By: Jackson, Ellis S.C.R. No. 59

(In the Senate - Filed April 14, 2009; April 15, 2009, read first time and referred to Committee on Jurisprudence; May 13, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 4, Nays 0; May 13, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.C.R. No. 59 By: Hinojosa

SENATE CONCURRENT RESOLUTION

WHEREAS, MBP Corp. alleges that:

(1) in May 1990, the Board of Trustees of the Galveston Wharves entered into a lease and development agreement with The Woodlands Corporation;

(2) in January 1993, The Woodlands Corporation assigned all of its rights, title, and interest in the lease to Strand Harborside Joint Venture, a Texas joint venture of The Woodlands Corporation and MBP Corp.;

(3) in January 1994, The Woodlands Corporation assigned all of its interest in the joint venture to MBP Corp., effectively dissolving the joint venture, and leaving MBP Corp. as the successor in interest to the lease;

(4) under the terms of the lease, MBP Corp., as successor in interest to the lease, would develop tourist-related facilities at its own cost within a time frame dictated by the Board of Trustees of the Galveston Wharves while paying rent to the board for the property, and on termination of the lease, all developments made by MBP Corp. would be owned by the Board of Trustees of the Galveston Wharves;

(5) the property affected by the lease includes the rooftop of the Mallory Building, also known as the Galveston Cruise Ship Terminal, and the aerial rights above the Mallory Building;

(6) in 1999 and in 2003, the Board of Trustees of the Galveston Wharves and MBP Corp. negotiated amendments to the lease agreement;

(7) the parties have a dispute over the lease;

(8) in addition, other disputes have developed between MBP Corp. and the Board of Trustees of the Galveston Wharves over the lease;

(9) MBP Corp. seeks legislative approval to file suit in order to resolve any and all disputes between the parties regarding the lease; now, therefore, be it

RESOLVED by the Legislature of the State of Texas, That MBP Corp. is granted permission to sue the Board of Trustees of the Galveston Wharves subject to Chapter 107, Civil Practice and Remedies Code; and, be it further

RESOLVED, That the Chairman of the Board of Trustees of the Galveston Wharves be served process as provided by Subdivision (3), Subsection (a), Section 107.002, Civil Practice and Remedies Code.

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