81R10890 GCB-D

By: Jackson H.B. No. 4726

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Cypress Waters Municipal Management District; providing the authority to impose an assessment, impose a tax, and issue bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3874 to read as follows:

CHAPTER 3874. CYPRESS WATERS MUNICIPAL MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3874.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "City" means the City of Dallas.

(3) "District" means the Cypress Waters Municipal Management District.

(4) "Improvement project" means a project authorized by Section 3874.102:

(A) inside the boundaries of the district; and

(B) in areas outside but adjacent to the boundaries of the district if the project is for the purpose of extending public infrastructure improvements beyond the district's boundaries to a logical terminus.

Sec. 3874.002. CREATION AND NATURE OF DISTRICT. The district is a special district created under Section 59, Article XVI, Texas Constitution.

Sec. 3874.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes stated in this chapter. By creating the district and in authorizing the city and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution.

(b) The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare in the district.

(c) The district is created to supplement and not to supplant city services provided in the district.

Sec. 3874.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this chapter.

(c) The creation of the district is in the public interest and is essential to further the public purposes of:

(1) developing and diversifying the economy of the state;

(2) eliminating unemployment and underemployment;

(3) developing or expanding transportation and commerce; and

(4) providing quality residential housing.

(d) The district will:

(1) promote the health, safety, and general welfare of residents, employers, potential employees, employees, visitors, and consumers in the district, and of the public;

(2) provide needed funding for the district to preserve, maintain, and enhance the economic health and vitality of the district territory as a residential community and business center; and

(3) promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty.

(e) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, vehicle parking, and street art objects are parts of and necessary components of a street and are considered to be an improvement project that includes a street or road improvement.

(f) The district will not act as the agent or instrumentality of any private interest even though the district will benefit many private interests as well as the public.

Sec. 3874.005. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2 of the Act enacting this chapter, as that territory may have been modified under:

(1) Section 3874.106; or

(2) other law.

(b) A mistake in the field notes of the district contained in Section 2 of the Act enacting this chapter or in copying the field notes in the legislative process does not in any way affect:

(1) the district's organization, existence, or validity;

(2) the district's right to contract, including the right to issue any type of bond or other obligation for a purpose for which the district is created;

(3) the district's right to impose or collect an assessment, tax, or any other revenue; or

(4) the legality or operation of the board.

Sec. 3874.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. (a) All or any part of the area of the district is eligible to be included in:

(1) a tax increment reinvestment zone created by the city under Chapter 311, Tax Code;

(2) a tax abatement reinvestment zone created by the city under Chapter 312, Tax Code; or

(3) an enterprise zone created by the city under Chapter 2303, Government Code.

(b) If the city creates a tax increment reinvestment zone described by Subsection (a), the city and the board of directors of the zone, by contract with the district, may grant money deposited in the tax increment fund to the district to be used by the district for the purposes permitted for money granted to a corporation under Section 380.002(b), Local Government Code, including the right to pledge the money as security for any bonds issued by the district for an improvement project. A project may not receive public funds under Section 380.002(b), Local Government Code, unless the project has been approved by the governing body of the city by the adoption of a resolution.

(c) A tax increment reinvestment zone created by the city in the district is not subject to the limitations provided by Section 311.006(b), Tax Code.

[Sections 3874.007-3874.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3874.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of nine directors composed of:

(1) six directors appointed by the governing body of the city;

(2) one assistant city manager of the city, appointed by the city manager;

(3) the chief financial officer of the city; and

(4) the economic director of the city.

(b) Directors serve staggered terms of four years, with four or five directors' terms expiring July 1 of each odd-numbered year.

Sec. 3874.052. APPOINTMENT OF DIRECTORS: BOARD MEETINGS. (a) Directors appointed by the governing body of the city must meet at least one of the qualifications prescribed by Section 3874.053.

(b) A person may not be appointed to the board by the governing body of the city if the appointment of that person would result in fewer than three of the directors being residents of the city and meeting the qualifications prescribed by Section 3874.053(a)(2), (3), (4), (5), or (6).

(c) The governing body of the city may remove a member of the board with or without cause at any time by a majority vote.

(d) The board shall hold meetings at a place accessible to the public. The board shall file a copy of the notice of a meeting with the city's secretary. The city's secretary shall post the notice at Dallas City Hall.

(e) The board may not create an executive committee to exercise the powers of the board.

(f) If an office described in Section 3874.051(a) is renamed, changed, or abolished, the governing body of the city may appoint another city officer or employee who performs duties comparable to those performed by the officer described by that subsection.

Sec. 3874.053. QUALIFICATIONS OF DIRECTORS APPOINTED BY CITY. (a) To be qualified to serve as a director appointed by the governing body of the city, a person must be at least 18 years old and must be:

(1) a resident of the district who is also a registered voter of the district;

(2) an owner of property in the district;

(3) an owner of stock or a partnership or membership interest, whether beneficial or otherwise, of a corporate partnership, limited liability company, or other entity owner of a direct or indirect interest in property in the district;

(4) an owner of a beneficial interest in a trust, or a trustee in a trust, that directly or indirectly owns property in the district;

(5) an agent, employee, or tenant of a person covered by Subdivision (2), (3), or (4); or

(6) an initial director.

(b) Section 49.052, Water Code, does not apply to the district.

Sec. 3874.054. VACANCY. The governing body of the city shall fill a vacancy on the board by appointing a person who meets the qualifications prescribed by Section 3874.051(a) or 3874.053 to serve for the remainder of the unexpired term.

Sec. 3874.055. DIRECTOR'S OATH OR AFFIRMATION. A director's oath or affirmation of office shall be filed with the district and the district shall retain the oath or affirmation in the district records. A copy of each director's oath or affirmation of office shall be filed with the city's secretary.

Sec. 3874.056. OFFICERS. The board shall elect from among the directors a chair, a vice chair, and a secretary. The offices of chair and secretary may not be held by the same person concurrently.

Sec. 3874.057. COMPENSATION; EXPENSES; LIABILITY INSURANCE FOR DIRECTORS. (a) The district may compensate each director in an amount not to exceed $50 for each board meeting. The total amount of compensation for each director in one year may not exceed $2,000.

(b) Directors are entitled to reimbursement for necessary and reasonable expenses incurred in carrying out the duties and responsibilities of the board.

(c) The district may obtain and pay for comprehensive general liability insurance coverage from a commercial insurance company or other source that protects and insures a director against personal liability and from any and all claims relating to:

(1) actions taken by the director in the director's capacity as a member of the board;

(2) actions and activities taken by the district; or

(3) the actions of others acting on behalf of the district.

Sec. 3874.058. CONFLICTS OF INTEREST. (a) A director, including a director who qualifies under Section 3874.053(a)(2), (3), (4), or (5), may participate in all board votes and decisions if the director complies with the requirements of Subsection (b).

(b) A director shall comply with Section 171.004, Local Government Code, including the disclosure and abstention requirements of that section. A director must file a copy of the director's disclosure affidavit required by Section 171.004, Local Government Code, with the city's secretary before participating in a board discussion or vote.

Sec. 3874.059. INITIAL DIRECTORS. (a) The initial board consists of the following directors:

(1) Place 1 Lucy Billingsley;

(2) Place 2 Mario Canizares;

(3) Place 3 Sid Grant;

(4) Place 4 Joel Overton, Jr.;

(5) Place 5 Henry Billingsley;

(6) Place 6 Lucilo Pena;

(7) Place 7 City of Dallas Assistant City Manager A. C. Gonzalez;

(8) Place 8 City of Dallas Chief Financial Officer David Cook; and

(9) Place 9 City of Dallas Office of Economic Development Director Karl Zavitkovsky.

(b) The terms of the initial directors expire on the 180th day after the date on which the Act enacting this chapter takes effect.

(c) The terms of the directors appointed to succeed the initial directors appointed for places 1, 2, 3, and 4 expire July 1, 2011, and the terms of the directors appointed to succeed the initial directors appointed for places 5, 6, 7, 8, and 9 expire July 1, 2013.

(d) This section expires December 31, 2009.

[Sections 3874.060-3874.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3874.101. GENERAL POWERS AND DUTIES. The district has the powers and duties provided by this chapter and by:

(1) the general laws relating to conservation and reclamation districts created under Section 59, Article XVI, Texas Constitution, including Chapters 49 and 54, Water Code, except that the district's bonds and other securities are not subject to the jurisdiction or supervision of the Texas Commission on Environmental Quality under Chapter 49, Water Code, or other law;

(2) the general laws relating to road districts and road utility districts created under Section 52(b), Article III, Texas Constitution, including Chapter 441, Transportation Code, except that the district may exercise any power granted by this chapter without regard to any provision or requirement of or procedure prescribed by Chapter 441, Transportation Code;

(3) Subchapter A, Chapter 372, Local Government Code, in the same manner as a municipality or a county;

(4) Chapter 1371, Government Code;

(5) Chapter 375, Local Government Code; and

(6) Chapter 311, Tax Code.

Sec. 3874.102. IMPROVEMENT PROJECTS. (a) The district may provide, or it may enter into contracts with a governmental or private entity to provide, the following types of improvement projects located in the district or activities in support of or incidental to those projects:

(1) a supply and distribution facility or system to provide potable and nonpotable water to the residents and businesses of the district, including a wastewater collection facility;

(2) a paved, macadamized, or graveled road, street, or turnpike, inside and outside the district, to the full extent authorized by Section 52, Article III, Texas Constitution;

(3) the planning, design, construction, improvement, and maintenance of:

(A) landscaping;

(B) highway right-of-way or transit corridor beautification and improvement;

(C) lighting, banners, and signs;

(D) a street or sidewalk;

(E) a hiking and cycling path or trail;

(F) a pedestrian walkway, skywalk, crosswalk, or tunnel;

(G) a park, lake, garden, recreational facility, community activities center, dock, wharf, sports facility, open space, scenic area, or related exhibit or preserve;

(H) a fountain, plaza, or pedestrian mall; or

(I) a drainage or storm-water detention improvement;

(4) protection and improvement of the quality of storm water that flows through the district;

(5) the planning, design, construction, improvement, maintenance, and operation of:

(A) a water or sewer facility; or

(B) an off-street parking facility or heliport;

(6) the planning and acquisition of:

(A) public art and sculpture and related exhibits and facilities; or

(B) an educational facility, and a cultural exhibit or facility;

(7) the planning, design, construction, acquisition, lease, rental, improvement, maintenance, installation, and management of and provision of furnishings for a facility for:

(A) a conference, convention, or exhibition;

(B) a manufacturer, consumer, or trade show;

(C) a civic, community, or institutional event; or

(D) an exhibit, display, attraction, special event, or seasonal or cultural celebration or holiday;

(8) the removal, razing, demolition, or clearing of land or improvements in connection with improvement projects;

(9) the acquisition and improvement of land or other property for the mitigation of the environmental effects of an improvement project if those costs are incurred in accordance with a development agreement and reimbursement of those costs is conditioned on the completion of substantial vertical development, or the costs are related to a transit or mobility project;

(10) the acquisition of property or an interest in property in connection with one or more authorized improvement projects, including a project authorized by Subchapter A, Chapter 372, Local Government Code;

(11) a special or supplemental service for the improvement and promotion of the district or an area adjacent to the district or for the protection of public health and safety in or adjacent to the district, including:

(A) advertising;

(B) promotion;

(C) tourism;

(D) health and sanitation;

(E) public safety;

(F) security;

(G) fire protection or emergency medical services;

(H) business recruitment;

(I) elimination of traffic congestion, including by use of rail services; and

(J) recreational, educational, or cultural improvements, enhancements, and services; or

(12) any similar public improvement, facility, or service.

(b) The district may not undertake an improvement project under this section unless the board determines the project to be necessary to accomplish a public purpose of the district and has received the approval of the city under Section 3874.160.

(c) An improvement project must comply with any applicable codes and ordinances of the city.

(d) The district may not provide, conduct, or authorize an improvement project on the city streets, highways, rights-of-way, or easements without the consent of the governing body of the city.

(e) Subject to an agreement between the district and the city, the city may:

(1) by ordinance, order, or resolution require that title to all or any portion of an improvement project vest in the city; or

(2) unless prohibited by Subsection (h), by ordinance, order, resolution, or other directive, authorize the district to own, encumber, maintain, and operate an improvement project, subject to the right of the city to order a conveyance of the improvement project to the city on a date determined by the city.

(f) The district shall immediately comply with any city ordinance, order, or resolution adopted under Subsection (e).

(g) For the purposes of this section, planning, design, construction, improvement, and maintenance of a lake includes work done for drainage, reclamation, or recreation.

(h) Waterworks and sanitary sewer improvements may be undertaken by the district inside or outside the boundaries of the district, subject to the following conditions:

(1) the city shall request that waterworks or sanitary sewer improvements be funded by the district;

(2) the city shall construct, own, operate, and maintain the improvements; and

(3) the district shall comply with Sections 3874.152, 3874.157, and 3874.160 as a condition for the district to fund the improvements.

Sec. 3874.103. GENERAL POWERS REGARDING CONTRACTS. (a) The district may:

(1) contract with any person to accomplish any district purpose, including a contract for:

(A) the payment, repayment, or reimbursement of costs incurred by that person on behalf of the district, including all or part of the costs of any improvement project and interest on the reimbursed cost; or

(B) the use, occupancy, lease, rental, operation, maintenance, or management of all or part of a proposed or existing improvement project; and

(2) apply for and contract with any person to receive, administer, and perform a duty or obligation of the district under a federal, state, local, or private gift, grant, loan, conveyance, transfer, bequest, or other financial assistance arrangement relating to the investigation, planning, analysis, study, design, acquisition, construction, improvement, completion, implementation, or operation by the district or others of a proposed or existing improvement project.

(b) A contract the district enters into to carry out a purpose of this chapter may be on any terms and for any period the board determines, including a negotiable or nonnegotiable note or warrant payable to the city, Dallas County, or any other person.

(c) Any person may contract with the district to carry out the purposes of this chapter without further statutory or other authorization.

Sec. 3874.104. RULES; ENFORCEMENT. (a) The district may adopt rules:

(1) to administer or operate the district;

(2) for the use, enjoyment, availability, protection, security, and maintenance of the district's property and facilities; or

(3) to provide for public safety and security in the district.

(b) The district may enforce its rules by injunctive relief.

(c) To the extent a district rule conflicts with a city rule, order, or regulation, the city rule, order, or regulation controls.

(d) The district shall provide the city with written notice not later than the 30th day before the date of a meeting at which the board will adopt rules. The district may not adopt a rule affecting the use of a municipally owned asset, such as a public park, street, sidewalk, transit facility, or public right-of-way, unless the governing body of the city has approved the rule by ordinance, order, or resolution.

Sec. 3874.105. NAME CHANGE. The board by resolution may change the district's name. The board shall give written notice of the change to the city.

Sec. 3874.106. ADDING OR REMOVING TERRITORY. The board may add or remove territory under Subchapter J, Chapter 49, Water Code, and Section 54.016, Water Code, except that:

(1) the addition or removal of the territory must be approved by:

(A) the governing body of the city by ordinance, order, or resolution; and

(B) the owners of the territory being added or removed;

(2) a reference to a tax in Subchapter J, Chapter 49, Water Code, or Section 54.016, Water Code, means an ad valorem tax; and

(3) territory may not be removed from the district if bonds or other obligations of the district payable wholly or partly from ad valorem taxes or assessments levied or assessed on the territory are outstanding.

Sec. 3874.107. ECONOMIC DEVELOPMENT. (a) The district may create economic development and other programs under Section 52-a, Article III, Texas Constitution, and may impose and collect ad valorem taxes for those purposes. The district has the economic development powers that Chapter 380, Local Government Code, provides to a municipality with a population of more than 100,000. Each economic development program and each project that will receive public funds under an economic development program must be approved by the governing body of the city by ordinance, order, or resolution.

(b) The district shall provide the city written notice not later than the 30th day before the date of a meeting at which the board will adopt terms of an economic development program. The district may not adopt an economic development program or improvement project to be funded under an economic development program unless the governing body of the city has approved the program or improvement project by ordinance, order, or resolution.

Sec. 3874.108. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain.

Sec. 3874.109. TERMS OF EMPLOYMENT; COMPENSATION. The board may employ and establish the terms of employment and compensation of an executive director or general manager and any other district employees the board considers necessary. An employee may not receive annual compensation of more than $150,000 from public funds of the district.

Sec. 3874.110. NOTICE TO PROPERTY OWNERS. (a) The board shall annually provide owners of real property in the district written notice that specifies the tax of the district for the district's next fiscal year in sufficient clarity to describe the tax rate for the operation and maintenance of the district and the tax rate for the payment of debt service of obligations issued or incurred by the district. The written notice must be sent by first class United States mail, postage prepaid, to the current address of the property owner as reflected on the tax rolls of the appraisal district.

(b) The notice must clearly state that the tax rates on real property imposed in the district are in addition to the ad valorem taxes imposed by other taxing units that tax real property in the boundaries of the district.

(c) The district shall generate and implement a program to provide notification to a prospective purchaser of property in the district of the rates of tax and assessments that have been approved and are imposed by the district.

[Sections 3874.111-3874.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3874.151. GENERAL POWERS REGARDING FINANCIAL MATTERS. (a) Except as provided by Section 3874.160, the district may:

(1) impose an ad valorem tax on all taxable property in the district to pay for any improvement projects of the types authorized by Section 52(b), Article III, and Section 59, Article XVI, Texas Constitution, and to secure the payment of bonds issued for those purposes;

(2) impose an assessment on property in the district to pay the cost of any authorized improvement project and the cost of the maintenance of the project in the manner provided for:

(A) a district under Subchapters A, E, and F, Chapter 375, Local Government Code; or

(B) a municipality or county under Subchapter A, Chapter 372, Local Government Code;

(3) provide or secure the payment or repayment of any bond, note, or other temporary or permanent obligation or reimbursement or other contract with any person, the costs and expenses of the establishment, administration, and operation of the district, and the district's costs or share of the costs or revenue of an improvement project or district contractual obligation or indebtedness by or through:

(A) the imposition of an ad valorem tax, assessment, user fee, concession fee, or rental charge; and

(B) any other revenue or resources of the district, or other revenue authorized by the city, including revenue from a tax increment reinvestment zone created by the city under applicable law;

(4) establish user charges related to the operation of storm-water facilities, including the regulation of storm water for the protection of water quality in the district;

(5) establish user charges for the use of nonpotable water for irrigation purposes, subject to the approval of the governing body of the city;

(6) undertake separately or jointly with other persons, including the city or Dallas County, all or part of the cost of any improvement project, including an improvement project:

(A) for improving, enhancing, and supporting public safety and security, fire protection and emergency medical services, and law enforcement in and adjacent to the district; or

(B) that confers a general benefit on the entire district or a special benefit on a definable part of the district; and

(7) enter into a tax abatement agreement in accordance with the general laws of this state authorizing and applicable to tax abatement agreements by municipalities.

(b) The district may not impose an ad valorem tax to pay for an improvement project under this chapter unless the imposition is approved by the voters of the district voting at an election held for that purpose. The board may call an election to approve the imposition of an ad valorem tax to pay for an improvement project under this chapter only if the board receives a petition requesting the election signed by:

(A) more than 65 percent of the record owners of real property in the district subject to taxation; or

(B) owners representing more than 65 percent of the appraised value of real property in the district subject to taxation, as determined by the tax rolls of the appraisal district.

Sec. 3874.152. BORROWING MONEY. (a) The district may borrow money for a district purpose by issuing or executing bonds, notes, credit agreements, or other obligations of any kind found by the board to be necessary or appropriate for any district purpose. The bond, note, credit agreement, or other obligation may be secured by and payable from ad valorem taxes, assessments, a combination of ad valorem taxes and assessments, or other district revenue. The governing body of the city must approve the issuance of bonds, notes, credit agreements, or other obligations of the district, in general terms before the preparation of preliminary official statements or loan closing documents, as provided by the development and operating agreement approved by the city in accordance with Section 3874.160, or by separate action.

(b) The governing body of the city must approve the final terms of the bond issuance, note, or credit facility, including the principal amount, note amount, interest rate or rates, redemption provisions, and other terms and conditions relating to the issuance.

(c) The district shall file annual audited financial statements with the city's secretary.

Sec. 3874.153. ASSESSMENTS; EXEMPTION. (a) The district may impose an assessment on property in the district, including an assessment on residential or commercial property, only in the manner provided by Subchapter A, Chapter 372, Local Government Code, or Subchapter F, Chapter 375, Local Government Code, for a municipality, county, or public improvement district, according to the benefit received by the property.

(b) An assessment on property must be for the limited purpose of providing capital funding for:

(1) public water and wastewater facilities;

(2) drainage and storm-water facilities;

(3) streets and alleys; and

(4) any authorized project under Chapter 372, Local Government Code.

(c) An assessment, a reassessment, or an assessment resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, an expense of collection, and reasonable attorney's fees incurred by the district:

(1) are a first and prior lien against the property assessed; and

(2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes.

(d) A lien of an assessment against property under this chapter runs with the land, and the portion of an assessment payment obligation that has not yet come due is not eliminated by the foreclosure of an ad valorem tax lien. Any purchaser of property in a foreclosure of an ad valorem tax lien takes the property subject to the assessment payment obligations that have not yet come due and to the lien and terms of payment under the applicable assessment ordinance or order.

(e) The board may make a correction to or deletion from the assessment roll that does not increase the amount of assessment of any parcel of land without providing notice and holding a hearing in the manner required for additional assessments.

(f) The district shall file notice of any tax or assessment imposed by the district with the county clerk of Dallas County and post the notice on the district's Internet website.

Sec. 3874.154. RESIDENTIAL PROPERTY EXEMPT. Section 375.161, Local Government Code, does not apply to the district.

Sec. 3874.155. MAINTENANCE AND OPERATION TAX; ELECTION. (a) The district may impose a tax for maintenance and operation purposes, including for:

(1) planning, constructing, acquiring, maintaining, repairing, and operating all improvement projects, including land, plants, works, facilities, improvements, appliances, and equipment of the district; and

(2) paying costs of services, engineering and legal fees, and organization and administrative expenses, including expenses of the city payable under the terms of the project development agreement described by Section 3874.160.

(b) The district may not impose a maintenance and operation tax for improvement projects under this chapter unless the imposition of the tax is approved by the voters of the district voting at an election held for that purpose. An election may be called only on receipt of a petition as provided by Section 3874.151(b).

(c) A maintenance and operation tax election may be held at the same time and in conjunction with any other district election. The election may be called by a separate election order or as part of any other election order.

Sec. 3874.156. USE OF SURPLUS MAINTENANCE AND OPERATION MONEY. If the district has surplus maintenance and operation tax money that is not needed for the purposes for which it was collected, the money may be used for any authorized purpose.

Sec. 3874.157. BONDS AND OTHER OBLIGATIONS. (a) Subject to the requirements of Sections 3874.159 and 3874.160, the district may issue by public or private sale bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, or by assessments in the manner provided by Subchapter A, Chapter 372, Local Government Code, or Subchapter J, Chapter 375, Local Government Code.

(b) In exercising the district's borrowing power, the district may issue a bond or other obligation in the form of a bond, note, certificate of participation or other instrument evidencing a proportionate interest in payments to be made by the district, or any other type of obligation.

(c) In addition to the sources of money described by Subchapter A, Chapter 372, Local Government Code, and Subchapter J, Chapter 375, Local Government Code, district bonds may be secured and made payable wholly or partly by a pledge of any part of the money the district receives from system or improvement project revenue or from any other source.

Sec. 3874.158. BOND MATURITY. Bonds may mature not more than 40 years from their date of issue.

Sec. 3874.159. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued:

(1) the board shall impose a continuing direct annual ad valorem tax for each year that all or part of the bonds are outstanding; and

(2) the district annually shall impose an ad valorem tax on all taxable property in the district in an amount sufficient to:

(A) pay the interest on the bonds or other obligations as the interest becomes due; and

(B) create a sinking fund for the payment of the principal of the bonds or other obligations when due or the redemption price at any earlier required redemption date.

Sec. 3874.160. DEVELOPMENT AND OPERATING AGREEMENT REQUIRED. (a) After the district's board is organized, but before the district may undertake any improvement project, issue bonds, impose taxes, levy assessments or fees, or borrow money, the district and the city must negotiate and execute a mutually approved and accepted development and operating agreement, including any limitations imposed by the city, regarding the plans and rules for:

(1) the exercise of the powers granted to the district under this chapter, including the organization, development, and operation of the district;

(2) the selection and description of improvement projects that may be undertaken and financed by the district and the ownership, operation, and maintenance of those projects;

(3) the terms, conditions, methods, means, and amounts of financing authorized by this chapter that the district may use in providing improvement projects; and

(4) the amounts, methods, and times of reimbursement to the city for costs and expenses, if any, incurred by the city with respect to the development and operation of the district and the financing of improvement projects by the district.

(b) An agreement authorized by this section is not effective until its terms and execution are approved by the board and the governing body of the city by resolution.

[Sections 3874.161-3874.250 reserved for expansion]

SUBCHAPTER E. DISSOLUTION

Sec. 3874.251. DISSOLUTION BY CITY ORDINANCE. (a) The city by ordinance may dissolve the district.

(b) The city may not dissolve the district until the district's outstanding indebtedness or contractual obligations that are payable from ad valorem taxes have been repaid or discharged, or the city has affirmatively assumed the obligation to pay the outstanding indebtedness from the city's lawfully available revenue.

(c) The city may not dissolve the district until the agreement under Section 3874.160 has been executed and the district's performance under the agreement has been fulfilled, including any right or obligation the district has to reimburse a developer or owner for the costs of improvement projects.

Sec. 3874.252. COLLECTION OF ASSESSMENTS AND OTHER REVENUE. (a) If the dissolved district has bonds or other obligations outstanding secured by and payable from assessments or other revenue, other than ad valorem taxes, the city shall succeed to the rights and obligations of the district regarding enforcement and collection of the assessments or other revenue.

(b) The city shall have and exercise all district powers to enforce and collect the assessments or other revenue to pay:

(1) the bonds or other obligations when due and payable according to their terms; or

(2) special revenue or assessment bonds or other obligations issued by the city to refund the outstanding bonds or obligations.

Sec. 3874.253. CONCURRENCE ON ADDITIONAL POWERS. If the legislature grants the district a power that is in addition to the powers approved by the initial resolution of the governing body of the city consenting to the creation of the district, the district may not exercise that power unless the governing body of the city consents to that change by resolution.

Sec. 3874.254. ASSUMPTION OF ASSETS AND LIABILITIES. (a) After the city dissolves the district, the city assumes, subject to the appropriation and availability of funds, the obligations of the district, including any bonds or other indebtedness payable from assessments or other district revenue.

(b) If the city dissolves the district, the board shall transfer ownership of all district property to the city.

SECTION 2. The district shall include the land described in Subsections (a), (b), and (c) as follows:

(a) TRACT 1:

BEING a tract of land situated in the John L. Whitman Survey, Abstract No. 1521, the Samuel Layton Survey, Abstract No. 784, the Nancy Cousey Survey, Abstract No. 318, the Granbury Hendricks Survey, Abstract No. 630, the Frances Jones Survey, Abstract No. 674, the G.W. Laws Survey, Abstract No. 843, the McKinney F. Williams Survey, Abstract No. 1054, the S.T. Brown Survey, Abstract No. 50, and the I.&G.N.R.R. CO. Survey, Abstract No. 1624 in the City of Dallas, Dallas County, Texas, and being a portion of those tracts of land described in deed to Luminant Generation Company, LLC, formerly TXU Generation Company LP, recorded in Volume 2001248, Page 11540 of the Deed Records of Dallas County, Texas, (D.R.D.C.T.) and being more particularly described as follows:

POINT OF BEGINNING at a 5/8" iron rod with cap found in the northerly right-of-way line of Hackberry Road (a variable width public right-of-way), said point bears North 89°41'06" East, 590.00 feet along the northerly right-of-way line of said Hackberry Road from a corner clip at the intersection of the easterly right-of-way line of Belt Line Road (a variable width public right-of-way);

THENCE North 00°18'56" West, a distance of 1976.12 feet, leaving the northerly right-of-way line of said Hackberry Road to a 5/8" iron rod with cap found for corner;

THENCE South 89°44'36" West, a distance of 620.83 feet, to a 5/8" iron rod with cap found in the easterly right-of-way line of Belt Line Road;

THENCE along the easterly right-of-way line of said Belt Line Road, the following courses and distances to wit:

--North 00°30'48" West, a distance of 1294.82 feet to a 5/8" iron rod with cap found for corner;

--North 05°11'50" East, a distance of 402.00 feet to a 5/8" iron rod with cap found for corner;

--North 00°30'48" West, a distance of 96.02 feet to a 5/8" iron rod with cap found for corner;

--North 00°30'45" West, a distance of 303.98 feet to a point for corner;

--North 05°11'50" East, a distance of 100.50 feet to a point for corner;

--North 00°30'48" West, a distance of 200.00 feet to a point for corner;

--North 08°01'03" East, a distance of 202.23 feet to a point for corner;

--North 00°30'48" West, a distance of 34.77 feet to a point for beginning of a curve to the left;

THENCE leaving the easterly right-of-way line of said Belt Line Road, the following courses and distances to wit:

--Easterly, with said curve to the left, through a central angle of 29°17'33", having a radius of 800.00 feet, and a chord bearing and distance of North 72°20'38" East, 404.56 feet, an arc length of 409.00 feet to a point for corner;

--North 57°41'51" East, a distance of 391.61 feet to a point for the beginning of a curve to the right;

--Easterly, with said curve to the right, through a central angle of 37°49'32", having a radius of 400.00 feet, and a chord bearing and distance of North 76°36'37" East, 259.30 feet, an arc length of 264.07 feet to a point for the beginning of a curve to the left;

--Easterly, with said curve to the left, through a central angle of 47°38'09", having a radius of 1392.55 feet, and a chord bearing and distance of North 65°38'40" East, 1124.71 feet, an arc length of 1157.76 feet to a point for corner;

--North 41°53'27" East, a distance of 203.89 feet to a point for the beginning of a curve to the right;

--Easterly, with said curve to the right, through a central angle of 11°23'28", having a radius of 668.73 feet, and a chord bearing and distance of North 55°13'43" East, 132.73 feet, an arc length of 132.95 feet to the beginning of a curve to the right;

--Easterly with said curve to the right, through a central angle of 47°34'24", having a radius of 652.00 feet, and a chord bearing and distance of South 89°52'05" East, 525.94 feet, an arc length of 541.36 feet to the beginning of a curve to the left;

--Eastlery, with said curve to the left, through a central angle of 74°20'01", having a radius of 209.47 feet, and a chord bearing and distance of North 83°12'19" East, 253.10 feet, an arc length of 271.76 feet to a point for corner;

--North 65°57'43" East, a distance of 180.40 feet to a point for the beginning of a curve to the right;

--Easterly, with said curve to the right, through a central angle of 98°01'46", having a radius of 150.00 feet, and a chord bearing and distance of South 65°01'24" East, 226.46 feet, an arc length of 256.64 feet to a point for corner;

--South 16°00'31" East, a distance of 320.31 feet to a point for the beginning of a curve to the right;

--Southerly, with said curve to the right, through a central angle of 53°30'19", having a radius of 400.00 feet, and a chord bearing and distance of South 10°44'39" West, 360.11 feet, an arc length of 373.54 feet to a point for corner;

--South 37°29'48" West, a distance of 128.31 feet to a point for the beginning of a curve to the left;

--Southerly, with said curve to the left, through a central angle of 25°35'51", having a radius of 500.00 feet, and a chord bearing and distance of South 24°41'53" West, 221.53 feet, an arc length of 223.38 feet to a point for corner;

--South 11°53'58" West, a distance of 296.88 feet to a point for corner;

--South 14°48'07" West, a distance of 94.75 feet to a point for corner;

--South 30°35'42" West, a distance of 135.14 feet to a point for corner;

--South 58°12'25" East, a distance of 38.46 feet to a point for corner;

--South 56°10'00" East, a distance of 98.02 feet to a point for corner;

--South 58°34'37" East, a distance of 513.21 feet to a point for corner;

--North 30°35'42" East, a distance of 169.61 feet to a point for corner for the beginning of a non-radial curve to the right;

--Easterly, with said non-radial curve to the right, through a central angle of 42°01'18", having a radius of 1900.00 feet, and a chord bearing and distance of North 42°56'22" East, 1362.47 feet, an arc length of 1393.49 feet to a point for corner;

--North 63°57'01" East, a distance of 107.71 feet to a point for the beginning of curve to the right;

--Easterly, with said curve to the right, through a central angle of 92°23'27", having a radius of 600.00 feet, and a chord bearing and distance of South 69°51'15" East, 866.05 feet, an arc length of 967.52 feet to a point for corner;

--South 23°39'31" East, a distance of 295.48 feet to a point for the beginning of a curve to the left;

--Easterly, with said curve to the left, through a central angle of 102°53'22", having a radius of 543.45 feet, and a chord bearing and distance of South 80°52'54" East, 849.96 feet, an arc length of 975.90 feet for the beginning of a curve to the right;

--Easterly, with said curve to the right, through a central angle of 45°50'08", having a radius of 403.98 feet, and a chord bearing and distance of North 70°35'29" East, 314.62 feet, an arc length of 323.17 feet to a point for corner;

--South 86°45'34" East, a distance of 611.56 feet to a 5/8" iron rod with cap found for corner;

--North 89°59'58" East, a distance of 386.45 feet to a 5/8" iron rod with cap found for corner;

--South 00°12'41" East, a distance of 809.16 feet to a "PK" nail found for corner;

--South 00°46'21" East, a distance of 3604.12 feet to a 5/8" iron rod with cap found for corner, said point being the northwest corner of a called 4997 square feet tract, as described in deed to Ensearch Corporation, recorded in Volume 84064, Page 1370, D.R.D.C.T.;

--North 89°08'31" West, a distance of 80.00 feet to a 5/8" iron rod with cap found for corner;

--South 00°46'21" East, a distance of 62.53 feet to a 5/8" iron rod with cap found for corner, said point being in the northerly right-of-way line of Ranch Trail, (a variable width public right-of-way);

THENCE along the northerly right-of-way line of said Ranch Trail, the following courses and distances to wit:

--North 89°08'30" West, a distance of 1284.00 feet to a 5/8" iron rod with cap found for corner;

--North 87°59'44" West, a distance of 200.25 feet to a 5/8" iron rod with cap found for corner;

--North 89°08'31" West, a distance of 209.36 feet to a 5/8" iron rod with cap found for corner;

THENCE leaving the northerly right-of-way line of said Ranch Trail, the following courses and distances to wit:

--North 00°51'29" East, a distance of 443.28 feet to a 5/8" iron rod with cap found for corner;

--North 29°25'57" West, a distance of 323.94 feet to a 5/8" iron rod with cap found for corner;

--North 89°08'31" West, a distance of 591.20 feet to a 5/8" iron rod with cap found for corner;

--South 00°51'29" West, a distance of 723.00 feet to a 5/8" iron rod with cap found for corner, said point being in the northerly right-of-way line of said Ranch Trail;

THENCE along the northerly right-of-way line of said Ranch Trail, the following courses and distances to wit:

--North 89°08'31" West, a distance of 1216.91 feet to a 5/8" iron rod with cap found for corner;

--North 89°18'32" West, a distance of 172.18 feet to a 5/8" iron rod with cap found for corner;

THENCE leaving the northerly right-of-way line of said Ranch Trail, along the westerly line of a Transmission Easement, recorded in Volume 2001248, Page 11540, D.R.D.C.T., the following courses and distances to wit:

--North 27°40'25" East, a distance of 906.98 feet to a point for corner;

--North 21°52'30" East, a distance of 576.98 feet to a point for corner;

--North 55°19'47" West, a distance of 602.33 feet to a point for corner;

--North 58°18'20" West, a distance of 1662.99 feet to a point for corner;

THENCE South 00°41'28" West, a distance of 2541.69 feet, leaving the westerly line of said Transmission Easement, to a 5/8" iron rod with cap found for corner, said point being in the northerly right-of-way line of said Hackberry Road;

THENCE North 89°08'11" West, a distance of 2065.95 feet, along the northerly right-of-way line of said Hackberry Road to the POINT OF BEGINNING, and containing a Gross Area of 759.35 acres (33,077,408 square feet) of land, more or less;

SAVE AND EXCEPT THEREFROM THE FOLLOWING 4 TRACTS:

SAVE AND EXCEPT ( #1 ) a portion of land being more particularly described as follows:

POINT OF COMMENCING at a 5/8" iron rod with cap found for corner, said point being in the northerly right-of-way line of said Ranch Trail, said point also being the southwest corner of said called 4997 square feet tract;

THENCE North 89°08'30" West, a distance of 638.81 feet, along the northerly right-of-way line of said Ranch Trail;

THENCE North 00°51'30" East, a distance of 681.35 feet, departing the northerly right-of-way line of said Ranch Trail, to an iron rod found for corner, said point being the POINT OF BEGINNING;

THENCE North 84°32'23" West, a distance of 851.35 feet to a point for corner;

THENCE North 05°50'00" East, a distance of 648.19 feet to an iron rod found for corner;

THENCE South 84°09'37" East, a distance of 849.39 feet to an iron rod found for corner;

THENCE South 05°39'37" West, a distance of 642.56 feet to the POINT OF BEGINNING, and containing 12.60 acres (548,801 square feet) of land, more or less.

SAVE AND EXCEPT ( #2 ) a portion of land being more particularly described as follows:

POINT OF COMMENCING at a 5/8" iron rod with cap found for corner, said point being in the northerly right-of-way line of said Ranch Trail, said point also being the southwest corner of said called 4997 square feet tract;

THENCE North 89°08'30" West, a distance of 311.43 feet, along the northerly right-of-way line of said Ranch Trail;

THENCE North 00°51'30" East, a distance of 391.56 feet, departing the northerly right-of-way line of said Ranch Trail, to the POINT OF BEGINNING;

THENCE North 89°59'58" West, a distance of 667.90 feet to a point for corner;

THENCE North 00°48'46" East, a distance of 327.21 feet to a point for corner;

THENCE South 84°32'23" East, a distance of 341.81 feet to an iron rod found for corner;

THENCE North 05°39'37" East, a distance of 51.68 feet to a point for corner;

THENCE South 49°50'24" East, a distance of 371.29 feet to a point for corner;

THENCE South 17°45'24" East, a distance of 111.97 feet to the POINT OF BEGINNING, and containing 4.00 acres (174,236 square feet) of land, more or less.

SAVE AND EXCEPT ( #3 ) a portion of land being more particularly described as follows:

POINT OF COMMENCING at a 5/8" iron rod with cap found for corner, said point being in the northerly right-of-way line of said Ranch Trail, said point also being the southwest corner of said called 4997 square feet tract;

THENCE along the northerly right-of-way line of said Ranch Trail, the following courses and distances to wit:

-- North 89°08'30" West, a distance of 1284.00 feet, to a point for corner;

-- North 87°59'44" West, a distance of 200.25 feet, to a point for corner;

-- North 89°08'31" West, a distance of 1265.07 feet, to a point for corner;

THENCE North 00°51'29" East, a distance of 680.57 feet, departing the northerly right-of-way line of said Ranch Trail, to the POINT OF BEGINNING;

THENCE North 84°46'39" West, a distance of 453.47 feet to a point for corner;

THENCE North 32°46'18" East, a distance of 682.55 feet to a point for corner;

THENCE South 84°46'39" East, a distance of 330.77 feet to a point for corner;

THENCE South 20°06'59" East, a distance of 227.25 feet to a point for corner;

THENCE South 32°46'18" West, a distance of 369.20 feet to a point for corner;

THENCE South 63°59'50" West, a distance of 139.72 feet to the POINT OF BEGINNING, and containing 6.89 acres (299,912 square feet) of land, more or less.

SAVE AND EXCEPT ( #4 ) a portion of land being more particularly described as follows:

POINT OF COMMENCING at a 5/8" iron rod with cap found for corner, said point being in the easterly right-of-way line of said Belt Line Road, said point also being the northerly most southwest corner of Tract 1;

THENCE North 00°30'48" West, a distance of 1192.95 feet, along the easterly right-of-way line of said Belt Line Road;

THENCE North 89°29'12" East, a distance of 984.48 feet, departing the easterly right-of-way line of said Belt Line Road, to the POINT OF BEGINNING;

THENCE North 13°18'20" West, a distance of 186.88 feet to a point for corner;

THENCE North 31°41'40" East, a distance of 277.00 feet to a point for corner;

THENCE South 58°18'20" East, a distance of 575.00 feet to a point for corner;

THENCE South 31°41'40" West, a distance of 277.00 feet to a point for corner;

THENCE South 76°41'40" West, a distance of 186.88 feet to a point for corner;

THENCE North 58°18'20" West, a distance of 310.71 feet to the POINT OF BEGINNING, and containing 5.00 acres (217,798 square feet) of land, more or less, and leaving TRACT 1 with a Net Area of 730.86 acres (31,836,661 square feet) of land, more or less.

(b) TRACT 2:

BEING a tract of land situated in the Jacob G. Carlock Survey, Abstract No. 312, the Nancy Cousey Survey, Abstract No. 318, and the McKinney F. Williams Survey, Abstract No. 1054, in the City of Dallas, Dallas County, Texas, and being a portion of those tracts of land described in deed to Luminant Generation Company, LLC, formerly TXU Generation Company LP, recorded in Volume 2001248, Page 11540 of the Deed Records of Dallas County, Texas, and being more particularly described as follows:

POINT OF COMMENCING at a 5/8" iron pipe with cap found at a corner clip at the intersection of the southerly right-of-way line of East Belt Line Road (a variable width public right-of-way) and the easterly right-of-way line of Sanders Loop (a 60-foot width right-of-way);

THENCE along the southerly right-of-way line of said East Belt Line Road, the following courses and distances to wit:

--North 89°41'24" East, a distance of 666.55 feet, to a 1/2" iron pipe with cap found for corner for the beginning of a curve to the left;

--Easterly, with said curve to the left, through a central angle of 14°45'11", having a radius of 1684.45 feet, and a chord bearing and distance of North 82°18'48" East, 432.53 feet, an arc length of 433.73 feet to a 1/2" iron pipe with cap found for corner for the POINT OF BEGINNING, said point being the beginning of a curve to the left;

THENCE continuing along the southerly right-of-way line of said East Belt Line Road, the following courses and distances to wit:

--Easterly, with said curve to the left, through a central angle of 44°20'08", having a radius of 1492.40 feet, and a chord bearing and distance of North 51°48'48" East, 1126.23 feet, an arc length of 1154.82 feet to a point for corner;

--North 29°38'44" East, a distance of 579.43 feet, to a 1" iron rod found for corner for the beginning of a curve to the right;

--Easterly, with said curve to the right, through a central angle of 37°43'34", having a radius of 1849.85 feet, and a chord bearing and distance of North 48°30'31" East, 1196.14 feet, an arc length of 1218.02 feet to a 1/2" iron rod found for corner;

--North 67°22'17" East, a distance of 1490.05 feet, to a 3/4" iron pipe found for corner for the beginning of a curve to the right;

--Easterly, with said curve to the right, through a central angle of 41°16'11", having a radius of 2804.79 feet, and a chord bearing and distance of North 87°58'47" East, 1976.88 feet, an arc length of 2020.27 feet to a point for corner at a corner clip at the intersection of the southerly right-of-way line of said East Belt Line Road and the westerly right-of-way line of South Northlake Road (an 80-foot width right-of-way);

THENCE along the westerly right-of-way line of said South Northlake Road, the following courses and distances to wit:

--South 26°07'21" East, a distance of 57.54 feet, to a point for corner for the beginning of a non-tangent curve to the left;

--Southerly, with said non-tangent curve to the left, through a central angle of 17°15'16", having a radius of 858.51 feet, and a chord bearing and distance of South 08°09'10" West, 257.56 feet, an arc length of 258.54 feet to a point for corner;

--South 00°28'28" East, a distance of 331.72 feet, to a point for corner;

--South 01°03'30" East, a distance of 446.34 feet, to a mag nail found for corner;

THENCE leaving the westerly right-of-way line of said South Northlake Road, the following courses and distances to wit:

--South 00°41'14" West, a distance of 59.74 feet, to a point for corner;

--North 89°38'49" East, a distance of 37.29 feet, to a 1/2" iron pipe with cap found for corner;

--South 00°34'34" East, a distance of 663.61 feet, to a point for corner;

--South 89°59'58" West, a distance of 907.02 feet, to a point for corner;

--South 27°05'01" East, a distance of 128.90 feet, to a point for corner;

--North 69°14'19" West, a distance of 61.87 feet, to a point for corner;

--North 89°29'16" West, a distance of 799.56 feet, to a point for corner;

--North 87°02'10" West, a distance of 844.03 feet, to a point for corner for the beginning of a curve to the right;

--Westerly, with said curve to the right, through a central angle of 17°19'38", having a radius of 100.00 feet, and a chord bearing and distance of North 78°22'21" West, 30.13 feet, an arc length of 30.24 feet to a point for corner;

--North 69°42'32" West, a distance of 118.61 feet, to a point for corner;

--South 31°17'57" West, a distance of 427.71 feet, to a point for corner for the beginning of a curve to the left;

--Southerly, with said curve to the left, through a central angle of 28°51'04", having a radius of 1375.75 feet, and a chord bearing and distance of South 12°00'33" West, 685.46 feet, an arc length of 692.75 feet to a point for corner for the beginning of a reverse curve to the right;

--Southerly, with said reverse curve to the right, through a central angle of 12°36'46", having a radius of 1738.86 feet, and a chord bearing and distance of South 08°31'33" West, 382.01 feet, an arc length of 382.78 feet to a point for corner;

--South 15°30'32" West, a distance of 34.97 feet, to a point for corner for the beginning of a curve to the left;

--Southerly, with said curve to the left, through a central angle of 74°33'21", having a radius of 50.00 feet, and a chord bearing and distance of South 21°46'08" East, 60.57 feet, an arc length of 65.06 feet to a point for corner;

--South 59°02'48" East, a distance of 9.59 feet, to a point for corner for the beginning of a curve to the right;

--Southerly, with said curve to the right, through a central angle of 126°19'40", having a radius of 25.00 feet, and a chord bearing and distance of South 04°07'02" West, 44.62 feet, an arc length of 55.12 feet to a point for corner;

--South 67°16'52" West, a distance of 57.30 feet, to a point for corner for the beginning of a curve to the left;

--Southerly, with said curve to the left, through a central angle of 45°03'15", having a radius of 50.00 feet, and a chord bearing and distance of South 44°45'14" West, 38.31 feet, an arc length of 39.32 feet to a point for corner;

--South 22°13'36" West, a distance of 51.27 feet, to a point for corner for the beginning of a curve to the right;

--Southerly, with said curve to the right, through a central angle of 12°52'49", having a radius of 1738.86 feet, and a chord bearing and distance of South 29°30'27" West, 390.08 feet, an arc length of 390.90 feet to a point for corner;

--South 37°34'26" West, a distance of 135.48 feet, to a point for corner for the beginning of a curve to the left;

--Southerly, with said curve to the left, through a central angle of 51°13'26", having a radius of 50.00 feet, and a chord bearing and distance of South 11°57'43" West, 43.23 feet, an arc length of 44.70 feet to a point for corner;

--South 13°39'00" East, a distance of 151.04 feet, to a point for corner for the beginning of a curve to the right;

--Southwesterly, with said curve to the right, through a central angle of 121°16'27", having a radius of 50.00 feet, and a chord bearing and distance of South 46°59'14" West, 87.15 feet, an arc length of 105.83 feet to a point for corner;

--North 72°22'33" West, a distance of 242.60 feet, to a point for corner for the beginning of a curve to the left;

--Westerly, with said curve to the left, through a central angle of 33°20'29", having a radius of 200.00 feet, and a chord bearing and distance of North 89°02'47" West, 114.75 feet, an arc length of 116.38 feet to a point for corner;

--South 74°16'58" West, a distance of 575.84 feet, to a point for corner for the beginning of a curve to the right;

--Southwesterly, with said curve to the right, through a central angle of 07°56'12", having a radius of 100.00 feet, and a chord bearing and distance of South 78°15'04" West, 13.84 feet, an arc length of 13.85 feet to a point for corner;

--South 82°13'10" West, a distance of 348.79 feet, to a point for corner for the beginning of a curve to the left;

--Southwesterly, with said curve to the left, through a central angle of 20°16'51", having a radius of 100.00 feet, and a chord bearing and distance of South 72°04'44" West, 35.21 feet, an arc length of 35.40 feet to a point for corner;

--South 61°56'19" West, a distance of 104.25 feet, to a point for corner for the beginning of a non-tangent curve to the left;

--Southwesterly, with said non-tangent curve to the left, through a central angle of 35°48'44", having a radius of 451.03 feet, and a chord bearing and distance of South 47°33'03" West, 277.34 feet, an arc length of 281.91 feet to a point for corner for the beginning of a non-tangent reverse curve to the right;

--Southwesterly, with said non-tangent reverse curve to the right, through a central angle of 21°43'25", having a radius of 1682.82 feet, and a chord bearing and distance of South 48°00'48" West, 634.22 feet, an arc length of 638.04 feet to a point for corner for the beginning of a compound curve to the right;

--Southwesterly, with said compound curve to the right, through a central angle of 33°31'06", having a radius of 1000.00 feet, and a chord bearing and distance of South 75°38'03" West, 576.70 feet, an arc length of 585.00 feet to a point for corner for the beginning of a reverse curve to the left;

--Southwesterly, with said reverse curve to the left, through a central angle of 57°11'43", having a radius of 100.00 feet, and a chord bearing and distance of South 63°47'45" West, 95.73 feet, an arc length of 99.82 feet to a point for corner for the beginning of a reverse curve to the right;

--Southwesterly, with said reverse curve to the right, through a central angle of 55°20'21", having a radius of 849.05 feet, and a chord bearing and distance of South 62°52'04" West, 788.55 feet, an arc length of 820.05 feet to a point for corner;

--West, a distance of 187.74 feet, to a point for corner, said point being in the easterly right-of-way line of South Belt Line Road (a variable width public right-of-way);

THENCE along the easterly right-of-way line of said South Belt Line Road, the following courses and distances to wit:

--North 00°34'47" West, a distance of 41.91 feet, to a point for corner;

--North 00°34'57" West, a distance of 283.17 feet, to a 5/8" iron rod with cap found for corner;

--North 00°32'02" West, a distance of 1232.51 feet, to an "X" found for corner at a corner clip at the intersection of the easterly right-of-way line of said South Belt Line Road and the southerly right-of-way line of said Sanders Loop;

THENCE along the southerly and easterly right-of-way line of said Sanders Loop, the following courses and distances to wit:

--North 44°43'45" East, a distance of 28.28 feet, to an "X" found for corner;

--North 89°37'59" East, a distance of 521.23 feet, to a 5/8" iron pipe with cap found for corner;

--North 00°41'00" West, a distance of 506.40 feet, to a point for corner;

THENCE departing the easterly right-of-way line of said Sanders Loop, the following courses and distances to wit:

--North 89°59'58" East, a distance of 1023.17 feet, to a point for corner, said point being in the westerly line of a 170-foot wide Electric Transmission Easement (Tract 1) in Special Warranty Deed recorded in Volume 2001248, Page 11540, D.R.D.C.T.;

--North 20°08'20" East, a distance of 633.78 feet, along the westerly line of a said Electric Transmission Easement, to a point for corner;

--North 38°46'45" East, a distance of 245.52 feet, continuing along the westerly line of a said Electric Transmission Easement, to a point for corner;

--South 89°59'58" West, a distance of 278.55 feet, departing the westerly line of a said Electric Transmission Easement, to the POINT OF BEGINNING, and containing a Gross Area of 338.88 acres (14,761,616 square feet) of land, more or less;

SAVE AND EXCEPT THEREFROM THE FOLLOWING 3 TRACTS:

SAVE AND EXCEPT ( #1 ) a portion of land being more particularly described as follows:

POINT OF COMMENCING at a 5/8" iron pipe with cap found at a corner clip at the intersection of the southerly right-of-way line of said East Belt Line Road and the easterly right-of-way line of said Sanders Loop;

THENCE along the southerly right-of-way line of said East Belt Line Road, the following courses and distances to wit:

--North 89°41'24" East, a distance of 666.55 feet, to a 1/2" iron pipe with cap found for corner for the beginning of a curve to the left;

--Easterly, with said curve to the left, through a central angle of 14°45'11", having a radius of 1684.45 feet, and a chord bearing and distance of North 82°18'48" East, 432.53 feet, an arc length of 433.73 feet to a 1/2" iron pipe with cap found for corner for the POINT OF BEGINNING, said point being the beginning of a curve to the left;

THENCE continuing along the southerly right-of-way line of said East Belt Line Road, the following courses and distances to wit:

--Easterly, with said curve to the left, through a central angle of 44°20'08", having a radius of 1492.40 feet, and a chord bearing and distance of North 51°48'48" East, 1126.23 feet, an arc length of 1154.82 feet to a point for corner;

--North 29°38'44" East, a distance of 579.43 feet, to a 1" iron rod found for corner for the beginning of a curve to the right;

--Easterly, with said curve to the right, through a central angle of 37°43'34", having a radius of 1849.85 feet, and a chord bearing and distance of North 48°30'31" East, 1196.14 feet, an arc length of 1218.02 feet to a 1/2" iron rod found for corner;

--North 67°22'17" East, a distance of 1490.05 feet, to a 3/4" iron pipe found for corner for the beginning of a curve to the right;

--Easterly, with said curve to the right, through a central angle of 04°15'22", having a radius of 2804.79 feet, and a chord bearing and distance of North 69°28'23" East, 208.30 feet, an arc length of 208.35 feet to a point for corner;

THENCE departing the southerly right-of-way line of said East Belt Line Road, the following courses and distances to wit:

--South 10°37'36" East, a distance of 152.65 feet, to a point for corner;

--South 07°57'55" East, a distance of 246.27 feet, to a point for corner;

--North 77°48'47" East, a distance of 1000.02 feet, to a point for corner;

--South 62°02'11" East, a distance of 263.63 feet, to a point for corner;

--South 77°48'46" East, a distance of 549.80 feet, to a point for corner;

--South 00°00'02" East, a distance of 219.19 feet, to a point for corner;

--North 89°59'58" East, a distance of 1036.92 feet, to a point for corner;

--South 07°57'55" East, a distance of 246.27 feet, to a point for corner, said point being in the westerly right-or-way line of said South Northlake Road;

THENCE South 01°03'30" East, a distance of 446.34 feet, along the westerly right-of-way line of said South Northlake Road, to a mag nail found for corner;

THENCE South 00°41'14" West, a distance of 59.74 feet, departing the westerly right-of-way line of said South Northlake Road, to a point for corner;

THENCE North 89°38'49" East, a distance of 37.29 feet, to a 1/2" iron pipe with cap found for corner;

THENCE South 00°34'34" East, a distance of 663.61 feet, to a point for corner;

THENCE South 89°59'58" West, a distance of 907.02 feet, to a point for corner;

THENCE South 27°05'01" East, a distance of 128.90 feet, to a point for corner;

THENCE North 69°14'19" West, a distance of 61.87 feet, to a point for corner;

THENCE South 89°29'16" West, a distance of 799.56 feet, to a point for corner;

THENCE North 87°02'10" West, a distance of 844.03 feet, to a point for corner for the beginning of a curve to the left;

THENCE westerly, with said curve to the left, through a central angle of 17°19'38", having a radius of 100.00 feet, and a chord bearing and distance of North 78°22'21" West, 30.13 feet, an arc length of 30.24 feet to a point for corner;

THENCE North 69°42'32" West, a distance of 118.61 feet, to a point for corner;

THENCE North 73°57'13" West, a distance of 50.94 feet, to a point for corner;

THENCE North 67°29'55" West, a distance of 376.50 feet, to a point for corner;

THENCE North 71°24'21" West, a distance of 478.92 feet, to a point for corner;

THENCE South 60°19'57" West, a distance of 469.83 feet, to a point for corner;

THENCE South 51°57'35" West, a distance of 476.83 feet, to a point for corner;

THENCE South 51°29'18" West, a distance of 450.28 feet, to a point for corner;

THENCE South 55°18'30" West, a distance of 202.63 feet, to a point for corner;

THENCE South 36°33'51" West, a distance of 258.05 feet, to a point for corner;

THENCE South 89°59'58" West, a distance of 465.27 feet, to the POINT OF BEGINNING, and containing 132.11 acres (5,754,834 square feet) of land, more or less.

SAVE AND EXCEPT ( #2 ) a portion of land being more particularly described as follows:

POINT OF COMMENCING at a corner clip at the intersection of the southerly right-of-way line of said East Belt Line Road and the westerly right-of-way line of said South Northlake Road;

THENCE along the westerly right-of-way line of said South Northlake Road, the following courses and distances to wit:

--South 26°07'21" East, a distance of 57.54 feet, to a point for corner for the beginning of a non-tangent curve to the left;

--Southerly, with said non-tangent curve to the left, through a central angle of 17°15'16", having a radius of 858.51 feet, and a chord bearing and distance of South 08°09'10" West, 257.56 feet, an arc length of 258.54 feet to a point for corner;

--South 00°28'28" East, a distance of 331.72 feet, to a point for corner;

THENCE South 89°59'58" West, a distance of 205.12 feet, departing the westerly right-of-way line of said South Northlake Road, to the POINT OF BEGINNING;

THENCE South 89°59'58" West, a distance of 230.05 feet, to a point for corner;

THENCE North 39°28'39" West, a distance of 118.02 feet, to a point for corner;

THENCE South 88°59'00" West, a distance of 115.21 feet, to a point for corner;

THENCE North 26°46'14" West, a distance of 221.20 feet, to a point for corner;

THENCE North 77°48'46" East, a distance of 505.54 feet, to a point for corner;

THENCE South 03°44'54" East, a distance of 394.11 feet, to the POINT OF BEGINNING, and containing 3.23 acres

(140,525 square feet) of land, more or less.

SAVE AND EXCEPT ( #3 ) a portion of land being more particularly described as follows:

POINT OF BEGINNING at a point in the southerly right-of-way line of said Sanders Loop, said point bears North 44°43'45" East, 172.76 feet along the southerly right-of-way line of said Sanders Loop from a corner clip at the intersection of the easterly right-of-way line of said Belt Line Road;

THENCE North 89°37'59" East, a distance of 278.85 feet, along the southerly right-of-way line of said Sanders Loop, to a point for corner, said point being the beginning of a non-tangent curve to the left;

THENCE departing the southerly right-of-way line of said Sanders Loop, the following courses and distances to wit:

--Southeasterly, with said non-tangent curve to the left, through a central angle of 32°38'41", having a radius of 510 feet, and a chord bearing and distance of South 52°55'29" East, 286.66 feet, an arc length of 290.58 feet to a point for corner;

--South 00°22'01" East, a distance of 302.72 feet, to a point for corner;

--South 89°37'59" West, a distance of 506.45 feet, to a point for corner;

--North 00°22'01" West, a distance of 477.00 feet, to the POINT OF BEGINNING, and containing 5.00 acres (217,799 square feet) of land, more or less, and leaving Net Areas as follows:

Tract 2A containing 178.98 acres (7,796,183 square feet) of land, more or less,

Tract 2B containing 17.01 acres (740,901 square feet) of land, more or less,

Tract 2C containing 2.56 acres (111,374 square feet) of land, more or less.

(c) TRACT 3:

BEING a tract of land situated in the Jacob G. Carlock Survey, Abstract No. 312, in the City of Dallas, Dallas County, Texas, and being a portion of those tracts of land described in deed to Luminant Generation Company, LLC, formerly TXU Generation Company LP, recorded in Volume 2001248, Page 11540 of the Deed Records of Dallas County, Texas, and being more particularly described as follows:

POINT OF COMMENCING at the southeast corner of Tract 2;

THENCE South 00°34'34" East, a distance of 145.00 feet, to a 3" fence post found for corner for the POINT OF BEGINNING;

THENCE North 89°31'11" East, a distance of 538.69 feet, to a 3" fence post found for corner;

THENCE South 00°35'34" East, a distance of 689.26 feet, to a 3" fence post found for corner;

THENCE North 89°32'29" West, a distance of 201.09 feet, to a 1/2" iron pipe with cap found for corner;

THENCE North 30°30'42" West, a distance of 676.98 feet, to a 1/2" iron pipe with cap found for corner;

THENCE North 00°34'34" West, a distance of 99.87 feet, to the POINT OF BEGINNING, and containing 6.22 acres (270,922 square feet) of land, more or less.

SECTION 3. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality.

(c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time.

(d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.