney's fees for preparation of papers to I3a i ley, Blum L T.i peer $ 70.110 S Flood insurance premium to S Hazard insurance premium to S Tax and insurance escrowed with $ coos. tax deposit @ per mo. mos. hazard insurance @ per mo. mos. flood insurance @ per mo mos. mortgage insurance @ per mo. Interest from to S • S Proration of hazard insurance from to S Proration of flood Insurance from to $ Maintenance charge proration from to S Tax proration from to $ S Escrowed accounts with lender purchased from Seller S S S S S • S S S 531. 00 TOTAL CHARGES S GROSS AMOUNT DUE BY PURCHASER S 29 .837 . 75 LESS: CREDITS Down payment or earnest money paid to S Loan from S Note assumed S Interest proration from to S Tax proration from L-1-88 to 7-29-88 S 126 . 00 Rent proration from to S RECEIVED Other Credit r IvED s MAR 1 7 1989 S RECORDS-MAINT. S CITY OF FRIENDSWOOD S T01ALCREDIIS $ 176_00 BALANCE DUE BY/ 0c.PURCIIASER $29 . 711.7 5 Purchaser understands the Closing or Escrow Agent has assembled 'hit information representing the transaction I the best Intl tion avail- a ble from other sources and cannot guarantee the accuracy thereof. Any real estate agent or lender involved may be furnished a copy of this Statement. 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A JO • •was . • I . • •••••,1 •••••••••IR ' •iI4••••17. 11 V J....iv ,,..v .,... v._ ......• ',...... .......-.. 4. ••••••-.. -' A 0 Q '1 C..4. r; C4(..? ; • • rr / • L, Service available throughout the National Division, Branch and Agency United States, Canada, Puerto Rico, offices and Approved Attorneys are the Bahamas, and the U. S. Virgin ° located throughout the operating Islands. territory. Lawyers Title Insurance Corporation National Headquarters-Richmond,Virginia r. z OEM. r'• y CD ° ° n CA O lV CD • A word of thanks to our insured As we make your policy a part of our permanent records, we want to express our appreciation of this evidence of your faith in Lawyers Title Insurance Corporation. There is no recurring premium. This policy provides valuable title protection and we suggest you keep it in a safe place where it will be readily available for future reference. If you have any questions about the protection provided by this policy or wish to contact us for any other reason, write to: I uiyers Title Insurance Corporation • P.O.Box 27567 Richmond,Virginia 23261 • • • �._ m_,.,n'� :fir::..•._ .., .... .�._ ..,. APPRAISAL $36.000 kfM 1 12 ,080 SF - $3 ,OQ0 0.277 ACRES OUT OF FOREST BEND, SECTION 3, TRACT D OF RESERVE C, BLOCK 19 17160 BLACKHAWK BOULEVARD, FRIENDSWOOD, TEXAS 77546 LATITUDE 29.5284-LONGITUDE 95.2001 KEY MAP: 657B, CENSUS TRACT:1202.00, GALVESTON COUNTY (167), TEXAS (48), ZIP 77566 as of JULY 21, 2000 for MR.JON R. BRANSON,DIRECTOR OF COMMUNITY SERVICES CITY OF FRIENDSWOOD 810 S.FRIENDSWOOD DL FRIENDSVOOD, TEXAS 77546 By JERALD Er SHAFFER-APPRAISER I al- RAY C. COLEMAN,JR., MAI. SEA STATE CERTIFIED GENERAL REAL ESTATE APPRAISER TELEPHONE MISER 281.363.0360 D n RANAL I ' D,C111 ll,C d {' u JULY 28, 2000 MR.JON R. BRANSON, DIRECTOR OF COMMUNITY SERVICES CITY OF FRIENDSVOOD 910 S. FRIENDSVOOD DR. FRIENDSWOOD, TEXAS 77546 RE: Tm vU U 0.0C(v(o)�cc) 0.277 ACRES OUT OF FOREST BEND, SECTION 3, TRACT D OF RESERVE C.BLOCK 19 17160 BLACKHAWK BOULEVARD, FRIENDSWOOD, TEXAS 77546 LATITUDE 29.5284-LONGITUDE 951001 KEY MAP: 657B, CENSUS TRACT:1202.00 GALVESTON COUNTY (167), TEXAS (48), ZIP 77566 LADIES & GENTLEMEN: At your request we have prepared a complete appraisal for the purpose of estimating the Market Value of the"As Is"Fee Simple Estate in the above referenced property. The value estimate concluded to herein is subject to the assumptions and contingent and limiting conditions contained within both the body of this summary appraisal report and the addenda section. The property was inspected JULY 21, 2000. The effective date of this appraisal "As Is"is JULY 21, 2000. Inspection of the property, and the analyses that form the basis for our value conclusions,were performed by the undersigned. This report has been prepared in compliance with the Code of Professional Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP). Ray Coleman Associates is a professional real estate appraisal and consulting firm, providing service to a variety of corporate, institutional, governmental and private clientele. In the past 12 months our firm has completed numerous valuation assignments involving similar properties. We are not qualified to detect or identify hazardous substances, which may, or may not be present on, in, or near this property. The presence of hazardous materials may negatively affect value. We have valued the subject property as though free of hazardous materials. We urge the user of this report to obtain the services of a specialist for the purpose of conducting an environmental audit to ensure that the subject property is free of hazardous materials. 0.277Acres-Tract D of Reserve G, Block 19, Forest Bend. Section 3 $36,000"As Is" the 21 st day of July 2000 by Ray Coleman Associates Page 1 -�l Based on our investigation of the available market data, including sales of similar properties and conversations with brokers and individuals active in the local area, the time that would be required to effectively expose the subject property to the market is estimated to be 12 months. Attached is our summary appraisal report, which describes the investigation and analyses, undertaken in arriving at our value estimate. Subject to the assumptions and special & limiting conditions in this report,it is our opinion that the "As Is"Market Value July 21, 2000,as follows: THIRTY SIX THOUSAND DOLLARS $36,000 As of the date of this report, I, Ray C. Coleman,Jr., have completed the requirements ender tie continuing education program of the Appraisal Institute. Respectfully Submitted, 8 -'4- 114iffr%) JERALD E. SHAFFER /2424J.C64"#6.16.— Ray C. Coleman,Jr., MAI, SRA State Certified General Real Estate Appraiser Certificate TX-1320770-G 0.277Acres-Tract D of Reserve G.Block 19, Forest Bend, Section 3 $36,000"As Is" the 21st day of July 2000 by Ray Coleman Associates Page 2 6 miff C. COLEs , r ►, . 11111, �.�� State Certified General Real Estate Appraiser h CHIEF APPRAISER & OWNER RAY COLEMAN ASSOCIATES 20 MARABOU PLACE THE WOODLANDS, TEXAS 77380 HOUSTON CONSOLIDATED METROPOLITAN STATISTICAL AREA (CMSA) TELEPHONE: 281.363.0360 CELLULAR: 713.823.7461 FAX: 281.363.0305 RAY C.COLEMAN,jR,MAI,SRA E-MAIL: RAY@RAYCOLEMAN.COM WEB SITE: WWW.RAYCOLEMAN.COM PROFESSIONAL BIOGRAPHY Credentials, Career Highlights and Achievements: u Awarded MAI Designation No. 8744 by the Appraisal Institute, 1991 u Awarded SREA Designation No. 625 by the Society of Real Estate Appraisers, 1983 u Awarded SRPA Designation by the Society of Real Estate Appraisers, 1979 u Awarded SRA Designation by the Society of Real Estate Appraisers, 1979 u President, 1981, Chapter Director 1978-1982, Secretary 1983-1984, Society of Real Estate Appraisers, Chapter No. 154. Currently Member of the Houston Chapter of the Appraisal Institute u President, 1982, Chapter Director 1979-1983, Program Chair 1978, The Rotary Club of Port Arthur. Currently Member The Rotary Club of The Woodlands u Appointed by the President of the United States to the local draft board of the Selective Service System u Ordained Deacon &Elder and member since 1985 of The Woodlands Community Presbyterian Church. Currently church photographer. u Previously worked with area Chamber of Commerce, YMCA, Northwoods Presbyterian S.A.L.T. program, Interfaith Board, and other religious and civic activities. Professional History: (Twenty Six Years Real Estate Appraising Experience) u Ray Coleman Associates, Chief Commercial & Residential Real Estate Appraiser, 1989 to present u O'Connor& Associates, Commercial Appraiser and"MAI Designated Review Appraiser," 1996-1997 u Tusing& Associates, Commercial Manager& Chief Commercial Appraiser, 1984-1989 u Donnie M. Jones & Associates, Manager Residential Department& Commercial Appraiser, 1974-1984 Education: u Lamar University, Beaumont, Texas, Bachelor of Science u Completed"Demonstration Report"(Akin to a Masters Thesis) a specialty examination that is a detailed analysis of the technical and theoretical appraisal of a specific piece of real estate. u Society of Real Estate Appraisers: Course 101, 1976; Course R2, 1976; Course 201, 1977; Course 301, 1982; SPP, 1990; Eminent Domain & Condemnation Appraising, 1984; Appraising Contaminated Properties, 1992 u Appraisal Institute: Course 1A, 1988; USPAP Part A, 1995; USPAP Part B, 1997; USPAP Part C, 1998; High Tech Appraisal Office, 1998: The Internet & Appraising, 1997; Wetlands &Environmental Issues, 1990; Changes in Real Estate Lending, 1994; Discounted Cash Flow Analysis, 1990; Alternative Residential Reporting Forms, 1997; Limited Appraisals &Report Options, 1996 authorized State Ctrtificitiot aid Mclean: u Texas State Certified General Real Estate Appraiser No. TX-1320770-G valid through May 31, 2001. CERTIFIED & LICENSED FOR ALL PROPERTIES including complicated&high value property. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ra_Coleman Associates Page 3 Members/iz Deszqlzatiolls RAY COIF AN As the world's leading organization of professional real estate appraisers, the Appraisal Institute has general appraisal members who hold the MAI, SRPA, or SREA designations and residential appraisal members who hold the SRA or RM designation. Identified by their experience and knowledge of real estate valuation, these members adhere to a strictly enforced Code of Professional Ethics and Standards of Professional Appraisal Practice. Currently, the Appraisal institute confers one general designation, the MAI, and one residential designation, the SRA. Appraisal Institute professional membership designations are conferred on individuals who have met stringent educational requirements and have demonstrated appraisal experience. Each prospective candidate must submit an Application for MAI Designation and/or an Application for SRA Designation after meeting all requirements. Once designated, members participate in a program of continuing education. Training in up-to-date valuation techniques, coupled with experience and integrity, make Appraisal Institute members the preferred source for high-quality appraisal services. The MAI membership designation is held by appraisers who are experienced in the valuation and evaluation of commercial, industrial, residential, and other types of properties, and who advise clients on real estate investment decisions. The SRA membership designation is held by appraisers who are experienced in the valuation of single-family homes, townhouses, and residential income properties of up to and including four units The SREA membership designation is held by appraisers who are 9999 experienced in real estate valuation and analysis and advise clients on real estate investment decisions. }'s The SRPA membership designation is held by appraisers who are experienced in the valuation of commercial, industrial, residential, and other types of property runµ 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 4 1111 RAY COIEMAN RAY C.COLEMAN,JR.,MAI,SRA is a dedicated professional member of the Appraisal Institute. Earning an Appraisal Institute designation is not easy, and members are proud of their accomplishments. In fact, fewer than 15% of all licensed or certified appraisers have earned the right to be called Appraisal Institute members. Appraisal Institute membership requirements exceed state and federal requirements in terms of education, experience, Code of Ethics, and Standards of Professional Appraisal Practice. To become designated, an appraiser must: ❖ Demonstrate knowledge of the fundamental principles of real property appraising by passing a series of rigorous examinations. ❖ Display technical skills in various appraisal assignments. ❖ Prove the ability to produce succinct, well reasoned valuations and reports that conform to the Appraisal Institute's strict Code of Professional Ethics and Standards of Professional Appraisal Practice. ❖ Hold an undergraduate degree from a four-year accredited college (or comply with specified alternatives). In addition members must fulfill demanding continuing education requirements to maintain their designations. This commitment to professionalism makes Appraisal Institute members the preferred choice for real estate appraisal services. WHY MEMBERS OF THE APPRAISAL INSTITUTE? Why do so many lenders, government agencies, courts, corporations, investors, and individual property owners seek the opinions of real estate appraisers designated by the Appraisal Institute to guide their real estate decisions? These parties know that Appraisal Institute members are true professionals who have made a commitment to being the best in their field. They realize that appraisers who are solely state licensed or certified have not demonstrated the advanced level of education and experience required of Appraisal Institute members. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 2lst day of July 2000 lv Ray Coleman Associates Page 5 rf RAY COLEMAN WHAT'S IT WORTH? Decisions to invest in, buy, or sell real estate almost always focus on one question. Whether the transaction involves a single-family home or a multibuilding office park, someone always asks, "What's it worth?" The best way to find out is through a well-researched and carefully documented estimate of value — a real estate appraisal. With an accurately prepared appraisal report, you will be more confident that you are making a wise decision. And when it comes right down to it, few appraisers are better qualified to guide your decisions than designated members of the Appraisal Institute do. GOING BEYOND TRADITIONAL APPRAISAL SERVICES Today's appraisers are the best source for reliable market data and can provide many services in addition to opinions of value. Depending upon an individual's designation and qualifications, an appraiser can provide some or all of these services: ❖ Appraisals ••• Arbitration ❖ Absorption Studies ❖ Business Valuation d• Counseling ❖ Consulting ❖ Condemnation ••• Evaluations ❖ Expert Witness Testimony ❖ Litigation Preparation ❖ Cost&Benefit Studies ❖ Feasibility Studies ❖ Management advice ❖ Market Analysis ❖ Market Rent Studies ❖ Market Trend Studies ❖ Operating Expense Analysis ❖ Tax Assessment Review &Advice ••• Zoning Testimony You want timely, reliable, and cost effective appraisal services — that's what members of the Appraisal Institute deliver. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 y Ray Coleman Associates Page 6 U1MAM? F M11777 FAM LOCATION: 17160 BLACKHAWK BOULEVARD BLOCK NORTH OF FM 528-ON BLACKHAWK BOULEVARD-WEST SIDE PURPOSE OF THE APPRAISAL: TO ESTIMATE THE "AS IS" MARKET VALUE SUBJECT TO THE ASSUMPTIONS AND LIMITING CONDITIONS LISTED HEREIN PROPERTY RIGHTS APPRAISED: FEE SIMPLE ESTATE ABSOLUTE LAND AREA: +0.2770 ACRES OR + 12,080 SQ. FT. IMPROVEMENTS NONE-VACANT LAND UTILITIES' ALL UTILITIES AVAILABLE TO SITE HIGHEST AND BEST USE• COMMERCIAL FLOOD PLAIN: NONE ZONING. NONE DATE OF PROPERTY INSPECTION: JULY 21, 2000 DATE OF VALUATION AS IS: JULY 21, 2000 DATE OF REPORT. JULY 28 , 2000 APPRAISER JERALD E. SHAFFER-APPRAISER STATE CERTIFIED NO. TX-1326328-R RAY C. COLEMAN,JR., MA1, SRA STATE CERTIFIED NO. TX-1320770-u VALUE INDICATIONS: SALES APPROACH: $36,000 TOTAL MARKET APPROACH "AS IS": $36,000 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21 st day of July 2000 by Ray Coleman Associates Page 7 LOCATION MAP ,. 2 / c a„ oN' R4,W 11Y144' 4 SQ \,\.,.,'yo .' I• ,,q'.,4 44d EF"Pl eti° O ,R 4'"may NW'''.E w C m �4� 4/y-C�° �'Q0 `fie 4y '5 `o5 f m. ' •o/'" *' z �F,y 3• o c IS Fro �FyL0 -N. �P Fy 1 '/ —J` o7z�\ �� a. q�s ���°9Pp�yy 9�y''y ��sT \‘111?'e. We �� °f�RILCiRIM H L W ��5��cy9n�9G4,�<1Qp �M ��� 9f1AQY OAKS IN C;,\,g// ./�_ 0 > os, edar Gully f z !J :'. 3 .Y'Fs' �' Y a !>> ' • 40146 f-evi ���� j FRIENOSWOODLI SUBJEC.l 15 'It ° ELF P *-.-, o oq TRACT D OF RESERVE G,BLK 19 \ / CS \�(3% Vt/41,e's°L la`'OcZ '?66>,% FOREST BEND, SEC. 3 [ dr1 T.4t* * el Xi v O o ,, di , . n o14iy ��O �o F/c �PF°441, +y yOROF,I, / •�'. 141 `F .. F� Co 04 0004 -gpo'144 �t r F'ko �s P° 94e %P y .M 5 m �. o, K .may r t �`� / cri- .. �i 5i r ''' Qlif. .: , . r i \ I � c� � rC/// � •i . . ��, r.r iek ClearCreek i I 4, , $y� •,� • 11 t F ' or Creek >, � N a NQ 1v 1998 DeLame. Street'''. USA1;5 Io \ Mag 14.00 Local Road Exit/Lodging Tue Aug 01 12:50 2000 9 9 Scale 1:31,250(at center) Major Connector Exit/Food 2000 Feet State Route Exit/Other Services =Interstate/Limited Access # Private Airport 1000 Meters U Exit Cemetery Railroad County Boundary V Geographic Feature Woodland Exit/Gas River/Canal • � _ •1 NIKO\ 950 DIGITAL CAMERA Photograpl, SHOT 07/2V00 Skot &', F-actually Unaltered 6y JERALD E. SI-IArrL } �3 r . SUBJECT PROPERTY TRACT D, RESERVE G, BLOCK 19 FOREST BEND, SECTION 3 17160 BLACKHAWK BOULEVARD-- LOOKING WEST 0.277Acres-Tract D of Reserve G.Block 19, Forest Bend. Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 8 NIKON 950 DIGITAL CAMERA Photograph SHOT07/21/00 Shot F-actually Unaltered 6y J-ER/\LD -E. SI-IAf TC- • IMMINIMimw r - _ ve '� •6: � _. ... ham:: _ �` � ., ?' SUBJECT PROPERTY STREET4LOOK1NG NORTH. • 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 9 NIKON 950 DIGITAL CAMERA Photograph !TO7/2V00 Shot =actually Unaltered 6y J ERALD E. S�IArf L • r rw. • FOR INFORMAT INF • - 2811194 _ ' c. 1 • IIINEE SUBJECT PROPERTY-STREET LOOKING SOUTH-BLACKHAWK BOULEVARD 0.277Acres-Tract D of Reserve G, Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 10 NIKON 950 DIGITAL CAMPRA P,otogvapl, SHOT 07/20/00 Shot ctuallt4 Unaltered 614 J;RALD "ow 1114 t` , . art 1-4111 �---,� i ► 1. - n APARTMENTS ACROSS STREET LOCATED DIRECTLY TO THE EAST OF THE SUBJECT 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21 st day of July 2000 by Ray Coleman Associates Page 11 D V 11,c) v O _ ► g MODAOGY Methodology and procedures used in the appraisal process. An appraisal is defined as "the act or process of estimating value." (Appraisal of Real Estate, Tenth Edition, Appraisal Institute). Real estate appraisal involves selective research into appropriate market areas; the assemblage of pertinent data; the use of appropriate analytical techniques; and the application of knowledge, experience, and professional judgment to develop an appropriate solution to an appraisal problem. The underlying principles in the appraisal process are supply/demand, anticipation, competition, substitution, opportunity cost, balance, contribution, surplus productivity, conformity, and externalities. As found in the Appraisal of Real Estate, Tenth Edition, these principles are defined as follows: "The appraisal principle of supply and demand states that the price of real property varies directly, but not necessarily proportionately, with demand, and inversely, but not necessarily proportionately, with supply. Thus, increasing the supply item or decreasing demand for an item tends to reduce the price obtainable in the market; the opposite is also true, although in either case the relationship may not be directly proportional. The relationship between supply and demand may not be directly proportional, but the interaction of these forces is fundamental to economic theory. The interaction of suppliers and demanders, or sellers and buyers, constitutes a market. MARKET VALUE—1 Market Value is defined by the OCC,Regulation 12 CFR,part 34 as being"the most probable price which a property will bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently,knowledgeably and assuming the price is not affected by undue stimulus." "Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and Seller are typically motivated; 2. OBoth parties are well informed or well advised,and each acting in what he considered his own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto;and 5. The price represents the normal consideration for the property sold,unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." 1.The Cost Approach is based on the understanding that market participants relate value to cost. In the cost approach the value of a property is derived by adding the estimated value of the land to the current cost of constructing a reproduction or replacement for the improvements and then subtracting the amount of depreciation (i.e.,deterioration and obsolescence)in the structures from all causes. Profit for coordination by the entrepreneur is included in the value indication. This approach is particularly useful in valuing new or nearly new improvements and properties that are not frequently exchanged in the market. Cost approach techniques can also be employed to derive information needed in the sales comparison and income capitalization approaches to value. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 12 11111(0100 2.The Sales Comparison Approach is the process in which a market value estimate is derived by analyzing the market for similar properties and comparing these properties to the subject property. Estimates of market rent,cost,depreciation,and other value parameters may be derived in the other approaches to value using comparative techniques. Often these elements are also analyzed in the sales comparison approach to determine the adjustments to be made to the sales prices of comparable properties. The comparative techniques of analysis applied in the sales comparison approach are fundamental to the valuation process. In the sales comparison approach,market value is estimated by comparing the subject property to similar properties that have recently sold, are listed for sale,or are under contract(i.e.,recently drawn up purchase offers accompanied by a cash or equivalent deposit). A major premise of the sales comparison approach is that the market value of a property is directly related to the prices of comparable,competitive properties. 3.In the Income Capitalization Approach,the present value of future benefits of property ownership is measured. The Income Approach is widely applied in appraising income-producing properties. A property's income streams and its resale value upon reversion may be capitalized into a present,lump-sum value. "In assignments to estimate market value, the ultimate goal of the valuation process is a well-supported conclusion that reflects the appraiser's study of all influences on the market value of the property being appraised. Therefore,the appraiser studies the property from each of the applicable viewpoints reflected in the three approaches: The three approaches are interrelated, and each involves the gathering and analysis of sales, income, and cost data relation to the property being appraised...From the approaches,the appraiser derives separate indications of value for the property being appraised. One or more approaches may be used,depending on their applicability to the particular appraisal assignment." The final step in the appraisal process involves the reconciliation of the values indicated by each of the applicable approaches into a final value conclusion. In this process the reliability of the value indications and the applicability of the approaches are explained. Reconciliation also provides an opportunity to resolve variations and inconsistencies among the value indications and the methods with which they were derived. The final step in the appraisal process involves the reconciliation of the values indicated by each of the applicable approaches into a final value conclusion. In this process the reliability of the value indications and the applicability of the approaches are explained. Reconciliation also provides an opportunity to resolve variations and inconsistencies among the value indications and the methods with which they were derived. The appraiser weighs the relative significant applicability and defensibility of the indication of value derived from each approach and places most weight and reliance on the one,which in his professional judgment best approximates the value of the property. The facts are reconciled and their probable validity and reliability are reconciled to a final value estimate. "To complete the valuation process,the appraiser integrates the information drawn from the market research and analysis of data and from the application of appraisal techniques in the three approaches to form a conclusion. This conclusion may be an estimate of value or a range in which the value may fall. An effective integration depends on an appraiser's skill, experience,and judgment." !. �! ,' t VALUATION PROCESS IS BELOW Market Value is defined by the OCC,Regulation 12 CFR,part 34 as being"the most probable price I. Definition of the Problem A. Identification of real estate B. Identification of property rights to be valued C. Use of appraisal D. Definition of Value E. Date of Value Estimate F. Other limiting conditions 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 13 • II. Preliminary Analysis and Data Selection and Collection IVINVOLOGY A. General 1. Social 2. Economic 3. Government 4. Environmental B. Specific(Subject and Comparables) 1. Site and improvements 2. Cost and Depreciation 3. Income/expense and capitalization rate 4. History of ownership and use of property III. Highest and Best Use Analysis A. Land as though vacant B. Property as improved IV. Land Value Estimate V. Application of the Three Approaches A. Cost B. Sales Comparison C. Income Capitalization VI. Reconciliation of Value Indications and Final Value Estimate VII.Report of Defined Value PROPERTY RIGHTS APPRAISED The property rights appraised in this assignment are the fee simple estates"As Is." ASSETS APPRAISED The assets appraised in this appraisal assignment include land, and proposed improvements and ancillary site improvements. No personal property was included in the valuation process. No title policy was submitted to the appraiser and reservations, if any are unknown. If property rights differ from the above definitions, it may have an affect on value. We reserve the right to modify our value conclusions should a title policy or current survey indicate adverse easements or encroachments not visible during our inspection. ANTICIPATION "Anticipation is the perception that value is created by the expectation of benefits to be derived in the future. In the real estate market, the current value of a property is usually not based on its historical prices or the cost of its creation;rather, value is based on market participants' perceptions of the future benefits of acquisition. "The value of owner-occupied property is based primarily on the expected future advantages, amenities, and pleasures of ownership and occupancy. The value of income-producing real estate is based on the income it will produce in the future. "Therefore, real property appraisers must be aware of local, regional and national real estate trends that affect the perceptions of buyers and sellers and their anticipation of the future. Historical data on a property or the market are relevant only insofar as they help interpret current market anticipation." 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st dam of July 2000 . Ra Coleman Associates Page 14 r INTROPOLOCY COMPETITION "The concept of competition is related to the principle of supply and demand. Competition between buyers or tenants represents the interactive efforts of two or more potential purchasers or tenants to make a sale or secure a lease. Between sellers or landlords, competition represents the interactive efforts of two or more potential sellers or landlords to effect a sale or lease. Competition is fundamental to the dynamics of supply and demand in a free enterprise,profit-maximizing, economic system." i Stir; r "The principle of substitution states that when several similar or commensurate commodities, goods, or services are available, the one with the lowest price attracts the greatest demand and widest distribution. This principle assumes rational,prudent market behavior with no undue cost to delay. According to the principle,a buyer would not pay more for one property than for another that was equally desirable. "Property values tend to be set by the cost of acquiring an equally desirable substitute property. The principle of substitution recognizes that buyers and sellers of real property have other options, i.e., other properties are available for similar uses. The substitution of one property for another may be considered in terms of use,structural design,or earnings. The cost of acquisition may be the cost to purchase a similar site and construct a building of equivalent utility,assuming no undue cost due to delay;this is the basis of the cost approach. On the other hand,the cost of acquisition may be the price of acquiring an existing property of equal utility, again assuming no undue cost to delay; this is the basis of the sales comparison approach. "The principle of substitution is equally applicable to properties such as houses that are purchased for amenity-producing attributes and properties purchased for their income-producing capabilities. Residential properties may be purchased for their excellence of design,quality of workmanship,or superior construction materials. In regard to income-producing property, substitution refers to alternative investment properties that produce equivalent investment returns with equivalent risk. The limits of property prices,rents,and rates tend to be set by the prevailing prices,rents and rates of equally desirable substitutes. The principle of substitution is fundamental to all three traditional approaches to value—cost,sales comparison,and income capitalization." RT11N1 COST "Opportunity cost is the cost of options foregone or opportunities not chosen. An investor who selects one type of investment forgoes the opportunity to invest in other types of available investments. A well-informed investor will select an investment that seems likely to provide the highest rate of return at the lowest level of risk. The illiquidity the investor endures over the term of the investment poses a potential opportunity cost if alternative investments at comparable levels of risk outperform the investment chosen." BALANCE "The principle of balance holds that real property value is created and sustained when contrasting,opposing,or interacting elements are in a state of equilibrium. This principle applies to relationships among various property components as well as the relationship between the costs of production and the property's productivity. Labor,capital,coordination,and land are the agents of production,but for most real estate the critical combination is the land and the improvements. The point of economic balance is achieved when the combination of land and improvements is optimal—i.e.,when no marginal benefit or utility is achieved by adding another unit of capital. The law of increasing returns holds that larger amounts of the agents of production produce greater net income up to a certain point. At this point,the point of decreasing returns,the 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 15 `mac iIET� I�� s maximum value is developed. Any additional expenditure will not produce a return commensurate with the additional investment,according to the law of decreasing returns. This concept is also known as the principle of diminishing marginal productivity or law of diminishing returns." _ rrrRIBUrlori "The concept of contribution states that the value of a particular component is measured in terms of its contribution to the value of the whole property, or as the amount that its absence would detract from the value of the whole. The cost of an item does not necessarily equal its value. "Thus, in some cases, a property's market value may not increase even though the real estate has undergone alteration,modification,or rehabilitation. The existing improvements may not reflect a proper balance for the total property. Especially in areas of rapid transition, a property's present use may underutilize the land. Nevertheless, an existing, less optimal use, called an interim use, will continue until it is economically feasible for a developer to absorb the costs of converting the property by razing or rehabilitating the existing improvements." SURPLUS PRODUCTIVITY "Surplus productivity is the net income that remains after the costs of various agents of production have been paid. The classical economists identified the surplus with land rent, suggesting that it tended to fix land value. Traditionally, the concept of surplus productivity has provided the basis for the residual concept of land returns and residual valuation techniques. Some twentieth-century economists argue that surplus productivity should be ascribed to coordination—i.e., the entrepreneurship required to combine the other agents of production in a complete real estate product." CONFORMITY "Conformity is the appraisal principle that holds that real property value is created and sustained when the characteristics of a property conform to the demands of the market. The styles and uses of the properties in an area may conform for several reasons, including economic pressures; the shared preferences of owners for certain types of structures, amenities, and services;and the enforcement of uniform standards by means of zoning." EXTERNALITIES "The principle of externalities states that the economies outside a property have a positive effect on its value, while diseconomies outside a property have a negative effect on its value. When external economies affect a great number of people,the product or service is often provided by government." In arriving at a final value estimate for real property,an arduous and systematic process is undertaken. This process,as detailed in The Appraisal of Real Estate,Tenth Edition,is set forth below. "The valuation process begins when an appraiser identifies the appraisal problem and ends when he or she reports a conclusion to the client. "Each real property is unique,and many different types of value can be estimated for a single property. The most common appraisal assignment is performed to estimate market value;the valuation process contains all the steps appropriate to this type of assignment. The model also provides the framework for estimating any other defined value. Furthermore, evaluation assignments often call for value estimates,which are derived through application of the valuation process. "The valuation process is accomplished through specific steps; the number of steps followed depends on the nature of the appraisal assignment and the data available. The model indicates a pattern that can be used in any appraisal assignment to perfo&in market research and data analysis,to apply appraisal techniques,and to integrate the results of these activities into an estimate of defined value. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 16 IoE1i�Lu'ULv'LI "Research begins after the appraisal problem has been defined. The analysis of data relevant to the problem starts with an investigation of trends observed at all market levels—international,national,regional,community,and neighborhood. This examination will help the appraiser understand the interrelationships among the principles, forces,and factors that affect real property value in the specific area. It also provides raw data from which to extract quantitative information and other evidence of market trends such as positive or negative percentage changes in property value over a number of years,the population movement into an area,and the number of employment opportunities and their effect on the purchasing power of potential property users. These data can be analyzed and employed to estimate a defined value. "Traditionally, appraisal techniques are the specific procedures within the three approaches that are applied to derive indications of real property value. Other procedures, such as the use of inferential statistics and economic models also contribute to appraisals. One or more approaches to value may be used depending on their applicability to the particular appraisal assignment." APPROACHES APPLICABLE TO THIS APPRAISAL In the following pages, the report will be segregated into six major categories. The first section covers general considerations,such as Region,City and Neighborhood Data,description of site and improvements,Highest and Best Use, and Competition. The Second Section will deal with the land analysis and arrives at an estimate of land value. This section is then followed by the three (3) approaches to value, the Cost Approach, Sales Comparison Approach, and the Income Approach. In the last section,the estimates of value are then correlated and reconciled in the Final Reconciliation Section at the end of the report,just preceding the Final Value Estimate. MARKET RENT Market Rent is defined by The Dictionary of Real Estate Appraisal as "the rental income that a property would most probably command in the open market." 111111 OWNERSHIP RIGHTS The holding of rights or interest in real estate is referred to as ownership rights. As defined by The Appraisal of Real Estate, Tenth Edition,the following are definitions of ownership interest applicable to our investigation. TEE SIMPLE ESTATE This bundle of ownership rights refer to the"absolute ownership unencumbered by any other interest or estate,subject only to the limitations imposed by governmental powers of taxation,eminent domain,police power,and escheat." LEASED FEE ESTATE The leased fee interest refers to"an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others;the rights of lessor or the leased fee owner and leased fee are specified by contract terms contained within the lease." 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 17 MARKET STUDIES Market studies are macroeconomic studies that relate to supply and demand,demographics,pricing,and construction and absorption trends. FEASIBILITY STUDIES Feasibility studies test the ability of given investments alternatives to meet explicit objectives(e.g. cash flow expectations) by analyzing all contributing and limiting factors and determining which combination(s) meet the investors criteria. Feasibility studies begin with a highest and best use determination and investment scenario. USE OF THE APPRAISAiii The use of this appraisal is understood to be for decision-making purposes of the client in association with a potential development of the property. The development of this appraisal entailed the use of the complete appraisal process as defined by the Uniform Standards of Professional Appraisal Practice. This means that no departures from Standard 1 were invoked. Cost are equal." PROPERTY RIGHTS APPRAISED The property rights appraised in this assignment are the fee simple estates,"As Is"and"As Constructed&As Stabilized." APPRAISAL DEVELOPMENT AND REPORTING PROCESS This report has been prepared in compliance with the following: Uniform Standards of Professional Appraisal Practice, promulgated by the Appraisal Standards Board of the Appraisal Foundation, as set forth in 12 C.F.R.Part 1608; The Code of Professional Ethics of the Appraisal Institute. The value set forth herein was estimated after application and analysis by all three approaches to value Le.;Cost Approach, Income Approach, Sales Comparison Approach—Land only,for an estimate of land as though vacant(to be used in conjunction with the Cost Approach)and Sales Comparison Approach— Improved Property. This appraisal included an inspection of the subject of this report and comparable sales, and an analysis of the surrounding neighborhood with recognition of existing and future trends. Market data, including sales and lease information on comparable properties, were obtained from sources believed to be reliable. Personal property was not included in the valuation process and in the final value estimate. This appraisal report details all pertinent data, descriptions, and discussions germane to the appraisal of the subject of this report. The development of this appraisal entailed the use of the complete appraisal process, as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). This means that no departures from Standard 1 were invoked A copy of this report and the data included herein has been retained in our files. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 18 g4A( mARKETING TimE c. r. y k MARKETING TIME The major attributes of the subject neighborhood appear to be its excellent access and location. I have talked with commercial real estate brokers in the area and they reveal most properties that are listed for a reasonable amount will sell within one year. In my market study, I have detected that the market is doing well at this time and is showing signs of progress since the recession began in approximately the mid 198O's. The marketing time is one year. DATE OF THE APPRAISAL REPORT The writing of this appraisal report was completed on July 28, 2000 EFFECTIVE DATE OF THE APPRAISAL The descriptions and analyses, and conclusions of this report for the subject property are applicable as of the effective date of June 21, 2000 for"As Is"Market Value. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 i y Ray Coleman Associates Page 19 HEtear 0 ST® ? Ownership history of subject property. According to information obtained from the Galveston County Appraisal District the owner of the subject property is Hale Associates, 11823 Wilcrest Dr., Houston, 1% 77031. No record of date of purchase is available. The property is currently listed and we also understand that the property is currently under contract for $36,000. We are unaware of the listing price. PURPOSE OF APPRAISAL The purpose of the appraisal is to estimate the"As Is"Market Value of the Fee simple estate. COMPLETE APPRAISAL As defined by the Appraisal Standards Board of the Appraisal Foundation, a Complete Appraisal is defined as follows: "The act or process of estimating value or an estimate of value performed without invoking the Departure Provision. " SUMMARY APPRAISAL REPORT As defined by the Appraisal Standards Board of the Appraisal Foundation, a Summary Appraisal Report is defined as follows: "A written report prepared under standards Rule 2-2(b) of a Complete or Limited Appraisal performed under Standard 1. " 1 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates 1 Page 20 BaGAt PER THE GALVESTON COUNTY APPRAISAL DISTRICT THE LEGAL DESCRIPTION IS AS FOLLOWS: 0.277 ACRES OUT OF FOREST BEND.SECTION 3, TRACT D OF RESERVE G, BLOCE 19 17160 BLACKHAWK BOULEVARD, FRIENDSWOOD, TEXAS 77546 LATITUDE 29.5284-LONGITUDE 95.2001 KEY MAP: 657B, CENSUS TRACT: 1202.00 GALVESTON COUNTY (167), TEXAS (48), ZIP 77566 1 1 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates 1 Page 21 . _ ,, ._ .. “ . AREA Amysis 1 r ° ri _ -lior AREA ANALYSIS The subject is located within the Houston Consolidated Metropolitan Statistical Area (CMSA), which is composed of a seven-county area consisting of Harris, Montgomery, Galveston, Fort Bend, Brazoria, Waller, and Liberty Counties. Houston is the nation's fourth largest city with a metropolitan area population of over three million people. Houston emerged as a major corporate center during the 1960's and 1970's when more than 200 corporations moved their headquarters here. Thirty-four of the thirty-five major energy and petroleum corporations are headquartered in the city of Houston. As a result, the city has emerged as the "energy capital" of the world. « 44, if At 8,778 square miles, the Greater Houston Area covers more ground ; :f= ,. _ ON . ./ ,, ,‘( than any other major city in America. In fact, it is as big as the entire 4 -'�\`` '� ;. _ _ countries of Israel and El Salvador. ` ` .,,� �' 1� _ter,. S I"7I11I Most of the communities here spotlight the beauty of Houston, made possible by its proximity to several waterways. Called the Bayou City, Houston is home to more than 10 of these winding waterways that not only irrigate the lush landscape, but also serve as green spaces for fitness and nature enthusiasts. Several lakes and bays also provide pleasant scenes of fun in the sun as well as a feast for the eyes. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 t Ray Coleman Associates Page 22 .c"14twp*i i p MAMMAS Beyond beauty, it's the business opportunities provided by Houston's waterways that are the primary reasons for the city's existence. The Port of Houston still thrives today, thanks to the dredging of Buffalo Bayou to form the famous Houston Ship Channel. The port area is just one of the many business districts that have branched out from the inner city. Other areas such as the Uptown/Galleria area, Greenway Plaza, Interstate 10's Energy Corridor and, of course, the Texas Medical Center, are booming with business development and shortening the commute for many Houston residents. But public transportation and Houston's excellent freeway system can still connect Houston's 3 million-plus people to our revitalized downtown business district. • Houston's strong economy has brought with it a diverse population, which has worked to enhance our high standards of excellence in two critical I! areas — education and worship. The Houston area consistently leads all of " "'- Texas in the number of exemplary schools, and because of our cultural diversity, the Houston Independent School District —just one of the many districts in the area — serves students who speak dozens of languages. The international city is also home to 45 religions, from African Methodist to Zoroastrian. • Houston is home to the Texas Medical Center, the largest and one of the most successful medical care and research facilities in the world? • The first word spoken from the moon on July 20, 1969, was the name of this city, when Neil Armstrong reported, "Houston, Tranquillity Base here. The Eagle has landed." • The Port Houston is the second largest port in the United States in total tonnage and first in foreign waterborne commerce? 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend,Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 23 • Houston was ranked as the third most livable city in the country by Places Rated Almanac in 1996 and 1997. • Houston is second only to New York's Broadway theater district for number of theater seats (nearly 10,000) in a concentrated downtown area. • Six Texas Medical Center institutions were ranked in the 1998 U.S. News and World Report survey of the top hospitals in the country. • Houston is an emerging center of television and major movie production-an industry that pumped more than $100 million into Houston's economy the last two years. • Houston is the only large city in the nation to register a decline in traffic congestion in 10 of the past 11 years. • Sixty primary languages-other than English-are spoken in the homes of Houston Independent School District students. • Harris County represents 1.2 percent of the U.S. population, yet Houstonians contribute 11.5 percent of the country's volunteer hours. • Houston is the fourth largest city in the United States with more than 3.8 million resident in the PMSA. The Houston story, however, is more than numbers. It is a story of entrepreneurs and visions. The same drive that spurred the development of the energy industry-and is overseeing its transformation today-has given rise to global companies that are leading the development of technology and services in a variety of industries-computers, software, construction, travel, insurance, food. The city in corporate headquarters for 15 companies listed on the 1998 Fortune 500. And, 11 of that magazine's 100 fastest growing companies are based here. The growth, development and success of Houston is based on education. Houstonians are more likely to have completed four years of college than the rest of the adult U.S. population. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 24 In addition, more than 240,000 students are enrolled in Houston-area colleges and universities such as Rice University, University of Houston, University of St. Thomas, Baylor College of Medicine and The University of Texas Health Science Center. reasons for the city's existence. The Port of Houston still thrives today, thanks to the dredging of Buffalo Bayou to form the famous Houston Ship Channel. The port area is just one of the many business districts that have branched out from the inner city. Other areas such as the Uptown/Galleria area, Greenway Plaza, Interstate 10's Energy Corridor and, of course, the Texas Medical Center, are booming with business development and shortening the commute for many Houston residents. But public transportation and Houston's excellent freeway system can still connect Houston's 3 million-plus people to our revitalized downtown business district. i..-- Houston's strong economy has brought with it a diverse population, which , has worked to enhance our high standards of excellence in two critical -- fIto areas — education and worship. The Houston area consistently leads all of Texas in the number of exemplary schools, and because of our cultural diversity, the Houston Independent School District —just one of the many districts in the area — serves students who speak dozens of languages. The international city is also home to 45 religions, from African Methodist to Zoroastrian. • Houston is home to the Texas Medical Center, the largest and one of the most successful medical care and research facilities in the world? • The first word spoken from the moon on July 20, 1969, was the name of this city, when Neil Armstrong reported, "Houston, Tranquility Base here. The Eagle has landed." 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 _$36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 25 tort'',Wr • MAMAS • The Port Houston is the second largest port in the United States in total tonnage and first in foreign waterborne commerce? • Houston was ranked as the third most livable city in the country by Places Rated Almanac in 1996 and 1997. • Houston is second only to New York's Broadway theater district for number of theater seats (nearly 10,000) in a concentrated downtown area. • Six Texas Medical Center institutions were ranked in the 1998 U.S. News and World Report survey of the top hospitals in the country. • Houston is an emerging center of television and major movie production-an industry that pumped more than $100 million into Houston's economy the last two years. • Houston is the only large city in the nation to register a decline in traffic congestion in 10 of the past 11 years. • Sixty primary languages-other than English-are spoken in the homes of Houston Independent School District students. • Harris County represents 1.2 percent of the U.S. population, yet Houstonians contribute 11.5 percent of the country's volunteer hours. • Houston is the fourth largest city in the United States with more than 3.8 million resident in the PMSA. The Houston story, however, is more than numbers. It is a story of entrepreneurs and visions. The same drive that spurred the development of the energy industry-and is overseeing its transformation today-has given rise to global companies that are leading the development of technology and services in a variety of industries-computers, software, construction, travel, insurance, food. The city in corporate headquarters for 15 companies listed on the 1998 Fortune 500. And, 11 of that magazine's 100 fastest growing companies are based here. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st dam of July 2000 by Ray Coleman Associates 1 Page 26 WA The growth, development and success of Houston is based on education. Houstonians are more likely to have completed four years of college than the rest of the adult U.S. population. In addition, more than 240,000 students are enrolled in Houston-area colleges and universities such as Rice University, University of Houston, University of St. Thomas, Baylor College of Medicine and The University of Texas Health Science Center. Few cities have the variety of arts and entertainment that Houston does. For example, Houston has the third largest population of working artists in the country. Of its more than 200 cultural, visual and performing arts organizations, 90-plus are devoted to multicultural and minority arts. It is one of the few U.S. cities with permanent ballet, opera, symphony and theater companies performing year-round. With mild weather 300 days a year, Houston's climate is ideal for outdoor recreation. Houston also is well known for its 32,000 acres of parks, public green space and open water, more than 100 golf courses, and countless tennis courts and swimming pools. Houston's Clear Lake area has the third largest fleet of pleasure boats in the United States, surpassed only by Los Angeles and the Chesapeake Bay area. • The 17-block theater district attracts 2 million people annually and is second in size only to Broadway. The complex of theaters, music halls and performing arts arenas plays host to over 800 performances per year. • The downtown workforce totals 137,000 people. • Amid the skyscrapers and office buildings there are 53 parks and public spaces. • Over 20,000 students attend classes downtown. • In the past six years total crime has decreased 50.1 percent in downtown. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st dam of July 2000 by Ray Coleman Associates Page 27 AMNION iR./- • In January 1998, 95 percent of downtown's 25 million square feet of A 1 itoicht.,3 Class A office space was leased. NMtii•i(4i �l1i1��° :. t3 The Houston Astros will begin play in downtown's Enron Field in April 2000 There are 3,500 businesses downtown. Approximately 23 percent are service related, 33 percent provide financial or professional services, 17 percent are related to the petroleum industry, and 27 percent are classified as other. With mild weather 300 days a year, Houston's climate is ideal for outdoor recreation. Houston also is well known for its 32,000 acres of parks, public green space and open water, more than 100 golf courses, and countless tennis courts and swimming pools. Houston's Clear Lake area has the third largest fleet of pleasure boats in the United States, surpassed only by Los Angeles and the Chesapeake Bay area While Houston has long been recognized as the energy capital of the world, it is the energy of its diverse population, vibrant business climate and quality of life that make it unique. It is an international city. It is a leader in the arts, education and healthcare. It is a city that continues to take the best of its past and build on the future. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates 1 Page 28 "" it MANAUS Houston is the nation's fourth largest city with a metropolitan area population of over three million people. Houston emerged as a major corporate center during the 1960's and 1970's when more than 200 corporations moved their headquarters here. According to the Texas Economy Gulf Coast Regional Outlook, Fortune magazine ranks Houston in the top 10 cities in the nation for doing business - for two consecutive years. Furthermore, Houston is home to 15 Fortune 500 companies and is an international finance center with more than 60 foreign banks or international banking departments. Houston also retains its "energy capital" status by continuing to serve as the headquarters of many oil and gas extraction and production companies. In the past, oil and gas extraction earnings for Houston in the past were the highest of any area in the U.S., more than three times higher than earnings in Dallas/Fort Worth, which was in second place. In addition, Houston is now an academic, scientific research, international trade, corporate and medical center for the South and Southwest. One of the tallest suburban buildings in Texas is being constructed in The Woodlands for Anadarko Petroleum. The 30-story, 800,000-square-foot building will be finished in 2002. The Gulfgate area — near the Gulf Freeway and Loop 610 — is set for a rebound. Ed Wulfe will start construction soon on two 30,000-square-foot strip centers, the first part of his redevelopment of Gulfgate shopping center. About a mile to the west of Gulfgate, Auchan will open a 175,000-square- foot store on the South Loop. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 29 MAWS Enron Corp. started construction on a new office tower in downtown, the first to be build in more than a decade. The 40 story, 1.2 million-square-foot building will be located at the corner of Smith and Bell. High-rise residential condominium towers made a comeback with interfin Corp. constructing the Villa d' Este project in the Uptown area. Just west of downtown, Hanover Co recently purchased a parcel of land on Sabine Street near the Fonde Recreation Center for a residential project. The Galleria, which was sold to Urban Shopping Centers for $550 million, may be expanded. Nordstrom's is expected to sign on as a tenant for the new section which will be located south of West Alabama. Cornerstone Real Estate Advisors purchased the Tractebel Building, an 18-story tower on the West Loop, for about $37 million, or $108 per square foot. The deal, completed in September, was viewed as confirmation that institutional investors had regained an interest in Houston. Cornerstone is part of Massachusetts Mutual Life. Construction begain on Shadow Creek Ranch, a 3,300-acre master-planned community near Pearland. The project — located off Texas 288 near FM 2234 — will have 12,000 homes, 4 million square feet of commercial space and possibly a regional mall, when completed. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 30 MANAUS Downtown's transformation continued with a lot of new restaurants opening and residential redevelopments. Loft developer Randall Davis bought the vacant 220 Main building for transformation into an apartment building or a hotel. In another deal, JPF Holdings bought the 22- story Commerce Building at the corner of Main and Walker for a proposed redevelopment. The new Enron Field baseball field downtown has generated a lot of real estate activity. Trammell Crow announced plans to building Ballpark Place, a mixed used office, retail and residential project to be build near the park's left field. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 31 AP1&MUM POPULATION The most recent estimate of population for the Houston CMSA was in 1995 at 4,220,900 people. According to the 1990 census,the Houston CMSA had a population of roughly 3.6 million,and Houston was the fourth largest city in the nation. From 1970 to 1980, the population growth of Houston averaged 3.6 percent per year, which was more than triple the national average. From 1980 to 1990,growth slowed due to poor economic conditions of the mid-1980's. Despite the economic downturn of the mid-1980's, Houston's seven-county Consolidated Statistical Metropolitan Area is projected to increase by an additional 1.48 million people through the year 2010, according to a task force working for the Houston- Galveston Area Council(HGAC). Employment in the area encompassing Harris,Fort Bend,Brazoria,Galveston,Liberty. Montgomery, and Waller Counties, is projected to increase from 1.5 million employed in 1980 to 2.4 million in 2010,an increase of more than 60%. Population growth in the 1990 to 2010 time period is expected to be moderate, approximately 2% per year for population. According to the Bureau of Labor Statistics, annual employment growth in 1994 through 1996 was 2.7%, 3.1%, and 2.4%, respectively, while the growth from December 1997 to December 1998 was 2.5%. Employment growth is expected to continue at the 2% to 3% level over the next few years. The HGAC population projections are illustrated in the following table. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 32 • I r , AREA ANALYSIS JW POPULATION PROJECTIONS Forecast % Increase County Actual 1990 2000 2010 1990-2010 Brazoria 198,178 235,821 282,384 42.5% Fort Bend 206,120 281,270 346,214 68.0% Galveston 224,169 264,120 313,533 40.0% Harris 2,712,765 3,160,005 3,716,947 37.0% Liberty 61,186 72,890 86,809 41.9% Montgomery 166,051 218,671 290,043 74.7% Waller 25,269 30,442 40,851 61.7% CMSA Total 3,593,738 4,263,219 1 5,076,781 41.3% I 1 POPULATION PROJECTIONS 6,000,000 5,000,000 OO 4,000,000 f. 1 3,000,000 41 a 2,000,000 1,000,000 1L' IJ, 4. Projected 2000 8 vC - Actual 1990 Y l vs tz O '- T CaW f0 N N /0 L 8 -J rn I- f O COUNTY U 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 33 W Accordingly. Houston's annual 1998 population growth considerably exceeded the national average, according to data released by New York-based REIS Reports. Inc. Averaging 1.8%over the past five years, the annual population growth rate for Houston increased steadily to the 1998 figure of 2.1%. The report additionally reveals that Houston's 1998 average household income of$84,287 eclipsed the weighted average of$81,861 for the top 50 U.S. metro areas. TRANSPORTATION NETWORKS Local transportation is heavily dependent on t private vehicles. The metropolitan area enjoys relatively good traffic flow even though rapid A MOM development and new growth patterns have stretched the capacity to expand and improve t roadway systems. Major short and long range tiv w a roadway improvement projects are in progress ma • through the area. The principal thoroughfares servicing the Houston metropolitan area include the Sam Houston Tollway/Beltway 8, Interstate Highway 610 (Loop 610), U.S. Highway 59, Interstate Highway 45, Interstate Highway 10, the Hardy Toll Road, and the Grand Parkway. The Sam Houston Tollway consists of 6 main lanes separated by a concrete barrier,with an additional 3-lane frontage road (Beltway 8) system. The first phase of construction began in early 1985 at U.S. 59 and the Tollway was completed to Interstate Highway 10. Phase 2, completed in July 1989. extended the Tollway to the Northwest Freeway. Most recently, the Sam Houston Tollway was extended to where it terminates at its intersection with Interstate Highway 45 North, becoming the North Belt, a freeway. When completed, the Sam Houston Tollway/Beltway 8 will encircle the city limits of Houston. This Tollway/freeway system and its intersections has been the site of some of the most important development corridors in the Harris County area, and experienced a significant amount of development in the form of office,retail,light industrial, and apartment development during the early 1980's. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 34 ' C t.ti iMMUS The 610 Loop completely encircles Houston's Central Business District at a radius of 5 to 6 miles. The 610 South Loop West which extends in a north/south direction on the western portion of the city is one of Houston's most established areas for office,retail, and hotel development, second only to the Houston Central Business District. U.S. Highway 59, southwest of Loop 610, is known as the Southwest Freeway. This section was recently widened and improved. The Southwest Freeway is 8 to 10 lanes wide with a High Occupancy Vehicle center lane. Widening of the section of the Southwest Freeway from Loop 610 to Beltway 8 was completed in 1992. The section from Beltway 8 to West Airport is currently underway, with completion expected in 1996. Northeast of the Loop 610,Highway 59 is known as the Eastex Freeway. This section of freeway,from Loop 610 out to Beltway 8 is currently under construction for similar widening and improving. Interstate Highway 45 is a 6- to 8-lane controlled access freeway that principally serves to connect the Houston Central Business District with areas to the north(i.e. Conroe, Huntsville, Dallas, etc.)and south(i.e. Clear Lake, Galveston). Due to Interstate Highway 45's proximity to Houston's Intercontinental Airport and its terminus in the City of Galveston,as well as its intersection with most major east/west thoroughfares, Interstate Highway 45 is considered one of Houston's principal highways. Interstate Highway 10 is a 6-to 8-lane controlled access freeway that extends east and west from just north of the Houston Central Business District. East of its intersection with Interstate Highway 45, the development trend is toward manufacturing and petroleum production. This freeway extends east in proximity to the Houston Ship Channel, which connects to Galveston Bay and allows shipping access to inland areas. Interstate Highway 10 continues east to Beaumont and further east to Florida. West of the Loop 610 intersection, development has tended toward primarily retail,until west of the Sam Houston Tollway,where office development becomes the primary land use. Interstate Highway 10,between the Sam Houston Tollway and Highway 6, has become known as the "energy corridor", as most major oil companies have located their main offices in this location. This freeway continues to the west, connecting with San Antonio before continuing out of the state. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 35 AREA ANALYSIS The Hardy Toll Road is a controlled access thoroughfare that provides access to the northern portion of the city of Houston. It is a 6-lane concrete paved, lighted, thoroughfare that begins at the Loop 610 and continues north to the Harris County line where it merges with Interstate Highway 45. The Hardy Toll Road was planned as a reliever highway for Interstate Highway 45 between the growing communities north of the Houston Central Business District. The Hardy Toll Road improves accessibility to George Bush Houston Intercontinental Airport,which is located on the East Side of this roadway. MANUFACTURING Manufacturing accounts for one of every ten employees in the Houston-Galveston area, with the majority involved in the energy industry. The majority of the factories located in the Houston area are related to off-load equipment, refined petroleum products, or petrochemicals. a Houston ranks first in the nation in petroleum refining, and is typically known as the world's petroleum refining capital. Houston is also the center of a continually expanding network of product pipelines which connects some 200 chemical plants and refineries. It is anticipated that Houston will continue to be the nation's energy capital into the near future. The mid 1980's collapse of the petroleum and drilling industries was due primarily to a sharp decline in the price of oil. OIL Drilling rig activity is an important leading economic indicator for the energy dependent - Houston area. The rise or fall in the number of active exploratory drilling rigs tends to indicate trends in near-future employment in the energy industry. According to a recent survey of active drilling rigs by Baker Hughes. U.S. drilling rig activity, as of October 29, - r• 1999. included 761 rigs,up from 708 rigs a year ago. The State of Texas has seen its number of working rigs rise to 293 rigs,up 51 rigs from 242 of a year ago. and up from 276 rigs on �. October 22, 1999. Offshore rig utilization rate in the Gulf of Mexico was 75.8 percent,down +�- from 77.8 percent a year earlier. - 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Racy Coleman Associates Page 36 AltitANALYSIS West Texas Intermediate(the benchmark of U. S. Crude)has recently been selling in the$22+per barrel range, below the 1985 levels of$32 per barrel but up from the$14+of a year ago. Natural gas,as of October 29, 1999,sold for$2.961 per thousand cubic feet, up$0.686 from the $2.275 of a year ago. Although the relatively low crude and natural gas prices affect Houston's important energy sector,it is a positive sign that the prices are rising. Also. Houston's overall economy is less energy dependent on oil prices than it was in the 1980s. Currently, other major influences on the Houston economy include the U. S. economy and the Asian trade markets. EMPLOYMENT The September, 1999, Texas Labor Market Information Department states nonagricultural employment remained essentially unchanged in September at 2,050,200,an increase of 9,600 jobs over August employment levels. Government added 13,100 jobs to their educational units, giving a rise of 0.5%over the month while Construction increased by 300 jobs. Interestingly, Construction had the highest rate of growth over the last year, 5.5%, or an additional 7,700 more jobs since September 1998. Business Services and Health Services were again up over the month, 1,000 and 700 respectively. For the year, r Business Services gained the most of the major groups with 7,700 t , ! -14 , jobs, or a 4.5% increase from September 1998. In September, employment in finance, insurance and real estate virtually remained unchanged. Manufacturing lost 1,000 jobs in September, also down 9,100 jobs from the most recent high of September, 1998. Fabricated metal products,industrial machinery,and chemical and allied products also continued to lose. Food and kindred products decreased by 200 jobs, a seasonal decline after the summer processing season. Other September losses include: Mining,down 300 jobs over the month and down 6,600 jobs from its most recent high in December 1997;Food Producing Services,down 500 jobs;Retail,down 400 jobs;Eating and Drinking establishments,down 1,100 jobs;and Transportation and Public Utilities,down 100 jobs. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 37 ,0414, AREA ANALYSIS The National Real Estate Index, Vol 53, reports that Continental Airlines has jumped past several other companies to become the area's largest private sector employer(14,300 workers),with Kroger second(14,100 workers). Halliburton has 13,400 workers on its local payroll. Compaq employs 13,000 people, while Memorial/Hermann Healthcare System has approximately 10,000 employees. The following chart summarizes employment by trade: September 1999 Non-.agricultural Employed in (000's) Industry Houston PMSA Percent Manufacturing 217.8 10.85% Mining 67.6 3.37% Construction 138.4 6.90% Trans.,Comm.,Utilities 142.6 7.11% Trade 465.8 23.21% Fin.,Ins.,Real Estate 108.1 5.39% Services&Miscellaneous 610.2 30.40% Government 256.5 12.78% Total 2,007.0 100.00% Govemment Manufacturing 13% 11% Mining 4% Construction 7% �-� Trans.,Comm.,Utilities ■� 7% Services& Miscellaneous 30% Trade Fin.,Ins.,Real Estate 23% 5% 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 38 MSA UNEMPLOYMENT The national unemployment rate was 4.1%in September, 1999, lower than the 4.2%in August, 1999,and lower than the 4.4%in September, 1998. According to the Texas Workforce Commission statistics,the Texas adjusted unemployment rate was 4.5% in September, 1999, down from 4.8% a year earlier, but up from the August figure of 4.4%. The Houston Metropolitan Area unemployment rate for September, 1999 was 4.6%, the same as the August 1999 rate,but up from 4.0% in September, 1998. Joel Wagher,labor market analyst for the Texas Labor Commission,said that although"State and national employment has dropped, Houston, being involved in the oil and gas industry, means we have lost quite a few jobs in Mining and Manufacturing." Manufacturing lost 9,100 jobs since September 1998, and Mining dropped 5,900 jobs in the last 12 months. Mining and Manufacturing affect Houston's economy all around,even though more jobs are being added. The steady softening of the Houston economy in the last 12 months can be blamed on those two areas, said Bill Gilmer, senior economist at the Houston branch of the Federal Reserve Bank of Dallas. We have seen a steady weakening because substandard oil prices this year and last, forcing many companies to cancel orders for industrial equipment and machinery used in drilling. Also,Houston was hit by the effects of the recession that swept through Asia during the same period. Barton Smith, professor of economics at the University of Houston, believes there is a positive side emerging from the energy heap. "The good news is most of the lost jobs in energy are past us. They occurred last spring and in the early part of the summer. Since last summer,we've seen the energy economy in Houston stabilize." Others show an indication of optimism as well. Fina and BASF Corp are building a $900 million plant in Port Arthur for the production of ethylene and propylene. Texaco, in partnership with Marathon Oil, has announced plans for a $500 million tower to support production on a deep-water oil field in the Texas Gulf. Bayer Corporation plans to open a facility in the year 2000 to manufacture toluene dissocyanate at its Baytown complex,a facility worth$250 million. Hydralift,Inc. has broken ground for its 51,000 square-foot facility in the Interwood Business Park and should double the local staff by the time the plant opens. AmeriServe, one of America's largest food service distributors, plans to build a 146,000 square-foot facility in the Greenspoint Mall area in Houston, and will double its local staff. Igloo is building in northwest Houston, and United Stationers will move its local operations into a new 240,000 square-foot distribution center in the Northwest Place Business Park. Energy Metals, Inc. has purchased 20 acres in Aberdeen Business Park for construction of a 100,000 square-foot facility. This will be the first custom-built domestic facility for the Scottish-based firm. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates 1 Page 39 MAMMON In short, the Greater Houston Partnership reports that it has helped companies occupy over two million square feet of distribution space in the past 24 months, and construction is underway for more facilities. Thus,the temporary slide in the oil business apparently has not hurt the Houston economy dramatically,but simply diversified the local economy more and opened new doors for future jobs. OTHER CATEGORIES Houston also has numerous businesses involved in international trade and business, retail sales, marine sciences, and research and development. The city has several major universities including the University of Houston and Rice University. Houston is the location of the world famous Texas Medical Center(TMC)which was conceived as a means to coordinate health education,health research,and patient care. The Johnson Space Center is located southeast of downtown Houston and is responsible for the flight operations of the space shuttle. TEXAS MEDICAL CENTER As the largest employer in Houston (approximately 52,000 employees), and the largest medical center in the world, the Texas Medical Center has an annual operating budget of $4.25 billion. The medical center has a daily population of 110,000, including - w, i..- employees, patients and students. The complex consists of 85 buildings and 41 nonprofit _ - t institutions, including __ _ more than a dozen w _ A44111F f � hospitals. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21 st day of July 2000 by Ray Coleman Associates Page 40 • BIOTECHNOLOGY The commercialization of the research discoveries made at the center's medical schools and hospitals has led to the emergence of biotechnology utilizing the life sciences for business results, which could result in producing food as well as medicine. It ranges from the manufacture of artificial hearts, drugs, and diagnostic medical tests to the splitting and recombining of genetic material. The combined resources of Baylor, the University of Texas Health Science Center, and the M. D. Anderson Hospital and Tumor Institute has made the city a scientific and economic leader in the field of biotechnology. A survey conducted by Sommers & Associates projected that Houston's biomedical technology industry will double in size from 1996 to 1999, growing to more than$1.1 billion in total revenues. LYNDON B.JOHNSON SPACE CENTER AND RELATED DEVELOPMENTS -1" OHNSON SPACE CENTEF2 =21 _. . NASA r.. • • The Johnson Space Center is located southeast of downtown Houston and employs approximately 16.000 people. There are only eleven NASA space centers in the United States, and the Johnson Space Center has been selected to develop the majority of the $8 billion Space Station project. JSC is the flight control center and the training center for NASA Space Shuttle astronauts,which gives the Houston area an advantage for space commercialization development. In % ,ter �; an effort to reduce the national deficit, the federal ! ; government in 1995 decreased NASA's annual budget. •C♦ �� '' • • 1rAr Additionally, future downsizing appears possible for the complex. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 41 ANA ANALYSIS Space Center Houston, located adjacent to JSC, is a tourist attraction developed in conjunction with theme park designers from Walt Disney. This attraction, which opened to the public in October 1992, has experienced attendance figures substantially below initial projections. Although below expectations,the park has added jobs and revenue to the area. 1995 attendance was reported to be±450,000 persons. The owners of the attraction have recently made an effort to reorganize the project's debt structure. PORT OF HOUSTON s PORT OF HOUSTON AUTHORITY FACILITIES Tune IC Ltsw WAIF JACINTOPOflT TERMINAL NO 32 MINX TERMlIMAt BARROURS CUT • ELEVATOR RUtK RUTEfl1AlS CONTANIER HANOltI6 PLAIT • TERIRTMAI w00DRO11SE • • CARE • TERMRMAI. TERMINAL NLU S.ROUMES BAYPORT TERMINAL • The Port of Houston is a 25-mile-long complex of diversified public and private facilities,just a few hours' sailing time from the Gulf of Mexico. The Port Authority has eight public facilities on the banks of the channel: (1)The Turning Basin Terminal, located six miles from Houston's central business district, is lined with wharves, sheds and warehouses; (2) Barbours Cut Container Terminal,at the head of Galveston Bay,is the most modern intermodal facility on the Gulf;(3)The Bulk Materials Handling Plant,located between the Barbours Cut Terminal and the Turning Basin,handles all types of bulk commodities; (4) Woodhouse Terminal, located east of the Turning Basin, deals with break bulk and project cargo operations; 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend. Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 42 (5) The Houston Public Elevator at Woodhouse Terminal can handle approximately 6 million bushels and load about 120,000 bushels of grain per hour; (6)The Jacintoport Terminal, on the north side of the ship channel near Channelview, Texas, features cold storage warehousing and an automated facility for handling packaged goods; (7) Care Terminal, located on a 34-acre site, near Jacintoport Terminal has a 500-by-70 foot wharf that can accommodate loads of up to 1,000 pounds per square foot, 45,900 square feet of warehouse space, 3.000 feet of rail trackage. and 9.6 acres of paved marshaling area; and(8)Bayport, now a bulk liquids terminal, is slated to be a new post-panamax container terminal for Houston. Barbours Cut Terminal handles 80 percent of all the containerized cargo moving through Texas ports and more than half of the containers crossing the Gulf of Mexico. Each year,the economic impact to Texas from Barbours Cut is$800 million. The Port of Houston Authority has developed a conceptual master plan for the new fully interniodal terminal at Bayport. This plan includes seven container terminals as well as a cruise complex. Phase One of this construction will take four to six years. Work has also begun on deepening and widening the Houston Ship Channel.The five-year$508 million project will increase the depth of the Channel from 40 to 45 feet and the width from 400 to 530 feet. Because of Houston's location and the facilities offered by the Port. Houston serves as a gateway between interior U. S. markets and foreign countries throughout the world. Since the city is headquarters for many of the world's largest companies, almost every major U. S. energy company is represented in the city, and most foreign oil companies make Houston their U. S. base. More than 250 import/export companies operate in the area, and many of foreign governments are represented here. Each year over 6,400 vessels call at the port. More than 200 steamship lines offer service between Houston and 250 ports around the world. In addition, three (3) major railroads and more than 130 trucking companies connect the port to the continental United States, Canada and Mexico. More than 17 million people live within 300 miles of Houston, and approximately 60 million live with 700 miles. The Houston Ship Channel has been a catalyst for growth in Harris County since the first journey of a steamship up Buffalo Bayou in 1837. According to the Port of Houston mag line, the Port is estimated to generate almost$5.5 billion annually for the state and national economy,directly affects more than 53,000 jobs and indirectly affects an estimated 143,000 jobs. Tankers reported loading and discharging approximately 69.38 million tons of petroleum,petroleum products, industrial 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 43 MAIMS chemicals, and other cargo in 1997 (the most recent data available.) The January/February 1999 issue of the Port of Houston magazine states breakbulk cargo handled increased 32%in 1998 over 1997, container cargo went up 7%for the same period, and bulk cargo rose 12%in 1998. In summation, Houston's geographic location has proven to be one of its best assets,and the handled tonnage ranks the Port of Houston first among United States ports. AIRPORTS AND AIR SERVICE HOUSTON AIRPORT SYSTEM GEORG US INTERCONTINENTAL AIR►ORT/HOU STON W ILL'AM P. HOBBY AIR EL NiTO Flee 1\ Ill Houston Airport System is the nation's fourth largest airport system & the South Central United States' leading international passenger gateway. The Houston Airport System's location in the south central United States places it equidistant from the East and West Coasts, allowing easy access to the nation's business centers. Houston Intercontinental Airport's frequent air service and numerous direct and connecting flights place the world's major cities within a day's plane ride of Houston. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 Ray Coleman Associates Page 44 ARFAINALYSS Twenty-one airlines (12 domestic air carriers and 9 foreign air carriers)fly out of Houston, providing daily nonstop and direct service to 110 domestic and 34 international destinations,including the major cities of Europe and Central America. Three(3)primary airports provide air service for the Houston area: George Bush Houston Intercontinental Airport(IAH), north of Houston Central Business District(CBD), garners 70%of the system's total traffic while Hobby Airport(HOU), south of the CBD,accounts for 30%. Ellington Field(EFD), south of Hobby,is both a commercial airport and a center for aerospace development. • GEORGE BUSH ? - INTERCONTINENTAL AIRPORT HOUs 1 U:\'AMOK Sys I George Bush Houston Intercontinental Airport is the base of operations for 20 passenger airlines. The airport is 22 miles(30-45 minutes by car) north of the Central Business District. Business travelers can reach the airport by any of several routes: Interstate Highway 45,which passes IAH six miles to the west, U.S. 59 Highway, which passes four miles to the —__.____ •w immon east,the Hardy Toll which approaches the airport directly from the south, 1 and the Sam Houston Tollway which connects from the west. The Continental Airlines aircraft at IAH. following is a list of airlines serving IAH. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 45 rs,�,. MIA ANALYSIS Aeroexo Continental Aeromexico Continental Express Air Canada Delta Air France KLM Royal Dutch America West Lufthansa American Southwest Atlantic Southeast TACA Aviateca United British Airways US Air Cayman Airways Western Pacific Airfreight service is available from IAH to Europe, Asia and Latin America on a regular basis. Typical commodities air freighted through Houston include computers, computer equipment, construction equipment, electrical motors, livestock, machine parts, medical supplies,oil field equipment,printed matter,and produce. At the top of the following page is a list of carriers providing freight service to and from IAH. Aeromexpress DHL Worldwide Express Aero Pak Emery Worldwide Airborne Express Federal Express Air France Northwest Cargo Burlington Air Express Transcontinental Cargolux United Parcel Service 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 46 MA WON WILLIAM P. HOBBY AIRPORT ` : Flab FON AIRPOKT SyS I EM Seven(7)passenger airlines operate out of William P. Hobby Airport. Hobby is located seven miles(15-20 minutes by car) southeast of Houston's CBD. Travelers can reach Hobby via Interstate Highway 45 on the east and State Highway 35 (Telephone Road)on the west. Aerial Photo of New Hobby Airport Tower and Old Terminal (1999) 11110"- - 1110011 111 if—A. .•- . ri • /max �'� � .4• 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend. Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 47 i? tom_~ 1I AREA ANALYSIS The following is a list of airlines serving HOU. American Eagle Delta Atlantic Southeast Northwest Continental Express Southwest Trans World LLINGTOM FIELD HODS TUN AMP OR Sys 1 t:lo ' Ellington Field is 17 miles(20-30 minutes)south of the Central Business District. The Department of Defense transferred ownership of Ellington Field to the City of Houston on July 1, 1984. Before that,Ellington had served as a training base for pilots, bombardiers and maintenance crews during both World Wars and the Korean and Vietnam conflicts. Current airport users include the Texas Air National Guard, NASA, the United States Coast Guard, a United States Army Helicopter Battalion, Grumman Aerospace, Refractory Services, and Southwest Services. United Parcel Service has made Ellington its penetration point for service into Mexico. Continental N Express provides shuttle service to IAH. Martinaire also provides domestic service from Ellington. Access to Ellington Field is from State IiI0 16� Th, Highway 3 (Old Galveston Road), which connects to Interstate Highway 45(located one mile to the west)via several neighborhood traffic arteries. - Willy Walker At The Airshow 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 48 AREA ANALYSIS FORECLOSURES According to the Houston Economic News, a publication of the Greater Houston Partnership's Research Department, foreclosures during 1998 totaled 3,865, down from 4,551 in 1997. The number of foreclosures has declined significantly since reaching over 30,000 in 1987. An unusually high number of foreclosures occurred in the late 1980's as a result of the numerous failed Savings&Loan institutions throughout the city. However,with the recovery and growth experienced over the past few years in the Houston area,foreclosure activity has been low. The chart on the following page summarizes the total number of foreclosures since 1985 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates 1 Page 49 AREA ANILLYSIS Foreclosures 1985 16,571 1986 25,602 1987 31,015 1988 19,996 1989 13,054 1990 9,083 1991 6,685 1992 5,747 1993 5,454 1994 5,113 1995 5,023 1996 3,985 1997..........4,551 1998 3,865 Foreclosures 35..000-f'' 30.000 25.000 20,000 1 15,000 10,000 5.000 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Year 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 y Ray Coleman Associates Page 50 AREA ANALYSIS GENERAL REAL ESTATE MARKET The general real estate market in the Houston area can be characterized as healthy, with some sectors experiencing significant growth. Although the Houston real estate market remains tied to the energy industry, the city has successfully diversified its economic base over the past several years. In November 1999, Dr. Barton Smith (with the UH Center for Public Policy) reported that he anticipates Houston's growing economy will create 50,000 new jobs a year for the next five years, bringing more people to the city and maintaining a stable growth in retail sales. SINGLE FAMILY Houston used-home market sales registered the highest ever for an October, according to the Houston Association of Realtors. The association reported 4.272 properties were sold in October, 1999,up 6.9 percent from last October. Through October, 1999,46,763 properties were sold in the Houston area, up 10.6 percent from the similar period of 1998. Houston is expected to have stronger job growth in 2000 and that will translate into a stronger home market. "Low mortgage rates,good job growth, strong consumer confidence,a bullish stock market,a shortage of newly built houses and a very small inventory of used houses all have contributed to the excellent conditions that have prevailed," stated the Houston Chronicle,November 11, 1999 issue. Used homes are scarce as inventory is small. Houston is not the only place where the housing market is strong. According to nationwide statistics from the National Association of Realtors, 5.93 million properties were sold in the third quarter,a 6 percent increase from the third quarter of 1998. The national median home price is $136,000, the association said. Houston's median home price of$102,000 in October, is up 5.2 percent from last October. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 51 ANALYSISAREA In recent years home buyers have enjoyed low mortgage interest rates. The national average for a 30-year, fixed-rate mortgage the first week in November, 1999, was 7.67 percent, down from 7.84 a week earlier, according to a survey by Freddie Mac. A year ago,the average rate was 6.93 percent. Areas near downtown show a significant number of sales. Woodland Terrace, with old-fashion design and a close-in locale, leads the top slot in an annual survey of Houston-area home values. People buying these homes are empty-nesters and young professionals moving from the suburbs to be closer to their jobs. Woodland Terrace had the highest percentage increase in median price sales, 27.6 percent, according to a survey by the University of Houston's Institute for Regional Forecasting in conjunction with Crawford Realty Advisors. In fact, Dr. Barton Smith (with the UH Center for Public Policy) said home appreciation in the Inner Loop of Houston is outpacing price gains in farther-out suburbs. With the Enron Field ballpark under construction and new restaurants and clubs downtown,some expect the boom in areas near downtown to continue. This includes townhomes and downtown lofts,as well as housing. However, homes in some of the outlying areas are also on the rise. A new 3,300 acre community in Pearland will have 12,000 homes in addition to commercial space for offices and stores. Wheatstone Investment Group is developing a 500- acre subdivision on 1,800 acres adjacent to the Cypress Creek area. Another area with new development is located outside Tomball Parkway. Houston, as a city without zoning, is home to five of the nation's ten most expansive master-planned developments,all in outlying areas. These developments include The Woodlands(3),Kingwood(6), Sienna Plantation(7), Clear Lake City(9)and First Colony(10). OFFICE MARKET Although construction starts and completions are evident in each prominent submarket throughout Houston,proposals are still being dropped from the drawing boards and grandiose plans are scrapped due to the increasing availability of existing space. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ram Coleman Associates _f Page 52 AREA ANALYSIS JW By the end of July 1999.Houston saw 21 multi-tenant buildings under construction containing approximately 3.58 million square feet of net rentable area or 2.44%of all multi-tenant non-professional space. In addition,office building developers, pending the pre-lease commitments necessary for financial feasibility, have proposed 48 multi-tenant buildings containing 12.64 million net square feet. This development activity comes after the completion this year of 16 buildings containing over 2.5 million square feet of space. with a healthy rental rate of$20.88 PSF. Yet these same buildings have a 33% occupancy. According to the July, 1999 issue of the O'Connor & Associates Office -' Market Ownership Guide, . absorption of multi-tenant " ;.. conunercial office space continues . a . to slacken throughout Houston. - 416 Absorption increased nearly 70% . • .�` '� " '�4: from May through July over the plunging first quarter. Meanwhile, annual growth rates are off just over 40%compared to the same period last year. Greater Houston absorbed 2.37 million square feet since July 1998,approximately 1.6 million square feet less than the previous annual period. Much of this softening trend is due to the activity occurring within the Class A category. Nearly 2.5 million square feet of Class A space opened up this calendar year while there was approximately a two-point dip in occupancy. More importantly, this category is anticipated to slip further as an additional 3.56 million square feet becomes available throughout the area. Class B multi-tenant office buildings also experienced another significant decline in the second quarter of the year as many energy companies continued their various plans for consolidation. Subsequently. large blocks of suburban space opened up. The following chart demonstrates the annual absorption in square feet by class category: 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 53 • AREA YS OFFICE MARKET ANNUAL ABSORPTION (In Square Feet) CLASS 07/97-07/98 07/98 -07/99 ' A 1,944,214 1,445,297 B 1,650,822 327,583 C 394,918 422,217 D (47,990) 169,365 Overall 3,941,964 2,364,462 The Greater Houston office occupancy rate in July, 1998 was 85.64%. Compared to the current rate of 85.23%,occupancy in the Houston office market has slipped 0.41 points in the last twelve months, while experiencing its third consecutive quarter of decreasing occupancy. In fact, occupancy has decreased 1.78% since October, 1998, when the Houston office market had reached an all-time high occupancy rate of 87.01%. Interestingly, Class C and D buildings are reporting their highest occupancy ratings in several years, while Class A occupancy dipped this quarter for the second time since April, 1996. Class B buildings find occupancy tumbling from a high of 8.9%in October 1998 to the present figure of 86.63%. This trend is mainly due to energy sector office employee consolidation throughout the city - often on the east side of Houston in such submarkets as Clear Lake. Large blocks of contiguous space are available within each building category,the largest being a Class C building featuring 536,000 square feet. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 54 1 AREA ANALYSIS The following chart demonstrates the Greater Houston occupancy by class: OFFICE MARKET OCCUPANCY ( I \ JULY 1998 APR. 1999 JULY 1999 93.26% 94.04% 91.95% I 86.55% 86.75% 86.63% 69.37% 68.72% ti 57.64% 60.63% 61.70% Overall 85.64% 86.01% 85.23% Less than 3.33%of the multi-tenant office space in Greater Houston has been built since 1990. Those buildings erected during the 1980s comprise 44.06%of the market. These newer buildings command the highest rental rates. O'Connor& Associates' recent survey indicates the mean occupied rental rate for Greater Houston office buildings constructed in the 1980s and 1990s to be $18.39 and $21.76 per square foot, respectively. Meanwhile, the quoted market rental rates for vacant space in the same age brackets is lower at$16.87 and$20.80 per square foot,respectively. In the second quarter of 1999,annual overall multi-tenant rental rates moved up$0.18 to$17.80 per square foot. This is yet another rate gain,a trend that has continued since April, 1995,although the rate of increase continues to slow as forecasted earlier this year. 0.277Acres-Tract D of Reserve G, Block 19. Forest Bend, Section 3 $36,000"As Is" the 21st day of July 2000 by Ray Coleman Associates Page 55 MIA AMISS Rental rates for Class B and C space appear to be one of the driving forces of the recent increase for the Greater Houston multi-tenant office market. Rental rates rose 1.8%among Class B buildings and 1.75%in the Class C category within the second quarter of 1999,gaining 8.83%in Class B and 8.42%in Class C over July, 1998. Moving up just $0.01 per square foot, Class A multi-tenant buildings also experienced a mild rate increase this quarter. The current rate of$21.43 per square foot is the highest on mild rate increase this quarter. The current rate of$21.43 per square foot is the highest on record throughout the entire decade. Rising $0.07 per square foot from the previous high of$10.34. rental rates are now at their highest level in the decade within the Class D Greater Houston office market. In the national commercial property market,office properties are still on top. Regarding rental rates, national CBD values have jumped 12%,compared with 8%for suburban markets,which remain vulnerable to overbuilding. Office starts which surged in 1997 are expected to surpass 200 million square feet. Houston is one of the four cities that appear particularly vulnerable. The short-term forecast calls for moderating growth for rents and values, reining in construction and sublease space entering the market competing with high-priced vacant space. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st dam of July 2000 by Ray Coleman Associates Page 56 APARTMENT MARKET According to the September, 1999 Houston Area Apartment Ownership Guide, published by O'Connor and Associates, • • the rental apartment market is currently experiencing an • overall occupancy rate of approximately 91.56%, a decrease ki7 of 0.36% from the second quarter of 1999. The following chart depicts the occupancy levels for the different classes of apartments: APARTMENT OCCUPANCY (Harris County) CLASS Sept. 1998 June 1999 Sept. 1999 A 93.92% 89.32% 88.11% B 94.59% 94.70% 94.04% ' C 91.82% 92.06% 92.19% D 82.50% 84.43% 86.63% Overall 92.65% 91.92% 91.56% Greater Houston Class A multifamily occupancy slipped 5.81 points since September 1998, the lowest level of Class A occupancy throughout Houston in over six years. While the abundance of new Class A units have created a favorable environment for renters,the buoyant local economy has fueled continued strong demand for premium products. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 57 A Class B projects slipped to their lowest level in two years. 0.83 points below the fourth quarter 1998 peak. Class C occupancy edged upward this quarter. up 0.13 points to 92.19%. This boost marks the highest level of Class C occupancy in more than six years. Overall, occupancy is up over one point from a year ago, with an increase of over four points for Class D projects. Only Class A vacancy levels have increased significantly during the past year. Absorption of multifamily space continues to be strong throughout the Greater Houston area as renters continue to fill the new supply of apartments coming onto the market. A total of 3,469 units were absorbed during the third quarter of 1999, 98.9%of which are Class A projects. There have been 15,684 units absorbed since September 1998, an average of 1,307 units per month. Absorption totals have remained strong for five consecutive quarters. During the last twelve months,O'Connor&Associates shows the following level of absorption for each project class: APARTMENT ABSORPTION CLASS 06/99-09/99 09/98-09/99 A 3,432 11,831 B 663 4,308 C -719 - 948 D 93 493 Overall 3,469 15,684 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 __ _ $36,000"As Is"the 21st day of July 2000 b�Ray Coleman Associates Page 58 Class A absorption accounted for 3,432 of the total units absorbed, despite a drop in Class A occupancy levels to their lowest levels this decade. Class B absorption remains sluggish for the third quarter. Class movement accounts for the bulk of Class B absorption. Class C absorption slipped into negative territory this third quarter, primarily for the same reason Class B absorption rose,a net outflow of 1.032 Class C units due to reclassification. The far west is experiencing a slower absorption period,but that area has had notable levels of new product recently added to its submarket. The highest levels of absorption are within the Midtown,Greenway/Montrose and near west area(s). This is evident by the extensive planning and construction of luxury apartments in and near downtown Houston. Houston has housed very few high-rise rental units in comparison to many other major cities,but the recent wave of urban multifamily construction has taken primarily two forms: Downtown lofts and Midtown flats. There have been no towering new apartment buildings constructed during this recent wave of building activity, but while nothing officially has been announced,two potential sites for these projects are being considered. They are the Galleria and the edge of downtown. It is expected that by 2010,an estimated 10,000 residents will be calling Downtown Houston home,as well. At present,the Bayou Lofts on Travis and Franklin are being renovated. According to one developer, people consider that the most exciting aspect of the downtown explosion is that the buildings are historic and are being lavishly restored and converted. This new boom in Downtown is partially attributable to the revitalization of the Theater District; the opening of Bayou Center and other restaurants, clubs and small grocery stores, creating more recreation in the downtown area, along with enjoying the skyline view;being able to go to work without driving;or possibly the building of the new baseball stadium in downtown Houston. In any event, the central business district is experiencing many changes. In the third quarter of the year monthly rental rates remained steady at$0.68 per square foot throughout Greater Houston. Area-wide monthly multifamily rents have gained $0.03 per square foot over the same period last year, an increase of 4.62%. High levels of apartment construction have resulted in a relaxing of upward pressure upon rental rates. Rental rates for Class A projects dropped this quarter to$0.91 per square foot, due to the high levels of rental concessions recently observed. However, the effective Class A rental rate is $0.05 to $0.10 lower. The level of construction activity means that the percentage of Class A units among all Greater Houston apartments continues to rise, exerting upward pressure on Greater Houston rental rates. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray_Coleman Associates Page 59 AREA ANALYSIS SIS Class B rents climbed$0.01 this quarter,continuing their sluggish growth. Class B rents have increased$0.03 over the past year,a rise of 4.55%. The current level of$0.69 per square foot is the highest in over six years. Class C rental rate growth continues to stall, with an increase of only 3.77 points over the third quarter of 1998. This survey marks the second time in the past three quarters with no movement. Despite little movement this third quarter of 1999,each class other than A is currently experiencing its highest rental rates in over 6 years. Effective rent growth is minimal over the past year, as increased concessions have offset gains in quoted rental rates. In summary, the Greater Houston multifamily market has entered a transition period, with projects trying to cope with a dramatic quantity of new construction. Rental concessions in Class A projects have returned,with many projects offering a free month on an annual lease. Class A units account for virtually all of the Greater Houston absorption this quarter. Meanwhile,Class C&D markets continue to tighten. Lack of new supply,and in many cases decreasing supply as projects are renovated,combined with new low income workers moving into the Houston area,has resulted in the tightest Class C& D markets in Houston in over six years. 0.277Acres-Tract D of Reserve G, Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 60 ri MIA ANALYSIS RETAIL MARKET The Houston Area Retail Market Survey prepared by O'Connor& Associates, May 1998, L. reports substantial increases in the construction of retail centers over the last two years. The I ; following chart lists recent construction: "ram Year Square Feet E' 1990 1,205,447 1991 2,175,271 - m._ a 1992 1,406,319 1993 3,296,975 1994 4,307,731 1995 4,803,459 1996 4,732,281 1997 1,149,049 1998 849,206 Retail Construction 5,000,000 4,500,000-Z l 4,000,000 3,500,000-� 3,000,000-Z 2,500,000-" 2,000,000-' 1 500 000-" 1,000,000 500,000-� — - 0 -_/ 1990 1991 1992 1993 1994 1995 1996 1997 1998 Year 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 61 1. Annual Absorption: Greater Houston Retail Centers Year Strip Center Neighborhood Community Regional Overall 08/97-08/98 316,026 1399,462 809,650 (547,816) 1.977.322 08/98-08/99 332,243 1,857,935 (135,669) 753,968 2,808.477 Neighborhood Centers comprise the lion's share of Houston's multi-tenant retail space. As of the third quarter of this year, 895 Neighborhood properties contained an aggregate of nearly 57 million square feet of net area. This category holds the third largest block(141,000/SF)of contiguous available space throughout Houston. Ranking second in terms of total multi-tenant space, Community Centers occupy 23%of Houston's retail market. This category also includes the second largest block of contiguous space: 250,300 square feet in the eight-year-old anchored Mainland Crossing Community Center. Not far behind at 20% of multi-tenant space, Regional Malls contain approximately 23 million square feet throughout Houston. The total net area of these 22 properties exceeds 600,000 square feet. Strip Centers, Houston's smallest category in terms of net space, contain 8.49 million square feet throughout 528 properties. Overall, multi-tenant occupancy rose 0.34%the third quarter of 1999 to 86.71%for Houston's multi-tenant centers. This recent increase recaptures the declines of the previous year and a half,thus placing the present occupancy rate at the highest level in the last nine years. While this trend bears watching, multi-tenant occupancy levels have ranged ±1% since November 1995,when the level was listed as 85.20%for Greater Houston. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 63 AREA ANALYSIS Since that time, Houston has seen 100 new multi-tenant retail centers come on-line (50 of which are anchored), whose mean occupancy level is 91.37%, roughly 5 points above the city average. Therefore,the flat occupancy rates for Greater Houston may be more attributed to a lack of leasing activity in older centers rather than the addition of new, often speculative,multi-tenant product. Strip center occupancy dipped for the first time since November 1998 to 87.32%, slightly below last August's near record high of 87.51%. Neighborhood Centers saw their occupancy expand by 0.63%to a high of 85.62%,the highest figure in the entire decade. Community Centers likewise increased 0.18% in multi-tenant occupancy. Regional Malls dropped 0.79%the third quarter of 1999,but have also gained 0.27%since May. Greater Houston's multi-tenant vacancy rate has been characterized as steady over the last year, increasing 0.95%since August 1998. 3nd Quarter 1999-Greater Houston Retail Occupancy Year Strip Center Neighborhood Community Regional Overall Aug.1998 87.51% 84.29% 87.24% 86.98% 85.76% May 1999 87.86% 84.99% 88.03% 87.31% 86.37% Aug. 1999 87.32% 85.92% 88.28% 87.44% 86.71% Overall multi-tenant rental rates decreased$0.04 in the third quarter 1999 to$1.44 per square foot. Despite this dip,retail multi-tenant rents have remained noticeably constant almost all of the year. This latest drop is nearly identical with the year-to-year improvement. One exception is the movement within the Regional Mall category. Second quarter mall space dropped by$0.25 per square foot. The third quarter 1999 downturn outpaces the gains previously made in the final quarter of 1998 by$0.34 per square foot. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 64 vitiloppti AREA ANALYSIS Community Centers have increased consecutively since May 1997, "topping out" at$1.16 per square foot per month this quarter, an increase of $0.01 over second quarter 1999. Meanwhile, Neighborhood Centers, Houston's largest concentration of space,experienced steady rents in the third quarter at$0.95 per square foot,the second consecutive quarter of record high rents. Multi-tenant Strip Center rents are up$0.01 per square foot in the third quarter 1999. In fact, Strip Center rents are up$0.02 year-to-year over August 1998. The current rate of$.80 per square foot for multi-tenant Strip Center space in Houston is the second highest figure recorded for the last nine years. Overall multi-tenant rental rates are at their highest recorded level across all categories with the exception of Regional Malls in the third quarter 1999. In summary, while energy consolidation has freed up large blocks of office space, and high levels of construction activity have helped soften the multi-tenant market, the local retail market continues relatively unabated. Absorption is healthy, occupancy levels continue to rise and rents are solid. As several retail centers come online later this year (often with significant levels of pre-lease commitments),these trends should accelerate. A combination of factors has led to this resurgence of the retail market. A strong national economy buoyed consumer confidence. Positive media images from afar reinforced the notion that times are good, and despite the energy-induced slowdown Houston has experienced over the past year, the local economy has continued to produce jobs at a respectable pace. Also while times are presently good, the recession of the early 1990s spurred merchants to rethink how they did business. Confronted with slumping sales, many retailers recast their stores, making shopping a social activity. Subsequently,the combination of the public's desire to spend and retailers'efforts to entice them into doing so,have fueled Houston's most promising commercial real estate sector in 1999. Despite recent gloomy predictions about Houston's oil based economy, the area's retail sales continue to improve. Therefore,it is expected that Houston's retail market should hold fairly steady through 1999. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 65 MAW= INDUSTRIAL Historically the industrial market has not been segmented into classes(A,B,C and D)like other markets,but increasingly a class-like stratification is developing. In"bulk" space. for instance,the new projects typically boast at least 120-foot truck courts, 24-foot minimum clearance heights, broad column spacing and easy loading access often found lacking in projects built as recently as the 1980s. For certain classes of tenants, buildings lacking these amenities are functionally obsolete. Therefore,this type of space should continue to drive the industrial market. F�� AJ l' .;, ' imp,I • t T II ' r, :ilk ►7 fh, �I isit t •r,,� i e.r�r.r.�.w.. ... lg i 4�' I NB .rmo ;-.t. iL qv% _,,,,,,,,.. • :: fir.; According to the Houston Area Industrial Ownership Guide, prepared by O'Connor& Associates and dated April, 1999, there is a total of±271 million square feet of existing service center.warehouse, and heavy manufacturing facility space in 5,515 buildings in the Houston market. The overall industrial occupancy rate for Houston has varied from 84.5% to 89.65%within the past six years (April 1993 through April 1999). The occupancy peaked in October 1998, but a slight 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day_of July 2000 by Ray Coleman Associates Page 66 economic slowdown along with the addition of new product has led to lower occupancy levels since then. Nonetheless, overall Houston industrial occupancy levels remain strong,only 0.99 points below their April 1998 levels. It is noted that while occupancy for Distribution space in Houston has increased,Warehouse occupancy levels have slipped. In fact over the past two years, Warehouse, Office/Warehouse and Overall occupancy levels have moved almost in harmony with each other. As Houston's economy continues to rebound from its recent sluggish performance, this trend could well reverse. In the first quarter of 1999, industrial rental rates remained stable at $0.35 per square foot per month. This is the third consecutive quarter where rents have remained unchanged. Indeed, Harris County monthly industrial rents have gained $0.01 per square foot over the same period last year,an increase of 2.94%. Interestingly,the dramatic recent increasing in rental rates for Service Centers throughout Houston is likely fueled by the introduction of new higher quality buildings. Already the focal point for the Houston Industrial market,there are currently 18 projects containing 3.1 million square feet under construction in Far Northwest Houston. This is approximately 60%of all space under construction in Houston. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 67 AREAMIALYSIS HOTEL/ MOTEL MARKET Houston's 1998 hotel/motel market ended with an average occupancy rate of 68.4%. Although the rate is down from 1997, the percentage still reflects strong market conditions and the absorption of many new motels. Moreover, the 1998 rental rate growth averaged almost 9%. A substantial amount of new motel construction occurred in 1997 and 1998,with several new motels constructed along the Sam Houston Parkway(West Belt),Interstate Highway 10,and the Southwest Freeway. Occupancy ADR REVPAR Market Area 1997 1998 %.Chg 1997 1998 %Chg 1997 1998 %Chg I Galleria/Post Oak 73.8% 72.7% -1.1 $106.05 $116.87 10.2% $78.24 $84.93 8.6% Astrodome/South 53.9% 53.8% -0.1 $67.87 $69.87 2.9% $36.59 $37.58 2.7% Main Texas Medical Center 74.3% 72.2% -2.1 $71.01 $77.08 8.5% $52.79 $55.66 5.4% Intercontinental 71.6% 71.0% -0.6 $68.06 $74.48 9.4% $48.75 $52.86 8.4% Airport Hobby Airport 65.1% 68.8% 3.7 $58.12 $62.94 8.3% $37.85 $43.33 14.5% Clear Lake 64.0% 61.4% -2.6 $76.30 $72.89 -4.5% $48.83 $44.73 -8.4% Southwest 66.1% 61.4% -4.7 $66.: $71.92 7.5% $44.22 $44.14 -0.2% Stafford/Sugar Land 64.5% 55.8% -8.7 $53.28 $54.24 1.8% $34.35 $30.28 -11.8 % Westchase 70.6% 69.8% -0.8 $78.86 $88.11 11.7% $55.67 $61.54 10.5% Katy Freeway 68.9% 64.9% -4.0 $67.96 $71.76 5.6% $46.81 $46.58 -0.5% Northwest 65.8% 61.7% -4.1 $58.00 $61.59 6.2% $38.15 $37.97 -0.5% HoustonCBD 67.9% 67.2% -0.7 $118.62 $133.84 12.8% $80.57 $89.90 11.6% East/Baytown 71.2% 72.6% 1.4 $47.21 $49.25 4.3% $33.63 $35.75 6.3% Total Houston 68.4% 66.8% -1.6 $78.85 $85.90 8.9% $53.95 $57.42 6.4% According to the December 1998, Year End Trends in the Hotel Industry, published by Pannell-Kerr-Foster PKF Consulting,the overall Houston market reflected a slight decrease in occupancy level of 68.4%in 1997 to 66.8%in 1998. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 68 AREA ANALYSIS The average daily rate (ADR) for the Houston area increased 8.9%, and overall revenues per available room (REVPAR) increased 6.4%during the same time period. The September 1999 Trends In the Hotel Industry report published by PKF Consulting states that Houston held a 69.0% 1t • occupancy rate(trailing 12 months)in 1998,and during the first half of 1999,the occupancy rate dropped 65.3%. The percent of variation is a negative 5.4%. `. 1 1 -4. The 1998 ADR for Houston was$86.83. The first half of 1999, Houston's ADR was $88.40, a 1.8% up variation. If Houston follows the national trend, with revenue growing through • increases in both rate and occupancy, PKF projects total hotel - revenues will grow 3.2% in 2000. If revenue growth outpaces ow+�.► inflation, there should be an improvement in the profit margin, which in turn should lead to a 3.9% growth in average operating profits. Below is a chart forecasting the hotel industry in Houston: OCCUPANCY ADR 1998 -Actual 66.1% $79.48 1999-Estimated 64.0% $ 82.00 2000- Estimated 65.0% $ 86.00 Slower economic growth in 1999, resulting in lower occupancy rates and smaller increases in rental growth, is likely to affect hotel/motel demand. However, after a run of record profitability, the lodging industry has now reached a period of stabilized performance. PKF indicates experience has led to sound practices which should carry into the next millennium. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray_Coleman Associates Page 69 AREA ANALYSIS CONCLUSION In a recent symposium,Dr.Barton Smith(director of the University of Houston's Institute for Regional Forecasting)stated that Houston's economy will continue to create about 50,000 new jobs a year for the next five years. It is anticipated that this will bring more people to the city and help maintain stable growth in real estate. Bill Gilmer, an economist with the Federal Reserve Board in Houston, also predicted 2000 should be a good one in Houston. Mr Gilmer stated that since oil prices are slowly turning around and the international economy is improving (which has boosted exports to Asia)Houston should have a 3%increase in jobs in the coming year. Doug Miller, chairman of the business survey committee of the National Association of Purchasing Management in Houston said there seems to be strong reluctance among companies to add employees, even though their sales are rising. He believes the industrial community has to feel more confident about the stability of oil prices before adding staff. In summary,area economists are predicting continued improvement in the economy as well as the real estate market in the near future. Retail, multifamily,office and industrial have all improved drastically over the last decade. Most all types of real estate in the Houston area have experienced some level of increase in rents and occupancy over the past several quarters. As a result, investment activity has been high as investors take advantage of the growth and the favorable trends for long-term economic stability. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 70 IL44'4 iqlsIV ,\. ____.(--(1, i N . iii, 1 : 4, I illio0D DAT!, ___ %,„, ____ _ . NEIGHBORHOOD Friendswood 40 TEXAS Location Map y�i� Ii4 mbl rr. 01 -"rr 1120mi r ` '24km ,1\' I 1 w l-`\ 6taA ont F4 cr_) Katy HaLtstar% , ha--eilview .r,'�- i`. '3 htis>ion.eed- I P�sadena4 Geer Park � t r.1 issouri C' _ 1 N" 2 �seabrook J Koseribergt, , / t , - * League City' $� rr :\' Friends --dsvrood Dickinson 5 t Alvirl' e N, -' .,% sarrtaFeo Texas City h.atrto,-- �r ; ; ,Hitchcock ., ,Galveston i 36 r l,. , /, Galveston a-- Angletarj,, island ��� ���,I. sstGd'Inaba _ J' `-) , ,, � 5 t' Richwood 01998 GeoSystems Gbbal Corp. 1 The City of Friendswood is a Home Rule City, as allowed under the statutes of the State of Texas. Home Rule allows the city to govern itself, conduct business, and adopt ordinances of any nature as long as the action does not violate a state or federal law. As a home rule city, Friendswood adopted a Charter in 1971. This Charter serves as the foundation for the way Friendswood's government operates. It serves as the "constitution" for our city, just as we have one for our state and federal governments. The Charter sets the number of elected officials at seven, their terms of office at three year terms, and sets term limits at three terms. The Mayor is the head of the elected body, and serves as the Chair of the City Council, as well as appoints committees and represents the city at official functions. The Charter establishes the type of government we have -the Council/Manager form of government. The Charter nrovides that Friendswood will have a City Mananer and he/she will he resnonsihle to and directed by ().277Acrcs-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 71 the City Council. The City Manager is responsible for the day to day administration of the city. His/her other duties are outlined further in this web site. Harris and Galveston Counties are located along the upper Texas Gulf Coast and includes the Houston metropolitan area. Galveston County faces the Gulf of Mexico to the Southeast and is bordered by Brazoria County to the southwest, Harris County to the northwest and Chambers County to the northeast. A map of Texas providing distances and direction to other major cities is included in Figure 1. The 13-county Houston-Galveston Area Council region is shown on Figure 2, to provide relation and proximity to other areas and geographical features. Galveston County, Figure 3, covers 399 square miles of land, 500 square miles-including water, and the City of Galveston on Galveston Island is its county seat. Houston's suburban development now approaches the Northwest portion of Galveston County, strengthening the economic ties between the two areas. The Houston - Galveston - Brazoria Consolidated Metropolitan Statistical Area (CMSA) is the ninth largest population area in the country with almost 4 million people. Houston, the nation's fourth largest city, is at the heart of the CMSA. Income and employment in the area are strong. Although the Houston Ship Channel provided the main stimulus for the economy in early years, oil, refining, and petrochemicals spurred rapid expansion. Now with the aerospace industry, in close proximity to Friendswood, unemployment remains relatively low, employment bases are stable and the average family income was 11.6% higher than the U.S. average in 1988. Labor Analysis Radius of the Labor Drawing Area -40 miles Total Annual FHS and CBHS Graduates- 582 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21 st day of July 2000 by Ray Coleman Associates Page 72 LOCATION OF EMPLOYMENT (Total Population) Distance to job from residence: 5 miles or less (10 minutes or less) 11.6% 6 to 10 miles (10 to 20 minutes) 21.3% 11 to 19 miles (20 to 30 minutes) 19.9% 20 miles or more (30 to 40 minutes) 18.8% (50 minutes or more) 9.9% Mean travel time 30.4% EMPLOYMENT CATEGORIES Managerial/Professional 41.2% Technical/Administrative 21.7% Sales 12.4% Total White Collar 75.4% Production/Craft/Repair 8.5% Machine Operator 2.8% Laborers/Transportation Workers 3.7% Total Blue Collar 15.7% Farm/Forestry/Fishery Workers .1% Service 9.5% Tax Year 99 SALES TAX: City Retail Sales 1.5% Combined Sales Tax Rate/City& State 7.75% PROPERTY TAX: (Rates per$100.00 value) Galveston County Residents 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of Ju1y2000 by Ray Coleman Associates Page 73 Galveston County Property Tax Rate $.56 Homestead Exemptions: 20% regular, $60,000 over 65 Clear Creek Drainage District Property Tax Rate $.15 Homestead Exemptions: $25,000 over 65 Drainage District#3 Property Tax Rate $.234694 Property is located in either Clear Creek Drainage District or Drainage District#3; not in both Harris County Residents CCISD Property Tax Rate $1.59856 Homestead Exemptions: $15,000 + 10% regular, $28,330 over 65 Harris County Property Tax Rate $.64802 Homestead Exemptions: 20% regular, $156,240 over 65 Junior College (San Jacinto) Property Tax Rate $.11 Property in the Harris County portion of the City of Friendswood is situated in two Central Appraisal Districts: the Galveston Central Appraisal District assesses property for the City and for the Clear Creek I.S.D. and the Harris County Appraisal District assesses property for Harris County. Therefore, all exemptions must be applied for at both CAD's. Local Telephone Numbers Friendswood Consolidated Tax Office 281-482-1198 Clear Creek I.S.D. Tax Office 281-338-5830 Galveston County Annex - LeagueCity 281-316-8724 Galveston County Courthouse 281-996-1710 Harris County Tax Office 713-224-1919 Galveston Central Appraisal District 281-474-4489 Harris County Appraisal District 713-957-7800 FRIENDSWOOD INDEPENDENT SCHOOL DISTRICT (Galveston County Residents) The Friendswood Independent School District was established on December 21, 1948. The district covers 15 square miles and borders the Alvin, Pearland and Clear Creek school districts. Fully accredited by the Texas Education Agency, the district's curriculum emphasizes basic academic skills, higher academic thinking skills, and cooperative learning strategies. The district is dedicated to meeting the needs of students of all levels of ability. FISD seeks to continuously improve through intensive staff development programs and has received waivers from the state to replace several instructional days with staff development days. Technology is an integral part of the curriculum on all campuses. Each campus has at least one self-contained computer laboratory. In addition to basic computer literacy, computers are used on math, language arts and social studies. Laser discs are used on different courses throughout the district. Foreign language instruction in Spanish, French, and German is offered from sixth through twelfth grade, with advanced incienendent study available The hinh school is also involved in cnonerative nroiects with local cnlleaes 0.277Acres-Tract D of Reserve G, Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 74 in applied technology. FISD schools offer numerous extracurricular activities including drama and musical productions, service organizations and clubs. The secondary schools also compete in academic contest, UIL competitions (such as forensics) and sports events governed by the University Interscholastic League. The philosophy of the district is based on active partnership between parents, the community and the schools and a commitment to the realization of each and every students potential. SCHOOL BOARD MEETINGS ARE THE SECOND TUESDAY OF EACH MONTH - CALL FIRST TO VERIFY Superintendent of Schools Walter Wilson Central Administration Building 302 Laurel Friendswood, TX 77546 (281)482-1267 C.W. Cline Primary (Grades K-2) Westwood Elementary (Grade 3-4) 505 Briarmeadow 506 W. Edgewood Friendswood, Texas 77546 Friendswood, Texas 77546 (281) 482-1201 (281)482-3341 Bales Intermediate (Grades 5-6) F$riendswood Junior High (Grades 7 211 Stadium Lane 402 Laura! Drive Friendswood, Texas 77546 Friendswood, Texas 77546 (281)482 8255 (281)482-7818 Windsong Intermediate(4-6) 2100 W. Parkwood Friendswood, Texas 77546 (281)482-0010 Friendswood High School (Grades 9-12) 702 Greenbriar Friendswood, Texas 77546 (281) 482-3413 1997 Friendswood High School Graduates: approximately 250 CLEAR CREEK INDEPENDENT SCHOOL DISTRICT (Harris County Residents) CCISD established in 1948, has been widely recognized for its forward-looking educational techniques and diverse i academic programs. Holding to the principle that the welfare of the child is of utmost importance, the district strives to provide curriculum and facilities to accommodate the various aptitudes and educational needs of students from many backgrounds. The district fosters a solid elementary program, a broad secondary curriculum, specialized instruction for exceptional children, and challenges for the gifted and talented. Boundaries of the Clear Creek School District embrace 120 square miles in southern Harris and northern Galveston County. The district is backed by strong community support in its efforts to provide the type of quality education that will help students become creditable and well-adjusted citizens. SCHOOL BOARD MEETINGS ARE THE FOURTH TUESDAY OF EACH MONTH Superintendent of Schools John E. Wilson Education Center 2425 East Main Street 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is" the 21st day of July 2000 by Ray Coleman Associates Page 75 League City, TX 77573 (281) 332-2828 CD Landolt Elementary (Grades Pre- P.H. Greene Elementary (Grades K- K-5) 5) 2104 Pilgrims Point Drive 2903 Friendswood Link Road Friendswood, Texas 77546 Friendswood, Texas 77546 (281) 482-4420 (281)482-0022 Wedgewood Elementary (Grades Brookside Intermediate (Grade 6-8) Pre K 5) 3535 East Parkwood (FM 528) 4000 Friendswood Link Road Friendswood, Texas 77546 Friendswood, Texas 77546 (281) 482-9710 (281) 992-0667 Clear Brook High School (Grades 9-12) 4607 FM 2351 Friendswood, Texas 77546 (281) 996-5446 1997 Clear Brook High School Graduates: approximately 350 Friendswood BUSINESS DIRECTORY City --For information on building permits, applications, planning, zone use, and city ordinances adopted as building requirements Community Development City of Friendswood 910 S. Friendswood Drive Friendswood, TX 77546 281 ) 996-3201 Building Permits and Zoning Applications' Link --For economic development assistance with available building and land sites, incentives, site tours 0.277Acres-Tract D of Reserve G, Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 76 Economic Development City of Friendswood 910 S. Friendswood Drive Friendswood, TX 77546 281) 996-3250 County ---To file your dba in Hams County Hams County Clerk's Office Clear Lake Annex 16603 Buccaneer Houston, TX 77062 281)486-7250 ---To file your dba in Galveston County Galveston County Clerk's Office 174 Calder Rd, Suite 149 League City, TX 77573 281) 316-8731 State --For information on sales tax license and permits Texas State Comptroller 1-800-252-5555 www.window.state.tx.us --For information on workforce issues, regulations,job listings, workforce availability, payroll taxes Texas Workforce Commission 713-688-6890, 1-800-832-9394 www.twc.state.tx.us Federal --To request your employer's tax identification number Internal Revenue Service 8876 Gulf Freeway Houston, TX 281-721-7070, (800) 829-1040 www.irs.gov 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 77 --For assistance with start-up businesses, free business management consulting, seminars, business loan information Small Business Development Center 2006 E. Broadway, Suite 101, Pearland, TX 77581 281) 485-5214 www.sbdc.uh.edu --For small business loans program information U.S. Small Business Administration 9301 Southwest Freeway, Suite 550- Houston, Texas 77074 (713) 773-6500 www.sba.gov Service Corps of Retired Executives(SCORE) 9301 Southwest Freeway, Suite 550, Houston, TX 77074 (713) 773-6565 www.score.org Vision Statement Together we build our future in a friendly place to live, work, play, learn and worship. Adopted by City Council on August 18, 1997. Mission Statement The Mission of the Council and Staff of the City of Friendswood is to provide the highest level of service to our citizens at the greatest value in a manner that warrants the highest degree of public confidence in our integrity and efficiency to produce the greatest level of satisfaction to the citizens. Adopted: July 9, 1990 Revised: January 4, 1993 Revised: August 18, 1997 Guiding Principals • We Believe That Visionary Planning is Essential. • We Believe That Proactive, Responsive, Effective Leadership is Essential. • We Believe That Ongoing Interactive Communication is Essential. Adopted by City Council August 18, 1997. Policies for Our Future Preserving Community Values Heritage Preservation 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day_of July 2000 t Ray Coleman Associates Page 78 I • Purpose& Scope Friendswood was established by people of faith in 1895. Then and now, citizens of this community honor faith in God, family values, good education, and community stability. This heritage is of the utmost importance. • Policy It is the policy of the City of Friendswood to ensure that the heritage of our community is considered and maintained when making decisions affecting the future of the city. Governance • Purpose& Scope We must be vigilant in maintaining the heritage of our community. The visionary outlook of this city must be clearly developed and incorporated with that heritage in mind. We must continue to move forward, seeking and drawing on the advice of citizens. We must govern responsibly. • Policy It is the policy of the City of Friendswood to lead and communicate with a clear remembrance of the values of the past and a vision of the future. Leadership shall be undertaken with honor, integrity, respect and civility to all. Quality Schools • Purpose&Scope Education is a dynamic process that mirrors the quality of life in our community. City government acknowledges its responsibility to proactively support development of educational and good citizenship opportunities within Friendswood. • Policy It is the policy of the City of Friendswood to encourage and set an example of good citizenship, mentoring, and modeling for students of both school districts within our city and promote service opportunities and cooperation between the city and school officials. Further, the City of Friendswood shall work toward an economically healthy community ensuring the financial viability of our schools. Environment • Purpose& Scope Environment includes all the natural aspects of the city, its visual image, appearance and its physical 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 79 sense of community. • Policy It is the policy of the City of Friendswood that, as growth and development occur, it should be guided so as to preserve the elements of the physical environment. These elements give the community a visual image it values highly and a character which promotes a sense of continuity and stability Land Use • Purpose & Scope Land use, as it relates to Friendswood, means the development of the land which conforms to the regulations of the city, maintains or increases the value of property, promotes lower density residential development and prevents undesirable uses. • Policy It is the policy of the City of Friendswood to use its authority to encourage and guide development in a manner which preserves the open, green, treed appearance of the City, enhances property values and prevents undesirable or adverse uses of the land. The end goal is growth and development that is a net benefit to the community. Resources Technology • Purpose & Scope Information technologies, including telecommunications, computers and networks, are continually transforming our economy and society, and the role of governments within them. City government must make maximum use of information and other technologies as an internal resource to the city staff and elected officials, and an external resource to our citizens and other customers. • Policy It is the policy of the City of Friendswood to provide a technologically proficient environment to meet the 0.277Acres-Tract D of Reserve G, Block 19. Forest Bend. Section 3 $36,000"As Is" the 21st day of July 2000 by Ray Coleman Associates Page 80 • Policy It is the policy of the City of Friendswood to develop and maintain a plan and program to recruit, develop and retain high performance employees. This plan ensures the city work force keeps pace with the requirements for quality services in a growing community. Technology • Purpose& Scope Information technologies, including telecommunications, computers and networks, are continually transforming our economy and society, and the role of governments within them. City government must make maximum use of information and other technologies as an internal resource to the city staff and elected officials, and an external resource to our citizens and other customers. • Policy It is the policy of the City of Friendswood to provide a technologically proficient environment to meet the needs of a dynamic community. Heavy Equipment • Purpose&Scope Certain essential city services require heavy equipment to meet those citizen needs such as fire suppression and the maintenance of streets, water and sewer lines, storm sewers and road side drainage ditches. • Policy It is the policy of the City of Friendswood to provide the capacity to deliver these services through the systematic acquisition of necessary heavy equipment. Volunteers • Purpose& Scope The purpose of volunteer services is to keep citizens involved in their community, utilizing their historic backgrounds, diverse and technical knowledge and wealth of experience. • Policy It is the policy of the City of Friendswood to provide the process to advertise and actively seek out volunteers to maintain a bank of interested parties. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 81 City Services Water and Sewer/Utilities • Purpose& Scope The delivery of drinking water and the safe, environmentally sound removal of waste water are Transportation • Purpose& Scope Transportation by Friendswood standards covers 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 82 we develop and maintain highly skilled, well- equipped public safety personnel, dedicated to our service tradition of citizen involvement in an alliance for a safe community. Parks and Recreation • Purpose&Scope The purpose of Parks and Recreation is to create an opportunity for the enhancement of ones quality of life by giving all citizens access to natural areas, water amenities, trails and common apparatus for organized or spontaneous activities. • Policy It is the policy of the City of Friendswood to provide, acquire, develop and maintain parks and open space throughout the city. It is the policy of the City of Friendswood to provide recreation programs for citizens that will enhance the quality of life. Facilities • Purpose& Scope Facilities are the buildings and other structures which house or serve the needs of our citizens and visitors. • Policy It is the policy of the City of Friendswood to acquire, provide and maintain such facilities commensurate with our community needs and image. Drainage • Purpose& Scope The historical impacts of tropical rains, storms and hurricanes, coupled with development occurring within the city and upstream along creek systems that pass through Friendswood, make the drainage system a high priority for protecting citizen's property, health and safety. • Policy It is the policy of the City of Friendswood to consistently invest in the city's drainage improvements and regulations that minimize the impacts of storm water on streets, homes and businesses, and to use all available means of influence to seek additional investments in protection from other local entities and county, state and federal agencies. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 83 Solid Waste • Purpose&Scope The purpose is the removal and recycling of solid waste from the city. This is a fundamental service of city government. This work is done by contract. • Policy It is the policy of the City of Friendswood to use an effective means to provide the timely removal and recycling of solid waste and to ensure the service remains cost competitive. Communication • Purpose& Scope Effective communication by the city is essential to achieving the city mission. Communication means an effort dedicated to giving and receiving ideas, concepts, and information to residents and business owners, elected officials, employees, and others, by all available means. • Policy It is the policy of the City of Friendswood that effective communication is a responsibility for elected and appointed officials, volunteers and all city employees. Effective communication will include an awareness of the potential for missed reception and missed perceptions. All communication shall be founded on the cornerstones of openness, effective listening, understanding and suspension of judgment. Economic Development Economic Development • Purpose&Scope Maintaining our community heritage is essential to the overall quality of life in our city. It is imperative that the city tax base expand to support the image of the community, enhance citizen investment in their property, and retain the quality of city services and schools. • Policy It is the policy of the City of Friendswood to advance an economic development program that upholds community values, builds on investments made in the community, and supports the expectations of the city's level of service. Adopted by City Council May 17, 1999 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 84 Council Philosophy The City Council expects the following of themselves: • To act in the best interest of the City. • To consistently demonstrate respect to the staff. • To invest our resources effectively for our future. • To handle our disagreements/conflicts in a respectful manner that keeps our image positive with the public and each other. Originally agreed to by Council at their January 1997 Retreat Adopted at the August 18, 1997, meeting. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 85 NEIGHBORHOOD SUMMARY OF NEIGHBORHOOD ANALYSIS Location: Suburban Built Up: 85% Growth Rate. Increasing Property Values- Increasing Demand/Supply: In Balance Marketing Time• 1 Year Present Land Use: Residential 65% Commercial 15% Industrial 10% Vacant 10% Change in Present Land Use: No Proximity of Hazards and/or nuisances: None Price Range: $30,000 to $1,500,000 Percent Occupancy: 95% View: Average Property Compatibility. Average Protection from Detrimental Conditions. Average Police and Fire Protection. Average General Appearance of Properties. Average Appeal to Market Average Predominant Occupancy: Owner Reputation of Neighborhood: Average Turn Over in Occupancy or Ownership. Very little Accessibility of Neighborhood: Average Typical Age of Properties: 10 - 50 Years Typical Condition of Properties: Average Remaining Age of Neighborhood. 60 Years CONCLUSION: The major attributes of the subject neighborhood appear to be its excellent access and location. I have talked with commercial real estate brokers in the area and they reveal most properties that are listed for a reasonable amount will sell within one year. In my market study, I have detected that the market is doing well at this time and is showing signs of progress since the recession began in approximately the mid 1980's. The marketing time is one year. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 y Ryy Coleman Associates Page 86 ail ORTE N liefolls SIIVE ANAL II In the analysis of the subject property, it is necessary to look separately at the site and its improvements. It is necessary to examine the site's value-influencing physical characteristics, such as size and topography; location factors, such as accessibility and surrounding land use; and allowable uses as prescribed by zoning ordinances and deed restrictions. SUMMARY OF SITE ANALYSIS Frontage(Blackhawk Boulevard) ±81 Depth +153(N.), 152.9(S.)' Rear +69.07 Square Feet: +12,080SF Acreage. +0.277 Acres Shape: Irregular shaped Census Tract Number: 1202.00 Galveston County Number: 167 Texas State Number: 48 Metropolitan Statistical Area Number. 3360 Key Map Numbers: 656D Topography. 50+-' Above Sea Level Level/Sloping/Rolling: Level Drainage. Surface Run Off Access. Average Man-Made Improvements None Known Proximity of Hazards and/or Nuisances- None Observed Known Easements: None Known Known Encroachments: None Observed Flood Plain: None Corner Lot: Interior View: Average Stability of Immediate Neighbors: Average Street Surface. Concrete Sidewalk: Concrete Street Lights. Mercury Vapor Maintenance: Public Sewer: Public Water: Public Zoning. None Deed Restrictions: Commercial 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is" the 21 st day of July 2000 by Ray Coleman Associates Page 87 CA 111FTAX INFORMATION EMS GALVESTON CENTRAL APPRAISAL DISTRICT 07/26/00 PROPERTY INFORMATION Property ID: R327709 Curr Owner: HALE ASSOC Tax Id: H3177-0019-0000-005 PurchaseDt: Property Addr: Equity: Carrier Route: Owner Type: County: GALVESTON Address: 11823 WILCREST DR Flood Zone: HOUSTON TX 77031 Use Type: (PF) Phone: Frontage: DOBT: Depth: GCAD Own: HALE ASSOC Ttl Bldg Area: Address: 11823 WILCREST DR Lot Size Area: 12,080 HOUSTON TX 77031 Acreage: .2770 PurchaseDt: Utilities: AP Phone: Census Tract: DOBT: Census Block: Fed Lien:NO Date: Keymap: File No: Date: Latitude: GFacit: Longitude: Year Built: Delinq.Taxes: NO Residence: 0 yr(s)month(s) Maint Fees: Equity: Elem. School: Builder: Middle School: High School: Legal Desc: TR D OF RESERVE G BLK 19 FOREST BEND#3 3083-102-000-8, 0.2 77 ACRES Remarks: VAC(8-98)FOR INFO. 879-8800. ASSESSED VALUE Year Land Improvement Land+Improve Productivity Exemptions 1994 $21140 $21140 1995 $21140 $21140 Press return to continue or Q to quit 1996 $21140 $21140 1997 $21140 $21140 1998 $21140 $21140 1999 $21140 $21140 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is" the 21 st day of July 2000 by Ray Coleman Associates Page 88 1999 Estimated Taxes MUD Bonds MUD Bonds Tax JURISDICTIONS Rates Before Exemptions Authorized Issued (C37)CITY OF FRIENDSWOOD 0.64 $134.98 (S16)CLEAR CREEK ISD 1.60 $337.94 Total Est 1999 Taxes 2.24 $472.92 Total Est 1998 Taxes 2.2540 $476.50 PARCELS LAND Type:(PF)PRIMARY FRONTAGE Class: Acres: .2770 Sqft: 12,080 SPTB Code: Cl Homesite:N Comments: 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 89 ii UM A A ISE SEE 617 MAP 657 � pp ''l� �i T• HARRIS COUNTY I a S s ] ERITAGE COVE CT-tI�"�t , .•. r�\ A�^ • ? \N;,._ •!• yyC\• 'HERITAGE CT i.. LANDING CT D . A.4t. fvj ot..it . iffifaisN •HY Nit,,I.Pe.;,,,e„4,7obici,....., ,,,.H- 1 ,411. 1116. .• 1 l eit* '?, 1y ;:, f 7 "--7 .,o. IIIJr �j 1 I. �Z �� FRIENDSWOOD i `"1' o ' • o +- eft ,-§ --- \+ r'•�1!'t �t + V RtGIGNJ�4 REATMEX 1 ro 4.. /S yj 1 ¢ T` , (PLANT ''3333'''' t 'Nob.. 00593$ S i Aqt � 0 °, 9r� t, ANp7,`' Gg r }<► l 7" wFOarY COUNTY Re4•• - rC tEs C ' i 44, (i,,, a $ .r. TY sr ., <� oo- s! / Y f F71, ye f•y� +6 M• %s r A „vim,fi u.• ',n ,' . c c•"'' of = / if* Ct a R � t, 4/ _ * y`s� Y \s b /� d� c� Ma - � e'sra4 \�oro0io- a .L �ky.a • 9 A,3'?.� . MAP 657 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 90 it. . E3 4—.'P .111 1-0, .0, ar• 1 er V-2 0 . a „ow, _,.._.........._._. ___ FLOOD MAP WE A A IfSIS . i I .. ,. . ,,,,„ iiii ,.,..,, 1 \ .. „.., _.. . . ---7 ___....__,, .._-:-..........,.\, \ t , -fc, • . 1„.,. -v., --,.. -5• - f• ct, i,,,, xi_ \\ _____ iss.\ i \ /1 _ L:___ __ _ \ SUBJECT , I N X • ..• ., \ __----- '.^1,-1(44 v.,•'-' ' ,.:4: , ..,... _- FLOOD HAZAI )I FF oR I RE NFDL SoW0 OD 0 II oa, / CITY OF FRIENDSWOOD (.., SEPARATELY Pi 1 RATE MAP. Fik,,,:.•,,7 ZONE X-• A :A", 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 91 11 x'4 i"; , 1 LANAIS 4>, s,, .I‘ A,0" S'\ 00 0 0 4: ar ao1a 2 30 • I (/ •� 311.0 2 +, 7 " lk 44 .+ 1y .•• T9 at. J # (4 , .1.-., is Its. 4 3+ N �" 0,4/k 2 S . . 31 •+ ? r 27 ill*,;: v . 44 .: ' 11 • y * S h 1{ +' 20 +' , t'1f (11-0-2) + = 6.508 AC ,' 017 • l H3177 • 16. . . ,? FOREST A ND „IASEC. /3 , .. 14 'y 011 DES • 11�11 19 9.. ' + 13 , - 7-0-91 � �� 12.594 AC (14-0-7) CO ' ,MjL-- t'V ' - SUBJECT .4.,-0-01, (1,-o-s1 \ 1. 19 ', 1i0-0-2) _--1-- to 1 PLAT MAP 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 92 II^ hi.. e II TYPICAL This is a typical parcel of land with improvements and nothing is evident as having an adverse affect on the marketability and value of the subject property. EASEMENTS/ENCROACHMENTS We were not provided a survey plat but used a plat map from the GCAD, and assume there are no adverse easements indicated, and none were observed during our physical inspection. We reserve the right to modify our value conclusions should title policy reveal that adverse easements or encroachments are present. ENVIRONMENTAL CONDITIONS No environmental report was available to us and no recent environmental tests were performed. Because we have no evidence to the contrary, we have assumed that the properties are free of any material which would adversely affect the value, including, but not limited to, asbestos and toxic waste. We reserve our right to modify our value conclusions should these assumptions prove incorrect. We caution and advise the user of this report to obtain environmental studies which may be required to ascertain status of the property with regard to asbestos and other hazardous materials. WETLANDS Under the Clean Water Act of 1977, waters of the United States are protected by the Environmental Protection Agency and the U.S. Army Corps of Engineers. These agencies are charged with implementing the national objective of maintaining and restoring the physical and biological integrity of the nation's waters, which include wetlands. Wetlands are commonly thought of as those areas around rivers, lakes and creeks that are characterized by water-loving plants, saturated soils and aquatic wildlife. The federal definition of wetlands, however, expands this concept to include areas not adjacent to streams and lakes and are termed "isolated wetlands." Isolated wetlands occur in low- lying areas that are periodically saturated and support wetlands vegetation. RESTRICTIONS We are not aware of any restrictions affecting the subject site. The appraiser was not provided a copy of any restrictions, and the client is advised to be cognizant of any adverse restrictions as to use which may exist and are unreported. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 93 uligan AN o Highest and Best Use may be defined as "the reasonable probable and legal use of vacant land or an improved property, which is physically possible,appropriately supported, financially feasible,and that results in the highest value,"according to The Appraisal of Real Estate,Tenth Edition. The opinion of such use may be based on the highest and most profitable continuous use to which the property is adapted and needed,or likely to be in demand in the reasonably near future. However, elements affecting value which depend upon events, or a combination of occurrences which, while within the realm of possibility, are not fairly shown to be reasonably probable, should be excluded from consideration. Also, if the intended use is dependent on an uncertain act of another person,the intention cannot be considered. It may be further defined as that use of land which may reasonably be expected to produce the greatest net return to land over a given period of time that use which will yield to the land the highest present value. This is sometimes referred to as the optimum use. Also that reasonable and probable use that will support the highest present value, as defined, as of the effective date of the appraisal. Alternatively,that use,from among reasonably probable and legal alternative uses,is found to be: a. Physically Possible b. Legally Permissible c. Financially Feasible d. Maximally Productive The definition,immediately proceeding,applies specifically to the highest and best use of land. It is to be recognized that in cases where a site has existing improvements on it,the highest and best use may very well be determined to be different from the existing use. The existing use will continue however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use,plus the cost of demolition. Implied within these definitions is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual property owners. In appraisal practice,the concept of highest and best use represents the premise upon which value is based. In the context of the most probable selling price(market value) another appropriate term to reflect highest and best use would be most probable use. In the context of investment value,an alternative term would be most profitable use. "Also Implied in these definitions is that the determination of highest and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations the highest and best use of the land may be for parks, greenbelt, preservation, conservation,wildlife habitats and the like." There are two distinct types of highest and best use that being the highest and best use as if the site were vacant, and the highest and best use as if the site were improved. Both use determinations require consideration of the physical,legal,financial feasibility and maximal productivity for the site and improvements. A neighborhood and site analysis is essential in estimating the highest and best use of the site as if vacant. The improvement analysis contributes to the highest and best use as improved. The subject site will first be analyzed, as if vacant and then an analysis of the property as improved with improvements will follow. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21 st day of July 2000 by Ray Coleman Associates Page 94 Atry NI Ul kft HIGHEST AND BEST USE ANALYSIS - "AS VACANT" PHYSICALLY POSSIBLE The topography of the site is generally level. As stated previously, no soil engineer's report was available to us and no recent soil tests were performed. As a result,we have assumed a stable soil condition with sufficient load bearing capacity. Once again,we caution and advise the user of this report to obtain engineering studies which may be required to ascertain structural integrity and reserve the right to modify our value conclusions should these assumptions prove incorrect. Therefore many uses are physically possible. LEGALLY PERMISSIBLE The county does not utilize zoning to regulate development. Individual subdivisions often use deed restrictions to regulate development. We assume that most anything could be built(we were not provided with a copy of any deed restrictions). We reserve the right to modify our value conclusions should any deed restrictions be deemed detrimental. Therefore,retail, commercial and industrial land uses are reported permitted. As such, Legally Permissible uses would encompass most commercial building facilities. FINANCIAL FEASIBILITY AND MAXIMAL PRODUCTIVITY In order to be financially feasible, the improvements should conform to the surrounding land uses. To meet the test of being financially feasible,the project must provide a net return over a reasonable period of time. The subject site's physical characteristics and the probable lack of legally restrictive covenants indicate many building facilities. CONCLUSION»"AS VACANT" In consideration of all of the above,and no other apparent higher use for the site in the foreseeable future, it is our opinion that the Highest and Best Use for the subject of this report is: "COMMERCIAL" 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 95 L 1 I Y / \ -, LOCATION MAPLL, -..- --Twirl. ,r. ± . ..i., , ,w ,,„;10, ..-!! 1,,, 4 \ „As ii", , ... t . v,,,,,,..„-„,, ,,,,,,:ty \ op; 44rilitholg `‘' , 4'4;14 C V-Mflred.-4MIWita.illir/ II. ,°HUn?b.le C- P 0. At j . °:110:0 _,‘ C" �\ � �,, q I\ i `e SALE 2-CRESCENT LANDINGsirf‘!1/4-7, * `� 4.��``� �``�,����J � AND CLEAR LAKE CITY BLVD. at # =IP ���• N WP SALE 1-SCARSDALE Hospital J s1 C• �4,114,044) � Y C 4, 4f •476eji AND TURKEY CREEKt 4 ii," 4 V t T • it& 41t , N Tit \if opp, ' To itifit27b4 \ it Nvt, ° -vgq ii. #.3.---st, w44 ..„ ,,,,,,,,, ,, 4„. ,::,...„ 16\ # S\ito 1 1,, li \,' t 1.6* .0 71 i 7 *I. 0, • 4,41#7 A d IN L .... . );r216.lk ,./...=.4404, Arri;111111r a iii . -i lift\/lam_` t $14#Ale*A$A- A& % • At. �` SUBJECT _- •'. p SALE 4-CASTLEWOOD ' �w.a C TRACT D OF RESERVE G, BLK 19 ��i�i i•< .+'► ihihr, 1 AND LESLIE FOREST BEND, SEC. 3 t.•.��• --vow: .a SALE 3-CASTLEWOOD AND f A t&tO SALE 6-206 GARDEN .! STONESTHROW ! "A ' 4 6\..- Cito -. • V4 P VA#4P i ' ���� fta '.fir' 1►� * ���� , , / .,47a 'Weikel V vAlMnaiii0. 61321:01 :1; 41-• \ 4 ,�-z w- .. 1g� , , ' _ A -* ,� / // Mag 13.00 E Tue Aug 01 12:49 2000 - Local Road • Small Town Scale 1:62,500(at center) Major Connector V Geographic Feature 1 Miles State Route Hospital 4 2KM - interstate/Limited Access Sched Service Airport Toll Highway Exit/Gas ❑ Exit Exit/Lodging Railroad Exit/Food O Point of Interest Exit/Other Services I T ' A1.1 _+-4111bffik-- $ LAP4r $ We have arrived at an estimated value for the subject site by utilizing the "Direct Sales Comparison Approach." Below is a table giving some of the findings in the land sales found later in the report. The subsequent pages give the detailed description of the land comparable sales. COMPARABLE LAND SALES SUMMARY Location Sale Price Size in Price/SF Date SquareFt. 1. Southline of Scarscale-East of Turkey Creek 08/98 $150.000 24,394 $6.15 Scarsdale Shopping Center 2. Westline of Crescent Landing-South of Clear 04/98 $157,000 26,136 $6.00 Lake City Blv. 3. East Line of Castlewood-South of 02/00 $128,000 60,984 $2.10 Stonesthrow 4. Lt 8,Blk 1-Sec. 1-Leslie-SW Corner of Castlewood and Leslie 12/99 $55,000 19,994 $2.75 5. 706 Greenbriar-South of FM 2351-Westline of 01/99 $80,000 39,204 $2.04 Greenbriar 6. 206 Garden-Lt 16-South of FM 2351- 03/00 $79,000 41,295 $1.91 Westlineof Garden After reviewing each sale and comparing it to the subject site taking into consideration the sales date, size, location, shape, and many other factors, it is the opinion of the appraiser that all comparables are considered similar to the subject and give a reliable value indication. D S c= $36 000 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 96 LAND \IPAR(SON APPROACH We have arrived at an estimated value for the subject site by utilizing the "Direct Sales Comparison Approach." Larger tracts typically bring lesser unit prices than otherwise equally desirable smaller tracts. This trend, of course, is not necessarily exclusive to the subject area, but usually holds true in most other areas also. The primary reason for this is that purchase of large acreage tracts entails a much greater capital outlay, a factor that restricts the number of possible buyers, as compared to the relatively large market for smaller tracts. Other factors having an influence on value include desirability of frontage to depth, shape, location relative to existing development, desirability of topographical features, etc. We have made a detailed analysis of each of the above sales. We have reviewed the conditions of the sales when possible to make certain they truly represent the previous defined "Market Value." It is possible for anyone to go to the courthouse and look up many of the thousands of real estate transactions. It is also possible to subscribe to a service that catalogues the deed transactions and sends them to your place of work. It is even possible to subscribe to a service that puts all the sales transactions on a computer, which enables you to access them from your own computer with a modem. Our office personnel go to the courthouse and we subscribe to both of these services. 0.277Acres-Tract D of Reserve G, Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 97 FAWL $ LAND $ For one to obtain the information, a party to the transaction must reveal the sales price, financing and other pertinent information concerning the sale. Many people refuse to reveal information about the transaction. Travelers Insurance Company and Nations Bank are examples of sellers who choose not to reveal any details of the transaction. It is possible to obtain information on sales from only a small percentage of the transactions that occur. A professional appraiser must use every way possible to obtain information about real estate sales. This obtaining of information is one of the job duties of an appraiser and it takes precision, expertise, education, knowledge, experience and perseverance. But even using all of these resources, the necessary information can be obtained on only a small percentage of the transactions. In reaching the land value estimate of the subject property by the sales comparison approach, Galveston and Brazoria County records were searched for recent sales of comparable properties within this area. Additionally, real estate brokers and appraisers active in the area were consulted as to their knowledge of properties currently offered on the market for sale that would be in competition with the subject property, if it were offered for sale on the open market. The available market data was investigated, analyzed and compared to the subject property, taking into prime consideration the various similar and dissimilar characteristics, including terms of sale, and adjustments were applied accordingly in reaching the value estimate of the subject property by the market approach. No sales, which were known to have occurred, were arbitrarily disregarded. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 98 $ LAND $ Only sales which were deemed not comparable, or could not be confirmed, or involved conditions not considered to represent fair market conditions,were deliberately omitted. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 99 .\ D `� Ec 0 0 Reconciliation is the process of coordination and integration of related facts to form a unified conclusion. An orderly connection of interdependent elements is a prerequisite of proper reconciliation. This requires a reexamination of specific data, procedures, techniques within the framework of approaches or analyses used to derive preliminary estimates. The estimates thus concluded are primarily based on the applicable market data but, strengthened by refinement in the applicable approach produced the following figures: CostApproach NUN, NNNNN•N••••1114W.N„NNN$N/A IncomeApproach N•NN••••••N•N•NN••NNNNN••••NNNNNNNNN��NNNNNN••$N/A Sale Comparison Approach i\N/NNN. $36,000 FINAL CORRELATED MARKET VALUENNNNNNNNNN....NNNNNN��NNNNNN...N.$36,OOO These individual value conclusions were derived through the application of acceptable appraisal principles and concepts and the differences in these estimates were created by variations in the quality and quantity of materials available for examinations or analysis and are not indicative of basic conflicts. REcmcillAm wALE Cp"� OmAR1ET $36900 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 100 RECONCIUMION An orderly connection of interdependent elements is a prerequisite of proper reconciliation. This requires a reexamination of specific data, procedures, and techniques within the framework of approaches or analyses used to derive preliminary estimates. Each approach included in the preceding sections of this report is considered recognized appraisal technique and was reviewed separately by comparing it to the other approaches in terms of adequacy, accuracy, completeness of reasoning and overall reliability. The Income Approach was not used. Some land in the area perhaps is lease or rented for agricultural and/or hunting purposes but the income is not sufficient to produce an income stream capable of giving a reliable value indication. The Cost Approach was not used, as the subject property is not improved. The Direct Sales Comparison Approach for the subject was based on comparison and analysis of past sales. The indicated value by value per square foot gives a realistic value range the subject should be bracketed in and sufficient data is available to give a strong value indication. Although both buyers and sellers in the market use this approach, there is some disadvantage to the approach. No two properties are identical, and it is difficult to draw comparisons. The sales are recent and compare favorably with the subject. This approach was relied on for the final opinion of value. 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 b:Ray Coleman Associates Page 101 41 iimllerilmG colic-:::211/m©ms „Lb? LIMITERS This appraisal report and the letter of transmittal are made expressly subject to the following assumptions and limiting conditions: INDICATED EXPOSURE TIME: Assuming adequate exposure and normal marketing efforts,the estimated exposure time(i.e.the length of time the subject property would have been exposed for sale in the market had it sold at the market value concluded to in this analysis as of the date of this valuation)would have been within about 12 months;. ESTIMATED MARKETING TIME: The estimated marketing time(i.e.the amount of time it would probably take to sell the subject property if exposed in the market beginning on the date of this valuation)is estimated to be within about 12 months. THIS IS A SUMMARY APPRAISAL REPORT This is a Summary Appraisal Report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it might not include full discussions of the data,reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. NOT RESPONSIBLE FOR LEGAL OR TITLE No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report. THE PROPERTY IS APPRAISED FREE AND CLEAR The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report. RESPONSIBLE OWNERSHIP AND COMPETENT PROPERTY MANAGEMENT Responsible ownership and competent propert\ management are assumed unless otherwise stated in this report. THE INFORMATION FURNISHED BY OTHERS IS BELIEVED TO BE RELIABLE The information furnished by others is believed to be reliable. However,no warranty is given for its accuracy. ALL ENGINEERING IS ASSUMED TO BE CORRECT All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader visualizing the property. O.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 102 LIMITERS IT IS ASSUMTTHERE ARE NO HIDDEN CONDITIONS aibiaistankinermaxwom It is assumed that there are no hidden or unapparent conditions of the property. Subsoil,or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. IT IS ASSTTHERE IS FULL COMPLIANCE It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report. IT IS ASSUMED THAT ALL HAVE BEEN COMPLIED WITH It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated,defined,and considered in this appraisal report. IT IS ASSUMED THAT ALL REQUIRED OBTAINED It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are used. READER REFERENCE PURPOSES ONLY Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report. IT IS ASSUMED THAT THE UTILIZATION It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report. THE APPRAISER IS NOT QUALIFIED TO DETECT HAZARDOUS WASTE The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comments by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos,urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser's value estimate as predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions,or for any expertise or engineering knowledge required to discover them. The appraiser's descriptions and resulting comments are the result of the routine observations made during the appraisal process. AMERICANS WITH DISABILITIES ACT Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property's value,marketability, or utility. O.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st dam of July 2000 by Ray Coleman Associates Page 103 LIMITERS THE DISTRIBUTION OF THE TOTAL The distribution,if any,of the total valuation in this report between land and improvements applies only under the state program of utilization. The separate allocations for land and buildings must no be used in conjunction with any other appraisal and are invalid if so used POSSESSION OF THIS REPORT Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other that the party to whom it is addressed. NEITHER ALL NOR ANY PART OF THE CONTENTS OF THIS REPORT Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser. APPRAISAL IS NOT A SURVEY It is assumed that the utilization of the land and improvements are within the boundaries of the property lines of the property described and that there is no encroachment or trespass unless noted within the report. No survey of the property has been made by the appraiser and no responsibility is assumed in connection with such matters. Any maps,plats,or drawings reproduced and included in this report are intended only for the purpose of showing spatial relationships. The reliability of the information contained on any such map or drawing is assumed by the appraiser and cannot be guaranteed to be correct. APPRAISAL IS NOT A LEGAL OPINION No responsibility is assumed for matters of legal nature affecting title to the property nor is an opinion of title rendered. The title is assumed to be good and marketable. The value estimate is given without regard to any questions of title,boundaries,encumbrances,or encroachments. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. It is assumed that all applicable zoning and use of regulations and restrictions have been complied with, unless a non-conformity has been stated, defined, and considered in the appraisal report. It is assumed that all required licenses,consents,or other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. APPRAISAL IS NOT AN ENGINEERING REPORT This appraisal should not be considered a report on the physical items that are a part of this property. Although the appraisal may contain information about the physical items being appraised (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical report. The appraisers are not construction, engineering, or legal experts, and any opinion given on these matters in this report should be considered preliminary in nature. The observed condition of the foundation, roof, exterior walls, interior walls, floors, heating system, plumbing, insulation, electrical service, and all mechanical and construction is based on a casual inspection only and no detailed inspection was made. For instance,we are not experts on heating systems and no attempt was made to inspect the interior of the furnace. The structures were not checks for building code violations and it is assumed that all buildings meet the building codes unless so stated in the report. Some items such as conditions behind walls, above ceilings, behind locked doors, or under the ground are not exposed to casual view and, therefore, were not inspected.The existence of insulation(if any is mentioned)was found by conversation with others and/or circumstantial evidence. Since it is not exposed to view,the accuracy of any statements about insulation cannot be guaranteed. It is assumed that there are no hidden or unapparent conditions of the property,sub-soil,or structures that would render it more or less valuable. No responsibility is assumed for such conditions or the engineering 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 104 fie uxs that may be required to discover such factors. Since no engineering or percolation tests were made,no liability is assumed for soil conditions. Subsurface rights (mineral and oil)were not considered in making this appraisal. Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any observed condition comments given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically,no guarantee is made as to the adequacy or condition of the foundation,roof,exterior walls, interior walls, floors, heating system, air conditioning system, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested party is concerned about the existence, condition, or adequacy of any particular item, we would strongly suggest that a construction expert be hired for a detailed investigation. APPRAISAL IS MADE UNDER CONDITIONS OF UNCERTAINTY Information (including projections of income and expenses) provided by informed local sources, such as government agencies, financial institutions, Realtors, buyers, sellers,property owners,bookkeepers, accountants, attorneys and others is assumed to be true, correct and reliable. No responsibility for the accuracy of such information is assumed by the appraiser. The comparable sales data relied upon in the appraisal is believed to be from reliable sources.Though all the comparables were examined,it was not possible to inspect them all in detail. The value conclusions are subject to the accuracy of said data. Engineering analysis of the subject property were neither provided for use nor made as a part of this appraisal contract. Any representation as to the suitability of the property for uses suggested in this analysis is therefore based only on a rudimentary investigation by the appraiser and the value conclusions are subject to said limitations. All values shown in the appraisal report are projections based on our analysis as of the date of the appraisal. These values may not be valid in other time periods or an conditions change. Since the projected mathematical models are based on estimates and assumptions which are inherently subject to uncertainty and variation depending upon evolving events, we do not represent them as results that will actually be achieved. This appraisal is an estimate of value based on an analysis of information known to use at the time the appraisal was made. We do not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light,the value given in this report is subject to change without notice. LEGAL DESCRIPTION ASSUMED CORRECT The legal description used in the report is assumed to be correct. FEE SIMPLE PROPERTY RIGHTS The property rights appraised herein are considered as being in fee simple. That is a fee without limitations to any particular class of heirs or restrictions,but subject to the limitations of eminent domain,escheat,police power and taxation.It is the largest state of inheritance a person can have. FEE OF LIENS&ENCUMBRANCES All existing liens and/or encumbrances have been disregarded,and the property has been appraised as though free and clear under responsible ownership and competent management. Typical mortgage financing, as customarily secured for the type of property that is the subject of this appraisal, is considered as is a favorable mortgage position,if any,as shown in the report. NOT REQUIRED TO GIVE TESTIMONY The appraiser will not be required to give testimony or appear in court because of having made this appraisal,with reference to the property in question,unless arrangements have been previously made therefore. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend. Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 105 TERS LAND AND IMPROVEMENTS DISTRIBUTION ESTIMATES The distribution of total valuation between land and improvements as shown in this report applies under the existing program of utilization. The valuation for either, if used independently, may or may not be its correct market value. The integral parts of the appraisal report are to be used in connection with the "whole" and not interpreted or disbursed independently. mom imam PROPOSED CONSTRUCTION Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications. If specifications are incomplete or vague then the appraiser assumed the construction to be like that of comparable buildings and what one would expect for the purpose the building is being constructed for. The square footage, placement on the site and site improvements are assumed to be as outlined in this report. CLOSING COSTS The paying of closing costs, if any, by the seller does not affect the estimated market value as shown in the attached report. NOT AN EXPERT ON UREA FORMALDEHYDE In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building, such as the presence of UREA formaldehyde foam insulation, and/or existence of toxic waste, which may or may not be present on the property, has not been considered. The appraiser is not qualified to detect such substances. We urge the client to retain an expert in this field if desired. HAZARDOUS WASTE Based on the past uses a property has been put to, such as a manufacturing plant or an agricultural strip or other uses which deal with hazardous chemicals,there is a possibility that some toxic chemicals may have contaminated the subject property. For example, an agricultural air strip would be used for landing and taking off of crop dusting airplanes. This entails the use of chemicals which are often hazardous and many times toxic. When a property has been used for such a purpose,or similar purposes,spillage of these hazardous chemicals is extremely possible. The appraiser is not qualified to detect such substances. Therefore, it is our recommendation that an agency with the proper qualifications should determine the existence of potentially hazardous material and/or toxic waste,which may or may not be present. UNDERGROUND STORAGE TANKS In this appraisal report,the undisclosed existence of unused or abandoned underground storage tanks which may be present on the subject property,has not been considered. While it is sometimes obvious whether a property has had an underground tank on it at sometime in the past or not,many times it is impossible to determine by the appraise. Therefore,we urge the client to retain an expert in the field if desired. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Raj Coleman Associates Page 106 Alai* l.iMiTERS ENVIRONMENTAL ASSUMPTIONS This appraisal is subject to the following environmental assumptions: 1) There is a safe,lead-free,adequate supply of drinking water. 2) The subject property is free of soil contamination. 3) There is no uncontained friable asbestos or other hazardous asbestos material on the property. 4) There are no uncontained PCB's on or near the property. 5) The radon level is at or below EPA recommended levels. 6) Any functioning underground storage tanks(UST's)are not leaking and are properly registered;any abandoned UST's are free from contamination and were properly drained,filled and sealed. 7) There are no hazardous waste sites on or near the subject property that negatively affect the value and/or safety of the property. 8) There is no significant UREA formaldehyde(UFFI)insulation or other UREA formaldehyde material on the property. 9) There is no flaking or peeling of lead-based paint on the property. 10) The property is free of air pollution. 11) There are no wetlands/flood plains on the property. 12) There are no other miscellaneous hazardous substances and/or detrimental environmental conditions on or in the area of the site(excess noise,radiation,light pollution,magnetic radiation,acid mine drainage,agricultural pollution,waste heat, miscellaneous chemical,infectious medical wastes,pesticides, herbicides,and the like). 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of J> 2000 by Ray Coleman Associates Page 107 , \ CIERTERCAME 1.gpa2TRANAI I certify that, to the best of my knowledge and belief, the statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and is my personal, unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of this report. 8. The appraisal assignment was not based on a requested minimum valuation, a specific value, or the approval of a loan. 9. My analyses, opinions and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and Standards of the Appraisal Institute. 10. Jerald Shaffer made a personal inspection of the property that is the subject of this report and Ray C. Coleman participated in the decision making process and is thoroughly familiar with all aspects of the appraisal. No one provided significant professional assistance to the persons signing this report. 11. The appraiser hereby certifies that the estimate of market value is not based in whole or in part upon the race, color or national origin of the present owner or occupants of the properties in the vicinity of the property being appraised. 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000_As Is"the 21st day of July 2000 by Ray Coleman Associates Page 108 kW' CPRTIrICON 12. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The Use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute. Ray C. Coleman, Jr., MAI, SRA, is a member of the Appraisal Institute. The Bylaws and Regulations of the Institute require each member to control the use and distribution of each appraisal report signed by a member. Attached is our summary appraisal report, which describes the investigation and analyses, undertaken in arriving at our value estimate. Subject to the assumptions and special & limiting conditions in this report, it is our opinion that the "As Is" Market Value of the subject property as of December I, 1999, is as follows: Attached is our summary appraisal report, which describes the investigation and analyses, undertaken in arriving at our value estimate. Subject to the assumptions and special & limiting conditions in this report, it is our opinion that the "As Is" Market Value of the subject property as of July 21, 2000 is as follows: THIRTY SIX THOUSAND DOLLARS. $36,000 As of the date of this report, I, Ray C. Coleman, Jr., have completed the requirements under the continuing education program of the Appraisal Institute. Respectfully submitted, JERALD E. SHAFFER-APPRAISER IN M. Ray C. Coleman,Jr., MAI, SRA State Certified General Real Estate Appraiser Certificate TX-1320770-G 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 109 ©RE11ALS o ctALllll©Lll@1U RAY C. COLEMAN, JR. MAI, SRA 11 r �, 20 MARABOU PLACE • THE WOODLANDS • TEXAS • 77380 • 281.363.0360 FULL TINE CERTIFIED PROFESSIONAL APPRAISER No. TX-I 320770-G TWENTY SIX YEARS EXPERIENCE born and raised in Houston area o COMPLETED OVER SEVEN THOUSAND APPRAISALS 70% commercial 0 HOLD MAI Appraisal Institute Highest Designation Member No. 8744 PROFESSIONALLY ENDORSED by the Appraisal Institute QUALIFIED IN COURT is an expert witness UNIVERSITY DECREED BS Lamar University, Beaumont, TX PAST PRESIDENT APPRAISAL INSTITUTE local chapter PAST PRESIDENT ROTARY 'ocal club PAST COLLEGE INSTRUCTOR real estate and math APPOINTED BY THE PRESIDENT Selective Service System Local Board EXPERIENCED IN APPRAISING PROPERTIES OF MANY KINDS, INCLUDING, BUT NOT LIMITED TO, COMMERCIAL, OFFICE BUILDINGS, HOTEL/MOTELS, RETAIL CENTERS, RESTAURANTS, LOUNGES, MULTIFAMILY, INDUSTRIAL, SINGLE FAMILY RESIDENTIAL, CONDOMINIUMS, VACANT LAND, WATERFRONT PROPERTIES, AND SUBDIVISIONS, CONTINUING EDUCATION: High Tech Appraisal Office Al (1 998), Commercial Real Estate Development in Houston Al (1998), The Internet and Appraising Al (1 997), Appraisal Legislature Issues Al (1 997), Principles of Income Property Appraising SREA201 (1 977), Special Application of Appraisal Analysis SREA301 (1 982), Eminent Domain and Condemnation Appraising SREA (1 984), Wetlands & Environmental Issues Al (1990), Changes in Real Estate Lending Al (1994), Appraising Contaminated Properties SREA (1 992), Discounted Cash Flow Analysis Al (1 990), Alternative Residential Reporting Forms Al (1997), Residential Case Study Course AI21 0 (1993), FNMA Underwriting Guidelines Al (1991), Applied Residential Property Valuation SREAR2 (1 976), Real Estate Appraisal Principles AIREA1 A/81 (1 988), An Introduction to Appraising Real Property SREA1 01 (1 976), Standards of Professional Practice USPAP-Al PART A (1 995), Standards of Professional Practice USPAP Al PART B (1 997), Standards of Professional Practice USPAP AI PART C (1 998), Limited Appraisals & Report Writing Options Al (1 996), Professional Practice Seminar SREA (1 990), National Conference Seminars (1 987, 1 992) 0.277Acres-Tract D of Reserve G,Block 19,Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 110 IV, i, i MAI DESIGNATION ,,„9 t.Arlrlt i. r;r, t I t r! , ,: , . 9 til is ,.. .:,.: :„,... .„.. : 4,S - 1 7CE pt.Titre NI t. Certifies ThatT� II Riw (1vdc Cokk»t�»t , `fi, tra;.kim„trlto wardership rnthe11 Six illy of Real Estate Appraisers as an oifSR4 :Member on the<3ri day of Oc•tcibor,lfld3 mg and by:rrtue of the urnfcatron of t e American Institute of Real(:state .•tl•/rnri.+tr and the Society A Real Estate.1pprins r;has hr�onrr at: fa (,'tU Jil�J emt\'1• la ,. in the ripllrohu!Institute and is rrrhllcd hi all the right;and rink:CS I C-4 of membership r,ship sulrje i t only to the limiting conditions set forth(nun igl -• time to time in the Bylines and Regulation;of the AITraiwl Institute. 1 In 1ti'itnrss K'lureof,the Board of Director;of the Appraisal Institute 10 ha;authorized this cnti fa ate to/r 5igne it in it c behalf fry the President. Mil �/ )a,1•`w..'.►I.*AOn•••.•.r.' a...Wr 409 KO.a•..•i i..91r".nn .•.•.wr Mt •• fit•. .`_ a 1 y �:_, a i • •• j __ jai anon nolo ini •'1'' APPRAISAL gii ;,,.'i hi, hh i,;is on 0.'" tr%0 no �INSTITUTE__------ 0.277Acres-Tract D of Reserve G, Block 19,Forest Bend. Section 3 $36,000"As Is"the 21st day of July 2000 by Ray Coleman Associates Page 111 de �� ltltcll' ��itli'�11��1'ltl` � 1'1�d: ER 6f _u1 �1t11lulu! it it tll,tt Z1ti L ItS ` •tta : ir + • , , hatriutz !rurrrssfultn ramplrtrd thr l.oursr of tnbn d prrsrrihrh hn the Iiaarts of tegents nub the 4arulty aah bahiun romplirb With all other requirements of thr ttollrgr, has hero brrlarrl a llhtrhrinr of *riritrr Nub rutitlrb to all rights aub pribiltari apprrtaining to that brnrrr. Ix tumoral *brrtiff tit -lisarb si Argroto.spou trrsa:nrabstraa a( thr zralt� ku ;rsatri Ihti i1ptna.farts. tit oral at thr Csllr;r. 16*rs at imaus#,taxes.tip Urns-fdtb 1st daist,Nisirbfalhotstil *btt-ttrrr. 1406441 ice' ,+J 7 r •4 ...,.._� �,� _ 76 curvy 0.277Acres-Tract D of Reserve G,Block 19, Forest Bend, Section 3 $36,000"As Is"the 21st day of July 2000 by Ray_Coleman Associates Page 112 Secir ofriE ©TIT:IF:RD .......... ... TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD BE TT KNOWN THAT RAY CLYDE COLEMAN JR HAVING PROVIDED SATISFACTORY EVIDENCE OF THE QUALIFICATIONS REQUIRED BY THE TEXAS APPRAISER LICENSING AND CERTIFICATION ACT. ARTICLE 6573a.2.VERNON'S TEXAS CIVIL STATUTES, IS AUTHORIZED TO USE THE TITLE STATE CERTIFIED GENERAL REAL ESTATE APPRAISER Number: TX-1320770-G Date of Issue:March 16, 1999 ' JFl Date of Expiration:May 31,2001 In Witness Thereof - f-a` 11 Benjamin E.Barnett,Chair Renil C. r, ommissioner Benjamin E.Barnett. Chair Debra S.Runyan.Vice-Chair Jacqueline G.Humphrey.Secretary Leonel Gores.Jr. David Gluier Eduardo A.Lopez Robert A.Seale,Jr. James M.Synatute Angie V.White 0.277Acres-Tract D of Reserve G, Block 19, Forest Bend. Section 3 $36,000"As Is" the 21st day of July 2000 by Ray Coleman Associates Page 113 PHASE I ENVIRONMENTAL SITE ASSESSMENT OF 17160 Blackhawk Blvd. FRIENDSWOOD, TEXAS 77546 HARRIS COUNTY, TEXAS PREPARED FOR CITY OF FRIENDSWOOD 1306 DEEPWOOD FRIENDSWOOD, TEXAS 77546 ATTENTION: MELVIN MEINECKE PREPARED BY MIKE MCKEE, ENVIRONMENTAL PROFESSIONAL MCKEE ENVIRONMENTAL HEALTH INCORPORATED 303 WESTFIELD FRIENDSWOOD, TX 77546 (281) 482-3403 ati4151674, ow ,p� o f\ June 22, 2000 c"t U-- S- 16 ? 2 / zi,2 June 22, 2000 City of Friendswood 910 S. Friendswood Drive Friendswood, TX 77546 Attention: Melvin Meinecke Re: Environmental Site Assessment of property and associated buildings at 17160 Blackhawk Blvd. MEHI Project No. 000640 Dear Mr. Meinecke: Submitted herein is our report of the environmental site assessment performed for the above referenced property. All of the data accumulated for the assessment such as: the environmental database search, photographs, title information and field notes will be kept in your project file. If you have any questions or need any additional information, please do not hesitate to call. The report and information in your file is considered confidential and will not be released without your authorization. We appreciate the opportunity to work with you on this project and hope you will contact MEHI for any future projects. Sincerely, MCKEE ENVIRONMENTAL HEALTH, INC. 7 ��zG ! Michael S. McKee Environmental Professional MM/MM TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY 1 2.0 INTRODUCTION 5 2.1 Purpose and Organization of Report 2.2 Site Background 3.0 SITE PHYSICAL CHARACTERIZATION 8 3.1 Topography 3.2 Soil Classification 3.3 Geology 3.4 Hydrogeology 3.5 Special Resources Considerations 4.0 HISTORIC SITE CONDITIONS 12 4.1 Interviews 4.2 Historical Aerial Photographs 4.3 Historical Document Review 5.0 CURRENT SITE CONDITIONS 13 5.1 Description of Current Property Use and Condition 5.2 Description of Adjacent Land Use 5.3 Current Site Photographs 5.4 Observations 5.5 Testing Results 6.0 REVIEW OF REGULATORY AGENCY RECORDS 18 6.1 Hazardous Regulated Wastes 6.2 Underground Storage Tanks 6.3 Discharge Incidents 6.4 Discharge Permits 7.0 REGULATORY/GOVERNMENTAL AGENCY INQUIRIES 19 7.1 CERCLIS 7.2 No Further Remedial Action Planned 7.3 RCRA Notifiers 7.4 Corrective Action 7.5 State Superfund Sites 7.6 Petroleum Storage Tanks 7.7 Leaking Underground Storage Tanks 7.8 Texas Spills List 7.9 EPA/TWC Recorded Hazardous Material Releases 8.0 CONCLUSIONS AND RECOMMENDATIONS 28 8.1 Conclusions of Available Data 8.2 Data Limitations 8.3 Recommendations Appendix A Signed Agreement Appendix B Aerial Photographs Appendix C Current Site Photographs Appendix D Figures Appendix E FEMA/FIRM -Flood Zone Designation 1.0 EXECUTIVE SUMMERY Phase I Environmental Site Assessment Client: City of Friendswood 1306 Deepwood Friendswood, Texas 77546 MEHI Project No.: 000640 Asset Location: 17160 Blackhawk Blvd., Friendswood, Texas Inspection Date(s): Subject site was inspected on June 23, 2000 by Michael S. McKee of McKee Environmental Health Inc. Brief Asset Description: The subject site is described as being; a tract of land containing 0.2823 acres, more or less, out of Reserve "G" Block 19 of Forest Bend, Section Three according to the map or plat thereof recorded in Volume 180, page 73 Map Records Harris County Texas and having an address of 17160 Blackhawk Blvd., Friendswood, Texas 77546. The subject property is bordered to the north by a commercial, children's day care facility followed by the single-family residential housing of the Forest Bend subdivision. To the east the property is bordered by Blackhawk Blvd., followed by multi- and single-family housing. South of the subject property are a retail strip center and numerous other commercial retail businesses along FM 528. Finally, west of the subject property is also developed with single-family residential housing. Site Characteristics: The subject site is approximately twenty-five (25) feet above sea level. Surface topography of the site is generally characterized as nearly flat. Drainage of the site is directed to the city maintained storm sewer system. Vegetation on the site is predominantly grasses and variety of native and ornamental tree species. A Flood Search Report for the site indicates the subject site is in Zone X, which are areas determined to be outside the 500-year flood plain. Ownership Record: According to independent abstractor Connie Franco and Harris County records, the property is currently owned by Hale-Mills Realty, Inc. For the past fifty years, the subject property has been owned by various individuals and, since April of 1969, by two realty companies (Norwood Homes and Hale-Mills Realty). Title information has revealed no ownership that would indicate any obvious potential environmental liabilities associated with the subject site. Aerial Photographs: A review of aerial photographs taken in 1944, 1969, 1979, 1986, and 1995, indicated no potential liabilities associated with the subject site or on the adjacent properties. Site Visit Survey: The subject site is located in a residential/ commercial area of Harris County. No hazardous conditions were observed to be associated with the subject site. No indication of heavy industry was observed to be in the near vicinity or to have occurred on the subject site. Asbestos Survey: No asbestos survey was performed. Lead Paint Survey: No lead-based paint survey was performed. Special Resources: Special resources are typically considered for inclusion in a Phase I assessment where there are plans to develop the property. Raw land is particularly subject to such plans. The subject site is located within a developed area of Harris County, Texas and no further investigation is considered warranted. Agency Review: A review of available federal, state, and local agency records revealed that the facility was not listed as having a registered underground storage tank. No obvious potential environmental liabilities were associated with the subject site. A review of the U.S. Environmental Protection Agency (EPA) databases: including, the National Priority List (NPL), RCRA Administrative Action Tracking System (RAATS), Resource Conservation and Recovery Information System (RCRIS), Comprehensive Environmental Response, Compensation, and Liability Information System (CERCLIS), and Emergency Response Notification System (ERNS), revealed that the subject site was not listed on any these databases. Neither was the site listed on the RST (Registered Storage Tank) List nor was it listed on the LRST (Leaking Registered Storage Tank) List. No (0) registered generators of RCRA waste were identified within '/4 mile of the property. No (0) properties within '/4 mile of the subject site were listed on the ERNS. No (0) properties within '/2 mile of the subject site were listed on the CERCLIS database. A review of the Texas Natural Resource Conservation Commission (TNRCC) databases; including the Leaking Underground Storage Tanks (TXLUST), Above Ground Storage Tanks (TXAST), and Texas Underground Storage Tanks (TXUST) revealed that the subject site was not listed on any of these databases either. The Texas Natural Resource Conservation Commission (TNRCC) records report no recorded spill incidents having occurred on the site. The Texas Natural Resource Conservation Commission (TNRCC) listed one (1) property within 'A mile with one (1) registered Underground Storage Tank (UST). The Texas Natural Resource Conservation Commission (TNRCC) listed no (0) sites within 'A mile of the subject site as having Leaking Underground Storage Tanks (LUST). One property within '/4 mile of the subject site was listed by the Texas Natural Resource Conservation Commission (TNRCC) as having a registered Above Ground Storage Tank (AST). No properties within one (1) mile were registered by the Texas Natural Resource Conservation Commission (TNRCC) as being an active Texas Landfill (TXLF). Conclusions: McKee Environmental Health Inc. (MEHI), conducted a Phase I Environmental Site Assessment for the City of Friendswood in accordance with the scope and limitations of ASTM Practice E 1527 on the property located at 17160 Blackhawk Blvd., Friendswood, Texas. Environmental Professional Mike McKee of McKee Environmental Health Inc conducted the ESA on June 23, 2000. Recommendation: McKee Environmental Health Inc. recommends no further environmental assessment at this time. 2.0 INTRODUCTION 2.1 Purpose and Organization of Report 2.1.1 Purpose The purpose of this study is to: 1. Review past and current land use of the site for indications of the manufacture, generation, use storage, transportation, and/or disposal of hazardous waste at the site; 2. Review past and current land use of properties in the vicinity of the site, including adjacent properties, for indications of the manufacture, generation, use, storage and/or disposal of hazardous substances or hazardous waste; 3. Evaluate the potential for site soil and/or groundwater contamination due to the presence or potential presence of hazardous substances or hazardous waste, resulting from any past or present site land use activities of properties in the vicinity of the site, including adjacent properties; 4. Evaluate the potential for the existence of environmentally sensitive areas on the site; 5. Render findings and professional opinions regarding both the potential for environmental contamination due to the presence or potential presence of hazardous substances or hazardous waste at the site and the existence environmentally-sensitive areas; 6. Recommend what further investigations, if any, are necessary to evaluate whether contamination due to the presence or potential presence of hazardous substances or hazardous waste may exist at the site or in the vicinity of the site, and whether environmentally-sensitive areas may exist at the site; 7. Reduce the risk to the health and safety of City of Friendswood employees, visitors, contractors and to the general public by identifying serious or potentially serious threats to human health or safety or the environment; 8. Minimize future financial liability and risk to the City of Friendswood of environmental liability; 9. Protect environmentally sensitive areas, consistent with federal, state, and local environmental rules, regulations, and laws. 2.1.2 Scope The scope of this study included a site visit, a review of site history of ownership and regulatory agency records, and an environmental assessment of the property. The information used in the assembling of this Phase I Environmental Site Assessment was accumulated during a site visit; personal interviews; review of aerial photographs; review of federal, state and local regulatory agency records, maps, and publications; and a review of local historical directories and maps. This study was authorized by Melvin L. Meinecke, the Director of Public Works, for the City of Friendswood and has been performed for the client for use in evaluating potential environmental problems associated with the site. Recommendations have been based solely on the above referenced scope, and if any information is known or encountered which may alter the recommendations presented in this report, it should be forwarded to McKee Environmental Health Inc. for possible reevaluation of conclusions. 2.2 Site Background 2.2.1 Site Description The subject site is located at 17160 Blackhawk Blvd., Harris County, Texas. The subject site is described as being; a tract of land containing 0.2823 acres, more or less, out of Reserve "G" Block 19 of Forest Bend, Section Three according to the map or plat thereof recorded in Volume 180, page 73 Map Records Harris County Texas and having an address of 1760 Blackhawk Blvd., Friendswood, Texas 77546. Mike McKee inspected the subject site on June 23, 2000. Photos of the subject site were also taken on June 23, 2000. Representative photos are included as Appendix C. The subject site is located within an area of rural single- and multi- family housing and commercial property. No indication of heavy industry was observed to be within the near vicinity. The subject property is bordered to the north by a commercial, children's day care facility followed by the single-family residential housing of the Forest Bend subdivision. To the east the property is bordered by Blackhawk Blvd., followed by multi- and single-family housing. South of the subject property are a retail strip center and numerous other commercial retail businesses along FM 528. Finally, west of the subject property is also developed with single- family residential housing. There are no permanent buildings currently on the site. No hazardous conditions were observed to be associated with subject site. 2.2.2 Site History Based on a title search and aerial photographs covering the last fifty years, the subject property has been owned by various individuals and, since April of 1969, by two realty companies (Norwood Homes Inc. and Hale-Mills Realty Inc). The research did not suggest any owner who might have a history of environmental violations or crimes. 3.0 SITE PHYSICAL CHARACTERIZATION 3.1 Topography Topography information of the subject site is found on the 1982 Friendswood, Texas Quadrangles. This is a 7.5-minute series topographic map generated and updated by the U.S. Geological Survey. A portion of the Friendswood, Texas Quadrangle is included as figure 2 in Appendix D. Based on this quadrangle, the subject site is approximately 25 feet above sea level and characterized as nearly level. 3.2 Soil Classification According to United States Department of Agriculture Soil Conservation Service in their Soil Survey of Harris County, Texas, the subject site is located on an area composed of LcA Lake Charles clay, 0 to 1 percent slopes (See figure 3 of Appendix D). This is a nearly level soil. Slopes range from 0 to 1 percent but averages 0.2 percent. 3.3 Geology Harris County is in the Western Gulf section of the Coastal Plain. The uppermost formations, from which the parent materials of soils in the county weathered, are of Pliocene, Pleistocene, and Holocene (Recent) age. These formations originally consisted of fluvial, deltaic, coastal marsh, and lagoonal soil materials and shallow sea deposits. Among the geologic and geomorphic features in the county are sedimentary deposits broken by normal faults, salt domes, pimple mounds, undrained depressions, and scarps. The sedimentary deposits slope gently toward the Gulf of Mexico. They are broken by normal faults most of which dip toward the Gulf and extend downward many thousands of feet. The earth movements that caused these faults took place within the last 50,000 years. As Galveston County has become urbanized, some of the faults have been reactivated, resulting in damage to pavement and to homes. Also, as pumping has withdrawn large amounts of ground water and lowered the artesian pressure in aquifers, the clay that enclosed the aquifers has dried and compacted. As the clay dried, especially in the areas adjacent to Galveston Bay, subsidence related to the faults took place and allowed flooding during periods of high tides and winds. 3.4 Hydrogeology The principle freshwater aquifers in the subject area are the Chicot and the Evangeline. Below the Evangeline is a major confining formation, the Berkeville. Although there is good correlation of the formations, the sands do not correlate precisely which is an indication of discontinuities in the fluvially deposited system. Most of the ground water supplies for this area are derived from the Chicot Aquifer. This is a wedge of unconsolidated sedimentary rocks of Cenozoic and younger age, which becomes thicker toward the Gulf of Mexico. The formation is composed of clay, silt, sand, gravel and marl, interbedded in alternating and intertonguing strata. The Chicot is a very productive aquifer and an extensive source of groundwater in the site vicinity. Water wells completed in the Chicot are generally a minimum of 200 feet deep. Further specific descriptions of these major aquifers and the underlying Berkeville can be found in Report 190 prepared by the Texas Water Development Board. Groundwater levels in shallow aquifers fluctuate during the year depending on rainfall and evaporation. The general direction of ground water flow is toward the southeast. Review of LUST, RCRA and CERCLA lists provides no information about any contamination of groundwater at or near the property that would affect the subject site. 3.5 Special Resources Considerations 3.5.1 Any coastal areas, rivers, streams, lakes, or other bodies of water on or immediately adjacent to the subject property Special resources are typically considered for inclusion in a Phase I assessment where there are plans to develop the property. Raw land is particularly subject to such plans. The subject site is located within a rural residential area of Harris County, Texas. 3.5.2 Any evidence that the subject property is a critical or unique habitat and/or an area inhabited by threatened or endangered species Endangered Species refers to federally listed or proposed threatened or endangered plants or animals, including their habitat, or Critical habitat under the Endangered Species Act. No evidence was obtained that would suggest the subject site is a critical or unique habitat or that it was inhabited by threatened or endangered species. The subject property is maintained in a grassy state through frequent mowing. 3.5.3 Any evidence that a river or stream on or adjacent to the property is a wild and scenic river under local, state, or federal law Wild and Scenic Rivers are those designated or proposed under the Wild and Scenic Rivers Act, including Study Rivers. No Wild or Scenic Rivers are on or adjacent to the subject property. 3.5.4 Is property within 1,000 feet of coastal shoreline This property is not located within 1,000 feet of a coastal shoreline. 3.5.5 Any evidence property is located in a region known to contain significant fossil collections or remnants of organisms of past geological age No evidence was observed on the subject property to suggest the presence of fossils or remains of organisms of past geologic age. 3.5.6 Any evidence property is a designated natural landmark No landmark notifications such as plaques, markers, or ground plates were observed on or near the site. 3.5.7 Any evidence the property is or may be used for public recreation No evidence was observed that indicate the property is or may be used for public recreation. 3.5.8 Any evidence the property is a potential wetlands In 1977, the U.S. Fish and Wildlife Services (USFWS) began the National Wetlands inventory (NWI), a systematic effort to classify and map America's remaining wetlands. The NWI describes wetlands according to the "Classification of Wetlands and Deepwater Habitats of the United States," as a system that describes wetlands by soils, hydrology, and vegetation according to the following wetlands definition: Wetlands are lands transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water. For the purpose of this classification, wetlands must exhibit all three of the following attributes: (1) at least periodically, the land supports predominately hydrophytes, (2) the substrate is mainly undrained hydric soil, and (3) the substrate is saturated with water or covered by shallow water at some time during the growing season of each year. The Corps of Engineers is the designated agency in determining whether an area exhibits wetland characteristics. The Corps of Engineers makes the final decision as to whether development can occur on the site based on an on-site survey. If desired, the owner of the property may contact the Corps of Engineers in Galveston, Texas, directly. After surveying the property, it is our opinion that the Corps of Engineers would not designate this site as a wetland due to the development that has already occurred on the site, and due to the fact that the site does not exhibit wetland characteristics. 4.0 Historical Site Conditions 4.1 Interviews No personal interviews were required. 4.2 Historical Aerial Photographs Five (5) aerial photographs were reviewed for surface anomalies indicative of possible surface dumps, landfill areas, oil and gas exploration activities and industrial development. M.E.H.I. obtained the aerial photographs of the site area from TelAll of Port Aransas, Texas. The approximate scale for each aerial photograph is 1 inch equals 700 feet (1" = 700'). A review of aerial photographs was conducted to evaluate potential hazardous and historical land use throughout the site area. No significant aerial photograph anomalies were observed at the properties that McKee Environmental Health Inc. interprets as indicative of possible waste ponds and dumps. 4.3 Historical Document Review 4.3.1 Current Ownership According to the records of the County Clerk of Harris County, Texas, Hale-Mills Realty Inc. is the current owner. 4.3.2 Prior Ownership According to the records of Harris County, Texas, over the past fifty years, the subject property has been owned by various individuals and, since April of 1969, by two realty companies (Norwood Homes and Hale-Mills Realty Inc). The research did not suggest any owner who might have a history of environmental violations or crimes. 5.0 Current Site Conditions 5.1 Description of Current Property Use and Condition The subject property is undeveloped, having no permanent building structures presently on the site. Property is maintained in a grassy state through frequent mowing. 5.2 Description of Adjacent Land Use A survey of adjacent properties was made at the time of the site visit. The area is characterized as a single-family residential housing and commercial development. The following paragraphs outline the observations of the adjacent property usage and condition: Property Usage - North: The property adjacent to the north from the subject site is a commercial, children's day care facility followed by the single-family residential housing of the Forest Bend subdivision. Property Usage - East: The property is bordered by Blackhawk Blvd., followed by multi- and single-family housing. Property Usage - South: To the south are a retail strip center and numerous other commercial retail businesses along FM 528. Property Usage - West: The property adjacent to the west is also developed with single-family residential housing. 5.3 Current Site Photographs Photographs of the subject site were taken on June 23, 2000 and are included in this report as Appendix C. 5.4 Observations 5.4.1 Evidence of Hazardous Substance Identification/ Inventory No regulated substances were observed on the property. 5.4.2 Evidence of Hazardous Materials of Waste Storage No evidence of present or past hazardous material storage or disposal was observed on the subject site or on immediately adjacent properties. 5.4.3 Evidence of Underground Storage Tanks No underground storage tanks (UST) were found to exist on the subject site. 5.4.4 Evidence of Above Ground Storage Tanks No above ground storage tanks (AST) were observed on the property. 5.4.5 Evidence of Landfill, Burial, or Direct Dumping No landfill activity, burial or direct dumping was observed on the site. 5.4.6 Evidence of Pits and Sumps No pits or sumps were noted on or near the property. 5.4.7 Evidence of Polychlorinated Biphenyl (PCBs) Three pole transformers were noted, but were not on the subject property itself. The pole-mounted transformers are about ten feet from the southwest corner of the property on a property already owned by the city of Friendswood for the No. 1 Pump Station. The transformers appear to be in good condition with no leaking observed (see photo no. 6 in Appendix C). 5.4.8 Evidence of Stressed Vegetation No signs of stressed, discolored or dead vegetation were observed during the site survey. 5.4.9 Evidence of any Air Emissions No air emissions were observed or suspected to be associated with the subject site. 5.4.10 Evidence of any Wastewater Discharges No wastewater discharges were evident on the subject site or adjacent property. 5.4.11 Evidence of Illegal Dumping of Hazardous of Contamination Materials No evidence of significant illegal surface dumping was observed on the site. No Landfills or direct burial was observed on the property. 5.4.12 Evidence of Soils, Ground Water or Surface Water Contamination No evidence of soils, ground water or surface water contamination was observed on the property. 5.4.13 Evidence of any Oil or Gas Well Exploration, Abstraction, or Refinery Activities No evidence of any oil or gas well exploration, abstraction, or refinery activities was observed on the subject site. 5.4.14 Evidence of Monitoring Wells or Remedial Activities No monitoring wells or evidence of current or past remedial activities was observed on the site. 5.4.15 Evidence of any Chemical Spills or Releases No evidence of chemical spills or releases was observed on the site. 5.4.16 Any Security, Health or Safety Problems Observed No obvious security, health or safety problems were observed during the site inspection. 5.4.17 Evidence of Present or Past Railroad Spurs No evidence of past or present railroad spurs was observed on the site. 5.5 Testing Results 5.5.1 Asbestos Testing Building owners are subject to federal and state asbestos regulations, which mandate certain actions with respect to the handling and management of asbestos materials. The owner is responsible for complying with these regulations unless the facility is found to be totally free of asbestos material. The best method of accomplishing compliance is through the development and implementation of an Asbestos Operations and Management (O&M) Plan. No asbestos survey was conducted. 5.5.2 Chemical Waste Testing Results No evidence of the presence of mismanaged waste was observed on the site; therefore, no waste testing was requested for this assessment. 5.5.3 Analysis of Drinking Water No potable water testing was requested for this assessment. 5.5.4 Radon Radon is an odorless, tasteless gas that comes from the natural (radioactive) breakdown of uranium in soil, rock, and water; and it penetrates the air we breath. Radon can be found throughout the United States, and it can enter any type of building - homes, offices and schools and build up to high levels. It typically moves up through the ground to the air above and into a building or home through cracks and other holes in the foundation. The building then traps radon inside, and the radon gas level builds up. Radon from soil gas is the main cause of radon problems; however, in some instances radon can enter homes through well water. In a small number of homes/buildings, the building materials can release radon, as well. However, building materials rarely cause radon problems by themselves. The Gulf Coast area is generally not prone to Radon problems; therefore, no radon sampling was performed. 6.0 Review of regulatory Agency Records 6.1 Hazardous/Regulated Waste No records of hazardous/regulated waste generation, storage, or disposal activities were noted on the property. 6.2 Underground Storage Tanks No underground storage tanks were found to exist at the subject site. The subject property is not listed as a registered petroleum storage tank (PST) facility under the Texas Natural Resource Conservation Commission (TNRCC) PST list. 6.3 Discharge Incidents No record of discharge incidents on the property was revealed from the regulatory agency record research. 6.4 Discharge Permits No regulatory agency's records indicate any issuance of discharge permits on the property. 7.0 Review of Environmental Databases 7.1 National Priority List NPL is a priority subset of the CERCLIS List. (See CERCLIS, below) The CERCLIS list was created by the Comprehensive Environmental Response, Compensation and Liability Acts (CERCLA) need to track contaminated sites. CERCLA was enacted on 12/11/80, and amended by the Superfund Amendments and Reauthorization Act of 1986. These acts established broad authority for the government to respond to problems posed by the release, or threat of release of hazardous substances, pollutants, or contaminants. CERCLA also imposed liability on those responsible for releases and provided the authority for the government to undertake enforcement and abatement action against responsible parties. Source: EPA, (703) 603-8852 Database: NPL Site: No Findings within one mile. 7.2 CERCLIS Comprehensive Environmental Response Compensation and Information System The U.S. Environmental Protection Agency (EPA) maintains a list of federal Superfund sites and a list of CERCLIS sites. The Comprehensive Environmental Response Compensation and Liability Act (CERCLA) commonly referred to as Superfund, was created in 1980 to cover both the past and present emergencies. The EPA has created the National Priority List (NPL) which is a list of abandoned sites that may require remedial investigation, feasibility studies, and possible remedial activities. The sites with the highest priority ranking are classified as active Superfund sites. The Comprehensive Environmental Response Compensation and Liability Information Service (CERCLIS) is a computer database which lists both inactive and active sites which have been inspected by EPA or its designees for possible violation of Resource Conservation and Recovery Act (RCRA) or CERCLA regulations. Sites may be included on the CERCLIS file through citizen complaints or reports from other regulatory agencies. Database: CERCLIS Site: No properties within a 1/2 mile radius of the site are listed. A CERCLIS site that was found, the Friendswood 518 Site, is located near the intersection of FM 518 and FM 528 and is over a mile to the southwest of the subject property. 7.3 NFRAP No Further Remedial Action Planned NFRAP Sites indicate a CERCLIS site that was designated "No Further Remedial Action Planned" by the EPA February 1995. Source: EPA/NTIS, (703) 413-0223 Database: NFRAP Site: No findings within 1/2 mile. 7.4 RCRA-TSD Resource Conservation and Recovery Information System - Treatment Storage or Disposal Resource Conservation and Recovery Information System (RCRIS Under the Resource Conservation and Recovery Act (RCRA), generators, transporters, treaters, storers, and disposers of hazardous waste as defined by the federally recognized hazardous waste are required to provide information concerning their activities to state environmental agencies, who in turn provide the information to regional and national U.S. EPA offices. The RCRA TSD (Treatment Storage or Disposal) is a subset of the RCRIS list. RCRA TSD tracts facilities that fall under the Treatment Storage or Disposal classification. Source: EPA/NTl S, (800) 424-9346 Database: RCRA-TSD Site: No properties within a one-mile radius of the site are listed. 7.5 CORRACT Corrective Action CORRACT lists RCRIS (Resource Conservation and Recovery Information System) sites that are currently or have had in the past corrective action. Source: EPA, (800) 424-9346 Database: CORRACT Site: No findings within one mile. 7.6 RCRA-G Resource Conservation and Recovery Information System - Generators Resource Conservation and Recovery Information System (RCRIS) Under the Resource Conservation and Recovery Act (RCRA), generators, transporters, treaters, storers and disposers of hazardous waste, as defined by the federally recognized hazardous waste, are required to provide information concerning their activities to state environmental agencies, who in turn provide the information to regional and national EPA offices. The RCRA-G (Generators) list is a subset of the RCRIS list. RCRA-G tracts facilities that fall under the generators of transporters classification. CONDITIONALLY EXEMPT SMALL QUANTITY GENERATORS (CESQG) produce less than 100kg per month of hazardous waste. SMALL QUANTITY GENERATORS (SQG) produce at least 100 kg per month but less than 1000 kg per month of hazardous waste. LARGE QUANTITY GENERATORS (LQG) produce at least 1000 kg per month of hazardous waste. Source: EPA/ NTIS, (800) 424-9346 Database: RCRA-G Site: No findings within 1/4 mile. 7.7 ERNS Emergency Response Notification System ERNS supports the release notification requirements of section 103 of the Comprehensive Environmental Response Compensation, and Liability Act (CERCLA), as amended; section 311 of the Clean Water Act; and sections 300.51 and 300.65 of the National Oil and Hazardous Substances Contingency Plan. Additionally, ERNS serves as a mechanism to document and verify incident - location information as initially reported, and is utilized as a direct source of easily accessible data, needed for analyzing oil and hazardous substances spills. Source: EPA/NTIS, (202) 260-2342 Database: ERNS Site: No Findings within 1/4 mile. A single "location unknown" site was reported as an "Exxon Gas Station" on W. Bay Area in Webster, Texas (ERNS ID number 110670). An "unknown quantity of gasoline was released" on June 2, 1989 and its status listed as "evaluating the occurrence". The direction from the subject property where the spill occurred (east) indicates that the subject property groundwater is not down-gradient from the spill and therefore would not have been impacted. 7.8 TXVCP Texas Voluntary Cleanup Program Created under HB 2296, The Texas Voluntary Cleanup Program (VCP) was established on 9/01/1995 to provide administrative, technical, and legal incentives to encourage the cleanup of contaminated sites in Texas. Since future lenders and landowners receive protection from liability to the State of Texas for cleanup of sites are eliminated. As a result, many unused or under unused or under used properties may be restored to economically productive or community beneficial uses. After cleanup, the parties receive a certificate of completion from the TNRCC that states that all lenders and future landowners that are not PRP's are released from all liability to the State. Database: TXVCP Site: No findings within 1/2 mile. 7.9 TXSSF State Superfund Sites The Texas Water Commission (TWC) Hazardous Waste Division maintains a registry of state Superfund sites which are not included on the federal NPL list due to national priority ranking but have been determined by the state to require immediate investigatory and/or remedial action. Database: TXSSF Site: No state Superfunds were identified within one mile of the subject site. 7.10 TXLF TNRCC Solid Waste Facilities The Texas Natural Resource Conservation Commission (TNRCC) Requires municipalities and counties to report known active and inactive landfills. Texas Landfills is a listing of solid waste facilities registered and tracked by the TNRCC Solid waste division. The facilities tracked include solid waste disposal sites as well as transfer stations and processing stations. Sources: TNRCC, (512) 239-6786 Database: TXLF Site: No Findings within one mile. 7.11 TXLUST Leaking Underground Storage Tanks LUST is a list of known tank releases maintained by the Texas Natural Resource Conservation Commission (TNRCC). Database: TXLUST Site: No Findings within 1/4 mile. 7.12 TXUST Texas Underground Storage Tanks Underground Storage Tanks - Permitted underground storage tanks are tracked by the Texas Natural Resource Conservation Commission (TNRCC). This list is also maintained by the TNRCC. Source: TNRCC, (512) 239-2160 Database: TXUST Site: One "location unknown" underground storage tank site was reported as being on "FM RD 528" and in "Webster, Texas 76902". The portion of FM 528 that is in Webster is east of the subject property and therefore this UST should not be a threat to the groundwater of the subject property. 7.13 TXAST Texas Above Ground Storage Tanks Above Ground Storage Tanks - Permitted above ground storage tanks are tracked the Texas Natural Resource Conservation Commission (TNRCC). This list is also maintained by the TNRCC. Source: TNRCC, (512) 239-2160 Database: TXAST Site: One "location unknown" above ground storage tank was reported as the "FM 528 SANDPIT" and as being in Friendswood, Texas 77546. The portion of FM 528 that is in Friendswood is south of the subject property and therefore this AST should not be a threat to the groundwater of the subject property. 7.14 Texas Spills List The Texas Natural Resource Conservation Commission (TNRCC) tracks cases where emergency response is needed for cleanup of toxic substances. Database: TXSPILL Site: No findings within IA mile. 8.0 Conclusions and Recommendations 8.1 Conclusions of Available Data Based on the observations during the site reconnaissance and the information obtained during the Environmental Site Assessment, the following can be concluded for the subject property; • Regulatory databases research revealed that the subject property is not listed on any of the research databases. • Within 1/2 mile of the site, there are no current CERCLIS listings and within one (1) mile of the site, there are no Federal or State NPL facilities. • No signs of mismanagement, storage, and/or disposal of regulated waste on the subject site were evidenced during the site inspection. • No abnormal air emissions were detected during the site inspection. 8.2 Data Limitations This ESA is written for the property as is and does not take into account future changes. McKee Environmental Health, Inc. (MEHI) observations, findings, and opinions must not be considered as scientific certainties but only as opinion based on our professional judgment concerning the significance of the data gathered during the course of the site assessment. Specifically, MEHI does not and cannot represent that the site contains no hazardous or toxic materials, or other latent condition beyond that observed by MEHI during its site assessment. If additional pertinent information is discovered following submission of this report, it should be forwarded to MEHI for review, and reevaluation of recommendations and conclusions. 8.3 Recommendations Based on our site reconnaissance and the information gathered during this Environmental Site Assessment, performed in conformance with the scope and limitations of ASTM practice E 1527, the subject site as described in Section 2.2.1 of this report revealed no evidence of recognized environmental conditions in connection with the property. McKee Environmental Health, Inc. recommends no other environmental assessments at this time. APPENDIX A Signed Agreement 06/23/00 FRI 05:13 FAX 281 482 7203 002 frrw 411 -7 :ar .41, 0 1M E �1� l•i� !' •NSITE * ✓P McKEE ENVIRONMENTAL HEALTH, INC. 303 Westfield • Friendswood, 'I'X 77545 • (281) 482-3403 June 26, 2000 Melvin L. Meinecke City of Friendswood 910 S. Friendswood Drive Friendswuud, TX 77546 Dear Mr. Meinecke: McKee Environmental Health, Inc. is pleased to submit the following proposal: SERVICE PRICE Provide a Phase 1 Environmental Site Assessment $1,500.00 on the home and property at 17160 Blackhawk Friendswood, Texas for the City of Friendswood. SPECIAL NOTES - Access to building must be provided by owner. McKee Environmental Health, Inc. has been in business since 1982 performing various types of Industrial Hygiene Consulting, Environmental Studies and Asbestos Consulting. The State of Texas licenses our consultant, field personnel and our Laboratory. All field operations are overseen by a Certified Industrial Hygienist. Please sign below and fax acceptance to (281) 482-7203 if you want MEHI to proceed with the project. If you have any further questions, please don't hesitate to call. Cordially, Mike McKee Accepted by: , I/11.1.2L446242. Lic. Asbestos Consultant 10-5540 P. O. No.: (-D, 7"3D/n AINP,' ACCREDITED LABORATORY, Received Time Jun . 27 . 11 : 27AM APPENDIX B Aerial Photographs APPENDIX B 1944 AERIAL PHOTO MEHI Proj.#000640 ,. 1 S ! .. ./ • / / r u ,: rI. iy rs. 42,i aura• 'b ', , . a 4• 1 rf „ r .. .. ! q rR i -n 1 Y f • w ti * ti r _ �! \ .. 4 q F it -• ice - . f,4 �"I t t . l.44n . 4 _ . mg4 .w Y a�4II s ..y 4 3: ‘ Y+f sty R 1 1 � r ' Y.> . . Photos By: TelAll of Texas McKee Environmental Health Inc. Photo Date: 1944 1944 AERIAL PHOTOGRAPH Source: ASCS Scale: 1 in. _ + 667 ft Target area: 17160 Blackhawk Blvd.. Friendswood, Texas APPENDIX B 1969 AERIAL PHOTO MEHI Proj.#000640 ', > Fr i p� ri -.it.".../Y,'",,,,:`,. ..rY <.Y'v r 5 • yyL 6Y' '._t ! YR,d Yt - .rF{' :1N.F?r,. it 4r $: c F • • i q_q e! !4! +j �+ 44, J L S,'4. h • � a t,e ... , P$n 4 afy • .. - — 2 . 9>-,. � a >v l p • ,g f ' • ` l� yy ar w z,° h : {. w.,nglfir Xt6 t 4 .. 0. j��w S�5 �'ya i `w �' • 'L� S,R Y 7 ;.) ,.. iA'.,�.• i. .tai. Y 5"� 1nP' S� ...a +�s Mr. „.' 9 Y - _ .-fi 5* Lli Y . �,'r ,: • P t s. r: f' p �L Xt • .f q - t fX� 11 - , ! 1 ' e _ a T. t • '_� .. .vim .iii y 1 - 7 .-. �,., ,3r . v `C ilk Fr• ! • 4 iJ ! 4 i . • " i r , • J ! . ,tom y i ii 1441: Photos By: TelAll of Texas McKee Environmental Health Inc. Photo Date: 1969 1969 AERIAL PHOTOGRAPH Source: Wallace—Zingery Scale: 1 in. = + 660 ft Target area: 17160 Blackhawk Bled.. Friendswood. Texas APPENDIX B 1979 AERIAL PHOTO MEHI Proj.#000640 i` ti. 2k 416 t.; _ •Fivi, A, - '1-4,---_:-.--qv ktel`_,."_,.• '7 3+, I. • I4 t 4. ,� ybb ' ‘ - 4% \,,,,..,: •4#4.- , :.r:'-.:3,,,-,• -,,,-..„-s,;',..;- , /.. ' ''... ',/.• ,,, , - - ti- . ` ,N \ . ; ti / 4-.- ' 4 , M .t,/ .`4, ._ s. \ '''..\ ' • Sr. ,,, --'it - ° -.,:t.'..--;-..---' ..s..''',',;."?'''" `,..-,,,4.'. -, % - asr ♦ t 1: ?II.ilk 1 - . � " "F � TM " + z2- ' i';W + Ax r+ i • _ I0111;>,....gro / 1 t Y`Y a. y 'aiP �n I+I >; a '. ', t _ s .� r , . 5 - F 6 c.„ x, a � :mz,, , r „ . Er-s n 4... •ty ,3,- : s-{ o m , > t • • „y z . , • -It ,�. ::r.. 'fie.4.xc"c../ - ./ / - -�'. - y,- Photos By: TelAll of Texas McKee Environmental Health Inc. Photo Date: 1979 1979 AERIAL PHOTOGRAPH Source: TXDOT Scale: 1 in. = + 660 ft Target area: 17160 Blackhawk Blvd., Friendswood,Texas APPENDIX B 1986 AERIAL PHOTO MEHI Proj.#000640 -ell" Yy. A N. 11, ~ k"i #ten • k`' ' 3 r *4 .40 - v„. o ' sdr `: d y a p .�.-'fir-} .r. y .•�. `�E, • w .r ��y yy- N.4r `J . i s - ` > ' _..* va,¢ e.- a d., ., a'K _ 'ter 14 -,_ yxp.1 :( x..4.-. / 3 � t •-• - --'s;03k i i / a A :lam ; / �` ?f�, >I ti v _"`tea ��II AAAJJJ - . y' tr / .1. * t t s li.: A.. VS *;r 1 ./Ivy rl� mJe.gWl, - y� 'Y A'.:wd+'. { -,-/ A. _, a y*S i • F ;esS't, „.'4 jlv t 41 *'4 ; q l''js�t, / 'i .,�'^ w r • :fir' -#. *r ..^ r A . - any. �• ,. ..,, . ..--,...„.. . „::. -,, - ,-...1:,74.:. --_,..,,,,,,4,..,J...,,,.17,-.-.A: .*:-N • fi , .,•t`.,_ ,.:� '`- - - t.+. -.arc - ,, .,,;e,w....+-.. r �•1* ; .,"'� fir. -�( j�` . • r Photos By: TelAll of Texas McKee Environmental Health Inc. Photo Date: 1986 1986 AERIAL PHOTOGRAPH Source: TXDOT Scale: 1 in. = + 660 ft Target area: 17160 Blackhawk Blvd.., Friendswood, Texas APPENDIX BAPPENDIX B 1995 AERIAL PHOTO MEHI Proj.#000640 V I IzeTtki., \ Y tits _ J ... . . '...4 • * ' .1-4,, ...'4 ' 4' * "4^ 1. • "hi". : r., yM f 4 i a.��. _-•.. •r" ♦ie., i. tic'► i +. bS y s k Z•s s° �m � 1 dJY ti * i 4 '' .1r'v i •i ,Try, x a ti id x• _s!.,: �--� �` arc .;"`. ,.s', , _ w fir„ ipi 4. r., 6 a ,� k }, F }` 4t' • _ .. .4. ,•- A4 . ;'y„ - ti 4 w k . a �� "" ..,,Sk.....1,...;.. _....„1 1-. : . .-4-Iv" - .. �r ltiliti y it z , , ill •--1.- .__.- • /' f. lie f , .....`sue t..0Y.'a'•• .. •y qA _ !�?y '. ate: '.. ..34 _ } +� L e �. ..y,�y, x•+ YS— 1 "`+`.�. tom. '� Y, . :eg w ,a y.' .e e - • t _in Y, : .t�3.•-. ,.'fir' .._ - �. 6 rs � jel . ,� ram» •.. - :y{rti �• ,.. .�. ; ;• y.�c �• t'. ii..r ! -`fit t 4 T ��V t4 ..: ��y• '�3' ..yam � �'� Y utr ^' r..n 4 kF _ M �RT Photos By: TelAll of Texas McKee Environmental Health Inc. Photo Date: 1995 Scale: 1 in. = + 833 ft A 1995 AERIAL PHOTOGRPH Source: USGS Target area: 17160 Blackhawk Blvd., Friendswood. Texas APPENDIX C Current Photographs APPENDIX C MEHI Proj. # 000640 CURRENT SITE PHOTOS I , • 014 we I, _. ■ 1 • 1. View of subject property from across Blackhawk Blvd. looking to the west. m - ._._ 2. View of La Petite Academy day care at 17158 Blackhawk, next to the subject property to the north. Photographer: M. S. McKee McKee Environmental Health Inc. Photo Date: June 25, 2000 CURRENT PHOTOGRAPHS APPENDIX C MEHI Proj. # 000640 CURRENT SITE PHOTOS I,. +,x' , f . .,* -� . y -.. s$ _ �. ___ 3. View of residential neighborhood along Blackhawk Blvd. to the northwest from the subject property. I n f - 4. View of commercial strip center located at the northwest corner of Blackhawk Blvd. and FM 528 and bordering the subject site to the south. Photographer: M. S. McKee McKee Environmental Health Inc. Photo Date: June 25, 2000 CURRENT PHOTOGRAPHS APPENDIX C MEHI Proj. # 000640 CURRENT SITE PHOTOS - - ms rr- - - `` ti- OWNIrVIONIMNIIV 5. View of apartment complex located across Blackhawk Blvd. to the east from the subject property. a _ s. 6. View of pole-mounted transformers located on the City of Friendswood Pump Station No. 1 property near the southwest corner of the subject property. Photographer: M. S. McKee McKee Environmental Health Inc. Photo Date: June 25, 2000 CURRENT PHOTOGRAPHS APPENDIX C MEHI Proj. #000640 CURRENT SITE PHOTOS ilt� �r c-r — ro 7. View of gas station and convenience store located on the northwest corner of FM 528 and Blackhawk Blvd, south of the subject property. 1 Q 1..!I.:1'J.0 I 'Maximizer Money Market Rates 111- _ '�1: ! - - Ifr 8. View of Texaco gas station and convenience store located on the northeast corner of FM 528 and Blackhawk Blvd, south of the subject property. Photographer: M. S. McKee McKee Environmental Health Inc. Photo Date: June 25, 2000 CURRENT PHOTOGRAPHS APPENDIX D Figures ,✓` ' r vac AI / °1' o��PP' "&4'1, `9c96�� 2O O . ,,-, ,..... .7/ / Al r ,::,:_, , .. ,� P. 41111, ZONE X roe A. if/ i' /lc , �. �csr 7 RiF4OS / °o s` • x,•`�.. SAFFRON hFb ��P P �(crQc�� PERIDO7 ORgNF <q�F Sl6k j� / coo ZONE X ikF ROgo �� �� CROFT GLEN LANE 24P ' ;,v A- :ire,T r4P /41. � ` O oQ P AN , O. c,� coQe J co (N',01; 1'-, q1.1*" . .2' h Q( qyl o P v Q Q� A. o� �� v ,', , Va . / / / • ZONE Q`4 P iar f X 94 m) svg.! o ,. , 14$1111:„pdp):0:440411 6tifi 1j '\ f // 4Irri k,‘ .''.'::, \ • • r ;' ✓ a CP`. r` 1111 NATIONAL FLOOD INSURANCE PROGRAM FIRM FLOOD INSURANCE RATE MAP CITY OF FRIENDSWOOD, TEXAS GALVESTON AND HARRIS COUNTIES ONLY PANEL PRINTED MAP LOCATOR DIAGRAM r,, IHIS AREA Of THE 1 r " COMMUNITY l' I, SHOWN AS INSET A ;' A C 1 •10C 'PANEL NOT PRINTED - NO SPECIAL FLOOD HAZARD AREAS COMMUNITY-PANEL NUMBER 485468 0005 E MAP REVISED: 44 . '-j-: Q m SEPTEMBER 22, 1999 z Federal Emergency Management Agency LEGEND _. .. .,. . ASPECIAL FLOOD HAZARD AREAS INUNDATED NOTES BY 11J0-YEAR FLOOD This map is for use in administering the National Flood Insurance Program; ZONE A No base flood elevations determined. it does not necessarily identify all areas subject to flooding,particularly from local drainage sources of small size,or all planimetric features outside ZONE AE Base flood elevations determined. Special Flood Hazard Areas. The community map repository should be ZONE AH Flood depths of 1 to 3 feet consulted for more detailed data on BFEs, and for any information on ponding);base floodto 3 fee elevations(usually areasia of tloodway delineations,prior to use of this map for property purchase or construction purposes. ZONE AO Flood depths of 1 to 3 feet(usually sheet flow Areas of Special Flood Hazard(100-year flood)include Zones A,AE,Al- on sloping terrain); average depths deter- A30,AH,AO,A99,V,VE and V1-V30. mined. For areas of alluvial fan flooding; velocities also determined. Certain areas not in Special Flood Hazard Areas may be protected by flood ZONE A99 To be protected from 100-year flood by control structures. Federal flood protection system under con- Boundaries of the floodways were computed at cross sections and siruction; no base flood elevations deter- Interpolated between cross sections. The floodways were based on mined. hydraulic considerations with regard to requirements of the Federal ZONE V Coastal flood with velocity hazard (wave Emergency Management Agency. action);no base flood elevations determined. Floodway widths in some areas spay be too narrow to show to scale. Reler ZONE VE Coastal flood with velocity hazard (wave to Floodway Data Table where tloodway width is shown at 1/20 inch. action);base flood elevations determined. Coastal base flood elevations apply only landward of 0.0 NGVD,and include the effects of wave action;these elevations may also differ significantly from FLOODWAY AREAS IN ZONE AE those developed by the National Weather Service for hurricane evacuation planning. OTHER FLOOD AREAS Corporate limits shown are current as of the date of this map. The user should contact appropriate community officials to determine it corporate ZONE X Areas of 500-year flood; areas of 100-year limits have changed subsequent to the issuance of this map. flood with average depths of less than 1 foot or with drainage areas less than 1 square mile; and areas protected by levees from 100-year flood. MAP REPOSITORY OTHER AREAS ZONE X Alc•ts determined tole'outside 500-year flood- Public Works Building plain. 1306 Deepwood Drive Friendswood,Texas 77546 ZONE D Areas in which flood hazards arts undeter- (Maps available for reference only,not for distribution.) mined. INITIAL IDENTIFICATION: UNDEVELOPED COASTAL BARRIERSL MARCH 3,1972 s \\ N,, FLOOD HAZARD BOUNDARY MAP REVISION: NONE Identified Identified Otherwise 1983 1990 Protected Areas FLOOD INSURANCE RATE MAP EFFECTIVE: MARCH 3,1972 tCoastal barrier areas are normally located within or adjacent to special flood hazard areas FLOOD) INSURANCE RATE MAP REVISIONS: I luudplain Buunrlary JULY 1,1974 DECEMBER 19,1975 APRIL 18,1983 JUNE 3,1988 I loodway Borrod.uy Maprevised September 22, 1999 to update ep corporate limits,to increase Zone D Bciunclary base flood elevations,to change special flood hazard areas,to advance suffix, to add roads and road names, to reflect updated topographic information,and to incorporate previously issued letter of map revision. (h ?ei, r s tJ�0#0•1 1�?z'J Boundary Dividing Special Flood Hazard r-o !Illy, ,. , _,.. . 5 Zones,and Boundary Dividing Areas of Oil- !.'_'' •• ,'-;.-.A.--,.- . ferent Coastal Bast' I lood I levatuots Within Special Doi rl ILv.ud/ones. to determine it Iloud Insurance is available in this community,contact your insurance agent or call the National Flood Insurance Program at(800)638-66?0. 51.3 - Base Flood Elevation Line;Elevation in Feet' OO Cross Section line �i (EL 987) Base Flood Elevation in Feet Where Uniform • R Within Zone* RM 7, Elevation Reference Mark APPROXIMAIF SCALE •M 1.5 River Mile 1000 0 1000FEET F—t t—i H I *Referenced to the National Geodetic Vertical Datum ut 1929 TM TeIALL Corporation Environmental Data Search for the site Blackhawk Blvd ESA 17160 Blackhawk Blvd, Friendswood, TX 000640 performed for McKee Environmental 6/23/00 MEMB5002 www.TeIALLnet (800)583-0004 by fax(361)949-1652 Preface 'Will Comfitlm MEMB5002 This document of environmental concerns near 17160 Blackhawk Blvd, Friendswood, TX reports findings of the TelALL data search, prepared on the request of McKee Environmental. TelALL has designed this document to comply with the ASTM standard E 1527- 97 sec.7.1.3 (Accuracy and Completeness)and has used all available resources but makes no claim to the entirety or accuracy of the cited government records. Our databases are updated at least every 90 days or as soon as possible after publication by the referenced governmental agencies(ASTM 1527-97 sec. 7.1.7). The following fields of governmental databases may not represent all known, unknown or potential sources of contamination to the referenced site. Many different variables effect the outcome of the following document. TelALL maintains extremely high standards, and stringent procedures that are used to search the referenced data. However, TelALL reserves the right at any time to amend any information related to this report. If there is a need for further information regarding this report, or for any customer support please call TelALL at 800 583-0004 for assistance. This report is divided into the following components: MAP Identified geocodeable findings relative to this data search. SUMMARY 1 Sorting of the identified sites by distance from the subject site. FINAL A description of each database and a detailed explanation of findings. Sources Minimum Last Search Database Acronym Updated Distance Findings National Priority List NPL 2/2000 1 0 Comprehensive Environmental Response,Compensation,and Liability Information System CERCLIS 2/2000 0.5 1 No Further Remedial Action Planned NFRAP 2/2000 0.5 0 Resource Conservation and Recovery Information System-Treatment Storage or Disposal RCRA TSD 2/2000 1 0 Corrective Action CORRACT 2/2000 1 0 Resource Conservation and Recovery Information System-Generators RCRA-G 2/2000 0.25 0 Emergency Response Notification System ERNS 2/2000 0.25 1 Texas Voluntary Cleanup Program TXVCP 4/2000 0.5 0 Texas State Superfund TXSSF 4/2000 1 0 TNRCC Solid Waste Facilities TXLF 4/2000 1 0 Leaking Underground Storage Tanks TXLUST 4/2000 0.5 0 Texas Underground Storage Tanks TXUST 4/2000 0.25 1 Texas Above Ground Storage Tanks TXAST 4/2000 0.25 1 Texas Spills List TXSPILL 4/2000 0.25 0 www.TeIALL.not / • I I �\ Opt 1N. + I i/ * 44 • \•\\\ tf. tilV , rl � �..i A\ B �A s h I th:*#4 , f 7 � ya � ay° , ott °� � �Li� , q ' *,. HCry iII p�° ea 1 0.4** ,s6'&� • 3 � 1 � 1 • a Li tor .a�Ko II ves Yc ,„ 4 Are-. body Oaks • ,0�� 0 O' .fp,.IIIIIV, • y ,t,)B°Y A vd� `. F .R �a0 0,8ir O^ r ..G Go 1s8 <1 +pis ti o` 4.41 S0 s� OO°p+� 0610 coy4. 9 ba C.'', ,-11 kite e. N44, /4e \ ..N or 0 i 4 \ v brs °R /`� r�4e • v A o r `84 .4'. As .c.0 e C i j6»1 ::e •:, ,•rer 4, , .. .47 ,7. 4...., ‘-/ .. 0/ \ • \"...�•e. to ' • ' VA as ... t• , • ' 8 ,. o \IP .4),,,,,:lik: ), kt s N s' 1 I F P c L ,<' 's �• uL c^ ��i P 7s' + ?y 4t \ r _fag �528 O� )11h.... Fm52� oa Sr03 • pv° $/P !� to O� r •46 0 o° ' oC I// `\ 0 c Q 4# // / o �4 ° ic IL 8uthrp �¢ / ` t/a / •-,� x X A•._ TM AERNS • 0 .5 1.0 NPL RCRA-G - Tel L - CERCLIS RCRA TSD TXAST LUST NFRAP LUST TXUST 1 inch = .33 mile TXSSF TXVCP TXSPILL TXLF CORRACT 1 7� 1:24K Topo Boundary USPS Zip Boundary Coronas Site Locations are Approxiamate Only Site lBDp]5133 0004 WWW.TelAl11ET Te1tW mroaanon Sites Sorted By Distance from Center 000640 Page 1 Blackhawk Blvd ESA Job MEMB5002 17160 Blackhawk Blvd,Friendswood,TX Date 6/23/00 Site Distance/Direction Database Number Address City/State Site Name NPL NO FINDINGS WITHIN ONE MILE. NFRAP NO FINDINGS WITHIN 1/2 MILE. TXVCP NO FINDINGS WITHIN 1/2 MILE. CORRACT NO FINDINGS WITHIN ONE MILE. RCRA TSD NO FINDINGS WITHIN ONE MILE. RCRA-G NO FINDINGS WITHIN 1/4 MILE. TXLUST NO FINDINGS WITHIN 1/2 MILE. TXLF NO FINDINGS WITHIN ONE MILE. TXSSF NO FINDINGS WITHIN ONE MILE. TXSPILL NO FINDINGS WITHIN 1/4 MILE. ERNS 1 W BAY AREA WEBSTER EXXON GAS STATION TXAST 2 FM 528 FRIENDSWOOD FM 528 SANDPIT CERCLIS 3 FM 528 ON FM 518 FRIENDSWOOD FRIENDSWOOD 518 SITE TXUST 4 FM RD 528 WEBSTER LEAGUE CITY WEBSTER-RSU Distances given are tenths of a statute mile. TeliLL Corooranal To Corporation 000640 Page 1 Blackhawk Blvd ESA Job MEMB5002 17160 Blackhawk Blvd,Friendswood,TX Date 6/23/00 NPL National Priority List NPL is a priority subset of the CERLIS list. (See CERCLIS, below)The Cerclis list was created by the Comprehensive Environmental Response, Compensation and Liability Acts(CERCLA) need to track contaminated sites. CERCLA was enacted on 12/11/80, and amended by the Superfund Amendments and Reauthorization Act of 1986. These acts established broad authority for the government to respond to problems posed by the release, or threat of release of hazardous substances, pollutants, or contaminants. CERCLA also imposed liability on those responsible for releases and provided the authority for the government to undertake enforcement and abatement action against responsible parties. Source:EPA, (703) 603-8852 Database: NPL Site: NO FINDINGS WITHIN ONE MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: CERCLIS Comprehensive Environmental Response. Compensation. and Liability Information System CERCLIS is the official repository for site and non-site specific Superfund data in support of the Comprehensive Environmental Response, Compensation, and Liability Act(CERCLA). It contains information on hazardous waste site assessment and remediation from 1983 to the present. CERCLIS information is used to report official Superfund accomplishments to Congress and the public, assist EPA Regional and Headquarters managers in evaluating the status and progress of site cleanup actions, track Superfund Comprehensive Accomplishments Plan (SOAP), and communicate planned activities and budgets. Source:EPA/NTIS, (703) 413-0223 Database: CERCLIS Site: FRIENDSWOOD 518 SITE Dir./Distance (in Miles) Map Number: 3 Address: FM 528 ON FM 518 Zip Code: 77546 City/State: FRIENDSWOOD EPA ID NUMBER TXD981147168 STATUS:NOT ON THE NPL.DATES ARE GIVEN(YYYYMMDD). DISCOVERY 19851112 PRELIMINARY ASSESSMENT 19871201 REMOVAL 19990128 UNILATERAL ADMIN ORDER 19860520 Distances given are tenths of a statute mile. www.TNALL iet T81RLiJGeneration 000640 Page 2 Blackhawk Blvd ESA Job MEMB5002 17160 Blackhawk Blvd,Friendswood,TX Date 6/23/00 NFRAP No Further Remedial Action Planned NFRAP Sites indicate a CERCLIS site that was designated "No further remedial action planned" by the EPA February 1995. Source:EPA/NTIS, (703) 413-0223 Database: NFRAP Site: NO FINDINGS WITHIN 1/2 MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: RCRA TSD Resource Conservation and Recovery Information System -Treatment Storage or Disposal Resource Conservation and Recovery Information System (RCRIS) Under the Resource Conservation and Recovery Act(RCRA), generators, transporters, treaters, storers, and disposers of hazardous waste as defined by the federally recognized hazardous waste are required to provide information concerning their activities to state environmental agencies, who in turn provide the information to regional and national U.S. EPA offices. The RCRA TSD (Treatment Storage or Disposal) is a subset of the RCRIS list. RCRA TSD tracks facilities that fall under the Treatment Storage or Disposal classification. Source:EPA/NTIS, (800) 424-9346 Database: RCRA TSD Site: NO FINDINGS WITHIN ONE MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: CORRACT Corrective Action CORRACT lists RCRIS (Resource Conservation and Recovery Information System) sites that are currently or have had in the past corrective action. Source:EPA, (800) 424-9346 Database: CORRACT Site: NO FINDINGS WITHIN ONE MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: Distances given are tenths of a statute mile. www.TelALLnet Te1ALL CormmitIon 000640 Page 3 Blackhawk Blvd ESA Job MEMB5002 17160 Blackhawk Blvd,Friendswood,TX Date 6/23/00 RCRA-G Resource Conservation and Recovery Information System - Generators Resource Conservation and Recovery Information System (RCRIS) Under the Resource Conservation and Recovery Act(RCRA), generators, transporters, treaters, storers, and disposers of hazardous waste as defined by the federally recognized hazardous waste, are required to provide information concerning their activities to state environmental agencies, who in turn provide the information to regional and national U.S. EPA offices. The RCRA-G (Generators) list is a subset of the RCRIS list. RCRA-G tracks facilities that fall under the generators or transporters classification. CONDITIONALLY EXEMPT SMALL QUANTITY GENERATORS (CESQG)produce less than 100 kg per month of hazardous waste. SMALL QUANTITY GENERATORS(SQG)produce at least 100 kg per month but less than 1000 kg per month of hazardous waste. LARGE QUANTITY GENERATORS(LQG)produce at least 1000 kg per month of hazardous waste.Source:EPA!NTIS, (800)424- 9346 Database: RCRA-G Site: NO FINDINGS WITHIN 1/4 MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: ERNS Emergency Response Notification System ERNS supports the release notification requirements of section 103 of the Comprehensive Environmental Response Compensation, and Liability Act (CERCLA), as amended; section 311 of the Clean Water Act; and sections 300.51 and 300.65 of the National Oil and Hazardous Substances Contingency Plan. Additionally, ERNS serves as a mechanism to document and verify incident- location information as initially reported, and is utilized as a direct source of easily accessible data, needed for analyzing oil and hazardous substances spills. Source: EPA!NTIS, (202) 260-2342 Database: ERNS Site: EXXON GAS STATION Dir./Distance (in Miles) Map Number: 1 Address: W BAY AREA Zip Code: City/State: WEBSTER ERNS ID NUMBER 110670,ON 6/2/1989 0 UNK OF GASOLINE,WAS REPORTED AS RELEASED. GAS STATION/UNKNOWN EVALUATING THE OCCURENCE. Distances given are tenths of a statute mile. www.TolALLnet To Corporation 000640 Page 4 Blackhawk Blvd ESA Job MEMB5002 17160 Blackhawk Blvd,Friendswood,TX Date 6/23/00 TXVCP Texas Voluntary Cleanup Program Created under HB 2296, The Texas Voluntary Cleanup Program (VCP)was established on 9/01/1995 to provide administrative, technical, and legal incentives to encourage the cleanup of contaminated sites in Texas. Since future lenders and landowners receive protection from liability to the State of Texas for cleanup of sites under the VCP, most of the constraints for completing real estate transactions at those sites are eliminated. As a result, many unused or under used properties may be restored to economically productive or community beneficial uses. After cleanup, the parties receive a certificate of completion from the TNRCC which states that all lenders and future land owners who are not PRP's are released from all liability to the State. Parts of the above description were taken from the TNRCCIVCP Website. (http:llwww.tnrcc.texas.gov/wastelpcd/vcplindex.html) The investigation phases are listed as INVESTIGATION, REMEDIATION, POST-CLOSURE, and COMPLETE. Contaminant Categories(PERC and BTEX). Source: TNRCC, (512) 239-5891 Database: TXVCP Site: NO FINDINGS WITHIN 1/2 MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: TXSSF Texas State Superfund The Texas State Superfund database is a list of sites that the State of Texas has identified for investigation or remediation. Texas State Superfund sites are reviewed for potential upgrading to Comprehensive Environmental Response, Compensation, and Liability Information System status by the federal Environmental Protection Agency. Source: TNRCC, (512) 239-5680 Database: TXSSF Site: NO FINDINGS WITHIN ONE MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: Distances given are tenths of a statute mile. www.TeIALLnot T®IALL1 Mention 000640 Page 5 Blackhawk Blvd ESA Job MEMB5002 17160 Blackhawk Blvd,Friendswood,TX Date 6/23/00 TXLF TNRCC Solid Waste Facilities The Texas Natural Resource Conservation Commission (TNRCC) Requires municipalities and counties to report known active and inactive landfills. Texas Landfills is a listing of solid waste facilities registered and tracked by the TNRCC Solid waste division. The facilities tracked include solid waste disposal sites as well as transfer stations and processing stations. Source: TNRCC, (512) 239-6786 Database: TXLF Site: NO FINDINGS WITHIN ONE MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: TXLUST Leaking Underground Storage Tanks LUST is a list of known tank releases maintained by the Texas Natural Resource Conservation Commission (TNRCC). Source: TNRCC, (512) 239-2200 Database: TXLUST Site: NO FINDINGS WITHIN 1/2 MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: Distances given are tenths of a statute mile. www.TeIALLnet T8IAIL.,' Corporation 000640 Page 6 Blackhawk Blvd ESA Job MEMB5002 17160 Blackhawk Blvd,Friendswood,TX Date 6/23/00 TXUST Texas Underground Storage Tanks Underground Storage Tanks-Permitted underground storage tanks are tracked by the Texas Natural Resource Conservation Commission (TNRCC). This list is also maintained by the TNRCC. Source: TNRCC, (512) 239-2160 Database: TXUST Site: LEAGUE CITY WEBSTER- RSU Dir./Distance (in Miles) Map Number: 4 Address: FM RD 528 Zip Code: 76902 City/State: WEBSTER FACILITY NUMBER 45965, TNRCC UNIT ID NUMBER 120296,TANK ID NUMBER 1,DATE INSTALLED(MMDDYY)10188.TOTAL CAPACITY IN GALLONS:2000. THE TANK IS CURRENTLY IN USE. THE TANK CONSTRUCTION IS OF COMPOSITE(STEEL W/FIBERGLASS-REINFORCED PLASTIC LAMINATE)-DOUBLE WALL. THE OWNER OF THE FACILITY IS GTE SOUTHWEST.INC.,THE TELEPHONE NUMBER LISTED FOR THE OWNER IS 972-717-7840. TXAST Texas Above Ground Storage Tanks Above Ground Storage Tanks -Permitted above ground storage tanks are tracked the Texas Natural Resource Conservation Commission (TNRCC). This list is also maintained by the TNRCC. Source: TNRCC, (512) 239-2160 Database: TXAST Site: FM 528 SANDPIT Dir./Distance (in Miles) Map Number: 2 Address: FM 528 Zip Code: 77546 City/State: FRIENDSWOOD FACILITY ID NUMBER 70429,TNRCC UNIT ID NUMBER 185783,TANK ID NUMBER A,TANK INSTALLED(MMDDYY)52196.TANK CAPACITY IN GALLONS:4000. TANK IS CURRENTLY IN USE-SUBSTANCE STORED:DIESEL. TANK MATERIAL OF CONSTRUCTION IS:UNKNOWN. THE TANKS CONTAINMENT CONSISTS OF:EARTHEN DIKE. THE CONTACT FOR THE FACILITY IS KYLE CAIN..THE TE Distances gNen are tenths of a statute mile. www.TBIALLnet IoI�LL� Corooratbn 000640 Page 7 Blackhawk Blvd ESA Job MEMB5002 17160 Blackhawk Blvd,Friendswood,TX Date 6/23/00 TXSPILL Texas Spills List The Texas Natural Resource Conservation Commission (TNRCC)tracks cases where emergency response is needed for cleanup of toxic substances. Source: TNRCC, (512) 239-0943 Database: TXSPILL Site: NO FINDINGS WITHIN 1/4 MILE. Dir./Distance (in Miles) Map Number: Address: Zip Code: City/State: Distances given are tenths of a statute mile. www.lolALLnut The following zip codes,are the zip codes that TelALL used for generating the preceding report.The �I TelALL Zip Index information is provided to help our customers make the most thorough data evaluation Telk possible. Lat/Lon.info is provided to assist in locating sites.LaULon info that is listed as"0"indicates that the Corporation site has not been geocoded.This does not indicate that the site is an orphan or was not evaluated by TelALL's research personnel. FACZIP DATABASE SITENAME ADD CITY LATITUDE LONGITUDE 77546 CERCLIS BRIO SOUTH WELLS DIXIE FARM RD/EAST BY BEAMER R FRIENDSWOO FRIENDSWOOD 518 SITE FM 528 ON FM 518 FRIENDSWOO 29.5118 -95.1859 CORRACT ISO-TEX INC 1511 COUNTY ROAD 129 FRIENDSWOO ERNS 1201 MINGLEWOOD LANE FRIENDSWOO 29.522932 -95.1866 1201 MINGLEWOOD LANE FRIENDSWOO 29.522932 -95.1866 1840 COUNTY RD 129 FRIENDSWOO CORNER OF PINE DR AND OAK ST FRIENDSWOO TEXAS COMMERCE BANK 611 S FRIENDSWOOD DR FRIENDSWOO 29.5267 -95.1977 NFRAP HAMMETT WELL FM 2351,ONE BLK.W OF BEAMER R FRIENDSWOO HERITAGE&LAUREL INT OF HERITAGE&LAUREL FRIENDSWOO ISO-TEX INC 2019 COUNTY RD.130 FRIENDSWOO VISTA REFINING,INC. 2501 CHOATE ROAD FRIENDSWOO NPL DIXIE OIL PROCESSORS,INC. 2505 CHOATE RD FRIENDSWOO RCRA-G CUSTOM SAFETY PRODUCTS INC 1030 COUNTY RD 129 FRIENDSWOO DICKSONS PAINT&BODY SHOP 4426 BLDG CFM 2351 FRIENDSWOO DIXIE OIL PROCESSORS INC 2801 CHOATE ROAD FRIENDSWOO HERMAN HOSPITAL LIFE FLIGHT 1815 COUNTY RD 130 FRIENDSWOO ISO-TEX INC 1511 COUNTY ROAD 129 FRIENDSWOO LOWENCO INC 2501 CHOATE ROAD BLDG A FRIENDSWOO MOBIL OIL CORP SS#BLW 101 N FIENDSWOOD FRIENDSWOO SCIENTIFIC WASTE SOLUTIONS 4322 BROOKSIDE RD FRIENDSWOO SOUTHLANDS MATERIALS SUPPL 2505 CHOATE ROAD FRIENDSWOO THIRD COAST PACKAGING INC 18410 W CLOVER LN FRIENDSWOO TXAST CLOVERFIELD AIRPORT CR 130 FRIENDSWOO 29.527952 -95.223737 FM 528 Sandpit FM 528 FRIENDSWOO 29.509091 -95.188524 GENERAL PETRO-CHEMICAL IND 1903 CR 129 FRIENDSWOO 29.540666 -95.169759 1903 CR 129 FRIENDSWOO 29.540666 -95.169759 TXLUST SWBT FRIENDSWOOD CENTRAL 106 EDGEWOOD FRIENDSWOO 29.533575 -95.206097 TXUST CLOVERFIELD AIRPORT CR 130 FRIENDSWOO 29.527952 -95.223737 CR 130 FRIENDSWOO 29.527952 -95.223737 CR 130 FRIENDSWOO 29.527952 -95.223737 FORD'S AUTOMOTIVE-RAY FOR 105 W 5 HERITAGE FRIENDSWOO 105 W 5 HERITAGE FRIENDSWOO FRIENDSWOOD C.O. 106 EDGEWOOD FRIENDSWOO 29.533575 -95.206097 106 EDGEWOOD FRIENDSWOO 29.533575 -95.206097 FRIENDSWOOD MINI MARKET#24 2525 FRIENDSWOOD LINK RD FRIENDSWOO 2525 FRIENDSWOOD LINK RD FRIENDSWOO OPERATION TRAINING&TECH CT 301 OLD CHOTE RD HOUSTON 29.599484 -95.181005 STOP-N-GO MARKETS(361) 522 FM RD 518 FRIENDSWOO 522 FM RD 518 FRIENDSWOO TXVCP Randalls Center-Bay Area Boulevar 3100 Fm 528 Rd Friendswood 29.4631 -95.2279 77598 ERNS 260 EL DARADO BLVD WEBSTER 29.5565 -95.1497 ALADIN CARPET CO. 15502 OLD GAVESTON RD WEBSTER 29.5652 -95.1435 HOUSTON LIGHTING&POWER 19301 OLD GALVESTON RD WEBSTER 29.529 -95.1067 19301 OLD GALVESTON RD WEBSTER 29.529 -95.1067 RCRA-G DIAGNOSTIC SYSTEMS LABORAT 100 E NASA RD STE 303 WEBSTER 29.538232 -95.117122 HIH LABORATORY INC 100 E NASA RD ONE STE 210 WEBSTER 29.538232 -95.117122 VALERO AMOCO WEBSTER HWY 3 1M W WEBSTER TXAST Houston Shell&Concrete 17501 E Commerce Webster 29.548819 -95.138569 17501 E Commerce Webster 29.548819 -95.138569 17501 E Commerce Webster 29.548819 -95.138569 TXLF CITY OF WEBSTER 816 S TEXAS WEBSTER 29.5413 -95.1326 816 S TEXAS WEBSTER 29.5413 -95.1326 TXLUST DIAMOND SHAMROCK CORNER S 305 N HWY 3 WEBSTER PIC N PAY 418 A NASA ROAD 1 WEBSTER 29.526694 -95.133299 TXSPILL BAY PLAZA I 711 W.BAY AREA BLVD.,IN WEBSTE WEBSTER BUILDERS SQUARE BUILDERS SQUARE,WEBSTER WEBSTER EXXON EXXON PIPELINE,WEBSTER WEBSTER GOODYEAR TIRE AND AUTO DITCH ADJACNET TO HWY 3 IN FRO WEBSTER GRUMMAN HOUSTON CORP ABOVE GROUND LINE @ FACILITY A WEBSTER KAR KING KAR KING,507 EL DORADO,WEBST WEBSTER K-MART STORM SEWER AT K-MART,1000 W WEBSTER Sterling Chemical Co. Webster Webster Acrylonitrile Unit,Deep Well#2,201 Ba Webster CHEMICAL PLANT STERLING Webster NORTH DITCH HOLDING POND Webster OUTFALL#23 LIFT STATION Webster OUTFALL 23 INTO NORTH DITCH HO Webster outfa1123&north ditch Webster outfal123&north ditch Webster Talk" Friday,June 23,2000 Zip Index Page 1 of 2 corpergon FACZIP DATABASE SITENAME ADD CITY LATITUDE LONGITUDE 77598 TXSP/LL Sterling Chemical Co. WATER TREATMENT SYSTEMS Webster WATER TREATMENT SYSTEMS Webster Sterling Chemical Co.-Texas Air release at the Sterling Facility in Tex Webster IN PLANT Webster NORTH DITCH,TEXAS CITY Webster north ditch holding pond at Texas City fa Webster SOUTH TANK FARM,TEXAS CITY Webster Sterling Chemical,Bay St.&2nd Ave.S Webster Texas City facility Webster TEXAS CITY PLANT Webster Sterling Chemical Co.-Texas City 201 Bay Street,South Texas City,TX. Webster 201 Bay Street,South,Texas City,Tx. Webster STYRENE MANUFACTURING CHLORI Webster STYRENE UNIT Webster waste water system Webster TXUST CHEVRON SERVICE STATION#16 14810 GALVESTON HWY 3 WEBSTER 29.572603 -95.150481 14810 GALVESTON HWY 3 WEBSTER 29.572603 -95.150481 14810 GALVESTON HWY 3 WEBSTER 29.572603 -95.150481 14810 GALVESTON HWY 3 WEBSTER 29.572603 -95.150481 CIRCLE K#2118 503 NASA ROAD 1 WEBSTER 29.526694 -95.133299 503 NASA ROAD 1 WEBSTER 29.526694 -95.133299 FURROW BUILDING MATERIALS 900 W NASA RD HOUSTON 29.531821 -95.126135 NASA TEXACO 1007 NASA 1 RD WEBSTER 29.526694 -95.133299 1007 NASA 1 RD WEBSTER 29.526694 -95.133299 1007 NASA 1 RD WEBSTER 29.526694 -95.133299 1007 NASA 1 RD WEBSTER 29.526694 -95.133299 1007 NASA 1 RD WEBSTER 29.526694 -95.133299 Pic N Pay 418 A Nasa Road 1 Webster 29.526694 -95.133299 418 A Nasa Road 1 Webster 29.526694 -95.133299 Shell Station 16760 HWY 3/BAY AREA Webster 29.532542 -95.109832 16760 HWY 3/BAY AREA Webster 29.532542 -95.109832 16760 HWY 3/BAY AREA Webster 29.532542 -95.109832 16760 HWY 3/BAY AREA Webster 29.532542 -95.109832 16760 HWY 3/BAY AREA Webster 29.532542 -95.109832 16760 HWY 3/BAY AREA Webster 29.532542 -95.109832 SIGMOR SHAMROCK#270 305 N HWY 3 WEBSTER 305 N HWY 3 WEBSTER 305 N HWY 3 WEBSTER STOP-N-GO#2061 810 NASA RD WEBSTER 29.526694 -95.133299 810 NASA RD WEBSTER 29.526694 -95.133299 810 NASA RD WEBSTER 29.526694 -95.133299 T Friday,June 23,2000 Zip Index Page 2 of 2 corporation (FRI) 8. 17' 01 15:! ;T. 15:52./NO. 3760048439 P 3 ilr//r i ''' : *.! NW,ludo,OW of 11ms ..:�� iv.ww.ewwll EOM WI Till STATE OF TEXAS ii . COUNTY OF --_ll1L. ` 1-'i-- I} This instrument wan [ '_ �, Al-- • acknowledged before me o» the day of � No a �r !'ub C 11/7 e'.,- -?4r tail§ o T xas THE STATE OF TEXAS I) I COUNTY OF �,. {} i This instrument was aaknawled9 ed hef ` bre me on the dug of . 19 . , by _�. 7 Notary Fur i57 ate e . LrJ THE STATIC OF TEXAS (} Texae COUNTY Op -----�._�_� i} This instrument was acknowledged boforo R I BNT 901--- by me on the day of corporation, on e a o itai Gorppra an. �'� �--" . a 1-7" pu c, gtata o oxas • 1 .. W -7 - 7, S- Ni A - , 0 L778297 - golf. tn-_ L'781 7 WARRANTY DEED I C3—Tp—1 SOS THE STATE OF TEXAS ) KNOW ALL MEN BY THESE PRESENTS: COUNTY OF HARRIS ) THAT HALE-MILLS REALTY, INC. , a Texas corporation, by and through its duly authorized Officer, of the County of Harris and State of Texas, herein styled Grantor, for and in consideration of the sum of TEN DOLLARS ($10 . 00) and other valuable considera- tion to the undersigned paid by the Grantee herein named, the receipt of which is hereby acknowledged, has GRANTED, SOLD AND CONVEYED and by these presents does GRANT, SELL AND CONVEY unto the CITY OF FRIENDSWOOD, a Texas municipal corporation, of the i ) ' County of Harris, State of Texas, herein styled Grantee, all of the following described real property in Harris County, Texas, to-wit: 0. 2447 acre (or 10, 657 square feet) of land out of an 0. 5226 {), acre tract in Reserve "G" , Block 19 , FOREST BEND SUBDIVISION, SECTION 3 , in Harris County, Texas, according I) to the plat of said subdivision recorded in Volume 180, Page 73 , Harris County Map Records ; said 0 . 2447 acre of land being more particularly described by metes and bounds in Ex- hibit "A" attached hereto and made a part hereof for all purposes. TO HAVE AND TO HOLD the above described premises, together with all and singular the rights and appurtenances thereto in anywise belonging, unto the said Grantee, its successors and as- signs forever; and Grantor does hereby bind its successors and assigns to WARRANT AND FOREVER DEFEND all and singular the said premises unto the said Grantee , its successors and assigns , against every person whomsoever lawfully claiming or to claim the same or any part thereof. - This conveyance is made and accepted subject to all restrictions, easements, rights of way, all oil, gas and other mineral reservations and royalty interest , all oil , gas and other mineral leases, maintenance and assessment charges and any liens securing same, set back lines, zoning laws, ordinances of • , - 1 .I23:70 1506 municipal and other governmental authorities, and all covenants and agreements, if any, relating to the hereinabove described property, but only to the extent the same are in force and effect and shown of record in the office of the County Clerk of Harris County, Texas, and subject to any and all leases, recorded or unrecorded, and the rights of Lessees thereunder. Taxes for the current year have been prorated as of the date hereof and taxes for the year 1988 and all subsequent years are assumed by Grantee herein. EXECUTED this 2'7 day of - , 1988 . HA -MILLS REALTY, INC. /4c,.../// � d- BY: Name p " me K //z1 E. ////e Title 47 Q ,lfiU.L f7 THE STATE OF TEXAS) COUNTY OF HARRIS) Th' s 'n rument was acknowledged before me on the 2-c day of , 1988 , by ,) /ll / ;. /e , the ___ ILj �_r of HALE-MILLS /REALTY , INC . , a Texas corporation, for and on behalf o said car ation. ota P lic - State of Texas (seal) sr°t'P"P BS:,, A. L. BUCKALEW Name of Notary typed or printed 1', �*. Notary Public in and for Commission expires " i� '` the State of Texas ` My Commission Expires + smstp a7-22-92 Address orttNi te':., /3U,6 PE,ppLA)occi jth/eove/suivc Th S 7 75- 4 After recording return to: PREPARED IN THE LAW OFFICES OF: WARREN C. BROWN, ATTORNEY BAILEY-BLUM & LIPPER 1919 Smith, Suite 860 Houston, Texas 77002 713/652 0957 . 123=10=I50/ d` . LEDERER/MILLER & ASSOCIATES REGISTERED CIVIL ENGINEERS LAND SURVEYORS Houston,Texas 77098 (713)529-9124 2990 Richmond Ave., Suite 105 February 24, 1988 FIELD NOTES (Water Plant Site for City of Friendswood) 0.2447 Acre (or 10,657 square feet) of land out of an 0.5226 acre • tract in Reserve "G", Block 19, Forest Bend Subdivision, Section 3, in Harris County Texas, according to the plat of said subdivision recorded in Volume 180, Page 73, Harris County Map Records, said 0.2447 acre of land being more parti- cularly described as follows: COMMENCING FOR REFERENCE at the northeast corner of Reserve "G" and the northeast corner of an 0.7471 acre tract, on the curved west right-of-way line of Blackhawk Blvd. , 100 feet wide: THENCE in a southerly direction with the east line of Reserve "G" and said west right-of-way line with a curve to the right having a radius of 1950.00 feet, a central angle of 6° 10' 13" and an arc length of 210.00 feet, (the chord of said arc bears South 20° 06' 01" East 209.90 feet) , to the southeast corner of said 0.7471 acre tract ani the northeast corner of said 0.5226 acre tract for the Northeast Corner and PLACE OF BEGINNING of the 0.2447 acre tract herein described; THENCE continuing in a southerly direction with said line and said curve to the right having a radius of 1950.00 feet, a central angle of 0° 35' 21" and an arc length of 20.05 feet, (the chord of said arc bears South 16° 43' 14" East 20.05 feet) , to a point for corner; THENCE in westerly and southerly directions within said 0.5226 acre tract with the following two (2) courses and distances: 1. South 77° 24' 33" West along a line parallel with and located 20.00 feet southerly from the northerly line of said 0.5226 acre tract 158.81 feet to a point for corner, and 2. South 12° 15' 27" East 69.87 feet to a point for corner on the south line of said 0.5226 acre tract; THENCE-South 81° 12 ' 44" West with said south line 65.00 feet to the south- west corner of said 0.5226 acre tract; THENCE North 38° 51 ' 25" West 95.41 feet to the north west corner of said 0.5226 acre tract and the southwest corner of said 0.7441 acre tract on the southeast line of a 30-foot wide Texas Pipeline Company pipeline easement described in deed recorded in Volume 7211, Page 281, Harris County Deed Records; THENCE North 77° 24' 33" East with the common line between said 0.5226 acre and 0.7471 acre tracts 264.45 feet to the PLACE OF BEGINNING. • Chalmers R. Miller , � „ Registered Public Surveyor No. 4222. / • "' . . , 7. • 'i • Service available throughout the \'" ""'" National Division, Branch and Agency United States, Canada, Puerto Rico, offices and Approved Attorneys are the Bahamas, and the U. S. Virgin ° located throughout the • operating Islands. territory. Iu)yers Title Insurance Corporation National Headquarters-Richmond,Virginia z y l A C to 3 a = (n 0 0 co t..,1 rr. 1/�r H 0 CD CD • A word of thanks to our insured As we make your policy a part of our permanent records, we want to express our appreciation of this evidence of your faith in Lawyers Title Insurance Corporation. There is no recurring premium. This policy provides valuable title protection and we suggest you keep it in a safe place where it will be readily available for future reference. If you have any questions about the protection provided by this policy or wish to contact us for any other reason, write to: 1 wyers Title Insurance Corporation P.O.Box 27567 Richmond,Virginia 23261 PURCHASER'S STATEMENT DATE: July 29 , 1988 GFNO.: 87-7165 SALE FROM: Hale—Mills Realty Inc . 'TO: City Of Friendswood PROPERTY . 2447 acres in Forest Bend Subdivision PURCHASE PRICE $ 29 , 306 . 75 PLUS: CHARGES Filing fees to County Clerk: $ 10 . 00 Loan charges and fees due to $ Loan transfer fee or assumption fee $ Fees to LAWYERS TITLE COMPANY OF HOUSTON Title Policy: Owner 5"1 _ on Mortgagee Binder Escrow 2 5 - 0 0 Msngr. Serv. Restrict. copies Gttat .nty Fee 3 . 00 $ 381. 00 Tax certificates: State and County $ City and School $ 70 . 00 Other $ Survey fee to $ Attorney's fees for preparation of papers to Bail Py, Bit trD & L Fier $ 7 n _ 0 n $ Flood insurance premium to $ Hazard insurance premium to $ Tax and insurance escrowed with $ :nos. tax deposit ® per mo. mos. hazard insurance @ per mo. mos. flood insurance @ per mo mos. mortgage insurance @ per mo. Interest from to $ Proration of hazard insurance from to $ Proration of flood insurance from to $ Maintenance charge proration from to $ Tax proration from to $ Escrowed accounts with lender purchased from Seller $ $ 531. 00 TOTAL CHARGES $ GROSS AMOUNT DUE BY PURCHASER $ 2 9 , 8 3 7 . 7 5 LESS: CREDITS Down payment or earnest money paid to $ Loan from $ Note assumed $ Interest proration from to $ Tax proration from L—1—8 8 to 7-29-88 $ 126 . 00 Rent proration from to $ Other Credit $. TOTAL CREDITS $ 1 2 - 0 0 _ BALANCE DUE BY/'PURCHASER $ 2 9 . 711. 7 5 Purchaser understands the Closing or Escrow Agent has assembled this information representing the transaction from the best information avail- able from other sources and cannot guarantee the accuracy thereof. Any real estate agent or lender involved may be furnished a copy of this Statement. Purchaser understands that tax and insurance prorations and reserves were based on figures fur the preceding year or supplied by others or estimates for current year,and in the event of any change for current year,all necessary adjustments must he ma •between Purchaser and Seller direct. The undersigned hereby authorizes LAWYERS TITLE COMPANY OF HOLD make uxpcndi us and disbursements us shown above and approves same for payment. The undersigned also acknowledges receipt of an F s,If uppllcayle the amount shown above and u rueelpt of a copy of this Statement. t PAUL W.SCHRADER ��►1 a Z� Mayor • `•��j�++�'. £?Lty of9'1LE12cLiuJooct• RON RITTER ft �,••-: ROBERT WICKLANDER 'r.':.' a\ I••, � EVELYN NEWMAN i:;y`a ` .,,. �a' PHYLLIS J.LEE i1/44�•� 109 WILLOWICK T131482.3323 "� IFRIENDSWOOD, TEXAS 77546-3898 JAN JOE JORDAA 1 -77 ANN C ry Ma.ag BRAND 8l eJ: DELORIS McKENZIE,CMC 4111t._ .+:-=�% City Secretary August 4 , 1988 Lawyers Title Company R .L . Buckalew, Vice-President 617 Caroline Houston, Texas 77002 Dear Mr . Buckalew , Attached you will find a signed copy of the Purchaser ' s Statement from the City of Friendswood regarding the sale of . 2447 acres of land in Forest Bend Subdivision for your records . Thank you for your consideration in the above matter and please call me if you have questions regarding the above item. Sincerely, �i // 4' ,l teloris McKenzie , CMC Illy Secretary DM/jt Attachment : Houston, Texas Date August 2 , 1988 To: Lawyers Title Company of Houston, Agent for Lawyers Title Insurance Corporation. You are authorized to place In Owner's Policy of Title Insurance being issued to the undersigned the exception: "Rights of Parties in Possession. " We are satisfied to accept the policy with such exception and waive inspection by you. Paul W. Schrader , Mayor City of Friendswood , Texas August 2 . 1988 awyers jttle Company A %:'AROUNE•HOUSTON.TEXAS 77002•228-0801 R. L. BUCKALEW VICE PRESIDENT r * PURCHASER'S STATEMENT DATE: July 29. 1988 GFNO,: 87-7165 SALE FROM: Hale-Mills Realty Inc. 'TO: City Of Friendswood PROPERTY .2447 acres in Forest Bend Subdivision PURCHASE PRICE $ 2 9 . 3 0 6.7 5 PLUS: CHARGES Filing fees to County Clerk: $ 10 . 00 Loan charges and fees due to $ $— Loan transfer fee or assumption fee $ Fees to LAWYERS TITLE COMPANY OF HOUSTON Title Policy: Owner 15 1 0 0 Mortgagee Binder Escrow 25- 0 0 Msngr. Serv. Restrict. copies Guaranty Fee 3 00 $ 381.00 Tax certificates: State and County $ City and School $ 70 . 00 Other $ Survey fee to $ Attorney's fees for preparation of papers to Bailey, B111r1 £ Lipper $ 70 . 00 $ Flood insurance premium to $ Hazard insurance premium to $ Tax and insurance escrowed with $ mos. tax deposit @ per mo. mos. hazard insurance @ per mo. mos. flood insurance @ per mo mos. mortgage insurance @ per mo. Interest from to $ Proration of hazard insurance from to $ Proration of flood insurance from to $ Maintenance charge proration from to $ Tax proration from to $ Escrowed accounts with lender purchased from Seller $ $ 531. 00 TOTAL CHARGES $ GROSS AMOUNT DUE BY PURCHASER $ 2 9 , 8 3 7 . 7 5 LESS: CREDITS Down payment or earnest money paid to $ Loan from $ Note assumed $ Interest proration from to $ Tax proration from L-1-8 8 to 7-2 9-8 8 $ 126 . 00 Rent proration from to $ Other Credit - $ $.. TOTAL CREDITS $ 1 2 6. 0 0 BALANCE DUE BY/TetPURCHASER $ 29 .711. 7 5 Purchaser understands the Closing or Escrow Agent has assembled this information representing the transaction from the best information avail- able from other sources and cannot guarantee the accuracy thereof. Any real estate agent or lender involved may be furnished a copy of this Statement. Purchaser understands that tax and insurance prorations and reserves were based on figures for the preceding year or supplied by others or estimates fur current year,and in the event of any change for current year,all necessary adjustments must he mac between Purchaser and Seller direct. UUI'. 1J UUrinn, U7 J7 P. - • • 11-8-99 PROMULGATED BY THE TEXAS REAL ESTATE COMMISSfON(TREC) UNIMPROVED PROPERTY CONTRACT OP), ,,11--II NOTICE Not For Use For Condominium Transactions 1. PARTIES:HA{e.I 0a , nC, TG(a �7V1 ig (Seller) agrees to sell (Buyer)conveyto (' Sd and Buyer agrees b buy from Seer th property described below. See Ejbi�- Ka���� iritt. 2. PROPERTY: 494 - , Plcck A iti2.-C n , exas, known as (Address/Zip Code), , the Property). The Property ❑ is 'is not subject to mandatory membership in an owners' association. The TREC Addendum For Property Subject To Mandatory Membership In An Owners'Association ❑ is ,TREC not attached. NOTICE TO BUYER: If the Property is subjectto mandatory membership in an owners'association, Seller notifies Buyer under §5.012, Texas Property Code, that, as a purchaser of property in the residential community in which the Property is located, you are obligated to be a member of an owners' association. Restrictive covenants governing the use and occupancy of the Property and a dedicatory instrument governing the establishment, maintenance, and operation of this residential community have been or will be recorded in the Real Property Records of the county in which the Property is located. Copies of the restrictive covenants and dedicatory instrument may be obtained from the county Berk_ You are obligated to pay assessments to the owners'association.The amount of the assessments is subject to change. Your failure to pay the assessments could result in a lien on and the foreclosure of the Property. 3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing $ 30i 00O B. Sum of all financing described below $ C. Sales Price (Sum of A and B) $ 3(2, financing or noteholders approval of any assumption and make every reasonable effort to obtain finan • or assumption approval. Financing or assumption approval will be deemed to have been obtained w - the lender determines that Buyer has satisfied all of lender's financial requirements (those items - ating to Buyer's net worth, income and creditworthiness). If financing or assumption approval is not a► -fined within days after the effective date hereof, this contract will terminate and the earn:- money will be refunded to Buyer- Each note to be executed hereunder must be secured by vendor's -•• deed of trust liens. The portion of Sales Price not payable in cash will be paid as follows: (Check ap• .•_ble boxes below) ❑ A. THIRD PARTY FINANCING: ❑ (1) This contract is subject to approval for Buyer of a third •---• loan in an amount not to exceed % of the Sales Price, evidenced by a : party first lien promissory note of not less than $_ , due in full in year(s), with interest not to exceed % per annum for the first year(s) I e loan. (2) This contract is subject to approval for : yer of a third party loan in an amount not to exceed % of the Sales Price, evi•- ced by a third party second lien promissory note of not less than $ , • .- in full in year(s), with interest not to exceed % per annum for the first year(s) of the loan. ❑ B. SELLER FINANCING: A promissory •i from Buyer to Seller of $ . bearing °h interest per annum, secured by v: :ors and deed of trust liens, in accordance with the terms and conditions set forth in the a e- ed TREC Seller Financing Addendum. If an owner policy of title insurance is furnished, Bu - shall furnish Seller with a mortgagee policy of title insurance. C. ASSUMPTION: ❑ (1) Buyer shal assume the unpaid principal balance of a first lien promissory note payable to which unpaid balance at cis- ng will be $ . The total current monthly payment including principal, i► -rest and any reserve deposits is $ _ . Buyer's initial payment will be the Initialed for identification by Buyer d and Seller _ Q t A TREC NO. 9-4 dl:ri - 16 00 ;'I'HU 09 :39 [� J r P. 004 Unimproved Property Cor trad Concerning_ acreS a1'1 g �WK givd., r�I IA ,,TX Page Two 11-8-99 (Address of Property) payable to wh' unpaid balance at dosing will be $ The total current monthly pa - ent including principal, interest and any reserve deposits is $ . Buye initial payment will be the first payment due after closing. Buyer's assumption of an existing note includes all obligations imposed by the deed of i••st securing the note. if the unpaid principal balance(s) of any assumed loan(s)as of the Closing Date v. es from the loan balances) stated above, then cash payable at closing❑ Sales Price will be a•'•sted by the amount of any variance;provided, if the total principal balance of all assumed loans va in an amount greater than $350.00 at dosing, either party may terminate this contract and II. earnest money will be refunded to Buyer unless the other party elects to eliminate the e • ss in the variance by an appropriate adjustment at dosing. If the noteholder requires (a) pa .ent of an assumption fee in excess of $ in C(1) above or$ in C(2) above and Seller declines to pay such excess, or (b) an increase in the interest -:te to more than % in C(1) above, or % in C(2) above, or (c) any other modifica'•n of the loan documents. Buyer may terminate this contract and the earnest money will be refu • -d to Buyer. A vendor's lien and deed of trust to secure assumption will be required which shall - tomatically be released on execution and delivery of a release by noteholder. If Seller is released • •m liability on any assumed note, the vendor's lien and deed of trust to secure assumption will not .e required. NOTICE TO BUYER: The monthly payments, ' erest rates or other terms of some loans may be adjusted by the lender at or after closing. you are concerned about the possibility of future adjustments, do not sign the contract witho examining the notes and deeds of trust. NOTICE TO SELLER: Your liability to p the note assumed by Buyer will continue unless you obtain a release of liability from the lender. if y•• are concerned about future liability,you should use the TREC Release of Liability Addendum. ❑ D. CREDIT APPROVAL ON ASS PTION OR SELLER FINANCING: Within days after the effective date of this co act, Buyer shall deliver to Seller U credit report C3 verification of employment, including sal-. U verification of funds on deposit in financial institutions❑ current financial statement to e .blish Buyer's creditworthiness or assumption approval or seller financing and ❑ If Buyer's docume ction is not delivered within the specified time, Seller may terminate this contract by notice to Buy: within 7 days after expiration of the time for delivery, and The earnest money will be paid to Seller ' this contract is not so terminated, Seller will be deemed to have accepted Buyer's credit if th= •ocumentatioe is timely delivered, and Seller determines in Seller's sole discretion that Buyer's -•it is unacceptable, Seller may terminate this contract by notice to Buyer within 7 days after expi - '•n of the time for delivery and the earnest money will be refunded to Buyer. If Seiler does not so •rminate this contract, Seller will be deemed to have accepted Buyer's credit. Buyer hereby orizes any credit reporting agency to furnish to Seller at Buyer's sole expense copies of Buyer's Fcporta. 5. EARNEST M N Y: uyer shall deposit$3 COL. as earn st money with L W 'S rl�i Co. (R. L, g►J 1ew) _ at ce irk, i ou.` n, TTX -noon (Address), as escrow agent, upon execution of this contract by both parties. . If Buyer fails to deposit the earnest money as required by this contract, Buyer will be in default 6. TITLE POLICY AND SURVEY: 2(A. TITLE POLICY: Seller shall furnish to Buyer at CISeller's tb Buyers expense an owner policy of titie insurance (the Trtte Policy) issued by f__WlS TC� Co. (the Title Company) in the amount of the Sales PP rice, dated at or after closing, insuring Buyer against loss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions: (1) Restrictive covenants common to the platted subdivision in which the Property is located. (2) The standard pnnt e ption for standby fees, taxes and assessments. Initialed for identification by Buyer and Seller Al A TREC NO. 9-ef n. - 13 uu ; nil uy:4u P. 00, 414 Unimproved Property Contract Concerning• S ppI JJ Page Throe 11 8-89 (Address o roperty) (3) Liens created as part of the financing described in Paragraph 4. (4) Utility easements created by the dedication deed or plat of the subdivision in which the Property is located. (5) Reservations or exceptions otherwise permitted by this contract or as may be approved by Buyer in wilting. (6) The standard printed exception as to discrepancies, conflicts, shortages in area cr boundary lines, encroachments or protrusions, or overlapping improvements. (7) The standard printed exception as to marital rights. (8) The standard printed exception as to waters, tidelands, beaches, streams, and related matters. Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for title insurance (the Commitment) and, at Buyer's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment other than the standard printed exceptions. Seller authorizes the Titre Company to mail or hand deliver the Commitment and related documents to Buyer at Buyer's address shown below. If the Commitment is not delivered to Buyer within the specified time, the time for delivery will be automatically extended up to 15 days. ❑ B. SURVEY: (Check one box only) ❑ (1) Within days after the effective date of this contract, Buyer shall obtain a survey at Buyer's expense. (2) Within days after the effective date of this contract, Seller shall cause a survey to be delivered to Buyer at Seller's expense. rf(3) existing survey plat of the Property dated , which ❑ will ❑ will not be r su sequent to the effective date of this contract at the rsx of Du -C3-Ge43 . Sect WC hest U. Buyer may object to existing building and zoning ordinances, items 6A(1) through (8) above and matters shown on the survey if Buyer determines that any such ordinance, items or matters prohibits the following use or activity: matters disclosed in the Commitment or survey Buyer's failure to object under Pa in the time allowed will constitute a waiver of Buyer's right to object; except merits in Schedule C of the Commitment will not be deemed to have been w s all cure the timely objections of Buyer or any third party lender within 20 da s receives the objections and the Closing Date will be extended as necessa s are not cured by the extended Closing Date, this contract will terminate -rid the INV NOTICE TO SELLER AND BUYER: Sec• j• -• I CM. (1) Broker advises Buyer to have an abstract of title covering the Property examined by an attorney of Buyer's selection,or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Buyer's choice due to the time limitations on Buyer's right to object. (2) If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49 of the Texas Water Code requires Seller to deliverand Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract. (3) ff the Property abuts the tidally influenced waters of the state, Section 33.135, Texas Natural Resources Code, requires a notice regarding coastal area property to be included in the contract An addendum either promulgated by TREC or required by the parties should be used. (4) Buyer is advised that the presence of wetlands, toxic substances, including asbestos and wastes or other environmental hazards or the presence of a threatened or endangered species or its habitat may affect Buyer's intended use of the Property. If Buyer is concerned about these matters, an addendum either promulgated by TREC or required by the parties should be used. Initialed for identification by Buyer /and Seller OIA TREC NO. 9-4 JUN -15' UU (TR) 09:4i OOb `, j ? Unimproved Properly ContractConcerninn l ;CV oi'l 13 h Vvk �kva.„ vim iX Page Four 11-8-99 (Address of Property) (5) lithe Property is located outside the limits of a municipality, Seller notifies Buyer under§5.011, Texas Property Code, that the Property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality. Each municipality maintains a map that depicts its boundaries and extraterritorial jurisdiction. To determine if the Property is located within a municipality's extraterritorial jurisdiction or is likely to be located within a municipality's extraterritorial jurisdiction, contact all municipalities located in the general proximity of the Property for further information. (6) Unless expressly prohibited in writing by the parties, Seiler may continue to show the Property for sale and to receive, negotiate and accept back-up offers 7. PROPERTY CONDITION: A INSPECTIONS, ACCESS AND UTILITIES: Buyer may have the Property inspected by an inspector selected by Buyer,licensed by TREC or otherwise permitted by law to make such inspections. Seller shall permit access to the Property at reasonable times for inspection, repairs and treatment and for reinspection after repairs and treatment have been completed. 3et Addendtj i a ct rle B. ACCEPTANCE OF PROPERTY CONDITION: NOTICE: Buyer should determine the availability of utilities to the Property suitable to satisfy Buyer's needs. (check one box only): Q (1) In addition to any earnest money deposited with escrow agent, Buyer has paid Seller (the'Option Fee') for the unrestricted right to terminate this contract by giving notice of termination to Seller within days after the effective date of this contract. If Buyer gives notice of termination within the time specified, the Option Feewirl not be refunded, however, any earnest money will be refunded to Buyer. if Buyer does not give notice of termination within the time specified, Buyer will be deemed to have accepted the Property in its current condition and tt►e Option Fee ❑ will U will not be credited to the Sales Price at dosing. (2) Buyer accepts the Property in its present condition. • 8. BROKERS' FEES: All obligations of the parties for payment of brokers' fees am contained in separate written agreements. 9. CLOSING: The dosing of the sale will be on or before 7 3 i _,2000 _Of- • (the Closing Date , -paci4,4r-famaats,.If either party fails to dose this sale by the Closing Date,the nonedefaulting party will be entitled to exercise the remedies contained in Paragraph 15. At Closing Seller shall furnish tax statements or certificates showing no delinquent taxes and a ggine4 warranty deed conveying good and indefeasible title showing no additional exceptions to those pennitteAn PParagrrph 6. 10. POSSESSION: Seller shall deliver possession of the i-eoopperrty to Buyer at dosing and funding. 11. SPECIAL PROVISIONS:(Insert only factual statements and business details applicable to this sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use.) I er><1 um afk?�Fied hey± Initialed for identification by Buyer and Seller __ 01 A TREC NO. JO. - 13 UU L I I1L i Uy 4: ? 00' Unimproved Property Contras Concominu (� �CY�S e gla_��(�'v► E1VCl'•1 F�ie r'c x Page Five 11 &99 (Address of Property) 4? SETTLEMENT AND OTHER EXPENSES: A. The following expenses must be paid at or prior to dosing: (1) Appraisal fees will be paid by_ $uY . (2) The total of loan discount fees may riot exceed % of the loan of which Seiler shall pay _and Buyer shall pay the remainder. The total of any buydown fees may not exceed which will be paid by (3) Seller's Expenses: Releases of existing liens, including prepayment penalties and recording fees; release of Seller's loan liability; tax statements of certificates; preparation of deed; one-half of escrow fee; and other expenses stipulatea to be paid by Seller under other provisions of this contract. (4) Buyers Expenses: Loan application, origination and commitment fees; loan assumption costs; preparation and recording of deed of trust to secure assumption;lender required expenses incident to new loans, including preparation of loan documents, recording fees, tax service and research fees,warehouse or underwriting fees,copies of restrictions and easements, amortization schedule, premiums for mortgagee title policies and endorsements required by lender, credit reports, photos;required premiums for flood and hazard insurance; required reserve deposit for insurance premiums and ad valorem taxes: interest on all monthly installment notes from date of disbursements to one month prior to dates of first monthly payments; one-half of escrow fee; and other expenses stipulated to be paid by Buyer under other provisions of this contract. B. If any expense exceeds an amount expressly stated in this contract for such expense to be paid by a party, that party may terminate this contract unless the other party agrees to pay such excess. in no event will Buyer pay charges and fees expressly prohibited by governmental loan program regulations. 13. PRORATIONS AND ROLLBACK TAXES: A. PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at - dosing, the parties shall adjust the prnrations when tax statements for the current year are available. If a loan is assumed and the lender maintains an escrow account,the escrow account must be transferred to Buyer without any deficiency. Buyer snail reimburse Seller for the amount in the transferred account Buyer shall pay the premium for a new insurance policy. If taxes are not paid at or prior to dosing, Buyer will be obligated to pay taxes for the current year_ B. ROLLBACK TAXES: If this sale or Buyer's use of the Property after closing results in the assessment of additional taxes, penalties or interest(Assessments)for periods prior to dosing, the Assessments will be the obligation of Buyer. If Seller's change in use of the Property prior to dosing or denial of a special use valuation on the Property claimed by Seller results in Assessments for periods prior to dosing, the Assessments will oe the obligation of Seller. Obligations imposed by this paragraph will survive dosing. 14. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss after the effective date of the contract, Seller shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to do so due to factors beyond Seller's control, Buyer may either (a) terminate this contract and the earnest money will be refunded to Buyer (b) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (c) accept the Property in its damaged condition and accept an assignment of insurance proceeds. Sellers obligations under this paragraph are independent of any obligations of Seller under Paragraph 7 )-as S* Yemedy IS. DEFAULT:If Buyer fails to comply with this contract, Buyer will be in default. and Selle mays} terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this Contract lf, due to factors beyond Seller's control, Seller fails within the time allowed to make any non-casualty repairs or deliver the Commitment, Buyer may either(a)extend the time for performance up to 15 days and the Closing Date will be extended as necessary or(b) terminate this contract as the sole remedy and receive the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may ' i ar- rminate this contract and receive the earnest money, thereby releasing both parties from this co tract. , i}S SC4 rcn-cdy Initialed for identification by Buyer Ae--. and Seller 0 I A TREC NO. 9-4 RN - 15' 00 ( FHL) 09:45 P. 008 Unimproved property Contract Concerning 1 Ifi ac-rrS On ales ElVcieeeerleaviat L r A Page Sbc 11-e-e9 (Morose of Property) 16. DISPUTE RESOLUTION: It is the policy of the State of Texas to encourage the peaceable resolution of disputes through alternative dispute resolution procedures. The parties are encouraged to use an addendum approved by TREC to submit to mediation disputes which cannot be resolved in good faith through informal discussicn. 17. ATTORNEY'S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover-from the non-prevailing party all costs of such proceeding and reascnable attorney's fees 18. ESCROW: The earnest money is deposited with escrow agent with the understanding that escrow agent is not(a) a party to this contract and does not have any liability for the performance or nonperformance of any party to this contract, (b) liable for interest on the earnest money and (c)liable for any loss of earnest money caused by the failure of any financial institution in which the earnest money has been deposited unless the financial institution is acting as escrow agent. At dosing. the earnest money must be applied first to any cash down payment,then to Buyer's dosing costs and any excess refunded to Buyer If both parties make written demand for the earnest money, escrow agent may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of escrow agent from all parties. if one party makes written demand for the earnest money, escrow agent shall give notice of the demand by providing to the other party a copy of the demand, If escrow agent does not receive written objection to the demand from the other party within 30 days after notice to the other party, escrow agent may disburse the earnest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the same to the creditors. If escrow agent complies with the provisions of this paragraph, each party hereby releases escrow agent from all adverse claims related to the disbursal of the earnest money. Escrow agents notice to the other party will be effective when deposited in the U. S. Mail, postage prepaid, certified Trail, return receipt requested,addressed to the other party at such parry's address shown below. Notice of objection to the demand will be deemed effective upon receipt by escrow agent. by {-vvou3h cv UhderaJICY 19. REPRESENTATIONS:Seiler represen at as of the Closing Date (a)there will be no liens, assessments, or security interests against the Prope hich will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and (b) assumed loans will not be in default If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money w ll be r ndeCo Buyer. All representations contained in this contract will survive dosing. )eZ UYY1 20. FEDERAL TAX REQUIREMENT:If Seller is a 'foreign person", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person", then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction 21. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their w ritten agreement See) AdJet1LI1W1 a> <.c k to. _ 22. CONSULT YOUR ATTORNEY: Real estate licensees cannot give legal advice. This contract is intended to be legally binding. READ IT CAREFULLY. If you do not understand the effect of this contract, consult your attorney BEFORE signing. ale/a-a £s Buyer's Seller's L L Attorney is:_ Attorney is: Initialed for identification by Buyer and Seller O1A TREC NO. 9-4 UJ •Lt,) TX P. 009 UnlmprOvedNroperty Contract roncernm 72 aCYG�h Blackhawk BIVd.) -Forth )Ode 1 t Page Seven 11-15-SIs (Address of Property) 23. NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile machine as follows: To Buyer at To Seller at: Ci Ty 9, / 1 '(1s W Ol.�d. 910 South FvferdSwood DOW) (1$ -3 lAsfiCASI- 1-entvoced, Ty, -77.541-1D-'g510 }[021-0 l,TX -7031 Telephone: (a2.91 ) 990-3.1-5O Telephone: Ca..gl ) q-] 1—5600 Facsimile: (a-g l) -3-1.1.1 _ Facsimile: (M 1 j 7-19 — OS IO EXECUTE the day of (THE EFFECTIVE DATE). (BROKER: FILL IN THE TE OF CEPTANCE=.) B er Seller Buyer _ Seller The form of this contract has been approved by the Texas Real Estate Commission. Such approval relates to this contract form only.TREC forms are Intended for use Duty by trained real estate licensees.No representation is made as to the legal validty or adequacy of any provision in a ny specillc transaction.It Is not sultebte for complex transactions. Extensive ridersoradditioru are nct to be used.Texas Reel Estate Commission,P.O.Sax 12188,Austin,TX 78711-2168,1-800-250-8732 or(512)459-6544 (IrttpJlwww,trec.state.tr.us)TREC NO. 9-4.This form replaces TREC NO.9-3. BROKER INFORMATION AND RATIFICATION OF FEE Listing Broker has - • :ed to pay Other Broker of the fetal sales price w isting Broker's fee is received. Escrow Age authorized and directed to pay Other Broker from Listing Broker's fee at rig. Other Broker -cense No. Listing Brck• License No. represents ❑Seller as Listing Broker's sub:.• t repro - s ❑Seller and Buyer as an intermediary ❑ Buyer only as Buyer's agent ❑Seller only as Seller's agent U '•. Associate Telephone Associate Telepnone Selling Associate Telephone Broker Address Broker Address - :phone Facsimile Telephone Facsiml - RECEIPT - Receipt of❑Contract and Q $ Earnest Money in the form of is acknowledged. 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Houston, Texas 77031 .:.-•'I`, I�; 281;8 7 9-8500 2\314'15)s JJ `,.t'.r: t. FAX 281/879-0820 C1�� 4 1,9.p b Jilts/ 2000 June 15, 2000 ti � r; ti L2ot) Mr. Ron Cox /COE628Z Via Fax(281) 482-3722 City Manager City of Friendswood 910 South Friendswood Drive Friendswood, Texas 77546-4856 RE: .278 acres Blackhawk Blvd., Friendswood, Texas Dear Mr. Cox: Please find enclosed for your review a draft of the Unimproved Property Contract prepared by the Seller's attorney for the referenced tract. Due to your noon deadline today, the Seller will be reviewing this contract simultaneously with you. Our offer is subject therefore,to the Seller's review and approval and finalizing a contract no later than June 23, 2000. Please call me regarding any comments you have. Sincerely, SHOPPING CENTER MANAGEMENT,INC., a Texas Corporation LalitiLt By: Mike E. Latimer President MELlkbc Enclosure P.S. Please review and sign the enclosed Information About Brokerage Services form and return for my files. .aatalptik,kAcax.v.pu (A.14, -i, Uullnu; U7•JO p, 002 Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants,sellers and landlords. Information About Brokerage Services Before working with a real estate broker, you should The broker must obtain the written consent of each party to know that the duties of a broker depend on whom the the transaction to act as an intermediary.The written consent broker represents. If you are a prospective seller or must state who will pay the broker and, in conspicuous bold landlord (owner) or a prospective buyer or tenant or underlined print, set forth the broker's obligations as an (buyer), you should know that the broker who Iists the intermediary. The broker is required to treat each party property for sale or lease is the owner's agent. A broker who honestly and fairly and to comply with The Texas Real Estate acts as a subagent represents the owner in cooperation with License Act. A broker who acts as an inteinsettiary in a the listing broker. A broker who acts as a buyer's agent transaction: represents the buyer. A broker may act as an intermediary (1)shall treat all parties honestly; between the parties if the parties consent in writing.A broker (2) may not disclose that the owner will accept a price can assist you in locating a property, preparing a contract or less than the asking price unless authorized inw riting to lease, or obtaining financing without representing you. A do so by the owner; broker is obligated by law to treat you honestly. (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless IF THE BROKER REPRESENTS THE OWNER: authorized in writing to do so by the buyer;and The broker becomes the owner's agent by entering into an (4) may not disclose any confidential information or any agreement with the owner, usually through a written listing information that a party specifically instructs the broker agreement or by agreeing to act as a subagent by accepting in writing not to disclose unless authorized in writing to an offer of subagency from the listing broker.A subagent may disclose the information or required to do so by The work in a different real estate office. A listing broker or Texas Real Estate License Act or a court order or if the subagent can assist the buyer but does not represent the information materially relates to the condition of t) buyer and must place the interests of the owner first. The property. buyer should not tell the owner's agent anything the buyer With the parties' consent,a broker acting as an intermediary would not want the owner to know because an owner's agent between the parties may appoint a person who is licensed must disclose to the owner any material information known under The Texas Real Estate License Act and associated with to the agent. the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act IF THE BROKER REPRESENTS THE BUYER: and associated with the broker to communicate with and The broker becomes the buyer's agent by entering into an carry out instructions of the other party. agreement to represent the buyer, usually through a written buyer representation agreement A buyer's agent can assist If you choose to have a broker represent you, the owner but does nut represent the owner and must place you should enter into a written agreement with the broker the interests of the buyer first. The owner should not to l a that clearly establishes the broker's obligations and your buyer's agent anything the owner would not want the buyer obligations. The agreement should state how and by whom to know because a buyer's agent must disclose to the buyer the broker will be paid. You have the right to choose the type any material information known to the agent. of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the IF THE BROKER ACTS AS AN INTERMEDIARY: broker represents you. If you have any questions regarding A broker may act as an intermediary be-ween the parties if the duties and responsibilities of the broker, you should the broker complies with The Texas Real Estate License Act. resolve those questions before proceeding. Re tate licens s as h you acknowledge receipt a this information about brokerage services for the licensee's records. uyer, Seiler,Landlord or Tenant N/A Date Tatar Aeal[irate Brokers and Sdesmrn ur-licenscd and rcg,iued Ot the Taus Real Estate C rnmi»Ion(TREC).If you he e a question or complaint regarding a mai anal a ligature you should carrier IREC toin P O.Sot 12Id6,Amain,Tema 78711.2188 or 512-465-3960. I • — - ,A-lent • HAR 214(TAR 043) 1/1/96 I.V UW IVLJI a . au, , VOL, The following is provided by the Texas Association of REALTORS®for your information: 7t•‘;t,. ;111 rt•al csl;ilt- liicn.Cc, lu gitC ilic inifornLIliuu on Ili': revise •JIlc „I llli • Real estate brokers and salesmen are required by law to fount to I►r„,licrli<<- /WI cr., tcrulnl . "t•ilrr,, make properties available without regard to race, color, and l:�tlilll,l tl.. religion, national origin, sex, disability or familial status. • Prior to entering into a contract, a buyer may find it useful to prequalify for a mortgage loan. Loan programs, fees, interest rates and requirements vary among lenders. • Brokerage fees are negotiable and are nor fixed or controlled • hi many transactions, including most residential sales, a seller will deliver a Seller's Disclosure Notice to a buyer-on or before the effective date of a contract to purchase the property The notice provides important information about the seller's knowledge of the property condition. Information About • Buyers,sellers, landlords, or tenants are encouraged to have a property inspected by licensed inspectors or Brokerage Services lawfully authorized persons to determine. (a) the condition of the property; (structural, mechanical, and electrical items); (b) any environmental conditions; (c) feasibility of use; (3) compliance with laws or regulations; (e) presence of termites or wood- destroying insects; and (f) any other matters. Brokers are not qualified to perform-such inspections. • Residential service contracts are available to buyers and sellers of residential property. In a residential Please read this information carefully service contract, a residential service company agrees to, subject to the terms of the contract, repair the and retain this document for your records. appliances, electrical, plumbing, heating, cooling or other systems in the property. • Buyers are advised to obtain a policy of title insurance or have an abstract of title reviewed by an attorney of buyer's choice before purchasing a property. • Buyers, sellers, landlords, or tenants are advised to seek the advice of an attorney of their own selection before entering into a binding agreement. 44j HAR 214 (TAR 043) 1/1/96 JUN. -19' 00 (MON) 15:04 P 002 Addendum attached to and made a part of Unimproved Property Contract by and between Hale/Associates,Ine_ and City of Friendswood 6(B) (3).(continued) Seller has heretofore caused to be prepared and delivered to Buyer a plat of survey of the Property, as described in Exhibit "A" attached hereto, dated Jan»ary 5, 2000 by R.W. Patrick & Associates, Inc. (the "Existing Survey"). Buyer, at its option and expense, may cause the Existing Survey to be updated and/or decertified by the surveyor within twenty (20) days after the Effective Date of this Contract. The Existing Survey as updated and / or recertified by surveyor within twenty (20) days after the Effective Date is hereinafter referred to as the"Survey". 6 (Continued) Buyer will have until twenty-five (25) days after the Effective Date to object in writing to matters disclosed in the Commitment, Existing Survey or Survey. Any title exceptions evidenced by the Commitment, Existing Survey or Survey to which Buyer does not object within the time periods provided above shall constitute title exceptions permitted by this Contract except as provided in the following sentence. Notwithstanding the foregoing sentence, all mortgages or deeds of trust placed on the Property or any portion thereof by Seller (the "mortgage liens") shall constitute unpermitted title exceptions and it shall not be necessary for Buyer to specify such mortgage liens in its objection notice. Seller shall be obligated to cause all such mortgage Iiens to be released and discharged of record not later than the Closing Date. If objections to title are made by Buyer within the time periods provided above, Seller shall have a period of five (5) days thereafter in which to remove or cure such objections (other than mortgage liens to be released and discharged on or before the Closing Date as above provided); provided, however, Seller shall not be obligated to expend any sums of money or institute any litigation in order to remove or cure such title objections. In the event Seller fails to remove or cure such title objections within such five (5) day period, Buyer shall have a period of five (5) days thereafter in which to either (i) accept such title objections not so removed or cured in which event such title objections shall become exceptions permitted by this Contract, or (ii) terminate this Agreement by giving Seller written notice thereof on.or before the expiration of such five (5) day period in which event the Earnest Money shall be refunded to Buyer less the sum of$100.00 to be retained by Seller as independent contract consideration. If Buyer does not terminate this Contract on or before the expiration of such five (5) days, then the objections to title by Seller shall be deemed waived (other than mortgage liens to be released and discharged on or before the closing date as above provided) and shall constitute exceptions permitted by this Contract. CITY OF FRI SWOOD AS BUYER: arcld L. Whitaker Mayor HOU:91986. . dl,lt. -1`1 1.1001U!'d tJ:U,1 P. 00� 6/19/00 M&C for the meeting. 11823 Wilcrest M Houston.Texas 77031 t300 .i' 1 I, 28 1/8798 �.��,�•. Fa,x ?sl/sin-oa_o � � ,?000 rzi City 6+ CNyF816-k647)0O June 19, 2000 Mr. Ron Cox Via Fax(281)482-3722 City Manager City of Friendswood 910 South Friendswood Drive Friendswood,Texas 77546-4856 RE: .278 acres Blackhawk Blvd., Friendswood, Texas Dear Mr. Cox: Please find attached a revised Addendum reflecting the changes requested by Ms. Mickelson. Do not hesitate to call.if you have any questions or comments. Sincerely, SHOPPING CENTER MANAGEMENT, INC., a Texas Corporation Li-1144' P.Z. By: Mike E. Latimer President MEL/kbc Enclosure cc: Kimberley Mickelson, Olson& Olson- Via Fax (713) 759-0342 f,ldatalpbhk\cox2.wpd MA! l 3 .U3 P. 003 7 (continuedl Prior to entering on the Property, Buyer's inspectors shall provide evidence of liability insurance coverage to Seller. Buyer shall indemnify, hold harmless and defend Seller, to the extent allowed by law, from any liability, loss, cause of action or claim against Seller arising out of or resulting from Buyer's actions under this Paragraph 7, including, without limitation, any claims for personal injury or death and any lien asserted against the Property arising as a result of any such inspections or test. 11 (a.) WAIVER OF CONSUMER RIGHTS, BUYER AGREES THAT IT IS WAIVING ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT, SECTION 17.41 ET SEQ, TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. THIS WAIVER IS MADE AFTER CONSULTATION WITH AN ATTORNEY OF BUYER'S OWN SELECTION, AND BUYER VOLUNTARILY CONSENTS TO THE WAIVER. BUYER FURTHER REPRESENTS AND WARRANTS TO SELLER THAT (I) BUYER IS NOT IN A SIGNIFICANTLY DESPERATE BARGAINING POSITION IN RELATION TO SELLER, (II) BUYER IS REPRESENTED BY LEGAL COUNSEL OF ITS OWN CHOICE AND DESIGNATION IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, AND (III) BUYER IS PURCHASING THE PROPERTY FOR BUSINESS OR COMMERCIAL INVESTMENT OR OTHER SIMILAR PURPOSE, NOT FOR USE AS BUYER'S RESIDENCE. (b.) Buyer shall not have the right to assign this Contract or any of its rights hereunder without the prior written consent of Seller. (c.) Execution of this Contract by Seller and submission to Buyer constitutes an offer (the "Offer") by Seller to sell the Property on the terms and conditions set forth in this Contract. Buyer shall have until 5;00pm on June 23, 2000 to accept the Offer by (i) executing the Contract in the place indicated. and (ii) causing such Contract to be physically delivered to the offices of the Title Company along with the Earnest Money. If Buyer does not accept the Offer by the date and time and in the manner specified above, the Offer shall automatically be terminated and of no further force or effect. (d.) Notwithstan,iing the election made in Section 7.B., Buyer retains the right under Section 7.A. to have such inspections and Studies made on the Property as Buyer deems necessary for its due diligence, all of which shall be at Buyer's expense, including but not limited to a Phase I Environmental Study. CITY OF FRIE [MOOD • AS BUYER: arold L. Whitaker Mayor HOUn9 t 9dE.: I 7 UU ;r1U!11 10.UJ P. 004 (e.) Buyer shall have the right to terminate the contract for any reason on or before July 23, 2000, unless the parties extend such deadline by agreement. 19 (Continued,) EXCEPT AS EXPRESSLY SET FORTH HEREIN AND EXCEPT FOR THE WARRANTIES TO BE INCLUDED IN THE CLOSING DOCUMENTS, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND TO BUYER, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATIONS OR WARRANTIES (A) REGARDING THE PHYSICAL CONDITION OF THE PROPERTY OR ITS SUITABILITY FOR ANY PARTICULAR PURPOSE, (B) THE SOIL CONDITIONS EXISTING AT THE PROPERTY FOR ANY PARTICULAR PURPOSE OR DEVELOPMENT POTENTIAL, AND (C) THE PRESENCE OR ABSENCE OF ANY HAZARDOUS SUBSTANCES, MA 1-I hR OR MATERIAL. IN, ON OR UNDER THE PROPERTY. EXCEPT AS OTHERWISE PROVIDED HEREIN, BUYER AGREES THAT THE PROPERTY IS TO BE SOLD AND ACCEPTED BY BUYER AT THE CLOSING IN ITS PRESENT CONDITION, "AS IS, WITH ALL FAULTS, IF ANY, AND WITHOUT ANY WARRANTY WHATSOEVER EXPRESSED OR IMPLIED." r:1DATA\phhk21city! CITY OF FRI SWOO AS BUYER: arold L. Whitaker Mayor -3- HOU:919861 r 06/19/00 13:30 OLSON g ' SON 4 FRIENDSWOOD NO., i4 P001/3 OLSON & OLSON ATTORNEYS AT LAW THREE ALLEN CENTER SUITE 3485 333 CLAY STREET HOUSTON, TEXAS 77002 TELEPHONE: (713) 759-0696 FACSIMILE: (713) 759-0342 FACSIMILE COVER SHEET ' DATE: June 19, 2000 TO: Mr. Ron Cox FAX # Coded City Manager City of Friendswood I2�212��3 Tammie Cuyos for ,�9�s FROM: Kimberley Nickelson Z 0 �N� N �� o NO. OF PAGES SENT: 3 Rti,ci olos (INCLUDING COVER SHEET) RE: 68` 9_S V�2 MESSAGE: IMPORTANT/CONFIDENTXAL: THIS MESSAGE ISINTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED. THIS MESSAGE CONTAINS INFORMATION FROM THE LAW FIRM OF OLSON & OLSON WHICH MAY RE PRIVILEGED CONFIDENTIAL, AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS INFORMATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY AT OUR TELEPHONE NUMBER SET FORTH ABOVE. WE WILL BE HAPPY TO ARRANGE FOR THE RETURN OF THIS MESSAGE VIA THE UNITED STATES POSTAL SERVICE TO 0a-'19/00 13:30 CLSON i SON y FR I ENDSWOOD NO.2a2 P002/00' Olson 8; OIson Memo 1b: Ron Cox City Manager City of Friendswood From: Kimberley Mickels City Attorney Date: 6!19/00 Re: Earnest Money Contract Changes—Blackhawk Blvd Property Attached are the changes I am suggesting to the above-relerenced contract. 1 am still not entirely comfortable with the waiver of consumer rights,insofar as the City is giving up a right to sue and recover treble damages for misrepresentation of facts or information it relies on in purchasing the property. I iowever, given that the City purchased a portion of this property in an earlier transaction for the location of the Blackhawk Plaint, and anticipating that the Title report will identify any problems, the risk to the City is somewhat lessened. We did not talk on the phone about what I am proposing as a new Paragraph 11(e). 1 am okay with retaining the language us it is currently written in 11(d): "Buyer shall have the right to terminate the contract on or before July 23, 2000." I am attempting to clarify what this current language arguably already says, and what we discussed on the phone regarding termination on the basis of any inspection conducted by the City. Let me know what you think. I am sending these to Mike Latimer under separate cover. r n6/19/00 13:31 OLSON ? n.SON - FR I ENDSWOOD NO.292 PO03/003 Add to Section 6(B)(3) (cont): Seller has heretofore caused to he prepared and delivered to Buyer a plat of survey of the Property, as described in Exhibit"A", attached hereto.... Add to Section 6 (cont) existing survey immediately after"Commitment"in lines 2 and 3 Add to Section 7: Buyer shall indemnify, hold harmless and defend Seller, to the extent allowed by law, .... Revise Section 11(d): Notwithstanding the election made in Section 7.B., Buyer retains the right under Section 7.A. to have such inspections and studies made on the Property as Buyer ed eris necessary for its due diligence, all of which shall be at uyer s expense, tnc u mg ut not limiter-to a Phase T Environmental Study. (e) Buyer shall have the right to terminate the contract for any reason on or before July 23, 2000, unless the parties extend such deadline by agreement. [Note this language is almost exactly the same as that which is currently in Section I I(d); I suggest we move it to a separate section. Termination was not limited in that section to the Environmental Study.] • APPROVE EARNEST MONEY CONTRACTS AND AUTHORIZE MAYOR'S SIGNATURE FOR PURCHASE OF PROPERTIES June 19, 2000 Following your directives in the Executive Session on June 5, 2000, I contacted property representatives for the two properties in this agenda item. We have reached an agreement for both and are recommending your approval of the earnest money contracts, and authorization for the Mayor to sign all documents relative to the closing of the purchase of the properties. A. Norton property at 108 W. Spreading Oaks The Norton property, located at 108 W. Spreading Oaks, is adjacent to the Friendswood Public Library parking lot. It is critical to any expansion of the library that might be planned in the future as we look toward build out of the community. The property is a residential lot with an old house located on it. The house will have to be removed. A report is expected soon on the asbestos and we are having a Phase I Environmental Impact Study completed. We expect no problems in the Phase I study,but the house does contain asbestos siding. We will have an estimate of the cost of the removal of the house by a company certified for that work in the near future. You have a copy of the proposed Earnest Money Contract in the packet for your review. Evelyn Newman prepared the Contract. It is signed by Chris Norton, the Executor of the Norton Estate,on behalf of the heirs. Recommendation. Approve the Earnest Money Contract for the purchase of the Norton property in the amount of$65,000, subject to the successful report from the Phase I Environmental Study, and authorize the Mayor to sign all documents relative to the purchase of the property. B. Property on Blackhawk Boulevard This property is located directly in front of the main surface water take point on Blackhawk Boulevard. It is approximately .278 acres (12,106 square feet). The owner has agreed to sell the property for $2.48/square foot, or an even $30,000. Our offer to the owner is to purchase the property for that price, but the City will incur the costs for the Phase I Environmental Impact Statement. The owner has agreed to that offer contingent on the completion of the Study and no adverse findings. You have a copy of the proposed Earnest Money Contract in the packet for your review. Agenda 2 000/06.3/ts m 02 Purchase of Property Page Two June 19, 2000 Recommendation. Approve the Earnest Money in the amount of$30,000,subject to the completion of the Phase I Environmental Study, and no adverse findings, and authorize the Mayor to sign all documents relative to the purchase of the property. REC Attachments 1. Earnest Money Contract for purchase of property located at 108 W. Spreading Oaks. 2. Earnest Money Contract for purchase of property located on Blackhawk Boulevard. Agenda2000/06.3/1sm 02 • SCM 11823 n, est Houston, Texas 77031 SHOPPING CENTER 281/879-8800 MANAGIyIENT F.-Ay 281/879-0820 MIKE E. LATIMER President V 6-16-00 cc: JRB, MLM 6 j,�11- MGH Date: TO: a"` C)K e . (9-/e-Oe FOR YOUR CONVENIENCE We are taking the liberty of forwarding the information you requested without a %/ cover letter in the belief that promptness `1 may be more important to you than formality. SHOPPING CENTER MANAGEMENT, INC. 11823 Wilcrest Houston, Texas 77031 (281) 879-8800 {-h./14 BY: Remarks: :70 c-c-r &tam— 40.4 W.) MUM 13:U,1 6/19/00 cc C for the meeting. P. 001 11823 Wilcrest S.( /'l.J� Houston,Texas ?70.31 ,`/,�„13' ` YYY 1 281/879-8800 J FAX 281/879-0820 F ' /(/n,,2000 r C City ��81rl� Q GER June 19, 2000 N�, • �� Mr. Ron Cox Via Fax(281)482-3722 City Manager City of Friendswood 910 South Friendswood Drive Friendswood, Texas 77546-4856 RE: .278 acres Blackhawk Blvd., Friendswood, Texas Dear Mr. Cox: Please find attached a revised Addendum reflecting the changes requested by Ms. Mickelson. Do not hesitate to call if you have any questions or comments. Sincerely, SHOPPING CENTER MANAGEMENT, INC., a Texas Corporation By: alv:kke' CZ, Mike E. Latimer President MEL/kbc Enclosure cc: Kimberley Mfickelson, Olson& Olson- Via Fax (713) 759-0342 f\datalpbhk\cox2.wpd JUN. -19' 00 (MO ) 15:04 P. 402 Addendum attached to and made a part of Unimproved Property Contract by and between Hale/Associates,Inc. and City of Friendswood 6(13) (3) (continued) Seller has heretofore caused to be prepared and delivered to Buyer a plat of survey of the Property, as described in Exhibit "A" attached hereto, dated Jannary 5, 2000 by R.W. Patrick & Associates, Inc. (the "Existing Survey"). Buyer, at its option and expense, may cause the Existing Survey to be updated and/or decertified by the surveyor within twenty (20) days after the Effective Date of this Contract. The Existing Survey as updated and / or recertified by surveyor within twenty (20) days after the Effective Date is hereinafter referred to as the"Survey". 6 (Continued) Buyer will have until twenty-five (25) days after the Effective Date to object in writing to matters disclosed in the Commitment, Existing Survey or Survey. Any title exceptions evidenced by the Commitment, Existing Survey or Survey to which Buyer does not object within the time periods provided above shall constitute title exceptions permitted by this Contract except as provided in the following sentence. Notwithstanding the foregoing sentence, all mortgages or deeds of trust placed on the Property or any portion thereof by Seller (the "mortgage liens") shall constitute unpermitted title exceptions and it shall not be necessary for Buyer to specify such mortgage liens in its objection notice. Seller shall be obligated to cause all such mortgage Iiens to be released and discharged of record not later than the Closing Date. If objections to title are made by Buyer within the time periods provided above, Seller shall have a period of five (5) days thereafter in which to remove or cure such objections (other than mortgage liens to be released and discharged on or before the Closing Date as above provided); provided, however, Seller shall not be obligated to expend any slums of money or institute any litigation in order to remove or cure such title objections. In the event Seller fails to remove or cure such title objections within such five (5) day period, Buyer shall have a period of five (5) days thereafter in which to either (i) accept such title objections not so removed or cured in which event such title objections shall become exceptions permitted by this Contract, or (ii) terminate this Agreement by giving Seller written notice thereof on.or before the expiration of such five (5) day period in which event the Earnest Money shall be refunded to Buyer less the sum of$100.00 to be retained by Seller as independent contract consideration. If Buyer does not terminate this Contract on or before the expiration of such five (5) days, then the objections to title by Seller shall be deemed waived (other than mortgage liens to be released and discharged on or before the closing date as above provided) and shall constitute exceptions permitted by this Contract. HOU.91986.2 P. 003 7 (continued) Prior to entering on the Property, Buyer's inspectors shall provide evidence of liability insurance coverage to Seller. Buyer shall indemnify, hold harmless and defend Seller, to the extent allowed by law, from any liability, loss, cause of action or claim against Seller arising out of or resulting from Buyer's actions under this Paragraph 7, including, without limitation, any claims for personal injury or death and any lien asserted against the Property arising as a result of any such inspections or test. 11 (&) WAIVER OF CONSUMER RIGHTS BUYER AGREES THAT IT IS WAIVING ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT, SECTION 17.41 ET SEQ, TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. THIS WAIVER IS MADE AFTER CONSULTATION WITH AN ATTORNEY OF BUYER'S OWN SELECTION, AND BUYER VOLUNTARILY CONSENTS TO THE WAIVER. BUYER FURTHER REPRESENTS AND WARRANTS TO SELLER THAT (I) BUYER IS NOT IN A SIGNIFICANTLY DESPERATE BARGAINING POSITION IN RELATION TO SELLER, (II) BUYER IS REPRESENTED BY LEGAL COUNSEL OF ITS OWN CHOICE AND DESIGNATION IN CON?ACTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, AND (III) BUYER IS PURCHASING THE PROPERTY FOR BUSINESS OR COMMERCIAL INVESTMENT OR OTHER SI_MiLAR PURPOSE, NOT FOR USE AS BUYER'S RESIDENCE. (b.) Buyer shall not have the right to assign this Contract or any' of its rights hereunder without the prior written consent of Seller. (c.) Execution of this Contract by Seller and submission to Buyer constitutes an offer (the "Offer") by Seller to sell the Property on the terms and conditions set forth in this Contract. Buyer shall have until 5;00pnm on June 23, 2000 to accept the Offer by (i) executing the Contract in the place indicated, and (ii) causing such Contract to be physically delivered to the offices of the Title Company along with the Earnest Money, If Buyer does not accept the Offer by the date and time and in the manner specified above, the Offer shall automatically be terminated and of no further force or effect. (d.) Notwithstanding the election made in Section 7.B., Buyer retains the right under Section 7.A. to have such inspections and studies made on the Property as Buyer deems necessary for its due diligence, all of which shall be at Buyer's expense, including but not limited to a Phase I Environmental Study. -�- HOU'919SE.2 'Pt) -:y UU ;MUi' ) 13:U3 7"" , P. 004 (e.) Buyer shall have the right to terminate the contract for any reason on or before July 23, 2000, unless the parties extend such deadline by agreement. 19 (Continued) EXCEPT AS EXPRESSLY SET FORTH HEREIN AND EXCEPT FOR THE WARRANTIES TO BE INCLUDED IN THE CLOSING DOCUMENTS, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND TO BUYER, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATIONS OR WARRANTIES (A) REGARDING THE PHYSICAL CONDITION OF THE PROPERTY OR ITS SUITABILITY FOR ANY PARTICULAR PURPOSE, (B) THE SOIL CONDITIONS EXISTING AT THE PROPERTY FOR ANY PARTICULAR PURPOSE OR DEVELOPMENT POTENTIAL, AND (C) THE PRESENCE OR ABSENCE OF ANY HAZARDOUS SUBSTANCES, MAI 1LR OR MATERIAL IN, ON OR UNDER THE PROPERTY. EXCEPT AS OTHERWISE PROVIDED HEREIN, BUYER AGREES THAT THE PROPERTY IS TO BE SOLD AND ACCEPTED BY BUYER AT THE CLOSING IN ITS PRESENT CONDITION, "AS IS, WITH ALL FAULTS, IF ANY, AND WITHOUT ANY WARRANTY WHATSOEVER EXPRESSED OR IMPLIED." r•:ZATA\pbhk2\city HOU':91966j P fil. -15' 00 (THG) 09:44 P. 411 Addendum attached to and made a part of (j Unimproved Property Contract by and between Hale/Associates,Inc. and City of Friendswood V `j` ;; J' 6(B)L31(continued) ��' i Seller has heretofore caused to be prepared a plat of survey of the Property dated January 5, 2000 by R.W. Patrick&Associates, Inc. (the"Existing Survey"). 'Buyer, at its option and expense, may cause the Existing Survey to be updated and/or recertified by the surveyor within twenty (20) days after the Effective Date of this Contract. The Existing Survey 'as updated and I or recertified by surveyor within twenty (20) days after the Effective Date is hereinafter referred to as the "Survey". 6 (Continued) Buyer will have until twenty-five (25) days after the Effective Date to object in writing to matters disclosed in the Commitment or Survey. Any title exceptions evidenced by the Commitment or Survey to which Buyer does not object within the time periods provided above shall constitute title exceptions permitted by this Contract except as provided in the following sentence. Notwithstanding the foregoing sentence, all mortgages or deeds of trust placed on the Property or any portion thereof by Seller (the "mortgage liens") shall constitute unpermitted title exceptions and it shall not be necessary for Buyer to specify such mortgage liens in its objection notice. Seller shall be obligated to cause all such mortgage liens to be released and discharged of record not later than the Closing Date. If objections to title are made by Buyer within the time periods provided above, Seller shall have a period of five (5) days thereafter in which to remove or cure such objections (other than mortgage liens to be released and discharged on or before the Closing,bate as above provided); provided, however, Seller shall not be obligated to expend any surtts of money or institute any Iitigation in order to remove or cure such title objections. In the event Seller fails to remove or cure such title objections within such five (5) day period, Buyer shall have a period of five (5) days thereafter in which to either(i) accept such title objections not so removed or cured in which event such title objections shall become exceptions permitted by this Contract, or (ii) terminate this Agreement by giving Seller written notice thereof on or before the expiration of such five (5) day period in which event the Earnest Money shall be refunded to Buyer less the sum of S100,00 to be retained by Seller as independent contract consideration. If Buyer does not terminate this Contract on or before the expiration of such five (5) days, then the objections to title by Seller shall be deemed waived (other than mortgage liens to be released and discharged on or before the closing date as above provided) and shill constitute exceptions permitted by this Contract. 7 (continued) P 'or to entering on the Property, Buyer's inspectors shall provide evidence of liability inst ce coverage to Seller. Buyer shall indemnify, hold harmless and defend Seller from any liability, loss, cause of action or claim against Seller arising out of or resulting from HOU919116.2 JUN. -15' 00 (THUI 09:45 P. 012 Buyer's actions under this Paragraph 7, including, without limitation, any claims for personal injury or death and any lien asserted against the Property arising as a result of any such inspections or test. 11 (a.) WAIVER OF CONSUMER RIGHTS. BUYER AGREES THAT IT IS WAIVING ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT, SECTION 17.41 ET SEQ, TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. THIS WAIVER IS MADE AFTER CONSULTATION WITH AN ATTORNEY OF BUYEI 'S OWN SELECTION, AND BUYER VOLUNTARILY CONSENTS TO THE WAIVER, BUYER FURTHER REPRESENTS AND WARRANTS TO SELLER THAT (I) BUYER IS NOT IN A SIGNIFICANTLY DESPERATE BARGAINING POSITION IN RELATION TO SELLER, (II) BUYER IS REPRESENTED BY LEGAL COUNSEL OF ITS OWN CHOICE AND DESIGNATION IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, AND (III) BUYER IS PURCHASING THE PROPERTY FOR BUSINESS OR COMMERCIAL INVESTMENT OR OTHER SIMILAR PURPOSE, NOT FOR USE AS BUYER'S RESIDENCE. (b.) Buyer shall not have the right to assign this Contract or any of its rights hereunder without the prior written consent of Seller. (c.) Execution of this Contract by Seller and submission to Buyer constitutes an offer (the "Offer") by Seller to sell the Property on the terms and conditions set forth in this Contract. Buyer shall have until 5:00pm on June 23, 2000 to accept the Offer by (i) executing the Contract in the place indicated, and (ii) causing such Contract to be physically delivered to the offices of the Title Company along with the Earnest Money. If Buyer does not accept the Offer by the date and time and in the manner specified above, the Offer shall automatically be terminated and of no further force or effect. (d.) If Buyer is not satisfied with the Phase I Environmental Study of the Property, which is to be performed at Buyers expense, Buyer shall have the right to terminate the contract on or before July 23, 2000. Otherwise, Buyer waives its right to terminate based upon the Phase I Environmental Study. 19 (Continued) EXCEPT AS EXPRESSLY SET FORTH HEREIN AND EXCEPT FOR THE WARRAN t DES TO BE INCLUDED IN THE CLOSING DOCUMENTS, SELLER MAKES -2- HOU:S1986 2 j e. -13 UUIIHL Uy:46 P. 013 NO REPRESENTATIONS OR WARRANTIES OF ANY KIND TO BUYER, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATIONS OR WARRANTIES (A) REGARDING THE PHYSICAL CONDITION OF THE PROPERTY OR ITS SUITABILITY FOR ANY PARTICULAR PURPOSE, (B) THE SOIL CONDITIONS EXISTING AT THE PROPERTY FOR ANY PARTICULAR PURPOSE OR DEVELOPMENT POTENTIAL, AND (C) THE PRESENCE OR ABSENCE OF ANY HAZARDOUS SUBSTANCES, MATTER OR MATERIAL IN, ON OR UNDER THE PROPERTY. EXCEPT AS OTHERWISE PROVIDED HEREIN, BUYER AGREES THAT THE PROPERTY IS TO BE SOLD AND ACCEPTED BY BUYER AT THE CLOSING IN ITS PRESENT CONDITION, "AS IS, WITH ALL FAULTS, IF ANY, AND WITHOUT ANY WARRANTY WHATSOEVER EXPRESSED OR IMPLIED." F:IDATA1pblik2\city 1 -3- r:OU:91986.2 AUTHORIZE PURCHASE OF PROPERTY ON BLACKHAWK BOULEVARD June 5, 2000 Following the Executive Session,this item has been placed on the agenda, if Council is prepared to take action. Recommendation. The staff recommends the Council authorize the staff to make an offer, the amount to be determined during the Executive Session, for the purchase of the property, .278 acres on Blackhawk Boulevard, adjacent to the Blackhawk Water Plant, and authorize the Mayor to sign the documents, should the offer be accepted. Agenda2000/06.1/tsm 02 TO: Ronald E. Cox City Manager 11919ZOcljc, FROM: Melvin L. Meinecke 114- oP n1 " o\)� Public Works Director MAY 2000 RECEIVED DATE: May 18, 2000 CM OF FRIENDSWOOD cia mANAGEQ SUBJ: .278 acres on Blackhawk Blvd. c9 Octi`o Stic2 ``� The city's surface water station is located on Blackhawk Blvd on .2447 acres, which presently has a 500,000-gallon ground storage tank. There is a .278 acre vacant piece of property adjacent to this site for sale. We have expressed an interest in buying this property and the owner is willing to sell it to us. This site would be quite an asset for the city for several reasons. An additional ground water storage tank could be erected in that location that would allow us to store more surface water. This would help us meet the 80% surface water mandate. It would also allow us to provide water services without interruption while the existing tank is out of service for repair and painting. Also, because the site is adjacent to the existing site, less piping would be required, creating a great savings to the city. Currently, access to the existing tank is through a small gate off of Blackhawk Boulevard. With the purchase of this property, we would gain road frontage thereby allowing us easier access. The area around the storage tank is quite small and will barely provide space for a much needed generator. When a generator is purchased, it would have to be erected behind the pump station and there is just not enough room. Purchasing the property would provide the room we need to adequately place the generator. When the seller was originally approached about selling the property, the sales price was quoted at $3 a square foot ($36,318). The property is now being offered to the city for $2.48 a square foot ($30,000). This seems to be a fair price when we consider the frontage that would be provided and comparing the prior purchase the city made when we obtained the present site (.2447 acres at $2.75 per square foot). It would be a very positive and proactive approach to purchase this property in an effort to provide better services to our citizens as well as meeting our future demands. Pictures of the site and correspondence with the management agent are attached. Should you have questions, please do not hesitate to contact me. MLM/mac Attachments N ' O O Ca- mrc110"Un-/ 1 1 I. / / 1 ' IwG!� r41MT eau /' / �I 1 p'13'r 1.►10.10' 1 Or -1 11..4111-X /1:1t ^f `�♦d �•.' �.° L♦� i SURYET oc 1 I ♦1 Ys• y� ° i 1,'+ +`P G.279 Aoree j �'.. .. ' N'° �f / % 12.1os Sq. Ft, 1 N 1 fl 77:5' 1••• I, \... -• • 1 i .ur..�...al •••-..,tom' \\\ /v/ ; .�` CITY 7RlE •• •N 77.24'�3)" E -'1Se.s1' ' 1 :�d'I��t r `\ �� - -t• g.c.ctf7_N°. l TMN7 't •�. . 1 vii...Q / .. \ I ten.Z.._� I , a ..s. R . IA 0 eo' %✓ - --'tnru{E7R: •\ • .A' ' II.O.c.i. 1.aN-r11141 - - 10. �1 Z. � ;�' Da WI. s-10-41 tre t 15r11'13'E //' / ., .� -.• - :1 _ • 1 .,1 �/LCII.m.►.4 Y.1-- t l mo' . nut( r J1. . /I n. — j\�\� � •S el•17'1.1'1 - it7.f0' - 1..°r _ t M.c.r-r. 1•12.1-10f1'1 _( C 1 ,1 .+. ' ` O I (11 1110 WN11111ar1 1it1101 1. a� 'll I p[i . In. Ile N . ►0. I1 - .a.N.R. 1 I 1 1 `I "(y I I F- T Z Z o • I . 1. Q 11823 Wilcrest sc 'i Houston, Texas 77031 SHOPPING CENTER 281/879-8800 IANAGENIENT FAX 281/879-0820 ,,ray 16, 2000 1$Ag2A272 te Mr. Melvin Meinecke ¢ ,A s cfP N93,C . od N Via Fax(281)482-1083 & Public Works Director ! `�\e�A1o�wS First Class Regular Mail City of Friendswood o G'�Qoe o, 1306 Deep Wood s8 Friendswood,Texas 77546 e 9g b CO' Re: .278 acres on Blackhawk Boulevard Dear Mr. Meinecke: As we recently discussed,the City of Friendswood purchased .2447 acres(10,659.13 square feet)from our client in 1988 for a Water Plant Site off Blackhawk Boulevard. The purchase price was $29,356.75 or $2.75 per square foot. For your convenience, a copy of the Seller's Statement from this closing is attached. It is now my understanding that the City of Friendswood would like to consider purchasing the.278 acres(12,106 square feet) immediately adjacent to your existing site for future expansion of the water plant facility. This .278 acres was previously retained by our client for use as overflow parking for the school operating in the adjacent '-ing center,however,since selling this shopping center in November 1999,our client has no further use for this property, fore has requested we market it for sale. Although we believe this tract is more valuable than the.2447 acres originally purchased by the City due to its configuration and street frontage(not to mention more favorable market conditions),our client has agreed to sale this tract to the City for $30,000.00 ($2.48 per square foot). This offer is contingent upon finalizing a mutually agreeable document formalizing our agreement and is subject to prior sale, lease or withdrawal without notice. Please do not hesitate to call if you have any questions or comments. Sincerely, SHOPPING CENTER MANAGEMENT, INC., A Texas Corporation BY: fht.1.4 Mike E. Latimer President "`rL:anh ...;losure f:\data\pbhk\city5 15.wpd bJ4 L 27 2000 11 .49AM N0. 0467 P, 3/b 00- 3 533-82-14l2 U540815 HOLD FOR LAWYERS TITLE COMPANY SPECIAL WARRANTY DEED THE STATE OF TEXAS ) '- J540895 #13. KNOW ALL MEN BY THESE PRESENTS : COUNTY OF HARRIS ) THAT HALE/ASSOCIATES, INC. , a Texas corporation, by and through its duly authorized Officers, herein referred to as Grantor, for and in consideration of the sum of TEN DOLLARS ( $10 . 00 ) and other valuable consideration to the undersigned paid by the Grantee herein named, has GRANTED, SOLD AND CONVEYED, and by these presents does GRANT, SELL AND CONVEY unto CITY OF FRIENDSWOOD, herein referred to as Grantee, all / of the following described real property located in Harris County, Texas , to-wit: \) 0 . 278 acre (or 12 , 106 square feet) of land out of an M � 0 . 5226 acre tract in Reserve "G" , Block 19 , Forest Bend Subdivision, Section 3 , in Harris County, Texas , according to the plat of said subdivision recorded in Volume 180 , Page 73 , Harris County Map Records , said tract being more particularly described by metes and bounds in Exhibit "A" attached hereto and made a part hereof for all purposes TO HAVE AND TO HOLD the above described property and premises , together with all and singular the rights and appurtenances thereto in anywise belonging, unto the said Grantee , and Grantee's successors and assigns forever, and Grantor does hereby bind Grantor and Grantor's successors and assigns to WARRANT AND FOREVER DEFEND all and singular the said premises unto the said Grantee, and Grantee's successors and assigns , against every person whomsoever lawfully claiming or to claim the same or any part thereof , by, through, or under Grantor, but not otherwise- This conveyance is made and accepted subject to all 1 J•. .J,lll, 27. 2000 11 : 50AM Nu. Fib/ h'. 4/• � 533-82-1473 restrictions , easements, rights of way, all oil , gas and other mineral reservations and royalty interests, and all oil , gas and other mineral leases , maintenance and assessment charges and any liens securing same , set back lines, zoning laws , ordinances of municipal and other governmental authorities, and all covenants and agreements , if any, relating to the hereinabove described property, but only to the extent the same are in force and effect and shown of record in the office of the County Clerk of Harris County, Texas . Ad valorem taxes for the year 2000 are prorated as of the date hereof, and taxes for the year 2000 and all subsequent years are assumed by Grantee herein. EXECUTED this 28 day of �w�-'� , 2000 . HALE/ASSOCI: S, IN . / 011 BY: 4,, 4:- Name pr nt-• /171.4. Title i.OgEW THE STATE OF TEXAS ) COUNTY OF HARRIS ) IIff- Thi instrument was acknowledge -before one on the day f , 2000, by B'II F t IV _ , the rresi of HALE/ASSOCIATES, INC. , a Texas corporation, for and on behalf of said corporation. (14 / C Notary Public State of Texas s(1,1f ,, o KEW?CHILDRESS =•t •= Notary Public State of Texas My Commission expires 06-13-02 Address G ntee: '621 Prepared in the Law Office of: WARREN C. BROWN, ATTORNEY AFTER RECORDING RETURN TO: 617 Caroline, 3rd Floor Houston, Texas 77002 Phone: 713/228 8989 2 533-82-I 4/4 • - Exhibit A LEGAL DESCRIPTION 0.278 Acre (or 12.106 square feet) of land out of a 0.5226 acre tract in Reserve 'G". Block 19. Forest Bend Subdivision. Section 3, in Harris County. Texas. according to the plat of said subdivision recorded in Volume 180. pope 73. Harris County Map Records. said 0.278 acre of land being more particularly described as follows: COMMENCING FOR REFERENCE at the northeast corner of Reserve "G' and the northeast corner of a 0.7471 acre tract. on the curved west right-of-way line of Blackhawk Blvd. . 100 feet wide; THENCE in a southerly direction with the East line of Reserve "G" and said west right-of-way line with a curve to the right having a radius of 1950.00 feet, a central angle of 06 degrees 45 minutes 34 seconds and an arc length of 230.05 feet. (the chord of said arc bears South 19 degrees 48 minutes 23 second East, 229.92 feet). for the PLACE OF BEGINNING of the 0.278 acre tract herein described: THENCE continuing in a southerly direction with said line and said curve to the right having a radius of 1950.00 feet. a central angle of 02 degrees 22 minutes 23 seconds and an arc length of 80.76 feet. (the chord of said arc bears South 15 degrees 14 minutes 13 seconds East. 80.76 feet). to a point for corner: THENCE in westerly direction along the south line of the herein described tract cnd also the north line of deed recorded under Harris County Clerk's File No. F-209079 a Dearing of South 81 degrees 12 minutes 44 seconds West for a distance of 162.90 feet to a point for corner: THENCE in northerly cnd easterly directions within sold 0.5226 acre tract withthe following two (2) courses and distances: 1 . North 12 degrees 35 minutes 27 seconds West. 69.87 feet to a point for corner; 2. North 77 degrees 24 minutes 33 seconds East along a line parallel with and located 20.00 feet southerly from the northerly line of said 0.5226 acre tract 158.81 feet to the PLACE OF BEGINNING. ANY PROVO*IEROI MICN RES ICES ME S*LE,R81P4 OR USE OF DE DESCRIED REAL PROP9t1YIIECAUSE Cf COLOR OR RACE 6 WALD OM UefORCEp&E UOER FEDERAL LAW THE STATE OF TEXAS COUNTY OF HARRIS f I MuAycattity that tMr iulrameat not FILED I. Ells Number N Sepeoeo ea to tole sad if Is that stomped hereon by ma; ad ores duly RECORDED, In the Official Public Records of Real Property of ->•+ Nark Corny,Txas.a AUG 2 2000 "w G13 dF r i i, COUNTY CLERK alb * HARRIS COUNTY TEXAS "'`ice JIa C!b W +itCORUERS MEMORANDUM Al THE TIME OF RECORDATION.THIS INSTRUMENT WAS FOUND TO BE INADEQUATE FOR THE BEST PHOTOGRAPHIC REPRODUCT TE BECAUSE OF ILLEGIBILITY,CANNON OR PHOTO COPY,DISCOLORED PAPER,EiC. awyers itle ompany CC : Melvin Meinecke ✓ 617 CAROLINE HOUSTON,TEXAS 77002 (713)226-0801 Becky Carbone VIA REGULAR MAIL August 25, 2000 �,L2-132.4 2S 1611�g� Ms. Deloris McKenzie _ 0>y�' `A�c City of Friendswood =.'- �2 '�s�O c 910 S. Friendswood Drive 't'9Y ;. Friendswood, Texas 77546-4856 ��!! 01_6 ‘'� Re: GF No. 006386BB Dear Ms. McKenzie: With regard to the above captioned file,please find enclosed the following items: 1. Owner Policy of Title Insurance 2. Original recorded Special Warranty Deed It was a pleasure to be of service to you. If you wish to sell or mortgage this property in the future, Lawyers Title Company maintains complete records of your transaction and will furnish you with prompt and efficient service. Very truly yours, Waltee.T -1 cccA JoKaren M. Broach Assistant to R. L. Buckalew, Chairman /jmb Enclosures NOTE: Please make sure that you contact the appraisal district in the county where the property lies in order that they may transfer the real property taxes into your name. l • Exhibit A LEGAL DESCRIPTION • C.278 Acre (or 12.106 scucre feet) of lard cut of a 0.5225 acre treat in Reserve "G'. Block 19. zest Bard Subdivision. Seeder 3. in Harris County. Texas. ccacrdinc to the Plat of said suodivisicn recorded in Volume 180. Dace 73. Harris County A4ap Records. scid 0.278 acre of land beinc more particularly cescribed as follows: COMMENCING FOR REFERENCE at the northeast corner of Reserve "G' and the ncrthecst corner of a 0.7471 acre tract. on the curved west r i aht-cf-wcy line of SlcckIncwk B I vd. . 1 CC feet wide; THENCE in a southerly direction with the Ecst line of Reserve "G" cna sold wear riot-cf-wcy with a curve to the riche having c rcdtus of 1950.00 feet. a central arcle of C6 decrees 45 .iiIrutes :4 seconds and cn arc lenctn of 230.05 feet. (the cncrd of said cra becrs South 19 decrees 48 minutes 23 second East. 229.92 feet) . for the PLACE CF BEGINNING of the 0.278 acre tract herein described. THENCE cortiruinc in a southerly direction with scid line cnd scid curve to the right having ;, rccius of 1950.00 feet. a central angle of 02 decrees 22 minutes 23 seconds ant cn arc length of 80.76 feet. (the ahcrd of acid crc becrs South 15 decrees 14 minutes 13 seconds East. 8C.76 feet;. to a point =cr carrier; • THENCE in weeteriy direction alorc the south line of the herein described tract Crd also The na'-h lire of deed recorded under Harris County Clerk's File No. F-2C°079 a bearing of Scutt, 81 decrees- 12 minutes 44 seconds West for a distance of 162.90 feet ro a 2cirt far corner: THENCE in northerly and easterly directicrs vithin acid 0.5226 acre tract withthe fcllawinc two (2) courses and d i stcrcee: 1 . North 12 decrees 35 minutes 27 seconds 'Nest. 69.87 feet to a pcint for corner; 2. North 77 decrees 24 minutes 33 seconds Ecst cicnc a line parallel with and located 20.00 feet southerly fran the northerly lire of said 0.5226 acre tract 158.91 Ilse- to the PLACE OF BEGINNING. NOTE: The Company does not iepiesent • that the above acreage or square footage calculations are correct. • CONDITIONS AND STIPULATIONS—CONTINUED 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. agreed to by both the Company and the Insured. Arbitration pursuant to (a) The Company's Right of Subrogation. this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Whenever the Company shall have settled and paid a claim under Date of Policy shall be binding upon the parties. The award may include this policy, all right of subrogation shall vest in the Company unaffected attorneys' fees only if the laws of the state in which the land is located by any act of the insured claimant. permit a court to award attorney's fees to a prevailing party. Judgment The Company shall be subrogated to and be entitled to all rights and upon the award rendered by the Arbitrator(s)may be entered in any court remedies that the insured claimant would have had against any person having jurisdiction thereof. or property in respect to the claim had this policy not been issued. If The law of the situs of the land shall apply to an arbitration under the requested by the Company, the insured claimant shall transfer to the Title Insurance Arbitration Rules. Company all rights and remedies against any person or property neces- A copy of the Rules may be obtained from the Company upon request. sary in order to perfect this right of subrogation. The insured claimant 15. LIABILITY LIMITED TO THIS POLICY: POLICY ENTIRE CONTRACT. shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any (a) This policy together with all endorsements,if any,attached hereto transaction or litigation involving these rights or remedies. by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this If a payment on account of a claim does not fully cover the loss of policy, this policy shall be construed as a whole. the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion that the Company's payment bears to the (b) Any claim of loss or damage,whether or not based on negligence, whole amount of the loss. and which arises out of the status of the title to the estate or If loss should result from anyact of the insured claimant, as stated interest covered hereby or by any action asserting such claim, shall be restricted to this policy. above,that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by (c) No amendment of or endorsement to this policy can be made this policy that shall exceed the amount, if any, lost to the Company by except by a writing endorsed hereon or attached hereto signed reason of the impairment by the insured claimant of the Company's right by either the President, a Vice President, the Secretary, an of subrogation. Assistant Secretary, or validating officer or authorized signatory of the Company. (b) The Company's Rights Against Non-Insured Obligors. The Company's right of subrogation against non-insured obligors shall 16. SEVERABILITY. exist and shall include, without limitation, the rights of the insured to In the event any provision of the policy is held invalid or unenforceable indemnities, guaranties, other policies of insurance or bonds, notwith- under applicable law, the policy shall be deemed not to include that standing any terms or conditions contained in those instruments that provision, and all other provisions shall remain in full force and effect. provide for subrogation rights by reason of this policy. 17. NOTICES,WHERE SENT. 14. ARBITRATION. All notices required to be given the Company and any statement in Unless prohibited by applicable law or unless this arbitration section writing required to be furnished the Company shall include the number of tis deleted by specific provision in Schedule B of this policy, either the heasdquarters, policy and 6630shall be Broadoa Street, the Companyi at its corporate.Mailing company or the insured may demand arbitration pursuant to the Title ress: fi eW Boxt Richmond,d Virginia 23261. Pla Arbitration Rules or the American Arbitration Association. Arbitrable mat- address: Post Office 27567, Virginia Please ters may include,but are not limited to,any controversy or claim between include the number of this policy. the Company and the Insured arising out of or relating to this policy, any COMPLAINT NOTICE. service of the Company in connection with its issuance or the breach of Should any dispute arise about your premium or about a claim that a policy provision or other obligation. All arbitrable matters when the you have filed,contact the agent or write to the Company that issued the Amount of Insurance is $1,000,000 or less SHALL BE arbitrated at the policy. If the problem is not resolved, you also may write the Texas request of either the Company or the Insured, unless the insured is an Department of Insurance, P.O. Box 149091,Austin,TX 78714-9091, Fax individual person (as distinguished from a corporation, trust, partnership, No. (512)475-1771.This notice of complaint procedure is for information association or other legal entity). All arbitrable matters when the Amount only and does not become a part or condition of this policy. of Insurance is in excess of the$1,000,000 shall be arbitrated only when IN WITNESS WHEREOF the Company has caused this policy to be signed and sealed, to be valid when Schedule A is countersigned by an authorized officer or agent of the Company, all in accordance with its By-Laws. Lawyers'I tlejnsurance Crporation Attest: By: ?A._0--- a. a.,,2,2,i.,-- Secretary President n -i 0 Sv � 2 << O 0 O 1n cD c2D 0• 00 * 15 n w sv ° ° °( O . n < a O O y O a >•< a � ca oa- 3 r n D 1? ° A) cD fD n' -, a) 0 0 7J (D I) v°iF'. C ,� m a `< o ocicDm O n -ri • Chi /\ cn (r) -p DO `. `G Sv n (D O ). 7 n CO Cl) w o o � `n O �J Cr 3 c� cn 6 6 cD • ?� < O p v cD cD O < p' cD Su. C� -� r c>am. r lv J 1""1 O O p A� O ' 0 p) r n SI) ZJ w O o C N CD O m c* ° rW re) JN pp (n n1O rn O• vZZ �7 a ° Do ° C�a, � r D -CD O 3 O ° -° , ND HCD0 Xl D ►.. O -, CD C)+ .-' 0 CD -r_-1 O n �7 7 a) C) 0 n * p CD 3 Z Fi p D Q O O (D CDD 7 3' A) C) r 00r < 03- ci, °i ° C 'Ti n r a o r -1 ��L`Np► � Mayor ,f5' . �;i ���►,. HAROLD L.WHITAKER .Fey I �':r�.. qq�r"; `°` ► City of Friendswood .''4�° 'a RF*j�'`•3J��• � Councilmembcrs bf �L 11.%4 j41 k\SiV14 1.1; KITTEN BRIZENDINE a•" y 910 South Friendswood Drive TERRY ERICSSON •�� ' 'd TOM MAN[SON Friendswood, Texas 77546-4856 KIM BRIZENDINE' LARRY TAYLOR "ita� (281) 996 3270 MEL MEASELES u�' '. TEXA Fax (281) 482-1634 � ;_; City Manager RONALD E.COX City Secretary DELORIS McKENZIE,T.R.M.C. • FAX TRANSMITTAL DATE: $- o 0 FROM THE DESK OF: Deloris McKenzie, TRMC City Secretary NO. OF PAGES FAXED INCLUDING COVER SHEET: 13 IF YOU DO NOT RECEIVE ALL OF THE PAGES, PLEASE CALL: (281) 996-3270 FAX #: (281 ) 996-2576 TO: Becky Carbone S3 f. fririt'es SUBJECT: D / ee f MESSAGE: x1-- V3 / MESSAGE CONFIRMATION 08/31/00 09:31 ID=TCI NO. MODE IBOX GROUP 178 TX 08i31DATE/TI09:25ME IT05E49"I482DISTA1198STATION ID PAGS 007E007IOKRESULT IERROR PAGES S.000E 10000 AUG 1. 2000 1 :22PMflew% NO. 0573 P. 2 PURCHASER'S STATEMENT A Date:August 1,2000 G)♦No.:006386BB Sale From: Hale/Associates,Inc.,a Texas corporation To: City of Friendswood Property: 0.278 acres in Forest Bend Purchase Price S30,000.00 Plus:Charges Fees to Lawyers Title Company $430.00 Owner Policy ..$430.00 Recording Fee to Lawyers Title Company $20.00 Total Charges 5450.00 Gross Amount Due By Purchaser $30,450,00 Less: Credits Other taxes From 1/1/2000 thru 7/31/2000 S232.37 Earnest Money $3,000.00 Total Credits , $3,232.37 Balance Due By Purchaser 2�17.63 Purchaser Understands the Closing or Escrow Agent has assembled this information representing the transaction from the best information available from other sources and cannot guarantee the accuracy thereof. Any real estate agent or lender involved may be furnished a copy of this statement. Purchaser understands that tax and insurance proration and reserves were based on figures for the preceding year or supplied by others or estimates for current year,and in the event of any change for current year,all necessary adjustments must be made between Purchaser and Seller direct. The undersigned hereby authorizes Lawyers Title Company 0/Houston to make expenditure and disbursements as shown above and approves same for payment. The undersigned also acknowledges receipt of Loan Funds,if applicable,in the amount shown above and a receipt of a copy of this Statement. Lawyers Title Company of Houston City of Friends ood By Burr Buckalew Harold L . Whitaker Mayor 07/26/0(11:25 AM) Compliments of Lawyers Title Company of Houston t • �� �� 11823 Wilcrest SG\'1 Houston, Texas 77031 SHOPPING CENTER 281/879-8800 MANAGEMENT FAX 281/879-0820 July 26, 2000 2000 rn city Iswpoo Mr. Harold L. Whitaker 00 8� � p Via Fax: 281/482-1634 Mayor & First Class Regular Mail City of Friendswood CC' At.. 910 South Friendswood Drive Friendswood, Texas 77546-4856 RE: Unimproved Property Contract by and between Hale/Associates,Inc.,a Texas Corporation("Seller")and City of Friendswood("Buyer"). Dear Mr. Mayor: While reviewing the proposed closing documents today,we found a few errors in the metes and bounds description that was attached to the referenced contract and shown on the January 5, 2000 Survey, which we previously provided to Mr. Ron Cox. The revised metes and bounds description, which will be attached to the Special Warranty Deed at closing, is attached for your review with the changes identified. Please call me if you have any questions. Sincerely, 01. F' �o SHOPPING CENTER MANAGEMENT,INC., - \b- �1 a Texas Corporation 1 I By: ! h ? Mike E. Latimer President MEL:ckp f:\data\pbhk\city.wpd cc: Ms. Delores McKenzie, City of Friendswood-Via Fax(281)482-1634 cc: Ms. Kimberley Mickelson, Olson& Olson-Via Fax(713) 759-0342 cc: Mr. Mark Hodges, Andrews&Kurth, LLP -Via Fax(713)220-4285 cc: Mr. Burr Buckalew, Lawyers Title Company - Via Fax (713)228-2522 Exhibit A LEGAL DESCRIPTION 0.278 Acre (or 12.106 square feet) of land out of a 0.5226 acre tract in Reserve "G'. block 19. Forest Bend Subdivision. Section 3, in Harris County. Texas. according to the plat of said subdivision recorded in Volume 180. page 73. Harris County map Records. said 0.278 acre of land being more particularly described as follows: COMMENCING FOR REFERENCE at the northeast corner of Reserve "G' and the northeast corner of a 0.7471 acre tract. on the curved west right-of-way line of 81ackhawk Blvd. . 100 feet wide; THENCE in a southerly direction with the East line of Reserve "G" and said west right-af-way line with a curve to the right having a radius of 1950.00 feet. a central angle of 06 degrees 45 minutes 34 seconds and an arc length of 230.05 feet. (the chord of said arc beers South 19 degrees 48 minutes 23 second East, 229.92 feet), for the PLACE OF BEGINNING of the 0.278 acre tract herein described; THENCE continuing in a southerly direction with said line arid said curve to the right having a radius of 1850.00 feet. a central angle of 02 degrees 22 minutes 23 seconds and an arc length of 80.76 feet. (the chord of said arc bears South 15 degrees 14 minutes 13 seconds East. 80.76 feet). to a point for corner; THENCE in westerly direction along the south line of the herein described tract and also the north line of deed recorded under Harris County Clerk's File NO. F-209079 a Dearing of South 81 degrees 12 minutes 44 seconds West for a distance of 162.90 feet to a point for corner: THENCE In northerly and easterly directions within sold 0.5226 acre tract withthe following two (2) courses and distonces: 1 . North 12 degrees 35 minutes 27 seconds West. 69.87 feet to a point for corner; 2. North 77 degrees 24 minutes 33 seconds East along a line parallel with and located 20.00 feet southerly from the northerly line of said 0.5226 acre tract 158.81 feet to the PLACE OF BEGINNING. AUG. 1. 2000 1 : 22PM NO. 0573 P. 2 PURCHASER'S STATEMENT Date:August 1,2000 GF No.:006386BB Sale From: Hale/Associates,Inc.,a Texas corporation To: City of Friendswood Property: 0.278 acres in Forest Bend Purchase Price $30,000.00 Plus:Charges Fees to Lawyers Title Company ..$430.00 Owner Policy ..$430.00 Recording Pee to Lawyers Title Company $20.00 Total Charges $450.00 Gross Amount Due By Purchaser $30,450,00 Less:Credits Other taxes From 1/1/2000 thru 7/31/2000 .. $232.37 Earnest Money . 53,000.00 Total Credits $3,232.37 Balance Due By Purchaser $27 2) 7,63 Purchaser Understands the Closing or Escrow Agent has assembled this information representing the transaction from the best information available from other sources and cannot guarantee the accuracy thereof. Any real estate agent or lender involved may be furnished a copy of this statement. Purchaser understands that tax and insurance proration and reserves were based on figures for the preceding year or supplied by others or estimates for current year,and in the event of any change for current year,all necessary adjustments must be made between Purchaser and Seller direct. The undersigned hereby authorizes Lawyers Title Company of Houston to make expenditure and disbursements as shown above and approves same for payment The undersigned also acknowledges receipt of Loan Funds,if applicable,in the amount shown above and a receipt of a copy of this Statement. Lawyers Title Company of Houston City of Friendswood By_ By Burr Buckalew 07/26/0(11:25 AM) Compliments of Lawyers Title Company of Houston AUG. 1. 2000 1 : 22PM NO. 0573 P. 3 - RIN IN TR cTl NS FOR LAWYERS TITLE COMPANY SOUTHWEST BANK OF TEXAS ABA # 113011258 Lawyers Title Company of Houston Escrow Account #22551 For further credit to GF # 5 0 - 76 )g Notify Charlotte Sanders or Rick Heil (713) 228-0801 AUU. 1. 2000 1 : 21 PM NO. 0573 P. 1 817 Caroline Houston,Texas 77002 (713)228-0801 Lawyers Title (713)228-2522 Fax Company of Houston Fax ,,,::,..,. _ s , .„ ti To: s ZIT./ L'/`� From; � Burr Buckalew Fax: I. g 4- c-a C -/ 3 Pages: Phone: Date: Re: CC; ❑ Urgent ❑ For Review 0 Please Comment O Please Reply 0 Please Recycle • Comments: 1 MAILED 7/5/- Ixyers Title x ompany 617 CAROLINE HOUSTON,TEXAS 77002 (713)228-0801 R. L. BUCKALEW CHAIRMAN June 22, 2000 Mr. Harold L. Whitaker City of Friendswood 910 South Friendswood Drive Friendswood, TX 77546-4856 Re: GF #00-6386BB/Sale from Hale/Associates, Inc., a Texas corporation to City of Friendswood,regarding 0.278 acre of land out of a 0.5226 acre tract in Reserve "G",Block 19, Forest Bend Subdivision, Section 3, Harris County, Texas Dear Mr. Whitaker: In reference to the above transaction, enclosed you will find the receipted earnest money contract. Also enclosed is an Interest Bearing Account Form. If you would like for us to invest the earnest money, please complete the necessary information. You may fax the completed form to (713) 228-2522, but the original must be returned to our office as soon as possible. If you should have any questions or comments, please feel free to contact my office. Sincerely, 4), biekci--QQAk) R. L. Buckalew Chairman RLB:svm Enclosures cc: Mr. Billy E. Hale tia����,�12���� Hale/Associates, Inc. 11823 Wilcrest • 0 /: - Houston, TX 77031 ^, QQ (contract only) ti �0 , " ` Mr. Mike E. Latimer . `3;tr SCM , . 11823 Wilcrest :' I ' Houston, TX 77031 (contract only) 7/5/00 PLEASE o,:L THE ATTACHED. THANK YOU. awyers I itle rompany { 617 CAROLINE HOUSTON,TEXAS 77002 (713) 228-0801 R. L. BUCKALEW CHAIRMAN June 22, 2000 Mr. Harold L. Whitaker City of Friendswood 910 South Friendswood Drive Friendswood, TX 77546-4856 Re: GF #00-6386BB/Sale from Hale/Associates, Inc., a Texas corporation to City of Friendswood, regarding 0.278 acre of land out of a 0.5226 acre tract in Reserve "G", Block 19, Forest Bend Subdivision, Section 3, Harris County, Texas Dear Mr. Whitaker: In reference to the above transaction, enclosed you will find the receipted earnest money contract. Also enclosed is an Interest Bearing Account Form. If you would like for us to invest the earnest money, please complete the necessary information. You may fax the completed form to (713) 228-2522, but the original must be returned to our office as soon as possible. If you should have any questions or comments, please feel free to contact my office. Sincerely, fm R. L. Buckalew Chairman RLB:svm Enclosures cc: Mr. Billy E. Hale Hale/Associates, Inc. cji.12823i0I/ 11823 Wilcrest 1, Houston, TX 77031 fe0 (contract only) 100 ' Mr. Mike E. Latimer �- ! 5E SCM ' 11823 Wilcrest Houston, TX 77031 (contract only) INTEREST BEARING ACCOUNT FORM ' Date: June 22, 2000 GF No: 006386BB To: LAWYERS TITLE COMPANY OF HOUSTON Re: Interest Bearing Account held by Lawyers Title Company of Houston, Escrow Agent FOR: Name: City of Friendswood Address: 910 South Friendswood Drive City, St. Zip: Friendswood, TX 77546-4856 Tax ID No.: 741 49 3202 I, the undersigned, do hereby authorize Lawyers Title Company of Houston to invest$3,000.00 in an interest bearing account with any financial institution which is insured by FDIC. I am aware that the FDIC coverage apples only to a maximum amount of$100,000.00 for each depositor. Further, I understand that Lawyers Title Company of Houston assumes no responsibility for, nor will I hold Lawyers Title Company of Houston liable for any loss occurring from this investment. Signature of Depositor NO INTEREST BEARING ACCOUNT WILL BE OPENED BY LAWYERS TITLE COMPANY OF HOUSTON UNTIL THIS FORM IS COMPLETED AND RETURNED. (Fax copy is acceptable until original is received. You may fax to 713-228-2522.) GF No. 006386BB EARNEST MONEY RECEIPT The undersigned, LAWYERS TITLE COMPANY OF HOUSTON, acknowledges receipt of the earnest money mentioned in the foregoing contract, in the amount of$3,000.00, in the form of a check, tendered by City of Friendswood. In the event said sum is represented by check or checks, the undersigned does not assume any liability for the disbursement of said sum until all said checks have been paid by the bank or other institution upon which they are drawn. The undersigned reserves the right to pay any portion of said sum to any person,firm or corporation unless written authority is given to the undersigned by all parties whose signatures appear on the foregoing contract. No other conditions,stipulations or obligations which may be set out in the foregoing contract shall be binding on the undersigned if such be in conflict with the provisions of this endorsement. Date: June 22, 2000 LAWYERS TITLE COMPANY OF HOUSTON By: , '\ S. McNamara JLN -15' 00 09:39 ( � o : . 00,7 11-8-69 PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION(TREC) II1T11.4;♦ UNIMPROVED PROPERTY CONTRACT L NOTICE Not For Use For Condominium Transactions - 1. PARTiES:4 C- 2 (Seller) agrees to sell and convey to (' FYi S (Buyer) and Buyer agrees to buy from Se^er th property described below. See Fxhib f !4n �i6che • 2. PROPERTY: L e , lZlcdc M _--� n , exas, known as (Address/Zip Code), the Property). The Property ❑ is 01 is not subject to mandatory membership in an owners' association. The'TREC Addendum For Property Subject To Mandatory Membership In An Owners'Association CIis l is not attached. NOTICE TO BUYER: tf the Property is subject to mandatory membership in an owners'association, Seller notifies Buyer under §5.012, Texas Property Code, that, as a purchaser of property in the residential community in which the Property is located, you are obligated to be a member of an owners' association. Restrictive covenants governing the use and occupancy of the Property and a dedicatory instrument governing the establishment, maintenance, and operation of this residential community have been or will be recorded in the Real Property Records of the county in which the Property is located. Copies of the restrictive covenants and dedicatory instrument may be obtained from the county Berk_ You are obligated to pay assessments to the owners'association.The amount of the assessments is subject to change. Your failure to pay the assessments could result in a lien on and the foreclosure of the Property. 3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing $ 30i 000 B. Sum of all financing described below $ C. Sales Price (Sum of A and B) $ 34 CQ _ financing or noteholder's approval of any assumption and make every reasonable effort to obtain finan • or assumption approval. Financing or assumption approval will be deemed to have been obtained w - the lender determines that Buyer has satisfied all of lender's financial requirements (those items ating to Buyer's net worth, income and creditworthiness). If financing or assumption approval is not ••r ined within days after the effective date hereof, this contract will terminate and the earn=- money will be refunded to Buyer. Each note to be executed hereunder must be secured by vendor's - •• deed of trust liens. The portion of Sales Price not payable in cash will be paid as follows: (Check sp• ble boxes below) ❑ A. THIRD PARTY FINANCING: 0 (1) This contract is subject to approval for Buyer of a third •- loan in an amount not to exceed % of the Sales Price, evidenced by a • : party first lien promissory note of not less than $ , due in full in year(s), with interest not to exceed per annum for the first year(s) •' ' e loan. (2) This contract is subject to approval for : yer of a third party loan in an amount not to exceed % of the Sales Price, evi•- ced by a third party second lien promissory note of not less than $ - , • - - in full in year(s), with interest not to exceed % per annum for the first year(s) of the loan. O B. SELLER FINANCING: A promissory • n from Buyer to Seller of $ , bearing % interest per annum, secured by v; tlor's and deed of trust liens, in accordance with the terms and conditions set forth in the a ed TREC Seller Financing Addendum. If an owner policy of title insurance is furnished, Bu - shall furnish Seller with a mortgagee policy of title insurance. • C. ASSUMPTION: ❑ (1) Buyer shal assume the unpaid principal balance of a first lien promissory note payable to which unpaid balance at cl•- rig will be $ . The total current monthly payment including principal, i► -rest and any reserve deposits is S _ , Buyer's initial payment will be the Initialed for identification by Buyer % and Seller 01 A TREC NO. 9-4 JLN -15' OO (THL) 09:4 _ (�Jt ��t��y . P. 006 P 01- A �cr ✓A.k v k Q{r�• v1L� F�-+ri Jae'X Pape Four 11-8-99 Unimproved Property Contract Conceminp- � al'I � (Address of Property) (5) if the Property is located outside the limits of a municipality. Seller notifies Buyer under§5.011, Texas Property Code, that the Property may now or later be induded in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality. Each municipality . maintains a map that depicts tts boundaries and extraterritorial jurisdiction. To determine if the Property is located within a municipality's extraterritorial jurisdiction or is likely to be located within a municipality's extraterritorial jurisdiction, contact all municipalities located in the general proximity of the Property for further information. (6) Unless expressly prohibited in writing by the parties, Seiler may continue to show the Property for sale and to receive, negotiate and accept back-up offers 7. PROPERTY CONDITION: A INSPECTIONS. ACCESS AND UTILITIES: Buyer may have the Property inspected by an inspector selected by Buyer,licensed by TREC or otherwise permitted by law to make such inspections. Seller shall permit access to the Property at reasonable times for inspection, repairs and treatment and for reinspection after repairs and treatment have been completed. See Adde beyi a}b.4)ec1 he B. ACCEPTANCE OF PROPERTY CONDITION:NOTICE: Buyer should determine the availability of utilities to the Property suitable to satisfy Buyer's needs. (check one box only): ❑ (1) In addition to any earnest money deposited with escrow agent, Buyer has paid Seiler (the"Option Fee') for the unrestricted right to terminate this contract by giving notice of termination to Seller within days after the effective date of this contract. If Buyer gives notice of termination within the time specified, the Option Fee oval not be refunded, however, any earnest money will be refunded to Buyer. if Buyer does not give notice of termination within the time specified, Buyer will be deemed to have accepted the Property in its current condition and tee Option Fee D will IJ will not be credited to the Sales Price at closing. d(2) Buyer accepts the Property in its present condition. 8. BROKERS' FEES: All obligations cf the parties for payment of brokers' fees are contained in separate written agreements_ 9. CLOSING: The dosing of the sale will be on or before �11 3 1 ,1 • (the Closing Date -r ceepareaats.If either party fails to dose this sale by the Closing Date,the non-defaulting party will be entitled to exercise the remedies contained in Paragraph 15. At dosing Seller shall furnish tax statements or certificates showing no delinquent taxes and a glen,c warranty deed conveying good and indefeasible title showing ne additional exceptions to those permitted\n PParagreph 6. jpel 10. POSSESSION: Seller shalt deliver possession of the eroopperrty to Buyer at dosing and funding. 11. SPECIAL PROVISIONS:(insert only factual statements and business details applicable to this sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use.) A c/Me l/1cl e ck ed trrek, Initialed for identification by Buyer and Seller 01 A TREC NO. JLN - 15' GO iTHL; 09:42 ?. 007 ... � Bl, k � Unimproved Property Contract Concerning . Q dCYeS C i a �w Blti�d. , vied TX` Page Frye 11-8 99 (Address of Property) 11. SETTLEMENT AND OTHER EXPENSES: A The following expenses must be paid at or prior to dosing: (1) Appraisal fees will be paid by 5uyrzr (2) The total of loa_n discount fees may riot exceed % of the loan of which Seller shall pay and Buyer shall pay the remainder. The total of any buydown fees may not exceed which will be paid by (3) Seller's Expenses: Releases of existing liens, including prepayment penalties and recording fees; • release of Seller's loan liability; tax statements et certificates; preparation of deed; one-half of escrow fee; and other expenses stipulatea to be paid by Seller under other provisions of this contract. (4) Buyers Expenses: Loan application, origination and commitment fees; loan assumption costs; preparation and recording of deed of trust to secure assumption; lender required expenses incident to new loans, including preparation of loan documents, recording fees, tax service and research fees,warehouse or underwriting fees,copies of restrictions and easements, amortization schedule, premiums for mortgagee title policies and endorsements required by lender, credit reports, photos;required premiums for flood and hazard insurance; required reserve deposit for insurance premiums and ad valorem taxes; interest on ail monthly installment notes from date of disbursements to one month prior to dates of first monthly payments; one-half of escrow fee; and other expenses stipulated to be paid by Buyer under other provisions of this contract B. If any expense exceeds an amount expressly stated in this contract for such expense to be paid by a party, that party may terminate this contract unless the other party agrees to pay such excess. in no event will Buyer pay charges and fees expressly prohibited by governmental loan program regulations. 13. PRORATIONS AND ROLLBACK TAXES: A PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at dosing, the parties shall adjust the prorations when tax statements for the current year are available. If a loan is assumed and the lender maintains an escrow account,the escrow account must be transferred to Buyer without any deficiency. Buyer snail reimburse Seller forthe amount in the transferred account Buyer shall pay the premium fora new insurance policy. If taxes are not paid at or prior to dosing, Buyer will be obligated to pay taxes for the current year. B. ROLLBACK TAXES: if this sale or Buyer's use of the Property after closing results in the assessment of additional taxes, penalties or interest(Assessments)for periods prior to dosing, the Assessments will be the obligation of Buyer. If Seller's change in use of the Property prior to dosing or denial of a special use valuation on the Property claimed by Seller results in Assessments for periods prior to closing, the Assessments will be the obligation of Seller. Obligations imposed by this paragraph will survive dosing. 14. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss after the effective date of the contract, Seller shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to do so due to factors beyond Seller's control, Buyer may either (a) terminate this contract and the earnest money will be refunded to Buyer (b) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (c) accept the Property in its damaged condition and accept an assignment of insurance proceeds. Seller's obligations under this paragraph are independent of any obligations of Seller under Paragraph 7. )aS , Sae r nit y 15. DEFAULT:If Buyer fails to comply with this contract, Buyer will be in default, and SelleA may oithec-(a} terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract, if, due to factors beyond Seller's control, Seller fails within the time allowed to make any non-casualty repairs ordeliverthe Commitment, Buyer may either(a)extend the time for performance up to 15 days and the Closing Date will be extended as necessary or(b) terminate this contract as the sole remedy and receive the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may rminate this contract and receive the earnest money, thereby releasing both parties from this co tract. ,�S )15 rentdy Initialed for identification by Buyer and Seller 0 1 A TREC NO. 9-4 JLN -15' O0 (TE) 09:45 P. 008 unlmprovad Property Contract Concerning •2.7g 3c itS on PbahvikBlvd . Sit[uou.c-I TX Page Sbc 11-8-99 (A.7aress of Property) 16. DISPUTE RESOLUTION: It is the policy of the State of Texas to encourage the peaceable resolution of disputes through alternative dispute resolution procedures. The parties are encouraged to use an addendum approved by TREC to submit to mediation disputes which cannot be resolved in good faith through informal discussion. 17. ATTORNEY'S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover Tram the non-prevailing party all costs of such proceeding and reasonable attomey's fees. 18. ESCROW: The earnest money is deposited with escrow agent with tee understanding that escrow agent is not(a) a party to this contract and does not have any liability for the performance or nonperformance of any party to this contract, (b)liable for interest on the earnest money and (c)Gable for any loss of earnest money caused by the failure of any financial institution in which the earnest money has been deposited unless the financial institution is acting as escrow agent. At dosing,the earnest money must be applied first to any cash down payment,then to Buyer's dosing costs and any excess refunded to Buyer_ If both parties make written demand for the earnest money, escrow agent may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of escrow agent from all parties. if one party makes written demand for the earnest money, escrow agent shall give notice of the demand by providing to the other party a copy of the demand. If escrow agent does not receive written objection to the demand from the other party within 30 days after notice to the ether party, escrow agent may disburse the earnest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the same to the creditors. If escrow agent complies with the provisions of this paragraph, each party hereby releases escrow agerrtfrom all adverse claims related to the disbursal of the earnest money. Escrow agents notice to the other party will be effective when deposited in the U. S. Mail, postage prepaid, certified rrai, return receipt requested,addressed to the other party at such party's address shown below. Notice of objection to the demand will be deemed effective upon receipt by I escrow agent. by 4WOU5k1 cV urdeeS ib 19. REPRESENTATIONS:Seiler represen at as of the Closing Date (a)there will be no liens, assessments.. or security interests against the Prope hick will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and (b) assumed loans will not be in default If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money w ll'be r�funde to uy r. All representations contained in this contract will survive dosing. ee um 1 :x heittO, 20. FEDERAL TAX REQUIREMENT:If Seller is a"foreign person", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person", tnen Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction. , 21. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement ( See dercunel a i"reX O. 22. CONSULT YOUR ATTORNEY: Real estate licensees cannot give legal advice. This contract is intended to be legally binding. READ IT CAREFULLY. If you do not understand the effectcf this contract, consult your attorney BEFORE signing, Me-e Well`e Buyer's Setter's ee Attorney is: Attorney is: A"�" /�- i L.L. '' ` Initialed for identification by Buyer and Seller 01A TREC NO. 9-4 RN, -15' 00 (THC) 09:43 P. 009 . unimproved eroperty Contract Concenine . S dcyC5 o4 13 lackhawk BLVd., &yieymS d,TX Page seven 11-8-99 (Address of Property) 23. NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile machine as follows: To Buyer at To Seller at: Ci ry I2G k -%fAidswoo d, 910 Sow ehcswcod DOK) 11 g 13 V4btL.Sf- F.Kendswc i, Ty, 7.7 51(/)--i h ,-t-X 7031 Telephone: (.2. l ) 99(0."3 J-50 Telephone: Ca-g1 ) 4.-19-5600 Facsimile: (a-21) `]Sa,`3-1.i� Facsimile: (al) 7-19 - OS 1O _ EXECUTE the day of (THE EFF GTIVE DATE). (BROKER: FILL IN THE TE OF CEPTANCE.) 4'—'' , C/V?_,Le___________t , B er Seller cti/ fU •c,IR-1 �L. . l3 4/ L- . -s -/ r fonts,d4,,,...-f- Buyer _ Seller The form ofthis contract has been approved by the Texas Real Estate Commission. Such approval refutes to this contract forth ortiy,TREC forms are intended for use only by trained real estate licensees.No representation is made as to the tegal valoity or adequacy of any pravisIe-n In any specific transaction.It is not suitable for complex transactions, Extensive riders orad lions are nct to be used.Texas Reel Estate Commission,P.O.Sax 12188,Austin,TX 78711-2188,1-800-250-8732 or(512)459-6544 (ttt(,://www.trec.state.tx.us)TREC NO, 9-4.This form replaces TREC NO.9-3. BROKER INFORMATION AND RATIFICATION OF FEE 1 Listing Broker has - • zed to pay Other Broker of the total sales price Ali- isting Brokers fee is received. Escrow Age authorized and directed to pay Other Broker from Listing Broker's fee at ng. Other Broker -cense No. Listing Brok• License No. represents D Seller as Listing Brokers sub:. - .t repre - s ❑Seller and Buyer as an Intermediary ❑ Buyer only as Buyer's agent ❑Seller only as Seller's agent U• Associate Telephone Associate Telepnone Selling Associate Telephone • Broker Address Broker Address - :phone Facsimile Telephone Facsimi - RECEIPT Receipt of❑Contract and Q $ Earnest Money in the form of is acknowledged. Escrow Agent: Date: Rv' Telephone: ( ) ..,.aresa Facsimile: (. ) State Zip Code 0 I A TREC NO. 9-4 JUN. -15' 00 (THUI 09:44 .P. OlG n Legal Description C.278 Acre (cr 12.106 square feet) of (and out of a 0.5226 acre tract in Reserve "C'. Black 19. Forest Bend Sub4IvIeicn. Section 3. In Norris County, Texas. according to the plat of said subdivision recorded in Volume 180. page 73. Harms County Lipp Records. said 0.245 acre of land belnd more particularly described as follows: C0141 NC1NG FOR REFERENCE at the northeast corner of Reserve "G' and the northeast corner of a 0.7471 acre tract. on the curved west right-of-way line of Blockhasic Blvd. . 100 feet wider THENCE In a southerly direction with the East line of Reaerve '0" and said *eat right-of--way line with a curve to *he right having a radius of 1950.00 feet. o central angle of 06 degrees 45 minutes 34 Seconde and an arc length of 230.05 feet. (the chard of said arc bears South 19 degrees 48 minutes 23 second East. 229.92 feet). to the southeast corner of said 0.7471 acre tract and the northeast corns- of acid 0,5225 care tract for the Northeast Corner and PLACE OF BEGINNING of the 0.245 acre tract herein described: THENCE continuing In o southerly direction with said line and said curve to the right having a rodius of 1950.00 feet. a centre( angle of 02 degrees 22 minutes 23 seconds and an arc length of 80.76 (the chard of scid arc bears South 15 degrees 14 minutes 13 seconds East. 80.76 feet). tc a point f corner: THENCE in westerly direction along the south line of The herein described tract and also.the north line of deed recorded under Harris County Clerk' s file No. F-209079 a bearing of South 81 degrees 12 minutes 44 seconds west for a distance of 162.90 feet to a point for corner: THENCE in northerly and easterly directions within solo 0.5226 acre tract wlththe following two (2) courses and distances: 1 . North 12 degrees 35 minutes 27 seconds west. 69. 87 feet to a point for corner on -rtre�isii i 7 i ne c� sand-0.5226 acre tract: 2. North 77 degrees 24 minutes 33 seconds East along a line parallel with and located 20.00 feet southerly from the northerly line cf sold 0.5226 core tract 158.81 feet to The PLACE OF BEGINNING. CITY OF FRI SWOO AS BUYER Darold L. Whitaker Mayor ./t.) Exhibit "A" JUN. -19' 00 (MON) i 5:04 P. 002. Addendum attached to and made a part of • - Unimproved Property Contract by and between Hale/Associates,Inc_ and City of Friendswood 6(B) (3) (continued) Seller has heretofore caused to be prepared and delivered to Buyer a plat of survey of the Property, as described in Exhibit "A" attached hereto, dated Jannary 5, 2000 by R.W. Patrick & Associates, Inc. (the "Existing Survey"). Buyer, at its option and expense, may cause the Existing Survey to be updated and/or decertified by the surveyor within twenty (20) days after the Effective Date of this Contract. The Existing Survey as updated and / or recertified by surveyor within twenty (20) days after the Effective Date is hereinafter referred to as the "Survey". 6 (Continued) Buyer will have until twenty-five (25) days after the Effective Date to object in writing to matters disclosed in the Commitment, Existing Survey or Survey. Any title exceptions evidenced by the Commitment, Existing Survey or Survey to which Buyer does not object within the time periods provided above shall constitute title exceptions permitted by this Contract except as provided in the following sentence. Notwithstanding the foregoing sentence, all mortgages or deeds of trust placed on the Property or any portion thereof by Seller (the "mortgage liens") shall constitute unpermitted title exceptions and it shall not be necessary for Buyer to specify such mortgage liens in its objection notice. Seller shall be obligated to cause all such mortgage liens to be released and discharged of record not later than the Closing Date. If objections to title are made by Buyer within the time periods provided above, Seller shall have a period of five (5) days thereafter in which to remove or cure such objections (other than mortgage liens to be released and discharged on or before the Closing Date as above provided); provided, however, Seller shall not be obligated to expend any sums of money or institute any litigation in order to remove or cure such title objections. In the event Seller fails to remove or cure such title objections within such five (5) day period, Buyer shall have a period of five (5) days thereafter in which to either (i) accept such title objections not so removed or cured in which event such title objections shall become exceptions permitted by this Contract, or (ii) terminate this Agreement by giving Seller written notice thereof on.or before the expiration of such five (5) day period in which event the Earnest Money shall be refunded to Buyer less the sum of$100.00 to be retained by Seller as independent contract consideration. If Buyer does not terminate this Contract on or before the expiration of such five (5) days, then the objections to title by Seller shall be deemed waived (other than mortgage liens to be released and discharged on or before the closing date as above provided) and shall constitute exceptions permitted by this Contract. CITY OF FRI SWOOD AS BUYER: arcld L. W 'taker Mayor HOU91966Z dLi1. -iy WNW) i3:U4 P 401 . 6/19/00 c 4&C for the meeting. . 11 823 Wilcrest �( 1\1 Houston.Texas 77031 .y, i r •rr� �. i r t'. 281/879-8800 ‘ ,,.i n I FAX 281/879-0820 1 ' F . _� JUr.r .000 •a Cm or�'IG1�Ik:O 0w✓ 41,4N 0 Do0 �li� June 19, '000 4' '' Mr. Ron Cox Via Fax(281)482-3722 City Manager City of Friendswood 910 South Friendswoo. Drive Friendswood, Texas 775 •-4856 RE: .278 acres Blackhawk Blvd., Frien• wood, Texas Dear Mr. Cox: Please find attached a revised Addend . • ecting the changes requested by Ms. Mickelson. Do not hesitate to call if you have any,:quests ns or comments. Sincerely, SHOPPING CENTER AGEMENT, INC., a Texas Corporation By: Lr)71. Mike atimer Pres' nt MEL/k En losure cc: Kimberley Mickelson, Olson& Olson- Via Fax (713) 759-0342 Lldata\pbhklcoz2.wpd l`l UU �NI);Vi 13:U3 P. 003 • • 7 (continuedl • Prior to entering on the Property, Buyer's inspectors shall provide evidence of liability insurance coverage to Seller. Buyer shall indemnify, hold harmless and defend Seller, to the extent allowed by law, from any liability, loss, cause of action or claim against Seller arising out of or resulting from Buyer's actions under this Paragraph 7, including, without limitation, any claims for personal injury or death and any lien asserted against the Property arising as a result of any such inspections or test. 11 (a.) WAIVER OF CONSUMER RIGHTS, BUYER AGREES THAT IT IS WAIVING ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT, SECTION 17.4 i ET SEQ, TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. THIS WAIVER IS MADE AFTER CONSULTATION WITH AN ATTORNEY OF BUYER'S OWN SELECTION, AND BUYER VOLUNTARILY CONSENTS TO THE WAIVER. BUYER FURTHER REPRESENTS AND WARRANTS TO SELLER THAT (I) BUYER IS NOT IN A SIGNIFICANTLY DESPERATE BARGAINING POSITION IN RELATION TO SELLER, (II) BUYER IS REPRESENTED BY LEGAL COUNSEL OF ITS OWN CHOICE AND DESIGNATION IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, AND (III) BUYER IS PURCHASING THE PROPERTY FOR BUSINESS OR COMMERCIAL INVESTMENT OR OTHER SI_MIILAR PURPOSE, NOT FOR USE AS BUYER'S RESIDENCE. (b.) Buyer shall not have the right to assign this Contract or any of its rights hereunder without the prior written consent of Seller. (c.) Execution of this Contract by Seller and submission to Buyer constitutes an offer (the "Offer") by Seller to sell the Property on the terms and conditions set forth in this Contract. Buyer shall have until 5:00pm on June 23, 2000 to accept the Offer by (i) executing the Contract in the place indicated. and (ii) causing such Contract to be physically delivered to the-offices of the Title Company along with the Earnest Money. If Buyer does not accept the Offer by the date and time and in the manner specified above, the Offer shall automatically be terminated and of no further force or effect. (d.) NotwithstaruFng the election made in Section 7.B., Buyer retains the right under Section 7.A. to have such inspections and studies made on the Property as Buyer deems necessary for its due diligence, all of which shall be at Buyer's expense, including but not limited to a Phase I Environmental Study. CITY OF FRIE WOOD AS BUYER: arol L. Whitaker Mayor HOU:91911E.: J11. -1J UU ;NUA1 13 :U3 p . (e.) Buyer shall have the right to terminate the contract for any reason on or before July 23, 2000, unless the parties extend such deadline by agreement. 19 (Continuedj EXCEPT AS EXPRESSLY SET FORTH HEREIN AND EXCEPT FOR THE WARRANTIES TO BE INCLUDED IN THE CLOSING DOCUMENTS, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND TO BUYER, INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATIONS OR WARRANTIES (A) REGARDING THE PHYSICAL CONDITION OF THE PROPERTY OR ITS SUITABILITY FOR ANY PARTICULAR PURPOSE, (B) THE SOIL CONDITIONS EXISTING AT THE PROPERTY FOR ANY PARTICULAR PURPOSE OR DEVELOPMENT POTENTIAL, AND (C) THE PRESENCE OR ABSENCE OF ANY HAZARDOUS SUBSTANCES, MAI IER OR MATERIAL IN, ON OR UNDER THE PROPERTY. EXCEPT AS OTHERWISE PROVIDED HEREIN, BUYER AGREES THAT THE PROPERTY IS TO BE SOLD AND ACCEPTED BY BUYER AT THE CLOSING IN ITS PRESENT CONDITION, "AS IS, WITH ALL FAULTS, IF ANY, AND WITHOUT ANY WARRANTY WHATSOEVER EXPRESSED OR IMPLIED." r:\DATA'pbhk2\city • CITY OF FRI SW00 AS BUYER: arold L. Whitaker Mayor /kb -3- HOC:91966.2 • 11823 Wilcrest SN/1 Houston,Texas 77031 `4,HoPPINC CENTER 281/879-8800 .1 vN:vcrnuNi FAX 281/879-0820 July 7, 2000 Mr. Harold L. Whitaker Certified Mail P 212 290 369 Mayor Return Receipt Requested& City of Friendswood First Class Regular Mail 910 South Friendswood Drive Friendswood,Texas 77546-4856 RE: Unimproved Property Contract by and between Hale/Associates,Inc.,a Texas Corporation("Seller")and City of Friendswood("Buyer"). Dear Mr. Whitaker: We failed to enter"The Effective Date"on page 7 of the referenced Unimproved Property Contract before sending to the Title Company. Since the contract was receipted by the Title Company on June 22, 2000,we are treating this as "The Effective Date." Please call me promptly if you object. Sincerely, SHOPPING CENTER MANAGEMENT,INC., a Texas Corporation By: '61")(1;4‘)C La_ Mike.E. Latimer President MEL/kbc cc: Ms. Delores McKenzie, City of Friendswood-Via Fax(281)482-1634 cc: Ms. Kimberley Mickelson, Olson& Olson-Via Fax(713) 759-0342 cc: Mr. Mark Hodges,Andrews&Kurth, LLP -Via Fax(713) 220-4285 f:\data\pbhk\city.wpd auuyers t itle Lompany 617 CAROLINE HOUSTON,TEXAS 77002 (713)228-0801 R. L. BUCKALEW CHAIRMAN July 5, 2000 Mr. Harold L. Whitaker City of Friendswood 910 South Friendswood Drive Friendswood, TX 77546-4856 Re: GF #00-6386BB/Sale from Hale/Associates, Inc., a Texas corporation to City of Friendswood,regarding 0.278 acre of land out of a 0.5226 acre tract in Reserve "G", Block 19, Forest Bend Subdivision, Section 3, Harris County, Texas Dear Mr. Whitaker: In reference to the above transaction, enclosed you will find our Commitment for Title Insurance. If you should have any questions or comments, please feel free to contact my office. Sincerely, R. L. Buckalew Chairman RLB:svm Enclosures cc: Mr. Billy E. Hale Hale/Associates, Inc. 11823 Wilcrest Houston, TX 77031 Mr. Mike E. Latimer SCM 11823 Wilcrest Houston, TX 77031 ,")3 4 (/� c9a J 1.1 -- 2000 r- _. F,GErlp -.. vkifir t 5 CONDITIONS AND STIPULATIONS 1. If you have actual knowledge of any matter which may affect the title or mortgage covered by this Commitment, that is not shown in Schedule B, you must notify us in writing. If you do not notify us in writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our liability. If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred. 2. Our liability is only to you, and others who are included in the definition of Insured in the Policy to be issued. Our liability is only for actual loss incurred in your reliance on this Commitment to comply with its requirements, or to acquire the interest in the land. Our liability is limited to the amount shown in Schedule A of this Commitment and will be subject to the following terms of the Policy: Insuring Provisions, Conditions and Stipulations, and Exclusions. IMPORTANT NOTICE ADVISO IMPORTANTE PARA INFORMACION, 0 FOR INFORMATION, OR TO MAKE A COMPLAINT PARA SOMETER UNA QUEJA CALL OUR TOLL-FREE TELEPHONE NUMBER LLAME AL NUMERO GRATIS 1-800-925-0965 1-800-925-0965 ALSO TAMBIEN YOU MAY CONTACT PUEDE COMUNICARSE CON THE TEXAS DEPARTMENT OF EL DEPARTAMENTO DE SEGUROS INSURANCE AT DE TEXAS AL 1-800-252-3439 1-800-252-3439 to obtain information on: para obtener informacion sobre: 1.filing a complaint against an insurance company or agent, 1. como someter una queja an contra de una compania de 2.whether an insurance company or agent is licensed, seguros o agento de seguros, 3.complaints received against an insurance company or agent, 2. si una compania de seguros o agente de seguros tiene 4. policyholders right,and licencia, 5. a list of consumer publications and services available through 3. quejas recibidas en contra de una compania de seguros o the Department. agente de seguros, 4. los derechos del asegurado,y 5. una lista de publicaciones y servicios para consumidores disponibles a traves del Departamento. YOU MAY ALSO WRITE TO TAMBIEN PUEDE ESCRIBIR AL THE TEXAS DEPARTMENT OF INSURANCE DEPARTAMENTO DE SEGUROS DE TEXAS P.O. BOX 149104 P.O. BOX 149104 AUSTIN,TEXAS 78714-9104 AUSTIN,TEXAS 78714-9104 FAX NO. (512)475-1771 FAX NO. (512)475-1771 I EXHIBIT "A" Field Notes 0.2779 acre (12, 107 square feet) of land out of an 0.5226 acre tract in Reserve "G", Block 19, Forest Bend Subdivision, Section 3, in Harris County Texas, according to the plat of said subdivision recorded in Volume 180, Page 73, Harris County Map Records, said 0.2779 acre of land being more particularly described as follows: COMMENCING FOR REFERENCE at the northeast corner of Reserve "G" and the northeast corner of an 0.7471 acre tract, on the curved west right-of-way line of Blackhawk Boulevard, 100 feet wide: THENCE in a southerly direction with the east line'of Reserve "G" and said west right-of--way line with a•curve to the right having a radius of 1950.00 feet, a central angle"of' 6 degrees 10 minutes 13 seconds and an arc length of 210.00 feet, (the chord of said arc bears_ South 20 degrees 06 minutes 01 seconds East 209.90 feet) , to the southeast corner of said 0.7471 acre tract and the northeast corner of an 0.5226 acre tract of which the tract herein described is a part; THENCE continuing in a southerly direction With the east line of Reserve "G" and said west right-of-way line with a curve to the right having a radius of 1950.00 feet, a central angle of 0 minutes 35 seconds 21 minutes and an arc length of 20.05 feet, (the chord of said arc bears South 16 degrees 43 minutes 14 seconds East 20.05 feet), to the Northeast Corner and PLACE OF BEGINNING of the 0.2779 acre tract herein described; THENCE continuing in a southerly direction with said line and said curve to the right having a radius of 1950.00 feet, a central angle of 2 degrees 22 minutes 23 seconds and an arc length of 80.76 feet (the chord of said arc bears South 15 degrees 14 minutes 22 seconds Bast 80.76 feet) , to a point for corner; THENCE South 81 degrees 12 minutes 44 seconds West a distance of 162.90 feet to a point for corner; THENCE North 12 degrees 35 minutes 27 seconds West a distance of 69.87 feet to a point for corner; THENCE North 77 degrees 24 minutes 33 seconds East a distance of 158.81 feet to the PLACE OF BEGINNING and containing 0.2779 acres. NOTE: The Company does not represent that the above acreage or square footage calculations are correct. COMMITMENT FOR TITLE INSURANCE SCHEDULE D G.F. No. or File No. 006386BB Effective Date: June 23, 2000, 8:00 am Pursuant to the requirements of Rule P-21, Basic Manual of Rules, Rates and Forms for the writing of Title Insurance in the State of Texas, the following disclosures are made: 1. The following individuals are directors and/or officers, as indicated, of the Title Insurance Company issuing this Commitment: President and Chief Operating Officer Directors Directors Janet A. Alpert Janet A. Alpert William H. Goodwyn, Jr. Secretary Kenneth Astheimar Russell W. Jordan, III John M. Carter G. William Evans Charles W. Keith Senior Vice President, Treasurer Charles H. Foster, Jr. and Chief Financial Officer G. William Evans 2. Disclosure of Continental Title, L.L.C. D/B/A Lawyers Title Company of Houston a. The names of each shareholder, owner, partner, or other person having, owning or controlling one percent (1%) or more of the Title Insurance Agent that will receive a portion of the premium are as follows: R. L. Buckalew, W. Allen Shindler 3. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or corporation receiving any sum from the settlement of this transaction will be disclosed on the closing or settlement statement. You are further advised that the estimated title premium' is: Owners Policy $0.00 Mortgagee Policy $0.00 Total $0.00 Of this total amount: 15% will be paid to the policy issuing Title Insurance Company: 85% will be retained by the issuing Title Insurance Agent; and the remainder of the estimated premium will be paid to other parties as follows: Amount To Whom For Services 'The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the State Board of Insurance. Lawyers Title Insurance Corporation See Continuation Page Continuation of Schedule D G.F. No. 006386BB This commitment is invalid unless the insuring provisions and Schedules A, B, and C are attached. Lawyers Title Insurance Corporation Page 2 TEXAS TITLE INSURANCE INFORMATION Title insurance insures you against loss resulting from certain El seguro de titulo le asegura en relacion a perdidas risks to your title. resultantes de ciertos riesgos que pueden afectar el titulo de su propiedad. The Commitment for Title Insurance is the title insurance El Compromiso para Seguro de Titulo es la promesa de la company's promise to issue the title insurance policy. The compania aseguradora de titulos de emitir la poliza de seguro Commitment is a legal document. You should review it de titulo. El Compromiso es un documento legal. Usted carefully to completely understand it before your closing date. debe leerio cuidadosamente y entendario completamente antes de la fecha para finalizar su transaccion. Your Commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a policy subject to the Commitment's terms and requirements. Before issuing a Commitment for Title Insurance(the Commitment)or a Title Insurance Policy(the Policy),the Title Insurance Company(the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown on Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your Policy is issued,the coverage will be limited by the Policy's Exceptions,Exclusions and Conditions,defined below. -EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the Policy is issued,all Exceptions will be on Schedule B of the Policy. -EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. -CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can get a copy of the policy form approved by the State Board of Insurance by calling the Title Insurance Company at(800)442-7067 or by calling the title insurance agent that issued the Commitment. The State Board of Insurance may revise the policy form from time to time. You can also get a brochure that explains the Policy from the Texas Department of Insurance by calling 1-800-252-3439. Before the Policy is issued,you may request changes in the Policy. Some of the changes to consider are: -Request amendment of the"area and boundary"exception(Schedule B,paragraph 2). To get this amendment,you must furnish a survey. On the Owner Policy,you must pay an additional premium for the amendment. If the survey is acceptable to the Company,your Policy will insure you against loss because of discrepancies or conflicts in boundary lines,encroachments or protrusions,or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. -Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception,the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons,such as renters,adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection,you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. Lawyers Title Insurance Corporation See Continuation Page IMPORTANT NOTICE AVISO IMPORTANTE FOR INFORMATION,OR TO MAKE A COMPLAINT,CALL OUR PARA INFORMACION,0 PARA SOMETER UNA QUEJA LLAME AL TOLL-FREE TELEPHONE NUMBER NUMERO GRATIS (800)442-7067 (800)442-7067 ALSO,YOU MAY CONTACT THE TEXAS DEPARTMENT OF TAMBIEN PUEDE COMUNICARSE CON EL DEPARTAMENTO DE INSURANCE AT 1-800-252-3439 SEGUROS DE TEXAS AL 1-800-252-3439 to obtain information on: para obtoner information sobre: 1. filing a complaint against an insurance company or agent, 1. como someter una queja en contra de una compairia de seguros o agente de seguros, 2. whether an insurance company or agent is licensed, 2. si una compania de seguros o agente de seguros tiene licencia, 3. complaints received against an insurance company or agent, 3. quejas recibidas en contra de una compania de seguros o agente de 4. policyholder rights,and seguros, 5. a list of consumer publications and services available through the 4. los derechos del asegurado,y Department. 5. una lista de publicaciones y servicios para consumidores YOU MAY ALSO WRITE TO: disponibles a traves del Departamento. The Texas Department of Insurance TAMBIEN PUEDE ESCRIBIR AL: P.O. Box 149104 Austin,Texas 78714-9104 Departamento de Seguros de Texas FAX No(512)475-1771 P.O. Box 149104 Austin,Texas 78714-9104 FAX No. (512)475-1771 THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS COUNTERSIGNED BELOW. Lawyers Title Insurance Corporation Page 2