Bill Text: TX SB2598 | 2023-2024 | 88th Legislature | Comm Sub

Texas Senate Bill 2598

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Relating to the creation of the Honey Creek Improvement District No. 1; providing authority to issue bonds; providing authority to impose assessments and fees.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Vetoed) 2023-06-16 - Vetoed by the Governor [SB2598 Detail]

Download: Texas-2023-SB2598-Comm_Sub.html



	By: Paxton	S.B. No. 2598
	(In the Senate - Filed April 6, 2023; April 11, 2023, read
	first time and referred to Committee on Local Government;
	May 2, 2023, reported adversely, with favorable Committee
	Substitute by the following vote: Yeas 9, Nays 0; May 2, 2023, sent
	to printer.)

	COMMITTEE SUBSTITUTE FOR S.B. No. 2598	By: Parker

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Honey Creek Improvement District

No. 1; providing authority to issue bonds; providing authority to

impose assessments and fees.

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 3796 to read as follows:

CHAPTER 3796. HONEY CREEK IMPROVEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3796.0101. DEFINITIONS. In this chapter:

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

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

(3) "Development agreement" means a development

agreement between the city and a developer of lands in the district

that establishes the standards that apply to development in the

district.

(4) "Director" means a board member.

(5) "District" means the Honey Creek Improvement

District No. 1.

Sec. 3796.0102. NATURE OF DISTRICT. The Honey Creek

Improvement District No. 1 is a special district created under

Section 59, Article XVI, Texas Constitution.

Sec. 3796.0103. PURPOSE; DECLARATION OF INTENT. (a) The

creation of the district is essential to accomplish the purposes of

Sections 52 and 52-a, Article III, and Section 59, Article XVI,

Texas Constitution, and other public purposes stated in this

chapter.

(b) 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.

develop, encourage, and maintain employment, commerce,

transportation, housing, tourism, recreation, the arts,

entertainment, economic development, safety, and the public

welfare in the district.

(d) This chapter and the creation of the district may not be

interpreted to relieve the city from providing the level of

services provided as of the effective date of the Act enacting this

chapter to the area in the district. The district is created to

supplement and not to supplant city services provided in the

district.

Sec. 3796.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

(a) 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.

(b) The district is created to serve a public use and

benefit.

and is essential to further the public purposes of:

(1) developing and diversifying the economy of the

state;

(2) eliminating unemployment and underemployment; and

(3) developing or expanding transportation and

commerce.

(d) The district will:

(1) promote the health, safety, and general welfare of

residents, employers, potential employees, employees, visitors,

and consumers in the district, and of the public;

(2) provide needed funding for the district to

preserve, maintain, and enhance the economic health and vitality of

the district territory as a community and business center;

(3) promote the health, safety, welfare, and enjoyment

of the public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic beauty;

and

(4) provide for water, wastewater, drainage, road, and

recreational facilities for the district.

(e) Pedestrian ways along or across a street, whether at

grade or above or below the surface, and street lighting, street

landscaping, parking, and street art objects are parts of and

necessary components of a street and are considered to be a street

or road improvement.

(f) The district will not act as the agent or

instrumentality of any private interest even though the district

will benefit many private interests as well as the public.

Sec. 3796.0105. INITIAL DISTRICT TERRITORY. (a) The

district is initially composed of the territory described by

Section 2 of the Act enacting this chapter.

(b) The boundaries and field notes contained in Section 2 of

the Act enacting this chapter form a closure. A mistake in the

field notes or in copying the field notes in the legislative process

does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bonds for the purposes

for which the district is created or to pay the principal of and

interest on the bonds;

(3) right to impose or collect an assessment; or

(4) legality or operation.

Sec. 3796.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.

All or any part of the area of the district is eligible to be

included in:

(1) a tax increment reinvestment zone created under

Chapter 311, Tax Code; or

(2) a tax abatement reinvestment zone created under

Chapter 312, Tax Code.

Sec. 3796.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT

DISTRICTS LAW. Except as otherwise provided by this chapter,

Chapter 375, Local Government Code, applies to the district.

Sec. 3796.0108. PRECONDITION; EXPIRATION. (a) The

district may not exercise any powers under this chapter until the

development agreement is executed. After the development agreement

is executed, the district shall notify the Texas Commission on

Environmental Quality of the date the agreement was executed.

(b) This chapter, including Section 3796.0503, expires

September 1, 2024, if the development agreement is not executed by

that date.

Sec. 3796.0109. CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3796.0201. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five elected directors who serve staggered

terms of four years.

(b) Directors are elected in the manner provided by

Subchapter D, Chapter 49, Water Code.

Sec. 3796.0202. COMPENSATION; EXPENSES. (a) The district

may compensate each director in an amount not to exceed $150 for

each board meeting. The total amount of compensation for each

director in one year may not exceed $7,200.

(b) A director is entitled to reimbursement for necessary

and reasonable expenses incurred in carrying out the duties and

responsibilities of the board.

Sec. 3796.0203. INITIAL DIRECTORS. (a) The initial board

consists of the following directors:

Pos. No.

Name of Director

Rafael Parker

Mateo Jaramillo

Hector Alba

Laura Santos

Ricardo Soto

(b) Of the initial directors, the terms of directors

appointed for positions one through three expire June 1, 2025, and

the terms of directors appointed for positions four and five expire

June 1, 2027.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3796.0301. GENERAL POWERS AND DUTIES. The district

has the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 3796.0302. IMPROVEMENT PROJECTS AND SERVICES. (a) The

district, using any money available to the district for the

purpose, may provide, design, construct, acquire, improve,

relocate, operate, maintain, or finance an improvement project or

service authorized under a development agreement described by

Section 3796.0108, under this chapter, or under Chapter 375, Local

Government Code.

(b) The district may contract with a governmental or private

entity to carry out an action under Subsection (a).

governmental function or service for the purposes of Chapter 791,

Government Code.

Sec. 3796.0303. NONPROFIT CORPORATION. (a) The board by

resolution may authorize the creation of a nonprofit corporation to

assist and act for the district in implementing a project or

providing a service authorized by this chapter.

(b) The nonprofit corporation:

(1) has each power of and is considered to be a local

government corporation created under Subchapter D, Chapter 431,

Transportation Code; and

(2) may implement any project and provide any service

authorized by this chapter.

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as the board of directors

of a local government corporation created under Subchapter D,

Chapter 431, Transportation Code, except that a board member is not

required to reside in the district.

Sec. 3796.0304. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.

The district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

Sec. 3796.0305. PARKING FACILITIES. (a) The district may

acquire, lease as lessor or lessee, construct, develop, own,

operate, and maintain parking facilities or a system of parking

facilities, including lots, garages, parking terminals, or other

structures or accommodations for parking motor vehicles off the

streets and related appurtenances.

(b) The district's parking facilities serve the public

purposes of the district and are owned, used, and held for a public

purpose even if leased or operated by a private entity for a term of

years.

necessary components of a street and are considered to be a street

or road improvement.

(d) The development and operation of the district's parking

facilities may be considered an economic development program.

Sec. 3796.0306. ADDING OR EXCLUDING LAND. (a) Subject to

Subsection (b), the district may add or exclude land in the manner

provided by Subchapter J, Chapter 49, Water Code, or by Subchapter

H, Chapter 54, Water Code.

(b) The district may add territory as described by

Subsection (a) only if the governing body of the city by ordinance

or resolution consents to the addition.

Sec. 3796.0307. DISBURSEMENTS AND TRANSFERS OF MONEY. The

board by resolution shall establish the number of directors'

signatures and the procedure required for a disbursement or

transfer of district money.

Sec. 3796.0308. DIVISION OF DISTRICT. (a) The district may

be divided into two or more new districts only if the district:

(1) has no outstanding bonded debt; and

(2) is not imposing ad valorem taxes.

(b) This chapter applies to any new district created by the

division of the district, and a new district has all the powers and

duties of the district.

may not, at the time the new district is created, contain any land

outside the area described by Section 2 of the Act enacting this

chapter.

(d) The board, on its own motion or on receipt of a petition

signed by the owner or owners of a majority of the assessed value of

the real property in the district, may adopt an order dividing the

district.

(e) An order dividing the district must:

(1) name each new district;

(2) include the metes and bounds description of the

territory of each new district;

(3) appoint initial directors for each new district;

and

(4) provide for the division of assets and liabilities

between or among the new districts.

(f) On or before the 30th day after the date of adoption of

an order dividing the district, the district shall file the order

with the Texas Commission on Environmental Quality and record the

order in the real property records of each county in which the

district is located.

(g) Municipal consent to the creation of the district and to

the inclusion of land in the district granted under Section

3796.0503 acts as municipal consent to the creation of any new

district created by the division of the district and to the

inclusion of land in the new district.

Sec. 3796.0309. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT.

Section 375.161, Local Government Code, does not apply to the

district.

Sec. 3796.0310. NO AD VALOREM TAX. The district may not

impose an ad valorem tax.

Sec. 3796.0311. NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain.

SUBCHAPTER D. ASSESSMENTS

Sec. 3796.0401. PETITION REQUIRED FOR FINANCING SERVICES

AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this chapter

unless a written petition requesting that service or improvement

has been filed with the board.

(b) A petition filed under Subsection (a) must be signed by

the owners of a majority of the assessed value of real property in

the district subject to assessment according to the most recent

certified tax appraisal roll for the county.

Sec. 3796.0402. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)

The board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

(b) An assessment, a reassessment, or an assessment

resulting from an addition to or correction of the assessment roll

by the district, penalties and interest on an assessment or

reassessment, an expense of collection, and reasonable attorney's

fees incurred by the district:

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

assessed;

(2) are superior to any other lien or claim other than

a lien or claim for county, school district, or municipal ad valorem

taxes; and

(3) are the personal liability of and a charge against

the owners of the property even if the owners are not named in the

assessment proceedings.

resolution imposing the assessment until the date the assessment is

paid. The board may enforce the lien in the same manner that a

taxing unit, as that term is defined by Section 1.04, Tax Code, may

enforce an ad valorem tax lien against real property.

(d) The board may make a correction to or deletion from the

assessment roll that does not increase the amount of assessment of

any parcel of land without providing notice and holding a hearing in

the manner required for additional assessments.

SUBCHAPTER E. BONDS

Sec. 3796.0501. AUTHORITY TO BORROW MONEY AND TO ISSUE

BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on

terms determined by the board.

(b) The district may issue, by public or private sale,

bonds, notes, or other obligations payable wholly or partly from

assessments, revenue, contract payments, grants, or other district

money, or any combination of those sources of money, to pay for any

authorized district purpose.

bonds, notes, or other obligations payable wholly or partly from

assessments in the manner provided by Subchapter A, Chapter 372,

Local Government Code, if the improvement financed by the

obligation issued under this section will be conveyed to or

operated and maintained by a municipality or other retail utility

provider pursuant to an agreement with the district entered into

before the issuance of the obligation.

Sec. 3796.0502. BONDS SECURED BY REVENUE OR CONTRACT

PAYMENTS. The district may issue, without an election, bonds

secured by:

(1) revenue other than ad valorem taxes, including

contract revenues; or

(2) contract payments, provided that the requirements

of Section 49.108, Water Code, have been met.

Sec. 3796.0503. CONSENT OF CITY REQUIRED. The board may not

issue bonds until the city has consented by ordinance or resolution

to the creation of the district and to the inclusion of land in the

district as required by applicable law.

SUBCHAPTER I. DISSOLUTION

Sec. 3796.0901. DISSOLUTION. (a) The board shall dissolve

the district on written petition filed with the board by the owners

of:

(1) at least two-thirds of the assessed value of the

property subject to assessment by the district based on the most

recent certified county property tax rolls; or

(2) at least two-thirds of the surface area of the

district, excluding roads, streets, highways, utility

rights-of-way, other public areas, and other property exempt from

assessment by the district according to the most recent certified

county property tax rolls.

(b) The district may not be dissolved if the district:

(1) has any outstanding bonded or other indebtedness

until that bonded or other indebtedness has been repaid or defeased

in accordance with the order or resolution authorizing the issuance

of the bonded or other indebtedness;

(2) has a contractual obligation to pay money until

that obligation has been fully paid in accordance with the

contract; or

(3) owns, operates, or maintains public works,

facilities, or improvements unless the district contracts with

another person for the ownership, operation, or maintenance of the

public works, facilities, or improvements.

to the district.

SECTION 2. The Honey Creek Improvement District No. 1

initially includes all territory contained in the following area:

LEGAL DESCRIPTION

HONEY CREEK IMPROVEMENT DISTRICT NO. 1

TRACT 1

BEING a 1218.714 acre tract of land situated in the in the L.D.

Davidson Survey, Abstract No. 285, the E. Hamilton Survey, Abstract

No. 372, the W.H. Horn Survey, Abstract No. 1070, the W.M. Rice

Survey, Abstract No. 770, and the Meredith Hart Survey, Abstract

No. 371, City of McKinney, Collin County, Texas, and being the

remainder of a 189.1 acre tract and 1064.2 acre tract of land

described in a deed to Franklin Family Partnership recorded in

Volume 5540, Page 826, Land Records, Collin County, Texas, and

being part of a 3.00 acre tract of land described in a deed to Lela

M. Fryar recorded in Volume 703, Page 617, Land Records, Collin

County, Texas, and being all of a 10.00 acre tract of land described

in a deed to Richard Loren Franklin recorded in Clerk File

No. 95-0015568 Land Records, Collin County, Texas, and being more

particularly described as follows:

COMMENCING at a railroad spike found in asphalt at the intersection

of the centerline of County Road 166 and County Road 168, said point

being the apparent intersection of four surveys: the southeast

corner of the Thomas E. Pelham Survey, Abstract Number 724, the

southwest corner of the Jno. Cahill Survey, Abstract number 143,

the northeast corner of said D. J. Franklin Survey, and the

northwest corner of said L. D. Davidson Survey;

THENCE North 89°41'47" East along the centerline of said County Road

168 a distance 1278.96 feet to a 5/8" iron rod set for corner at the

POINT OF BEGINNING, said point being the northeast corner of a tract

of land described in a deed to Richard K. Hester et ux. Sarah P.

Hester recorded in Volume 4171, Page 3124, Land Records, Collin

County, Texas;

THENCE North 89°41'47" East continuing along the centerline of said

County Road 168 a distance of 3769.64 feet to a 1/2" iron rod found

at the southeast corner of a tract of land described in a deed to

Elizabeth Langston recorded in Volume 1372, Page 595, Land Records,

Collin County, Texas;

THENCE North 00°06'09" West with the east line of said Elizabeth

Langston a distance of 1018.25 feet to a 5/8" iron rod with red cap

marked KHA set at the northeast corner of a tract of land described

in a deed to R.J. Knowles recorded in Volume 1372, Page 589, Land

Records, Collin County, Texas;

THENCE South 89°01'12" East passing at 314.35 feet a PK nail with

washer found in asphalt at the most southerly southwest corner of a

tract of land described in a deed to Charles M. and Jean A. Hicks

recorded in Volume 5273, Page 6598, Land Records, Collin County,

Texas, and continuing for a total distance of 1592.06 feet to an

X-Cut set for corner on top of a concrete bridge in the west line of

a tract of land described in a deed to Theresa N. Roeder recorded in

Clerk File No. 95-0077977, Land Records, Collin County, Texas, said

point being in the centerline of Honey Creek;

THENCE along the centerline of said Honey Creek and with the west

line of said Theresa N. Roeder the following calls:

South 23°24'12" West a distance of 128.37 feet to a point for corner;

South 08°30'42" East a distance of 83.53 feet to a point for corner;

South 30°17'56" East a distance of 75.19 feet to a point for corner;

South 52°40'13" East a distance of 96.34 feet to a point for corner;

South 61°30'47" East a distance of 352.39 feet to a point for corner;

South 53°06'14" East a distance of 95.82 feet to a point for corner;

South 10°46'14" East a distance of 114.32 feet to a point for corner;

South 12°54'15" East a distance of 67.33 feet to a point for corner;

South 31°17'25" East a distance of 99.36 feet to a point for corner;

South 45°27'58" East a distance of 51.57 feet to a point for corner;

South 64°03'22" East a distance of 108.23 feet to a point for corner;

South 59°27'11" East a distance of 107.89 feet to a point for corner;

South 20°52'23" East a distance of 108.15 feet to a point for corner;

South 13°47'15" West a distance of 62.76 feet to a point for corner;

South 35°01'12" West a distance of 271.26 feet to a point for corner;

South 06°27'44" East a distance of 137.08 feet to a point for corner;

South 21°49'33" West a distance of 62.38 feet to a point for corner;

South 06°52'20" West a distance of 90.73 feet to a point for corner;

South 15°37'43" East a distance of 52.21 feet to a point for corner;

South 64°55'40" East a distance of 29.37 feet to a point for corner;

North 85°47'24" East a distance of 225.38 feet to a point for corner;

South 73°52'41" East a distance of 284.02 feet to a point for corner;

South 70°08'41" East a distance of 69.22 feet to a point for corner;

South 46°07'44" East a distance of 58.55 feet to a point for corner;

South 30°27'53" East a distance of 74.84 feet to a point for corner;

South 45°09'41" East a distance of 73.01 feet to a point for corner;

South 86°20'18" East a distance of 45.67 feet to a point for corner;

North 70°07'08" East a distance of 125.46 feet to a point for corner

in the west line of a tract of land described in a deed called "Tract

One" to J.A. and Imogene Gooch Revocable Living Trust, recorded in

Volume 5636, Page 4136, Land Records, Collin County, Texas;

THENCE South 03°48'49" East departing the centerline of said Honey

Creek and with the west line of said Tract One J.A. and Imogene

Gooch Revocable Living Trust along a barbwire fence passing at

51.57 feet a 1/2 inch iron rod found and continuing for a total

distance of 199.72 feet to a 5/8" iron rod with red cap marked KHA

set at the southwest corner of said Tract One J.A. and Imogene Gooch

Revocable Living Trust;

THENCE with the south line of said Tract One J.A. and Imogene Gooch

Revocable Living Trust the following calls:

South 79°35'20" East a distance of 110.76 feet to a 5/8" iron rod

with red cap marked KHA set for corner;

South 44°57'54" East a distance of 90.13 feet to a 5/8" iron rod with

red cap marked KHA set for corner;

North 67°12'40" East a distance of 174.48 feet to a 5/8" iron rod

with red cap marked KHA set for corner;

South 81°24'25" East a distance of 71.46 feet to a 5/8" iron rod with

red cap marked KHA set for corner;

South 66°47'34" East a distance of 178.26 feet to a point for corner

in the centerline of said Honey Creek;

THENCE along the centerline of said Honey Creek the following

calls:

South 59°29'36" West a distance of 48.92 feet to a point for corner;

South 07°03'42" West a distance of 54.33 feet to the northwest

corner of a tract of land described in a deed called "Tract Two" to

J.A. and Imogene Gooch Revocable Living Trust recorded in Volume

5636, Page 4136, Land Records, Collin County, Texas;

THENCE departing the centerline of said Honey Creek and with the

north, line of said Tract Two J.A. and Imogene Gooch Revocable

Living Trust the following calls:

South 25°06'09" West a distance of 85.01 feet to a 5/8" iron rod with

red cap marked KHA set for corner;

South 86°06'11" West a distance of 105.59 feet to a 5/8" iron rod

with red cap marked KHA set for corner;

North 62°04'42" West a distance of 70.34 feet to a 5/8" iron rod with

red cap marked KHA set for corner;

North 79°09'48" West a distance of 78.47 feet to a 5/8" iron rod with

red cap marked KHA set for corner;

South 76°09'56" West a distance of 228.54 feet to a 5/8" iron rod

with red cap marked KHA set at the northwest corner of said Tract

Two J.A. and Imogene Gooch Revocable Living Trust;

THENCE South 03°23'52" East a along a barbwire fence a distance of

152.85 feet to a 5/8" iron rod found at the southwest corner of said

Tract Two J.A. and Imogene Gooch Revocable Living Trust;

THENCE with the south line of said Tract Two J.A. and Imogene Gooch

Revocable Living Trust and along the general course of a barbwire

fence the following calls:

South 87°28'40" East a distance of 72.08 feet to a 5/8" iron rod with

red cap marked KHA set for corner;

South 88°58'34" East passing at 497.31 feet a 1/2 iron rod found and

continuing for a total distance of 541.00 feet to a point for corner

in the centerline of said Honey Creek, said point being in the west

line of a tract of land described in a deed to J.A. and Imogene Gooch

Revocable Living Trust recorded Clerk File Number 93-0106681, Land

Records, Collin County, Texas;

THENCE along the centerline of said Honey Creek and along the west

line of said J.A. and Imogene Gooch Revocable Living Trust the

following calls:

South 30°08'34" East a distance of 29.56 feet to a point for corner;

South 57°19'01" East a distance of 47.61 feet to a point for corner;

South 82°37'56" East a distance of 90.58 feet to a point for corner;

South 42°52'24" East a distance of 162.01 feet to a point at the

northwest corner of a tract of land described in a deed to Tom E.

Engle and Karen A. Engle recorded in Volume 5418, Page 4142, Land

Records, Collin County, Texas;

THENCE South 30°34'59" East with the west line of said Tom E. Engle

and Karen A. Engle and continuing along the centerline of said Honey

Creek a distance of 152.05 feet to a point at the northwest corner

of a tract of land described in a deed to Tom E. Engle and Karen A.

Engle recorded in Volume 5380, Page 4044, Land Records, Collin

County, Texas;

THENCE along the centerline of said Honey Creek and along the west

line of said Tom E. Engle and Karen A. Engle the following calls:

South 30°08'44" East a distance of 33.20 feet to a point for corner;

South 36°32'02" East a distance of 121.42 feet to a point for corner;

South 66°37'07" East a distance of 60.66 feet to a point for corner;

South 43°37'28" East a distance of 56.43 feet to a point for corner;

South 00°08'40" East a distance of 35.47 feet to a point for corner;

South 30°29'42" West a distance of 24.38 feet to a point for corner;

South 47°51'01" West a distance of 49.96 feet to a point for corner;

THENCE South 89°53'34" East departing the centerline of said Honey

Creek and with the south line of said Tom E. Engle and Karen A. Engle

passing at 58.03 feet a 1/2 inch iron rod with cap found and

continuing along a barbwire fence for a total distance of 983.93

feet to a metal fence post found for corner, from which a one inch

iron rod found in asphalt in the centerline of County Road 202 bears

South 89°53'34" East a distance of 21.86 feet;

THENCE South 00°25'41" West along the general course of a barbwire

fence a distance of 1552.26 feet to a point for corner in the

centerline of said Honey Creek;

THENCE along the centerline of said Honey Creek the following

calls:

South 69°49'58" East a distance of 82.17 feet to a point for corner;

South 14°23'29" East a distance of 70.58 feet to a point for corner;

South 02°11'17" West a distance of 169.40 feet to a point for corner;

South 40°43'43" West a distance of 72.63 feet to a point for corner;

South 67°07'59" West a distance of 69.48 feet to a point for corner;

South 85°04'46" West a distance of 109.78 feet to a point for corner;

South 32°43'24" West a distance of 60.16 feet to a point for corner;

South 09°08'50" East a distance of 124.19 feet to a point for corner;

South 56°32'04" East a distance of 73.66 feet to a point for corner;

South 63°18'11" East a distance of 37.12 feet to a point for corner;

South 69°59'42" East a distance of 111.44 feet to a point for corner;

South 46°14'26" East a distance of 90.73 feet to a point for corner;

South 11°15'17" East a distance of 191.67 feet to a point for corner;

South 17°55'11" East a distance of 85.72 feet to a point for corner;

South 69°18'16" East a distance of 235.92 feet to a point for corner;

South 29°14'27" East a distance of 57.98 feet to a point for corner;

South 51°31'28" East a distance of 440.72 feet to a point for corner;

South 43°32'59" East a distance of 140.07 feet to a point for corner;

South 62°01'13" East a distance of 104.31 feet to a point for corner;

North 69°11'35" East a distance of 73.64 feet to a point for corner;

North 50°17'09" East a distance of 128.74 feet to a point for corner;

North 74°01'37" East a distance of 82.53 feet to a point for corner;

South 48°40'54" East a distance of 124.07 feet to a point for corner;

South 26°42'21" West a distance of 77.82 feet to a point for corner;

South 05°56'42" East a distance of 73.50 feet to a point for corner;

South 45°47'12" East a distance of 501.35 feet to a point for corner;

South 55°49'11" East a distance of 191.12 feet to a point for corner;

South 14°28'12" West a distance of 75.33 feet to a point for corner;

South 52°02'47" West a distance of 124.63 feet to a point for corner;

South 17°36'16" West a distance of 89.41 feet to a point for corner;

South 08°17'38" East a distance of 60.50 feet to a point for corner;

South 46°25'51" East a distance of 223.59 feet to a point for corner;

North 86°02'30" East a distance of 68.62 feet to a point for corner;

North 68°04'39" East a distance of 251.87 feet to a point for corner;

South 38°28'19" East a distance of 46.61 feet to a point for corner;

South 13°57'02" East a distance of 143.42 feet to a point for corner;

South 74°53'01" East a distance of 55.67 feet to a point for corner;

South 89°34'39" East a distance of 76.12 feet to a point for corner;

North 74°24'09" East a distance of 112.70 feet to a point for corner;

North 48°36'26" East a distance of 133.78 feet to a point for corner;

South 40°05'49" East a distance of 40.71 feet to a point for corner;

South 01°35'11" East a distance of 106.35 feet to a point for corner;

South 47°59'10" East a distance of 79.63 feet to a point for corner;

North 83°01'26" East a distance of 57.88 feet to a point for corner;

North 71°34'34" East a distance of 308.45 feet to a point for corner;

North 49°30'50" East a distance of 80.60 feet to a point for corner

in the west line of a tract of land described in a deed to E.R.

Hartley et ux. Elga Hartley recorded in Volume 592, Page 35, Land

Records, Collin County, Texas;

THENCE South 00°34'13" West with the west line of said E.R. Hartley

and along a barbwire fence a distance of 538.17 feet to a six inch

diameter Bois d'Arc fence post found for corner;

THENCE North 87°27'55" West departing the west line of said E.R.

Hartley a distance of 272.40 feet to a six inch diameter Bois d'Arc

fence post found at the northwest corner of a tract of land

described in a deed to Eddie P. Howell et ux. Gailyn A. Howell

recorded in Volume 1128, Page 160, Land Records, Collin County,

Texas;

THENCE South 00°40'35" West with the west line of said Eddie P.

Howell and along the general course of a barbwire fence a distance

of 2013.95 feet to a 1/2" iron rod found for corner in asphalt in the

centerline of County Road 201;

THENCE North 87°51'07" West along the centerline of said County Road

201 passing at 1612.90 feet a 100D nail found 1.27 feet to the left

at a right angle to this course, said point being the southeast

corner of said 3.00 acre Lela M. Fryar tract, and passing at 1862.71

feet a 100D nail found 2.06 feet to the left at a right angle to this

course, said point being the southwest corner of said 3.00 acre Lela

M. Fryar tract, and continuing for a total distance of 2286.16 feet

to a 1/2" iron rod found for corner;

THENCE North 00°15'13" East along the general course of a barbwire

fence a distance of 1969.91 feet to a 1/2" iron rod found for

corner, from which a wood fence post found bears North 24°56'54"

West a distance of 3.4 feet;

THENCE North 89°06'26" West along the general course of a barbwire

fence passing at 466.94 feet a wood fence post found 0.9 feet to the

right and at right angles to this course, and continuing for a total

distance of 507.01 feet to a 1/2" iron rod found for corner in the

east line of a tract of land described in a deed to RAJICA 131, L.P.

recorded in Volume 5894, Page 3815, Land Records, Collin County,

Texas;

THENCE North 00°27'12" East with the east line of said RAJICA 131,

L.P. a distance of 1470.19 feet to a 1/2" iron rod found for corner

in asphalt at the intersection of the centerline of County Road 201

and County Road 1006;

THENCE South 89°25'38" West along the centerline of said County Road

1006 a distance of 4793.69 feet to a 1/2" iron rod found in gravel

pavement at the northeast corner of a tract of land described in a

deed to Perry J. Graham et ux. Donna M. Graham recorded in Volume

1233, Page 811, Land Records, Collin County, Texas;

THENCE South 89°30'39" West continuing along the centerline of said

County Road 1006 and with the north line of said Perry J. Graham a

distance of 431.57 feet to a 5/8" iron rod found for corner;

THENCE in a southerly direction continuing along the centerline of

said County Road 1006 the following calls:

South 10°38'17" West a distance of 428.46 feet to a 1/2" iron rod

found for corner in asphalt;

South 13°53'52" West a distance of 203.34 feet to a bent 1/2" iron

rod found for corner in asphalt;

South 24°17'55" West a distance of 316.45 feet to a 5/8" iron rod set

for corner in asphalt;

South 03°15'22" West a distance of 290.50 feet to a 5/8" iron rod set

for corner in asphalt;

South 01°02'46" East passing at 1043.25 feet a 3/8" iron rod found in

asphalt at the southwest corner of a tract of land described in a

deed to Rene Bates et ux. Beverly Bates recorded in Volume 3419,

Page 878, Land Records, Collin County, Texas, and continuing for a

total distance of 1113.87 feet to a 1/2" iron rod found in asphalt

at the northeast corner of a tract of land described in a deed to Don

W. Collins et ux. Carol A. Collins recorded in Volume 4355, Page

2347, Land Records, Collin County, Texas;

THENCE South 89°31'09" West departing the centerline of said County

Road 1006 and with the north line of said Don W. Collins and along

the general course of a barbwire fence a distance of 795.63 feet to

a 1/2" iron rod found at the base of an 18 inch diameter hackberry

tree at the northwest corner of said Don W. Collins;

THENCE South 89°41'41" West continuing along the general course of a

barbwire fence a distance of 1875.27 feet to a PK nail found in a

fence post for corner;

THENCE North 00°43'53" West a distance of 1307.74 feet to a 1/2" iron

rod with cap marked "RPLS 3963" found in the south line of a tract of

land described in a deed to Baylor Health Care System as "Tract

Two," recorded in Volume 5848, Page 4498, Land Records, Collin

County, Texas;

THENCE with the south and east lines of said Tract Two Baylor Health

Care System the following calls:

North 89°24'24" East a distance of 1227.09 feet to a 1/2" iron rod

with cap marked "RPLS 3963" found for corner;

North 00°33'36" West a distance of 985.72 feet to a 1/2" iron rod

with cap marked "RPLS 3963" found for corner in the south line of a

tract of land described in a deed to Paul H. Powell III et ux. Lois

M. Powell recorded in Clerk's File number 94-0015097, Land Records,

Collin County, Texas;

THENCE North 89°14'20" East with the south line of said Paul H.

Powell III passing at 40.07 feet a 1/2" iron rod found at the

southeast corner of said Paul H. Powell III and continuing for a

total distance of 512.56 feet to a 1/2" iron rod found at the

southeast corner of a tract of land described in a deed to Harris

Living Trust recorded in Volume 5272, Page 4335, Land Records,

Collin County, Texas;

THENCE with the east line of said Harris Living Trust and along the

general course of a barbwire fence the following calls:

North 00°12'24" West a distance of 583.36 feet to a 5/8" iron rod

with red cap marked KHA set for corner;

North 00°04'15" West a distance of 407.78 feet to a 5/8" iron rod

with red cap marked KHA set for corner;

North 00°32'47" West a distance of 436.72 feet to a 5/8" iron rod

with red cap marked KHA set for corner;

North 00°12'16" West a distance of 186.87 feet to a 5/8" iron rod

with red cap marked KHA set for corner;

North 00°23'27" West passing at 365.71 a one inch iron pipe found and

continuing for a total distance of 386.47 feet to a point for corner

in the centerline of a branch of Honey Creek;