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14 - Action on Disannexation Petition - located on CR 22500Item No. 14 TO: City Council Robert G. Vine, Interim City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Action on Disannexation Petition—LOAD Parcels 71112, 71113, 70422, and 70423, located on County Road 22500 DATE: September 9, 2024 BACKGROUND: Nexus Renewable Power, LLC ("Nexus"), on behalf of Robert Moore, the property owner, has submitted a petition to disannex portions of three parcels (LOAD#s 71112, 71113, and 70422) and the entirety of a fourth parcel (LOAD# 70423) on or around County Road 22500, being approximately 170 acres in total. The parcels are located to the west, southwest, and south of the Kimberly-Clark plant.' Nexus has leased the parcels from Mr. Moore as part of the MRG Goody Solar Project (the "Project"). The Project will occupy additional parcels owned by the company to the west and out in the county. As a part of the development process, Nexus discovered that all of parcel 70423 and portions of the remaining parcels lie within the city limits of Paris. On June 24, 2024, Council directed staff to institute disannexation proceedings in line with the city's annexation and disannexation policy. As of this date, all notifications have been made and City Council has held two public hearings, on August 5th and August 12th after publication, all according to the requirements of Chapter 43, Texas Local Government Code. STATUS: The petition is now on the agenda for action on an ordinance disannexing the property. Nexus and the city have come to terms on a disannexation agreement whereby Nexus would pay the city $400,000.00, a sum meant to represent a present value of ad valorem taxes which would accrue on the property over a period of thirty years. The payments would be in three installments as follows: • A disannexation payment of $100,000.00 which would be due within thirty days following disannexation. • A commencement of construction payment of $175,000.00 which would be due within thirty days following the beginning of construction, which Nexus estimates will be in the fall of 2024. • A commencement of operations payment of $125,000.00 due within 30 days following the beginning of operations, which Nexus estimates will be in December of 2025. In addition, the disannexation agreement provides for Nexus to do land clearing and cite work on the Northeast Texas Trail corridor that runs through the project, including land which is not 1 Please refer to my memorandum of June 24, 2024 for a more thorough background of this petition including maps; I've attached it hereto for your easy reference. currently in the city limits. A copy of the proposed agreement is attached as Exhibit C to the proposed ordinance disannexing the property. Nexus advises that it has entered in to and agreement with Chisum ISD under Chapter 313 of the Texas Tax Code that "will provide more than $23 million dollars to Chisum ISD over the next 35 years, and nearly $11 million in the first 10 years," and that development of the project and payments to the school district will be delayed by two years should the city deny the disannexation petition. It is very likely that the solar project will move forward even if City Council denies the petition, although it may be redesigned to eliminate those portions that are on land currently within the city limits. Given that current state law strongly disfavors annexation, once this property is disannexed, it would be very difficut and quite unlikely to ever be able to re -annex it. BUDGET: The requested disannexation would deprive the City of the property tax revenue for the disannexed property; however, the developer is interested in entering into an agreement to mitigate the loss as described above. OPTIONS: 1. Discuss and act on an ordinance disannexing the property and approving the disannexation agreement with disannexation becoming effective as of the date that the agreement is executed by the Nexus. 2. Discuss and act on a resolution making findings of fact and denying the petition of disannexation as to portions LCAD Parcels 71112, 71113, 70422, and 70423, located on County Road 22500 and comprising approximately 170 acres. TO: City Council Grayson Path, City Manager FROM: Robert G. Vine, Deputy City Manager Stephanie H. Harris, City Attorney SUBJECT: Disannexation Request—LOAD Parcels 71112, 71113, 70422, and 70423, located on County Road 22500 and comprising approximately 291 acres DATE: June 24, 2024 BACKGROUND: Nexus Renewable Power, LLC ("Nexus"), on behalf of Robert Moore, the property owner, has submitted a petition to disannex the four above -referenced parcels located on or around CR 22500 west of Paris. The parcels are located to the west, southwest, and south of the Kimberly-Clark plant and comprise approximately 291 acres. The thin yellow line is the city limits line; the thick green lines outline the parcels. Nexus has leased the parcels from Mr. Moore as part of the MRG Goody Solar Project (the "Project"). The Project will occupy additional parcels owned by the company to the west and out in the county. As a part of the development process, Nexus discovered that all of parcel 70423 and portions of the remaining parcels lie within the city limits of Paris. As a part of the application for disannexation and in meetings between the developer and city staff, Nexus has presented the following factors as impetus for seeking disannexation: Maintairdrig lJnifoirn,flty of Devellopirnent for City Protection, Over 901% of the acreage aiirui costs for"the Project aire located oiY.itsHe of the (.,"ity of Paris city hirrilts. Dsari� �iexatiorl aifows tis to utlTzip a tnflforirn and cons�stient design style, compoineints, and COTIStrUcdon appiroach, whlch wot,flid rininlirnlze l:)otenflal delays, redt,icelinve-stin4eint risk, fire hazards, and generally re(iiiice poten,tial ni[shaps &je to dllispairatie re(-4UlIirernents. * Minimizing City of Paris Obligadoins. 1. . )lsannexation wotAkll reirnc)/e the burden fircorn the Oty to offer local seii-Oces; a partict.jlar coria(,.^rn foii, a reniote edge! of the City of Paris` property, * Accelerating Stjbstaintiall I conoiTflc Beriefits tc0, ist.im ISD. The FIrojei::.t. is pairdcllpating 41 a n.�ei-)t2 (t� 31.3 Agiree ie "Agree rn ent'") with Ohlsi.jrrl hiidependent Scho&l District ("Gnisuni ED'), The Agreernent wifl piravide rnorr than $23 Irrnillliorn dollars Jar-hirnini ISD ove[ the next 35, years, and nearly $1.1. rnflhoin in the first 10 yews, lInitially, it was plail rned for the Project'to coirrq)lete constrt,ictk)n in 2027, meaning Chistirri 61) winijildn't receive any significant reventies t.jntil,2028,."Il he Project approached Chist.irr) IS[) to arnei,-iid the Agreernent in 2024, hoping to accelerate the, Prc�ject firnefine by cornplleting coinsftin.lictlon in 2025, aHc)wing Chlsjurn lSD to be& receiOng sign ific�,a int revenk.jes 'in 2026 - two years earheir than odglinafly iplanned,"Fhe afoT eimientioned delays created L)y the :QOM 113 jeopardlze the Project's abiRy tc) begin constin,ilctic)n hi-) 2()24 ar[d rnay further jeopardize the Project's deveIloprnent, * Acceleratling, Econoi,nic Beinefits taco l airnaii,- EZourn tyLPanis ,kmorl C&Ilege.,and the City of Paris. TFl e Project is anticipated to accelerate its dirnehne Iby nearly tmr(:) years with the ahn of stairfling ct::)nstructioin before the end of,2024. Ihis would result insut.)standall tax payrnients beginnhng in 20215. [Asannexadon hey PS enSUre this accelerated flirnelirw (,:an Qbe rnahitalned by confornihip ., peirrnitling recluk-ernents across the enflre iProject and pruvi&ng inoirle, tin -ring, regtillatory, and reverk.re certaini.Y to the Rioject and each of Larnair Cokinty, Paris Juidior College, and fl,,oe C-ity of IParlis. I . he Spec.ific Use Permit Potentiafly p14egates a1H lriveslLii,irieritMl'ithiii City& Paris Umits. The Riojecil: has engaged in highly respoinsHble dip)4[oprnent by c-ornrnfttlrng to a fifty-foot.-bk.Affer, whlch lis higili than indL)Str'y standards aind sig . nparaUle s6ar ,inificantly iargeir than otheir cN pirc)jects hn Lairriar County, I the four-hunidired-foot buffer reqtAred by Ordinance 201.7- 0001,98-29 100 woUld ehrnirwe five (5) of ii::he seven (7) sow arrays pllainned for these parcels, reating , MU[blple years of diev4lopmeint delays, and re&.jcing the Project hrivesment in, the city lliinits by over 501/6. As a restilt, a rriajc)irity of the l,)otenbal tax reveint.re tothe Crty of Paris frown the Proje(.:�t is ainaadyjeopar&zed by SUP &nten in the abseiiu:e oil: a disannexation As a result, disannf.:Wation followed by 4iveetrnern: 'is a net positive for the City of Paris,, u Figtire I - Project Maps (Eintire Prc)jiect) r:� Figf,ire 2 FrTojert Maps (SelectedArea in Cityof flaiiIs Botirldaly) C,, FIgUre 3 —SelectedAirea lien Oty of Paris Prqpeity Tax Reverilue • Ct.jrren t 50' Setbad�/Buffpir • Si W 400'Setback/Bt.ffer • NexusSedl(s a IMiuurujaHy....IC u:'nefic'ia0 OLIMOniewltlll°u the N....ocalf Cou°rnrnu pity. Nexus is, and Il ias beeirn, a Ilong ...,d rne sull:)port:er of the Oty of Paris, Il....arnar County and the 6n' liat:ives Pn.111'sn,ued by the ICocal corrnrnurnuty.1'o that e rn d, Nexus wHllll rnegOflat:e �i n good faith regar&ng dunsai nrnexatuoun flu~narnn:uall dontf lil:.nu.utlbi ns to support tllne Oty of PaHs and the irnmtladves of the loca9 ccn— ni-ri ..nrnuty, [From the Application for Disannexation attached hereto and incorporated by reference as Exhibit A.] A primary issue for Nexus is that Zoning Ordinance No. 1710 Sec. 29, "Required Components Regarding Solar Farm Specific Use Permits," will apply to portions of the Project that will lie within the city limits. Nexus contends that the SUP requirement will subject those portions of the Project to different regulations than will apply to the remainder of the installation in the county. In addition, Sec. 29 requires a 400 foot setbackibuffer when its plans call for a 50 foot setback/buffer. This would require Nexus to scale down the Project somewhat to comply with the setback requirement: MRG Goody Solar (Project, LLC A Because solar arrays must be of a certain size and number of panels to function, Nexus would have to remove everything in red in the above photograph, not simply the panels within the city limits. Lamar County has entered into a tax abatement agreement with Nexus/other property owners, and Chisum ISD either has entered or is working towards entering a Chapter 313 agreement with the developers with respect to this project. STATUS OF ISSUE: The city's annexation/disannexation policy (see attached Exhibit B`) provides that "the City will consider disannexation of any area within its corporate limits if so requested by a majority of property owner(s) and if the area fails to meet at least one of the above seven criteria, and if ...the proposed disannexation is part of an identifiable, logical whole (versus individual parces) which neither creates `holes' inside the existing corporate city limits, nor forces any other area of the city outside the revised boundary line (`islands' outside the revised lines)."' See Exhibit B. D. 16. The seven factors relate to: • Whether the parcels form an enclave; • Whether the area has developed as an urban area; • Whether the area is a designated growth center; • Whether the retaining the area within the city limits would result in an adverse impact to the city, including adverse fiscal impacts; • Whether disannexation would present an opportunity for incorporation of the area into a new municipality or for an existing municipality to annex the area; • Whether the area is populated with residential development; and • Whether the area is proposed for long-term development. See Exhibit B. pp. 15-16 for the full text of the policy.' Each of these criteria also contains a requirement relating to the provision of city services. In this instance, the Council may consider the property for disannexation because (a) the area proposed to be disannexed comprises more that an individual parcel (although the fact that it is only four parcels makes this point arguable given the language of the policy); (2) the area is not populated with residential development (criteria #6); and (3) disannexation of the area will not create any keyholes or islands. Nexus does not argue that the city has failed to provide services to the area; rather it argues that by disannexing the area, the city will be absolved from providing services, and that will be a benefit to the city. In reality, the area will continue to receive both fire and EMS services under existing agreements between the city and Lamar County, and in any event, given the nature of solar farms, the Paris Fire Department would be dispatched to any fire calls at the Project because it is the regional provider of hazmat services in this part of the state. The primary issue with disannexation of the proposed area as far as the city is concerned is that of lost potential property tax revenue. Nexus has estimated taxes on the parcels for the next 30 years in an amount between $307,267.00 (using the 400 foot setback) and $768,167.00 (using the 50 foot setback) based on the 2023-2024 tax rate and taking into account depreciation of the assets. In discussions and meetings with staff, Nexus has proposed entering into an agreement with the 1 Underlining is original to the text; italics are added by the authors. The policy requires only that the city consider disannexation, not that the city grant it. z The policy for disannexation is simply the inverse of the policy for annexation. Other than the prohibitions against keyholes and islands, the policy on disannexation is sparse. Likewise, state law regarding disannexation is simply that the procedures used in disannexing property must not conflict with the procedures for annexing property. 3 The agreement could take the form of a development agreement, a disannexation agreement, or a Chapter 380 agreement. The type of agreement would be determined in the negotiation process. City whereby the city would disannex the property, and Nexus would pay an agreed upon sum in three installments beginning 30 days after disannexation and ending 30 days after beginning of operations, anticipated to be in December of 2025. In addition to, or in lieu of a portion of the agreed upon taxes, Nexus is also open to developing the portion of the proposed extension of the Trail de Paris that runs through the property. Terms of any such agreement would be negotiable and determined and approved by Council after discussions in executive session. In any event, it must be remembered that regardless of any up front payment of "taxes," once disannexed, given current annexation law, it would be nearly impossible to reannex the property, and the city would be giving up all future property taxes forever. This is not insignificant given that Nexus has estimated the 2026 taxable value of the parcels (after installation of the Project) at $15,800,000.00 and depreciating to $3,713,000.00 by year ten. On the other hand, should Council decide against disannexation, staff can investigate the possibility of a waiver of the 400 foot setback requirement and/or other requirements of the solar farm SUP to accommodate the needs of Project. We anticipate that this would take the form of a Chapter 380 agreement and would be tied to trail development. Should Council wish to undertake disannexation proceedings with respect to this property, the following procedure will need to be followed: June 24, 2024—City Council Meeting—The City Council will discuss the petition and determine whether or not to proceed. If Council wishes to proceed, it should consider and act upon the accompanying resolution authorizing the disannexation process. Should Council wish not to proceed, it should consider and act upon the accompanying resolution declining to proceed. This is in the discretion of the Council. If Council determines to proceed, from here, the entire process must be complete within 90 days. If Council determines not to proceed, there will be no further action on the petition. If Council chooses to proceed: June 25—July 6, 2024—The city attorney will send out notices to other taxing entities, service providers, and railroads as necessary, which must be done by 30 days before the first of two public hearings. July 16-26, 2024—Publish notice of first public hearing in the Paris News (publication must be between the 20th and the 10th day out from the 1St public hearing).. July 23—August 2, 2024—Publish notice of second public hearing in the Paris News (publication must be between the 20th and the 10th day out from the second public hearing). The two publication periods overlap between July 23—July 26, 2024, so both hearings can be published together on July 25, 2025, saving a second publication fee. August 5, 2024—City Council Special Meeting -1St public hearing (public hearings must be held between the 40th and 20th days out from action on the ordinance to disannex) August 12, 2024—City Council Meeting -2nd public hearing September 9, 2024—City Council Meeting—Act on ordinance to disannex (day 77 from institution of disannexation proceedings) BUDGET: The requested disannexation would deprive the City of the property tax revenue for the disannexed property; however, the developer is interested in entering into an agreement to mitigate the loss as described above. OPTIONS: 1. Discuss and act on a resolution stating the intent of city Council to institute disannexation procedings on LCAD Parcels 71112, 71113, 70422, and 70423, located on County Road 22500 and comprising approximately 291 acres and provide direction to staff as to next steps. Authorizing disannexation procedures does not obligate Council to ultimately disannex the parcels. 2. Discuss and act on a resolution making findings of fact and denying the petition of disannexation as to LCAD Parcels 71112, 71113, 70422, and 70423, located on County Road 22500 and comprising approximately 291 acres. RECOMMENDATION: Because the city's annexation/disannexation policy would seem to dictate that Council at least consider the petition, staff recommends that Council choose and act on the resolution described in Option No. 1 with the understanding that Council may ultimately choose not to approve an ordinance of disannexation. Moreover, since the developer hopes to break ground in 2024 and the disannexation calendar stretches to 77 days, instituting proceedings at this time would allow staff to negotiate with developer and bring back either a recommendation to approve or to deny the disannexation ordinance accompanied by an appropriate development agreement. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS DISANNEXING PORTIONS OF FOUR PARCELS OF PROPERTY EQUALING APPROXIMATELY 170 TOTAL ACRES AND LOCATED ON OR AROUND COUNTY ROAD 22500 (LCAD#s 71112, 71113, 70422, AND 70423) WITHIN OF THE CITY LIMITS OF THE CITY OF PARIS CONTINGENT UPON EXECUTION OF A DISANNEXATION AGREEMENT WITH THE PETITIONER, APROVING SAID DISANNEXATION AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAME; ADJUSTING CITY BOUNDARIES TO REFLECT NEW CITYLIMITS; MAKING OTHER FINDINGSAND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE AND A SAVINGS CLAUSE; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the city staff has presented to the City Council a petition brought by Nexus Renewable Power, LLC ("Nexus") on behalf of Robert Moore, the property owner, for disannexation of property (the "Property") he owns which is currently located within the City Limits of the City of Paris, said property being portions of three parcels (LCAD#s 71112, 71113, and 70422) and the entirety of a fourth parcel (LCAD# 70423) on or around County Road 22500, being approximately 170 acres in total as more particularly described in Exhibits A and B attached hereto and incorporated herein by reference; and, WHEREAS, Nexus is the leaseholder of the Property, and the intended use of the Property is for the development of a solar farm project, most of which will be located outside of the City limits; and WHEREAS, on June 24, 2024, the City Council directed staff to begin disannexation proceedings regarding the aforementioned property; and WHEREAS, the city notified other taxing entities of the proposed disannexation on July 9, 2024 as required by law; and WHEREAS, the city published notice of two public hearings in the Paris News on July 15, 2024 as required by law; and WHEREAS, the City Council conducted the first public hearing on the petition at a special meeting on August 5, 2024, at which no one spoke either in favor or in opposition to the petition; and WHEREAS, the City Council conducted the second public hearing on the petition at its regular meeting on August 12, 2024, at which a representative of the petitioner spoke in favor of the petition and no one spoke in opposition thereto; and WHEREAS, the City and Nexus have agreed to the terms of a Disannexation Agreement, a copy of which is attached hereto as Exhibit C and is incorporated herein by reference, wherein Nexus has agreed to pay to the City the sum of $400,000.00, to be paid in three installments, and which represents an approximation of the present value of projected ad valorem taxes on the property to be disannexed through 2055 based on its value once developed; and WHEREAS, said petition came on for consideration and action on September 9, 2024; and WHEREAS, the City Council, having considered the petition, the comments of representatives of the petitioners over the course of several meetings, and the reduction in projected property tax revenues from the subject property has found that disannexation of the subject property and the approval of the Disannextion Agreement is in the best interest of the citizens of the City of Paris; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved and are incorporated herein by reference for all purposes. Section 2. That by adoption of this ordinance, the City Council does hereby disannex that Property currently within the boundaries of the city limits of the City of Paris, Texas on or around County Road 22500, being approximately 170 acres in total and comprising those portions of LCAD parcels 71112, 71113, and 70422 lying within the boundaries of the City of Paris, Texas being more particularly described in Exhibit A hereto; and the entirety of a fourth parcel (LCAD# 70423), being more particularly described in Exhibit B hereto. Section 3. That the Property described herein shall be, and is hereby upon the effective date of this ordinance, in all things disannexed from the city limits of the City of Paris, Texas. Section 4. That from and after the effective date of this ordinance, the boundaries of the City of Paris, Texas as the same appear in any and all official documents, maps, or other renderings, shall be and are hereby adjusted to reflect new boundaries of the City of Paris as amended by this disannexation. Section 5. That in accordance with Section 43.148 of the Texas Local Government Code, the City Council finds and determines that the value of services provided by the City for the direct benefit of the Property during the period of time said area was located within the city limits of the City of Paris, equals or exceeds the amount of property taxes and fees collected from the landowners whose property is located within the area disannexed herein. Section 6. That this disannexation of the property is contingent upon to Nexus' execution of the Disannexation Agreement between the City of Paris, Texas and Nexus Renewable Power, LLC, a copy of which is attached hereto as Exhibit C and incorporated herein by reference, and that the effective date of this ordinance shall be on the date Nexus executes said Disannexation Agreement. Further, the City Council hereby grants the Mayor the authority to execute the same on the City's behalf. Section 7. That all provisions of the ordinances of the City of Paris, Texas in conflict with the provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of the City of Paris, Texas not in conflict with the provisions of this ordinance shall remain in full force and effect. Section B. That the repeal of any ordinance or part of ordinances affected by the enactment of this ordinance shall not be construed as abandoning any action now pending under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any penalty accruing or to accrue, or as affecting any rights of the municipality under any section or provisions of any ordinance at the time of passage of this ordinance. Section 9. That it is the intention of the City Council of the City of Paris, Texas, that this ordinance and every provision hereof, shall be considered severable, and the invalidity or partial invalidity of any section, clause, or provisions of this ordinance shall not affect the validity of any other portion of this ordinance. Section 10. This ordinance shall be effective immediately upon the execution by Nexus Renewable Power, LLC of the Disannexation Agreement attached hereto as Exhibit C. PASSED AND ADOPTED on this 9th day of September, 2024. Mihir Pankaj, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney Exhibit A Exhibit A TRACT ONE: (LAMAR COUNTY APPRAISAL DISTRICT TAX PARCEL 70.422' DESCRIPTION, of a 190.975 acre tract of land situated in the M.E.P. and P.R.R. Survey, Section 37, Abstract No. 637 and in the Lemuel Ewer Survey, Abstract No. 313, Lamar County, Texas; said tract being all of a called 190.878 acre tract of land described in General Warranty Deed to Robert L. Moore recorded in Instrument No. 194574-2022 of the Official Records, Lamar County, Texas; said 190.975 acre tract being more particularly described as follows: BEGINNING, at a 1/2 -inch iron rod with "RPLS #4057' cap found in the north right-of-way line of County Road 22500 (a 40 -foot right-of-way), in the northwest right-of-way line of Northeast Texas Trail (a variable width right-of-way) at the southwest corner of said 190.878 acre tract at the most southerly southeast corner of a called 160.328 acre tract of land described in deed to James Moore and Robert Moore recorded in Instrument No. 196332-2022 of the said Official Records; THENCE, departing the said north right-of-way line of County Road 22500 and said northwest right- of-way line of Northeast Texas Trail and along the common line between said 190.878 acre tract and said 160.328 acre tract, the following courses and distances: North 00 degrees 24 minutes 09 seconds East, a distance of 1,913.86 feet to a 1/2 -inch iron rod found for corner; said point also being a re-entrant corner of said 160.328 acre tract; North 88 degrees 06 minutes 54 seconds East, a distance of 1,362.63 feet to a 112 -inch iron rod with "RPLS #4057' cap found at a re-entrant corner; said point also being a southeast corner of said 160.328 acre tract; North 01 degrees 14 minutes 21 seconds West, a distance of 1,424.78 feet to a 1/2 -inch iron rod found for corner; said point also being an angle point in the east line of said 160.328 acre tract and the southwest corner of a called 231.70 acre tract of land described in deed to Kimberly-Clark Corporation recorded in Volume 650, Page 416 of the said Official Records; THENCE, departing the said common line between the 190.878 acre tract and the 160.328 acre tract and along the common line between said 190.878 acre tract and said 231.70 acre tract, the following courses and distances: North 88 degrees 29 minutes 50 seconds East, a distance of 2,403.98 feet to a 1/2 -inch iron rod found for corner; said point also being a re-entrant corner of said 231.70 acre tract; South 00 degrees 38 minutes 53 seconds East, a distance of 935.27 feet to a 1/2 -inch iron rod found at a re-entrant corner; said point also being a southwest corner of said 231.70 acre tract; North 88 degrees 48 minutes 37 seconds East, a distance of 1,061.40 feet to a 318 -inch iron rod found at an angle point in a north line of said 190.878 acre tract; said point also being a southeast corner of said 231.70 acre tract and an angle point in the westerly right-of-way line of F.M. 137 (a variable width right-of-way); THENCE, North 87 degrees 27 minutes 39 seconds East, along the said westerly line of F.M. 137 and a north line of said 190.878 acre tract, a distance of 203.04 feet to a point for corner; said point also being an angle point in the said westerly line of F.M. 137; THENCE, South 33 degrees 27 minutes 52 seconds West, along the said westerly line of F.M. 137, a distance of 506.66 feet to a 1/2 -inch iron rod with "RPLS #4057" cap found at the intersection of the said westerly line of F.M. 137 and the said northwest right-of-way line of Northeast Texas Trail; THENCE, South 65 degrees 55 minutes 24 seconds West, along the said northwest right-of-way line of Northeast Texas Trail, a distance of 5,194.84 feet to the POINT OF BEGINNING; CONTAINING, 8,318,857 square feet or 190.975 acres of land, more or less. TRACT TWO LAMAR..COUNTY APPRAISAL DISTRICT TAX PARCEL 71111, 71112, 711131 DESCRIPTION, of a 160.271 acre tract of land situated in the Isaac Cruze Survey, Abstract No. 162, the William H. Bourland Survey, Abstract No. 71 and the William H. Bourland Survey, Abstract No. 132, Lamar County, Texas; said tract being all of a called 160.328 acre tract of land described in Warranty Deed (with Vendor's Lien) to Rober Moore and James Moore recorded in Instrument No. 054068-2007 of the Official Records, Lamar Couty, Texas; said 160.271 acre tract being more particularly described as follows: BEGINNING, at a 1/2 -inch iron rod found in the southeast right-of-way line of Missouri Pacific Railroad (a 100 -foot right-of-way) at the northwest corner of said 160.328 acre tract; said point also being the northeast corner of a called 101.534 acre tract of land described in deed to William E. Wood and Sheryl Gwen Larkin -Wood recorded in Volume 479, Page 286 of the said Official Records; THENCE, North 74 degrees 49 minutes 19 seconds East, along the said southeast right-of-way line of Missouri Pacific Railroad, a distance of 2,141.64 feet to a point for corner; said point also being the northwest corner of a called 231.70 acre tract of land described in deed to Kimberly-Clark Corporation recorded in Volume 650, Page 416 of the said Official Records; THENCE, departing the said southeast right-of-way line of Missouri Pacific Railroad and along the common line between said 160.328 acre tract and said 231.70 acre tract, the following courses and distances: South 01 degrees 02 minutes 24 seconds East, at a distance of 636.52 feet passing a 1/2 - inch iron rod found, continuing in all a total distance of 708.08 feet to an angle point; South 05 degrees 14 minutes 23 seconds East, a distance of 741.71 feet to a 1/2 -inch iron rod found at an angle point; said point also being the southwest corner of the said 231.70 acre tract and the most northerly northwest corner of a called 190.978 acre tract of land described in deed to Robert L. Moore recorded in Instrument No. 194574-2022 of the said Official Records; THENCE, along the common line between said 160.328 acre tract and said 190.978 acre tract, the following courses and distances: South 01 degrees 14 minutes 21 seconds East, a distance of 1,424.78 feet to a 1/2 -inch iron rod with "RPLS #4057" cap found for corner; said point also being a re-entrant corner of said 190.978 acre tract; South 88 degrees 06 minutes 54 seconds West, a distance of 1,362.63 feet to a 1/2 -inch iron rod found at a re-entrant corner; said point also being the most southerly northwest corner of said 190.978 acre tract; South 00 degrees 24 minutes 09 seconds West, a distance of 1,913.86 feet to a 1/2 -inch iron rod with "RPLS #4057' cap found for corner at the intersection of the north right-of-way line of County Road 22500 (a 40 -foot right-of-way) and the northwest right-of-way line of Northeast Texas Trail (a variable width right-of-way); said point also being the southwest corner of said 190.978 acre tract; THENCE, South 88 degrees 51 minutes 30 seconds West, departing the said common line between the 160.328 acre tract and the 190.978 acre tract and along the said north right-of-way line of County Road 22500, a distance of 717.09 feet to a 1/2 -inch iron rod found for comer; said point also being the southeast corner of a called 6.508 acre tract of land described in deed to William E. Wood and Sheryl G. Wood recorded in Volume 479, Page 302 of the said Official Records; THENCE, North 01 degrees 14 minutes 59 seconds West, departing the said north right-of-way line of County Road 22500 and along the common line between said 160.328 acre tract and said 6.508 acre tract, a distance of 895.96 feet to a 5/8 -inch iron rod with "WESTWOOD PS" cap set at an angle point; said point also being the northeast corner of said 6.508 acre tract and a southeast corner of said 101.534 acre tract; THENCE, along the common line between said 160.328 acre tract and said 101.534 acre tract, the following courses and distances: North 01 degrees 24 minutes 01 second West, a distance of 1,301.48 feet to a metal fence post found at an angle point; North 00 degrees 48 minutes 32 seconds West, a distance of 706.48 feet to a 1/2 -inch iron rod found at an angle point: North 01 degrees 01 minutes 35 seconds West, a distance of 1,380.19 feet to the POINT OF BEGINNING; CONTAINING, 6,981,422 square feet or 160.271 acres of land, more or less. EXHIBIT B DESCRIPTION, of a 15.255 acre tract of land situated in the Lemuel Ewer Survey, Abstract No. 313, Lamar County, Texas; said tract being part of a called 190.878 acre tract of land described in General Warranty Deed to Rober L. Moore recorded in Instrument No. 194574-2022 of the Official Records, Lamar County, Texas; said 15.255 acre tract being more particularly described as follows: BEGINNING, at a 1/2 -inch iron rod with "Chaney RPLS #4057' cap found for corner at the intersection of the northwest right-of-way line of F.M. 137 (19t' Street) and the northerly right-of-way line of Northeast Texas Trail; said point also being the southeast corner of said 190.878 acre tract; THENCE, South 65 degrees 55 minutes 24 seconds West, along the said northerly line of Northeast Texas Trail and the southerly line of said 190.878 acre tract, a distance of 1,064.88 feet to a 5/8 -inch iron rod with "WESTWOOD" cap set for corner; THENCE, North 00 degrees 51 minutes 33 seconds West, departing the said northerly line of Northeast Texas Trail and the said southerly line of the 190.878 acre tract, over and across said 190.878 acre tract, a distance of 826.16 feet to a 1/2 -inch iron rod found for corner; said point also being a re-entrant corner of said 190.878 acre tract and the most easterly southwest corner of a called 231,70 acre tract of land described in deed to Kimberly-Clark Corporation recorded in Volume 647, Page 239 of the said Official Records; THENCE, North 88 degrees 48 minutes 37 seconds East, along the common line between said 190.878 acre tract and said 231,70 acre tract, a distance of 1,061.40 feet to a 3/8 -inch iron rod found at an angle point; said point also being a southeast corner of said 231,70 acre tract and an angle point in the said northwest line of F.M. 137; THENCE, North 87 degrees 27 minutes 39 seconds East, along, a distance of 203.04 feet to a wood fence post found for corner; said point also being an angle point in the said northwest line of F.M. 137 and a northeast corner of said 190.878 acre tract; THENCE, South 33 degrees 27 minutes 52 seconds West, along the said northwest line of F.M. 137 and the southeast line of said 190.878 acre tract, a distance of 506.66 feet to the POINT OF BEGINNING; CONTAINING, 664,517 square feet or 15.255 acres of land, more or less. Exhibit C DISANNEXATION AGREEMENT This Disannexation Agreement (the "Agreement") is entered into by and between the CITY OF PARIS, TEXAS, a home rule municipal corporation situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called "City"), and NEXUS RENEWABLE POWER, LLC, a limited liability company formed under the laws of the State of Texas, acting by and through its authorized officer whose signature appears below (hereinafter referred to as "Nexus"). WITNESSETH: WHEREAS, Nexus is the lessee of certain property in the City of Paris, Texas and Lamar County, Texas upon which it intends to develop a commercial -scale solar energy and battery storage renewable energy project (the "Project"); and WHEREAS, a portion of the property that comprises the Project consists of approximately 170 acres of land in total that fall within the corporate boundaries of the City and are identified as portions of LCAD parcel Nos. 71112, 71113, and 70422 and the entirety of a LCAD parcel No. 70423 on or around County Road 22500, being more fully described in Exhibits A and B hereto (the "Property"), which exhibits are incorporated by reference herein; and WHEREAS, the Property comprises only a portion of the overall Project site, which also includes approximately 1,100 acres of land located entirely outside of the City's corporate boundaries; and WHEREAS, on or about May 13, 2024, Nexus filed a petition on behalf of Nexus and Robert A. Moore, the lessor and owner of the Property, requesting that the City disannex same to provide for uniform development standards for the Project (the "Petition"), including both the portion of the Project to be developed on the Property and the remaining portion of the Project to be developed on the land located outside of the City's boundaries; and WHEREAS, on June 24, 2024, at its regularly scheduled meeting, the City Council of the City of Paris, Texas found that the Property is eligible for disannexation and directed City staff to initiate disannexation proceedings; and WHEREAS, the City, having followed all statutory prerequisites for disannexing the Property, including notifying other taxing entities, publishing notice of public hearings, and conducting two public hearings, the City Council considered the Petition and request of disannexation of the Property set forth therein on September 9, 2024 at the City Council's regularly scheduled meeting; and WHEREAS, both parties hereto understand and agree that the City is under no statutory obligation to disannex the Property; and WHEREAS, the City and Nexus understand and agree that disannexation of the Property would result in a loss of ad valorem tax revenues to City for all time; and WHEREAS, in consideration for the loss of said ad valorem tax revenues and for the City's disannexation of the Property, Nexus has agreed to make certain payments to the City, which the parties acknowledge and agree represent the present value of the projected ad valorem taxes relating to the Property for a period of thirty (30) years; and WHEREAS, the projected corridor of the Northeast Texas Trail runs through the Project site, including the Property and the portion of the Project site that is currently located outside of the existing City limits for a length of 3,932 feet and comprising a total of 4.166 acres (the "Trail Corridor"); and WHEREAS, in further consideration thereof, Nexus has agreed to provide land clearing and site work related to the development of such Trail Corridor (collectively, the "Trail Corridor Improvements"); NOW, THEREFORE, the parties hereto do mutually contract and agree as follows: I. Recitals 1.1 The recitals set forth above are incorporated into this Agreement for all purposes. H. Term 2.1 The effective date of this Agreement is the 9th day of September, 2024 and this Agreement shall terminate upon receipt of all funds due and owing to the City from Nexus. For the purposes of this Agreement, "Receipt of funds" shall mean thirty (30) days following confirmation that all funds due and owing the City hereunder have been received and have cleared the City's banking institution. Notwithstanding the foregoing, Nexus's obligations hereunder are contingent upon the City's adoption of an Ordinance approving and effecting the disannexation of the Property, and, should the City fail to do so, this Agreement will be null and void. III. Payments 3.1 Nexus agrees herein to pay to the City a total sum of FOUR HUNDRED THOUSAND AND NO/100 DOLLARS ($400,000.00), an amount roughly approximating the present value of ad valorem taxes that would be due and owing on the improved value of the Property through the year 2055, according to the following schedule: PaymenAJ 1: ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) to be paid within thirty (30) days of the City Council's adoption of an Ordinance 2 approving and effecting the disannexation of the Property , which disannexation is anticipated to occur on September 9, 2024. Pa mend: ONE HUNDRED SEVENTY-FIVE THOUSAND AND NO/100 DOLLARS ($175,000.00) to be paid within thirty (30) days of Nexus's issuance of its Full Notice to Proceed to commence construction of the Project, which issuance is anticipated to occur on or before December 31, 2024. Pa me ONE HUNDRED TWENTY-FIVE THOUSAND AND NO/100 DOLLARS ($125,000.00) to be paid within thirty (30) days of the date the Project is placed in service or operation for other than testing purposes (the "Commercial Operations Date"), which Commercial Operations Date is anticipated to occur on or before December 31, 2025. 3.2 In connection with Paragraph 3.1, Nexus will provide the City with copies of the Full Notice to Proceed and the Commencement Operations Date within three (3) business days of the issuance or occurrence of same according to the notice provisions contained herein in Section IX. IV. Consideration: Improvements 4.1 As further consideration of the City's disannexation of the Property, Nexus shall undertake and complete the Trail Corridor Improvements to wit: a. Provide land clearing for the length of the Trail Corridor as shown on Exhibit A hereto. b. Provide site work on the Trail Corridor which shall include but not be limited to removing all brush and debris located on the Trail Corridor that following the land clearing. 4.2 All Trail Corridor Improvements shall be completed by the Commercial Operations date as defined herein. Nexus furthermore agrees and covenants that it will diligently and faithfully, in a good and workmanlike manner, pursue the completion of the Trail Corridor Improvements in accordance with all applicable state and local laws, codes, and regulations, or Nexus will procure a valid waiver thereof. 4.3 In connection with this section, Nexus shall inform the City in writing that the Trail Corridor Improvements have been completed in accordance with the notice provisions contained herein in Section IX. 4.4 Subsequent to the notice required in the preceding section, Nexus shall allow the City access to the Trail Corridor for purposes of inspection and confirmation that the Trail Corridor Improvements have been completed. To initiate said inspection, the City will provide written notice to Nexus, and Nexus shall make arrangements with the City for inspection of the Trial Corridor Improvements within fifteen (15) business days of the City's notice of inspection. In this connection, given the nature of the improvements involved in the Project, the City acknowledges that Nexus may require that City inspectors be accompanied by a Project employee or other Nexus representative. 4.5 Upon completion of the Trail Corridor Improvements and payment of the amounts set forth in Section 3.1 above, Nexus shall have no further obligations to the City in connection with the disannexation of the Property. V. Default 5.1 If Nexus defaults on any obligation in this Agreement, including the timely payment of the amounts as set forth in Section 3.1, or completion of the Trail Corridor Improvements as set forth in Section IV, the City may bring suit to recover any outstanding payments due under this Agreement and/or for specific performance of the obligations contained herein regarding Trail Corridor Improvements; provided, however, that prior to filing suit or taking any legal action against Nexus, the City shall deliver written notice of default to Nexus, and upon Nexus's receipt of such notice, Nexus shall be given a reasonable opportunity of not less than thirty (30) days to cure the default. VI. No Conflict of Interest 6.1 Nexus represents and warrants that the Property does not include any Property that is owned or leased by a member of the Planning and Zoning Commission of the City, nor by a member of the City Council approving, or having responsibility for the approval of, this Agreement. VII. Conditions 7.1 The terms and conditions of this Agreement are binding upon and enforceable against and with respect to the successors and assigns of all parties hereto. 7.2 It is understood and agreed between the parties that Nexus, in performing its obligations hereunder, is acting independently; the City assumes no responsibility or liability in connection therewith to third parties; and Nexus agrees to indemnify and hold the City harmless therefrom. It is further understood and agreed among the parties that the City, in performing its obligations hereunder, is acting independently; Nexus assumes no responsibility or liability in connection therewith to third parties; and, to the extent permissible by law, the City agrees to indemnify and hold harmless Nexus therefrom. 4 VIII. Authority to Contract 8.1 This Agreement was authorized by Ordinance of the City Council at its regularly scheduled meeting on the 9th day of September, 2024, authorizing the Mayor to execute the Agreement on behalf of the City. 8.2 This Agreement was entered into by Nexus pursuant to the authority granted to the authorized official whose signature appears below. IX. Legal 9.1 No officer, official or agent of the City has the power to amend, modify or alter this Agreement or waive any of its conditions or to bind the City by making any promise or representation not contained herein. 9.2 This Agreement, except by operation of law, shall not be assigned or transferred by Nexus, without the prior written consent of City, which consent, not to be unreasonably withheld, conditioned, or delayed, shall be at the sole discretion of the City. 9.3 Any written notice required or permitted under the terms of this Agreement shall be given and be deemed to have been duly served if either (1) delivered in person, (2) deposited as certified mail, return receipt requested, postage prepaid in the United States mail, or (3) sent by recognized carrier with shipment tracking number addressed to the designated representative of the respective parties which are designated as follows: NEXUS: Nexus Renewable Power, LLC Attn: Sargon Daniel 5160 Tennyson Pkwy, Suite 1000W Plano, TX 75024 CITY: CITY OF PARIS, TEXAS Attn: City Manager P.O. Box 9037 Paris, TX 75461-9037 Alternatively, said reports may be delivered personally to the City Manager at 135 SE 1st St., Paris, Texas 75460 With a copy to: City Clerk, City of Paris, Texas (address same as above) City Attorney, City of Paris, Texas (address same as above) 5 9.4 If any term or provision of this Agreement shall be declared unconstitutional or void by any court of competent jurisdiction, the constitutionality and validity of the remainder of said Agreement shall not be affected thereby, and to this end the terms and provisions of this Agreement are declared to be severable. 9.5 This Agreement sets forth the entire understanding between the parties, and any other understandings or agreements shall be canceled and superseded by this Agreement upon the date of execution hereof. None of the terms of this Agreement shall be waived, discharged, altered or modified in any respect, except by an Agreement in writing signed by both parties and specifically referring to this Agreement. The captions in this Agreement are included for convenience only and shall not be taken into consideration in any construction or interpretation of this Agreement or any of its provisions. This Agreement is performable in Lamar County, Texas, and shall be governed by, construed and enforced in accordance with the laws of the State of Texas. The provisions of this Agreement shall apply to, bind and inure to the benefit of the City, Nexus, and their respective successors, and permitted assigns, if any. 9.6 Jurisdiction and venue for any actions arising under this Agreement shall lie exclusively in the courts of Lamar County, Texas. 9.7 Nexus and the City have both contributed to the drafting of this Agreement, and no ambiguity, if any, contained in this Agreement shall be construed against either party. 9.8 MANDATORY ANTI- _ YCOTT AND OTHER VISI NS., Nexus, by executing this Agreement, certifies the following: i. Pursuant to Section 2271.002 of the Texas Government Code, Nexus certifies that either (i) it meets an exemption criterion under Section 2271.002; or (ii) it does not boycott Israel and will not boycott Israel during the term of the Agreement. Nexus acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. ii. Pursuant to SB 13, 87th Texas Legislature, Nexus certifies that either (i) it meets an exemption criterion under SB 13, 87th Texas Legislature; or (ii) it does not boycott energy companies, as defined in Section 1 of SB 13, 87th Texas Legislature, and will not boycott energy companies during the term of the Agreement. Nexus acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. iii. Pursuant to SB 19, 87th Texas Legislature, Nexus certifies that either (i) it meets an exemption criterion under SB 19, 87th Texas Legislature; or (ii) it does not discriminate against a firearm entity or firearm trade association, as defined in Section 1 of SB 19, 87th Texas Legislature, and will not discriminate against a firearm entity or firearm trade association during the term of the Agreement. Nexus acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate. L iv. Pursuant to Subchapter F, Chapter 2252, Texas Government Code, Nexus certifies Nexus is not engaged in business with Iran, Sudan, or a foreign terrorist organization. Nexus acknowledges this Agreement may be terminated and payment withheld if this certification is inaccurate [Signatures on following page] VA IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of the date set forth below. WITNESS our hands this 9th day of September, 2024. THE CITY OF PARIS, TEXAS Mihir Pankaj, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney NEXUS RENEWABLE POWER, LLC .0 ATTEST: Title: Name: Title: Date: Exhibit A SPECIAL WARRANTY DEED (NO TITLE WORK) NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FO ,16MT'JNG INFORMATION FROM ANY INSTRUMENT. THAT TRANSFER$, AN INTCREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD INT I'ItIII ;w CORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER' IGEN, Nt. M'IIER. Effective Date: March 3 , 2024 Grantor: Robert L. Moore, not joined by his spouse as thi�pr+.pconstitutes no part of their homestead property p tion, '1k a"texas Non -Profit Corporation Granted: Greater Paris Development Foundation, n 0 and other good, and vele consideration the sufficient of which Consideration: $10 0 Y is acknowledged by Grantee. Property: SEE E II , IT'!`A" r TJACHED HERETO Reservations Fi6ni atid�'Exceptions to Conveyance and Warranty: This,Gonve,Vari, lt�% however, is made and accepted subject'to all outstanding mineral' interest, f trictions,`'resa"rvations, easements, covenants and conditions, relating to the LamarCounty,,. T-er as. property'as now reflected by the records'of the County Clerk of _ 9 :--03/080/2024 410:35:33 Wes: By: mratliWOff Lamar County, TX Ruth Sisson - Count Clerk 1 IH1111111111111111111111111111111111111111111 11111 1111111111111111111111111 u11111111111 i ■an■■ mut no un 11111111111111111 Int lift IIIH 1111111111111111111111111111111111111111111 211930-2024 03/08/2024 10:35:33 AM Page 2 of.6 Grantor, for the consideration, receipt of which is acknowledged, and subjectto the reservations from and exceptions to conveyance and warranty, grants, sells .and cones to Grantee the property, together with all and singular the rights and appurtenancbs fh, reio in any wise belonging, to have and hold it to Grantee, Grantee's heirs, exec,ytbr, administrators, .successors or assigns forever. Grantor binds Grantor ani Cragtbi`s heirs, executors, administrators and successors to warrant and forever defend --.ail arp d singular the property to Grantee and Grantee's heirs, executors, administra rs, susois and assigns against every person whomsoever lawfully claiming or to daim the sqane or any part thereof, by through or under Grantor, but not otherwise;, pt"as 16 -*e reservations f� from and exceptions to conveyance and warranty. Payment of ad valorem taxes for the current year having been assumed by Grantee. r ROBERT L. MOORE 211930-2024 03/08/2024 10:35:33 AM, Page 3 of 6 ACKNOWLEDGMENT STATE OF TEXAS COUNTY ,OF LAMAR ' This instrument was acknowledged before me on 2024, by Robert L. Moore. . ,,.�G"o�. CASEY CaA1N Notary Public STATE OF Tp(AS 129183-3 •; Of`�+: Comm U,AU 28,2025 TX 75460 Rig t - U cn ug Q a 9 211930-2024 03/08/2024 10:35:33 AM Page 4 of 6 aiomuaadflaas HNnHO,LYW I I I � R2 y I ! I I I I I I J I �F9 e I r I 1 i 9 JAM IMA CM MIS scull F =VW EXHIBIT A AD'OOI I kk NN I I ! I I I I I J I e I � I I I I I bowl I I I I I I I WA M I I I ! I 29 .�_...e AD1001-� r-� .. la I I inns xsaan aas 73 aml FD1V W E10 3DVd J_Mt mcn HHS MI ROLYW morumamc IH35 HNn HOJ.vw 211930-2024 03/08/2024 10:35:33 AM Page 5 of 6 .Lammaana s HIM HDLV W EXHIBIT A 211930-2024 03/08/2024 10:35:33 AM Page 6 of 6 Metes and Bounds Description 4.166 Acres Lamar County, Texas December 2023 Being 4.166 acres of land situated partially within the corporate limits ofthe City of Paris, approxiritaely 3.28 miles South 47°15' West of the Lamar County Courthouse, being part of the Lemuel Ewer Survey, Abst afct Nurnbalr 313 and the ........... MEP & P RR CO Survey, Abstract Number 637, and being part of a called 190.878 acre tract of laird .conveyed ,fron;"1 Charles G. Dunagan to Robert L. Moore on June 15, 2022 by General Warranty Deed recorded in Laniar,Count Clerk's'l ocument number 194574-2022. The said 4.166 acre tract fully described by metes and bounds as follows: �r Beginning at a %2 inch capped [Chaney] iron rod found (Controlling Monument, hereakftprio erred to as CM) at the Southeast corner of the aforementioned called 190.878 acre tract and in the North line of'llae . aparwral Railroad right of way as conveyed from The Atchison, Topeka and Santa Fe Railway on January 3lj'090 by + 'u tclsitil Deed recorded in Volume 138, Page 111 of the Real Property Records of Lamar County and as descried in the oed to the Gulf Colorado and Santa Fe Railway Company from John Gibbons recorded on November 04, 18861jr Volurale,�53, Page 31 of the Deed Records of Lamar County, Texas, said rod also being in the West right of way, f Rpad, 11,_ 137 (80' right of way width as per TxDOT maps); Thence along the common boundary of the aforementioned calll d,190.878 'acre tract and the aforementioned railroad the following calls: South 65°53'45" West 1,237.17 feet to a''/2 inch ch edea iron rod set (hereafter referred to as CIRS), North 24°04'32" West 25.00 feet to a CIRS, South 65°55'28" West 1,1,68:.83 feet to a CIRS, South 24104'32" East 25.00 feet to a CIRS, South 65°58'08" West 469.36 feet to a CIRS, North 24°02'04" West 25.00 feet to a CIRS, South 65157'30" West 1,659.89 feet to a CIRS, South 24003'02" East 25.00 feet to a CIRS, South 65°57'45" West 252.48 feet to a CIRS, North 24'02'14" West 12.50 feet to a CIRS, South 65657',15" West 4` 0.73 feet to a CIRS in the East boundary of a called 160.328 acre tract of land conveyed from James Moore to i bptt 1�"l tire on August 10, 2022 by Gift Deed recorded in Lamar County Clerk's Document Number 196332-202 Nm said r z inch capped [Chaney] iron rod found (CM) bears South 00°23'41" West 15.14 feet; Thence North 00°23'41" East, along the comma bou�ra'l ry of the aforementioned called 190.878 acre tract and the aforementioned called 160.328 acre tract, a distance of 4, .50 feet o a CIRS; Thence North 65°56'52" East, a dist ft of 3,93 .01, f et to a CIRS; r Thence North 73°38'03" East, a dist vrpe of 185.61, feet to a CIRS; Thence North 65°53'45" East, a`dis am= of -1.,.030`.42 feetto a CIRS; Thence North 82'01'13" East a dlst,itce of 5 , 0.00 feet to a CIRS in the East line of the aforementioned called 190.878 acre tract and the West riga iof way of Parqi Road #137, from said rod a'3 inch wood post found (CM) bears North 33°24'27" East a distance of 476.3.,ept'; Thence South 33°24'x,7" West a distance of 30.00 feet to the place of beginning and containing 4.166 acres of land. NOTES �P 1. The Reference Bear"ting for the tract of land described hereon is NAD 1983 Texas State Plane Coordinate System Zone 4202 2. Atwo page(I 1"x17' kited s'6rvey plat accompanies this metes and bounds description. 3. Rods des .r abed as Y2 i h capped iron rods set have blue plastic caps stamped "KWHITLEY RPLS 5892". I, KEVIN K. '�V111°1 bSY, REQI,STERED PROFESSIONAL LAND SURVEY, #5892, STATE OF TEXAS, DO HEREBY CERTIFY THAI 11T14ABOVE DESCRIPTION IS TAKEN FROM MEASUREMENTS MADE UPON THE GROUND AND 1VAS-CO.MP TZ, , D ON DECEMBER 14, 2023. OF .EVIN K. " TL 1r , E' RPS DATE KEVIN{ fC. 4VHi1EY HAITER •:;Sl C7 PAGE THREE OF THREE Practical In Solutions tTw t1B 4445 SE Loop 2861 Paris, TX 754601 P903.785.0303 I TxSury F-10028600 EXHIBITA RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, DENYING A PETITION TO DISANNEX PORTIONS OF FOUR PARCELS OF PROPERTY EQUALING 170 TOTAL ACRES LOCATED ON OR AROUND COUNTY ROAD 22500 (LCAD#s 71112, 71113, 70422, AND 70423) WITHIN OF THE CITY LIMITS OF THE CITY OF PARIS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the city staff has presented to the City Council a petition brought by Nexus Renewable Power, LLC ("Nexus") on behalf of Robert Moore, the property owner for disannexation of property he owns which is currently located within the City Limits of the City of Paris, said property being portions of three parcels (LCAD#s 71112, 71113, and 70422) and the entirety of a fourth parcel (LCAD# 70423) on or around County Road 22500, being approximately 170 acres in total; and, WHEREAS, the proposed use of the subject property is industrial development, namely a solar farm project; and WHEREAS, on June 24, 2024, the City Council directed staff to begin disannexation proceedings regarding the aforementioned property; and WHEREAS, the city notified other taxing entities of the proposed disannexation on July 9, 2024 as required by law; and WHEREAS, the city published notice of two public hearings in the Paris News on July 15, 2024 as required by law; and WHEREAS, the City Council conducted the first public hearing on the petition at a special meeting on August 5, 2024, at which no one spoke either in favor or in opposition to the petition; and WHEREAS, the City Council conducted the second public hearing on the petition at its regular meeting on August 12, 2024, at which a representative of the petitioner spoke in favor of the petition and no one spoke in opposition thereto; and WHEREAS, said petition came on for consideration and action on September 9, 2024; and WHEREAS, the City Council, having considered the petition, the comments of representatives of the petitioners over the course of several meetings, and the reduction in projected property tax revenues from the subject property has found that disannexation of the subject property is not in the best interest of the citizens of the City of Paris; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved and incorporated herein for all purposes. Section 2. That the City Council finds that the petition of Nexus Renewable Power, LLC ("Nexus"), submitted on behalf of Robert Moore, the property owner, for disannexation of property he owns which is currently located within the city limits of the City of Paris, said property being portions of three parcels (LCAD#s 71112, 71113, and 70422) and the entirety of a fourth parcel (LCAD# 70423) on or around County Road 22500, being approximately 170 acres in total is not in the public interest and should be denied. Section 3. That given the above findings, the City Council of the City of Paris, Texas hereby denies the petition of Nexus Renewable Power, LLC ("Nexus") for disannexation of property which is currently located within the City Limits of the City of Paris, said property being portions of three parcels (LCAD#s 71112, 71113, and 70422) and the entirety of a fourth parcel (LCAD# 70423) on or around County Road 22500, being approximately 170 acres in total is hereby denied. Section 5. That this resolution shall become effective immediately upon its passage. PASSED AND APPROVED this 9th day of September, 2024. Mihir Pankaj, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney