81R18055 SKB-D
	By: Jackson, Mike	S.C.R. No. 59

	CONCURRENT RESOLUTION
	WHEREAS, MBP Corp. alleges that:
	(1)  in May 1990, the Board of Trustees of the Galveston
	Wharves entered into a lease and development agreement with The
	Woodlands Corporation;
	(2)  in January 1993, The Woodlands Corporation
	assigned all of its rights, title, and interest in the lease to
	Strand Harborside Joint Venture, a Texas joint venture of The
	Woodlands Corporation and MBP Corp.;
	(3)  in January 1994, The Woodlands Corporation
	assigned all of its interest in the joint venture to MBP Corp.,
	effectively dissolving the joint venture, and leaving MBP Corp. as
	the successor in interest to the lease;
	(4)  under the terms of the lease, MBP Corp., as
	successor in interest to the lease, would develop tourist-related
	facilities at its own cost within a time frame dictated by the Board
	of Trustees of the Galveston Wharves while paying rent to the board
	for the property, and on termination of the lease, all developments
	made by MBP Corp. would be owned by the Board of Trustees of the
	Galveston Wharves;
	(5)  the property affected by the lease includes the
	rooftop of the Mallory Building, also known as the Galveston Cruise
	Ship Terminal, and the aerial rights above the Mallory Building;
	(6)  in 1999 and in 2003, the Board of Trustees of the
	Galveston Wharves and MBP Corp. negotiated amendments to the lease
	agreement to allow the board to make certain alterations to the
	rooftop of the Mallory Building related to heating, venting, and
	air-conditioning systems used in the Mallory Building, other
	alterations, including construction of an enclosed pedestrian
	walkway, were also permitted;
	(7)  the costs of developing the rooftop of the Mallory
	Building and the aerial rights above it are a function of the
	geometry of the roof, and those costs have consistently increased
	due to alterations made by the Board of Trustees of the Galveston
	Wharves;
	(8)  over the past 17 years, MBP Corp., its affiliates,
	and its predecessors in interest have paid more than $2,550,000 in
	rent and expended more than $10,000,000 in constructing
	improvements on the leased property, which MBP Corp. markets
	extensively as the Historic Strand Seaport area;
	(9)  in December 2006, Deputy Port Director Michael J.
	Mierzwa contacted MBP Corp. on behalf of the Board of Trustees of
	the Galveston Wharves to amend the lease to allow further
	alterations to the property, including construction of a 140' x 20'
	disembarkation ramp;
	(10)  MBP Corp. attempted in good faith to negotiate
	with the Board of Trustees of the Galveston Wharves, but the board
	has declined to agree to MBP Corp.'s proposal for an amendment to
	the lease agreement and has been unwilling to negotiate alternate
	terms with MBP Corp.;
	(11)  despite the parties' failure to reach an
	agreement, the Board of Trustees of the Galveston Wharves has
	proceeded with the alterations to the Mallory Building,
	constructing "enhanced passenger loading operations," and in so
	doing has breached the lease;
	(12)  due to existing set-back requirements, the
	specific needs for development of the rooftop of the Mallory
	Building and the aerial rights above it, and the Board of Trustees
	of the Galveston Wharves' past and probable future violations of
	the lease, MBP Corp. is unable to design a development that could be
	constructed on the rooftop of the Mallory Building;
	(13)  on April 30, 2007, MBP Corp. issued a formal
	notice to the Board of Trustees of the Galveston Wharves advising
	the board that further construction and alterations to the Mallory
	Building rooftop constituted a default under the lease;
	(14)  despite breach of the lease, MBP Corp. would like
	to expand and improve its Historic Strand Seaport development and
	continue its role in the area's tourism industry, to the benefit of
	the people of Galveston;
	(15)  by entering into the lease with MBP Corp., the
	Board of Trustees of the Galveston Wharves waived its immunity from
	suit;
	(16)  under the terms of the lease, MBP Corp. may resort
	to the courts for specific performance of the lease agreement and is
	entitled to reasonable attorneys' fees;
	(17)  MBP Corp. will suffer irreparable damage unless
	the Board of Trustees of the Galveston Wharves is ordered by the
	courts to restore the Mallory Building rooftop to its condition
	before the construction of the board's unauthorized alteration for
	enhanced passenger loading operations, to dismantle the
	alterations constructed on the rooftop without MBP Corp.'s
	agreement, and to refrain from making any future alterations to the
	rooftop and interfering with MBP Corp.'s rights in the air space
	above the rooftop except as authorized under the lease agreement as
	amended; now, therefore, be it
	RESOLVED by the Legislature of the State of Texas, That MBP
	Corp. is granted permission to sue the State of Texas and Board of
	Trustees of the Galveston Wharves subject to Chapter 107, Civil
	Practice and Remedies Code; and, be it further
	RESOLVED, That the Chairman of the Board of Trustees of the
	Galveston Wharves be served process as provided by Section
	107.002(a)(3), Civil Practice and Remedies Code.