|  | 
      
        |  | 
      
        |  | 
      
        |  |  | 
      
        |  | relating to the creation of the Comal County Water Improvement | 
      
        |  | District No. 3; granting a limited power of eminent domain; | 
      
        |  | providing authority to issue bonds; providing authority to impose | 
      
        |  | assessments, fees, or taxes. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Subtitle F, Title 6, Special District Local Laws | 
      
        |  | Code, is amended by adding Chapter 8489 to read as follows: | 
      
        |  | CHAPTER 8489.  COMAL COUNTY WATER IMPROVEMENT DISTRICT NO. 3 | 
      
        |  | SUBCHAPTER A.  GENERAL PROVISIONS | 
      
        |  | Sec. 8489.001.  DEFINITIONS.  In this chapter: | 
      
        |  | (1)  "Board" means the district's board of directors. | 
      
        |  | (2)  "Commission" means the Texas Commission on | 
      
        |  | Environmental Quality. | 
      
        |  | (3)  "Director" means a board member. | 
      
        |  | (4)  "District" means the Comal County Water | 
      
        |  | Improvement District No. 3. | 
      
        |  | Sec. 8489.002.  NATURE OF DISTRICT.  The district is a | 
      
        |  | municipal utility district created under Section 59, Article XVI, | 
      
        |  | Texas Constitution. | 
      
        |  | Sec. 8489.003.  CONFIRMATION AND DIRECTORS' ELECTION | 
      
        |  | REQUIRED.  The temporary directors shall hold an election to | 
      
        |  | confirm the creation of the district and to elect five permanent | 
      
        |  | directors as provided by Section 49.102, Water Code. | 
      
        |  | Sec. 8489.004.  CONSENT OF MUNICIPALITY AND DEVELOPMENT | 
      
        |  | AGREEMENT REQUIRED.  (a)  The temporary directors may not hold an | 
      
        |  | election under Section 8489.003 until each municipality in whose | 
      
        |  | corporate limits or extraterritorial jurisdiction the district is | 
      
        |  | located has: | 
      
        |  | (1)  consented by ordinance or resolution to the | 
      
        |  | creation of the district and to the inclusion of land in the | 
      
        |  | district; and | 
      
        |  | (2)  entered into a development agreement under Section | 
      
        |  | 212.172, Local Government Code, with the retail public utility | 
      
        |  | owned by the municipality that addresses water and wastewater | 
      
        |  | issues and with the owners of land in the district that addresses | 
      
        |  | relevant issues, including: | 
      
        |  | (A)  the provision of services other than water or | 
      
        |  | wastewater services to land in the district, including emergency | 
      
        |  | services and solid waste collection; | 
      
        |  | (B)  traffic and roadway impacts caused by the | 
      
        |  | creation of the district; | 
      
        |  | (C)  the amount of debt to be issued by the | 
      
        |  | district or any new district created by the division of the | 
      
        |  | district; | 
      
        |  | (D)  a plan for dividing the district, including | 
      
        |  | the number, location, and size of any new districts created by the | 
      
        |  | division of the district; | 
      
        |  | (E)  fire flow; | 
      
        |  | (F)  a prohibition against a retail public | 
      
        |  | utility, as defined by Section 13.002, Water Code, other than the | 
      
        |  | retail public utility owned by the municipality, from providing | 
      
        |  | retail water or wastewater service to the property in the district | 
      
        |  | or a new district created by the division of the district except | 
      
        |  | with respect to any lands in the district or a new district created | 
      
        |  | by division of the district that are included within the | 
      
        |  | certificated service territory of another retail public utility, as | 
      
        |  | defined by a certificate of public convenience and necessity; | 
      
        |  | (G)  an agreement to comply with the | 
      
        |  | municipality's most current building codes and ordinances, public | 
      
        |  | health and safety codes and ordinances, and environmental | 
      
        |  | regulation codes and ordinances; and | 
      
        |  | (H)  an agreement to comply with the | 
      
        |  | municipality's most current land use regulations. | 
      
        |  | (b)  The development agreement may not contain a provision | 
      
        |  | prohibited by Section 212.174, Local Government Code, in relation | 
      
        |  | to the provision of utility service. | 
      
        |  | (c)  A confirmation election held in violation of this | 
      
        |  | section is void. | 
      
        |  | Sec. 8489.005.  FINDINGS OF PUBLIC PURPOSE  AND BENEFIT.  (a) | 
      
        |  | The district is created to serve a public purpose and benefit. | 
      
        |  | (b)  The district is created to accomplish the purposes of: | 
      
        |  | (1)  a municipal utility district as provided by | 
      
        |  | general law and Section 59, Article XVI, Texas Constitution; and | 
      
        |  | (2)  Section 52, Article III, Texas Constitution, that | 
      
        |  | relate to the construction, acquisition, improvement, operation, | 
      
        |  | or maintenance of macadamized, graveled, or paved roads, or | 
      
        |  | improvements, including storm drainage, in aid of those roads. | 
      
        |  | Sec. 8489.006.  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 made 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 bond for the purposes | 
      
        |  | for which the district is created or to pay the principal of and | 
      
        |  | interest on a bond; | 
      
        |  | (3)  right to impose a tax; or | 
      
        |  | (4)  legality or operation. | 
      
        |  | SUBCHAPTER B.  BOARD OF DIRECTORS | 
      
        |  | Sec. 8489.051.  GOVERNING BODY; TERMS.  (a)  The district is | 
      
        |  | governed by a board of five elected directors. | 
      
        |  | (b)  Except as provided by Section 8489.052, directors serve | 
      
        |  | staggered four-year terms. | 
      
        |  | Sec. 8489.052.  TEMPORARY DIRECTORS.  (a)  The temporary | 
      
        |  | board consists of: | 
      
        |  | (1)  William McLean; | 
      
        |  | (2)  Michael Morrill; | 
      
        |  | (3)  Lance Sallis; | 
      
        |  | (4)  Noah Shaffer; and | 
      
        |  | (5)  Stephen Delgado. | 
      
        |  | (b)  Temporary directors serve until the earlier of: | 
      
        |  | (1)  the date permanent directors are elected under | 
      
        |  | Section 8489.003; or | 
      
        |  | (2)  the fourth anniversary of the effective date of | 
      
        |  | the Act enacting this chapter. | 
      
        |  | (c)  If permanent directors have not been elected under | 
      
        |  | Section 8489.003 and the terms of the temporary directors have | 
      
        |  | expired, successor temporary directors shall be appointed or | 
      
        |  | reappointed as provided by Subsection (d) to serve terms that | 
      
        |  | expire on the earlier of: | 
      
        |  | (1)  the date permanent directors are elected under | 
      
        |  | Section 8489.003; or | 
      
        |  | (2)  the fourth anniversary of the date of the | 
      
        |  | appointment or reappointment. | 
      
        |  | (d)  If Subsection (c) applies, the owner or owners of a | 
      
        |  | majority of the assessed value of the real property in the district | 
      
        |  | may submit a petition to the commission requesting that the | 
      
        |  | commission appoint as successor temporary directors the five | 
      
        |  | persons named in the petition.  The commission shall appoint as | 
      
        |  | successor temporary directors the five persons named in the | 
      
        |  | petition. | 
      
        |  | SUBCHAPTER C.  POWERS AND DUTIES | 
      
        |  | Sec. 8489.101.  GENERAL POWERS AND DUTIES.  The district has | 
      
        |  | the powers and duties necessary to accomplish the purposes for | 
      
        |  | which the district is created. | 
      
        |  | Sec. 8489.102.  MUNICIPAL UTILITY DISTRICT POWERS AND | 
      
        |  | DUTIES.  The district has the powers and duties provided by the | 
      
        |  | general law of this state, including Chapters 49 and 54, Water Code, | 
      
        |  | applicable to municipal utility districts created under Section 59, | 
      
        |  | Article XVI, Texas Constitution. | 
      
        |  | Sec. 8489.103.  AUTHORITY FOR ROAD PROJECTS.  Under Section | 
      
        |  | 52, Article III, Texas Constitution, the district may design, | 
      
        |  | acquire, construct, finance, issue bonds for, improve, operate, | 
      
        |  | maintain, and convey to this state, a county, or a municipality for | 
      
        |  | operation and maintenance macadamized, graveled, or paved roads, or | 
      
        |  | improvements, including storm drainage, in aid of those roads. | 
      
        |  | Sec. 8489.104.  ROAD STANDARDS AND REQUIREMENTS.  (a)  A road | 
      
        |  | project must meet all applicable construction standards, zoning and | 
      
        |  | subdivision requirements, and regulations of each municipality in | 
      
        |  | whose corporate limits or extraterritorial jurisdiction the road | 
      
        |  | project is located. | 
      
        |  | (b)  If a road project is not located in the corporate limits | 
      
        |  | or extraterritorial jurisdiction of a municipality, the road | 
      
        |  | project must meet all applicable construction standards, | 
      
        |  | subdivision requirements, and regulations of each county in which | 
      
        |  | the road project is located. | 
      
        |  | (c)  If the state will maintain and operate the road, the | 
      
        |  | Texas Transportation Commission must approve the plans and | 
      
        |  | specifications of the road project. | 
      
        |  | Sec. 8489.105.  WATER AND WASTEWATER INFRASTRUCTURE.  (a) | 
      
        |  | The district may not construct a water or wastewater facility | 
      
        |  | unless any municipality in whose corporate limits or | 
      
        |  | extraterritorial jurisdiction the facility is located at the time | 
      
        |  | of construction has approved the plans and specifications of the | 
      
        |  | facility. | 
      
        |  | (b)  On completion of a water or wastewater facility | 
      
        |  | described in a development agreement between the district and a | 
      
        |  | municipality, the district shall convey the facility to the | 
      
        |  | municipality or to the retail public utility owned by the | 
      
        |  | municipality, free of all liens, claims, or encumbrances, in the | 
      
        |  | form and manner acceptable to the municipality or retail public | 
      
        |  | utility. | 
      
        |  | Sec. 8489.106.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE | 
      
        |  | OR RESOLUTION AND DEVELOPMENT AGREEMENT.  (a)  The district shall | 
      
        |  | comply with all applicable requirements of any ordinance or | 
      
        |  | resolution that is adopted under Section 54.016 or 54.0165, Water | 
      
        |  | Code, and that consents to the creation of the district or to the | 
      
        |  | inclusion of land in the district. | 
      
        |  | (b)  Notwithstanding other law, a municipality may place a | 
      
        |  | condition or restriction on the creation of the district or | 
      
        |  | inclusion of land in the district that is: | 
      
        |  | (1)  expressly permitted by Sections 54.016(e) and (i), | 
      
        |  | Water Code; or | 
      
        |  | (2)  contained in the development agreement entered | 
      
        |  | into under Section 212.172, Local Government Code, and this | 
      
        |  | chapter. | 
      
        |  | Sec. 8489.107.  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. | 
      
        |  | (c)  Any new district created by the division 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)  The board may adopt an order dividing the district | 
      
        |  | before or after the date the board holds an election under Section | 
      
        |  | 8489.003 to confirm the district's creation. | 
      
        |  | (f)  An order dividing the district shall: | 
      
        |  | (1)  name each new district; | 
      
        |  | (2)  include the metes and bounds description of the | 
      
        |  | territory of each new district; | 
      
        |  | (3)  appoint temporary directors for each new district; | 
      
        |  | and | 
      
        |  | (4)  provide for the division of assets and liabilities | 
      
        |  | between or among the new districts. | 
      
        |  | (g)  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 commission and record the order in the real property | 
      
        |  | records of each county in which the district is located. | 
      
        |  | (h)  Any new district created by the division of the district | 
      
        |  | shall hold a confirmation and directors' election as required by | 
      
        |  | Section 8489.003. | 
      
        |  | (i)  Municipal consent to the creation of the district and to | 
      
        |  | the inclusion of land in the district granted under Section | 
      
        |  | 8489.004 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. | 
      
        |  | (j)  Any new district created by the division of the district | 
      
        |  | must hold an election as required by this chapter to obtain voter | 
      
        |  | approval before the district may impose a maintenance tax or issue | 
      
        |  | bonds payable wholly or partly from ad valorem taxes. | 
      
        |  | Sec. 8489.108.  LIMITATION ON ANNEXATION OF LAND BY | 
      
        |  | DISTRICT.  The district or any new district created by the division | 
      
        |  | of the district may not annex land outside the area described by | 
      
        |  | Section 2 of the Act enacting this chapter without the consent of | 
      
        |  | each municipality in whose corporate limits or extraterritorial | 
      
        |  | jurisdiction any of the land in the area described by Section 2 of | 
      
        |  | the Act enacting this chapter is located. | 
      
        |  | Sec. 8489.109.  MUNICIPAL ANNEXATION ADJACENT TO DISTRICT. | 
      
        |  | For the purposes of Section 43.021(2), Local Government Code, or | 
      
        |  | other law, including a  municipal charter or ordinance relating to | 
      
        |  | annexation, an area adjacent to the district or any new district | 
      
        |  | created by the division of the district is considered adjacent to a | 
      
        |  | municipality in whose corporate limits or extraterritorial | 
      
        |  | jurisdiction any of the land in the area described by Section 2 of | 
      
        |  | the Act enacting this chapter is located. | 
      
        |  | Sec. 8489.110.  LIMITS ON DISTRICT SERVICES.  Inside the | 
      
        |  | corporate limits or extraterritorial jurisdiction of a | 
      
        |  | municipality, the district may not provide without the | 
      
        |  | municipality's consent: | 
      
        |  | (1)  solid waste collection, treatment, or disposal | 
      
        |  | services; or | 
      
        |  | (2)  fire protection services. | 
      
        |  | SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS | 
      
        |  | Sec. 8489.151.  ELECTIONS REGARDING TAXES OR BONDS.  (a)  The | 
      
        |  | district may issue, without an election, bonds and other | 
      
        |  | obligations secured by: | 
      
        |  | (1)  revenue other than ad valorem taxes;  or | 
      
        |  | (2)  contract payments described by Section 8489.153. | 
      
        |  | (b)  The district must hold an election in the manner | 
      
        |  | provided by Chapters 49 and 54, Water Code, to obtain voter approval | 
      
        |  | before the district may impose an ad valorem tax or issue bonds | 
      
        |  | payable from ad valorem taxes. | 
      
        |  | (c)  The district may not issue bonds payable from ad valorem | 
      
        |  | taxes to finance a road project unless the issuance is approved by a | 
      
        |  | vote of a two-thirds majority of the district voters voting at an | 
      
        |  | election held for that purpose. | 
      
        |  | Sec. 8489.152.  OPERATION AND MAINTENANCE TAX.  (a)  If | 
      
        |  | authorized at an election held under Section 8489.151, the district | 
      
        |  | may impose an operation and maintenance tax on taxable property in | 
      
        |  | the district in accordance with Section 49.107, Water Code. | 
      
        |  | (b)  The board shall determine the tax rate.  The rate may not | 
      
        |  | exceed the rate approved at the election. | 
      
        |  | Sec. 8489.153.  CONTRACT TAXES.  (a)  In accordance with | 
      
        |  | Section 49.108, Water Code, the district may impose a tax other than | 
      
        |  | an operation and maintenance tax and use the revenue derived from | 
      
        |  | the tax to make payments under a contract after the provisions of | 
      
        |  | the contract have been approved by a majority of the district voters | 
      
        |  | voting at an election held for that purpose. | 
      
        |  | (b)  A contract approved by the district voters may contain a | 
      
        |  | provision stating that the contract may be modified or amended by | 
      
        |  | the board without further voter approval. | 
      
        |  | SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS | 
      
        |  | Sec. 8489.201.  AUTHORITY TO ISSUE BONDS AND OTHER | 
      
        |  | OBLIGATIONS.  The district may issue bonds or other obligations | 
      
        |  | payable wholly or partly from ad valorem taxes, impact fees, | 
      
        |  | revenue, contract payments, grants, or other district money, or any | 
      
        |  | combination of those sources, to pay for any authorized district | 
      
        |  | purpose. | 
      
        |  | Sec. 8489.202.  TAXES FOR BONDS. At the time the district | 
      
        |  | issues bonds payable wholly or partly from ad valorem taxes, the | 
      
        |  | board shall provide for the annual imposition of a continuing | 
      
        |  | direct ad valorem tax, without limit as to rate or amount, while all | 
      
        |  | or part of the bonds are outstanding as required and in the manner | 
      
        |  | provided by Sections 54.601 and 54.602, Water Code. | 
      
        |  | Sec. 8489.203.  BONDS FOR ROAD PROJECTS.  At the time of | 
      
        |  | issuance, the total principal amount of bonds or other obligations | 
      
        |  | issued or incurred to finance road projects and payable from ad | 
      
        |  | valorem taxes may not exceed one-fourth of the assessed value of the | 
      
        |  | real property in the district. | 
      
        |  | SECTION 2.  The Comal County Water Improvement District No. | 
      
        |  | 3 initially includes all the territory contained in the following | 
      
        |  | area: | 
      
        |  | TRACT ONE: | 
      
        |  | 1252.958 acres of land located in the Antonio Maria Esnaurizar | 
      
        |  | Eleven League Grant, Survey No. 1, Abstract No. 1, Subdivisions 13, | 
      
        |  | 14, 15, 16, 17, 18, 19, 20, 21, 22, and 31, Comal County, Texas, and | 
      
        |  | being comprised of the following parcels: 1015.410 acre tract as | 
      
        |  | described as a 1015.701 acre tract by a SPECIAL WARRANTY DEED from | 
      
        |  | NORMANDY TERRACE, INC., a Texas Corporation, JAMES C. NORMAN, NANCY | 
      
        |  | NORMAN and SUSAN N. SMITH to LAMROCK 3-2001 LIMITED, a Texas limited | 
      
        |  | partnership, executed on April 30, 2001, and recorded in Document | 
      
        |  | No. 200106014380 of the Official Public Records of Comal County, | 
      
        |  | Texas, and an 85.763 acre tract comprised of a 57.133 acre tract as | 
      
        |  | described in a PARTITION DEED between LEE E. JOHNSON and wife JEN | 
      
        |  | MEI JOHNSON, executed on September 7, 1983, and recorded in Volume | 
      
        |  | 351, Pages 931-939 of the Deed Records of Comal County, Texas, and a | 
      
        |  | 28.500 acre tract as conveyed by SPECIAL WARRANTY DEED dated | 
      
        |  | November 3, 1998, and recorded in Document No. 9806027705 of the | 
      
        |  | Official Public Records of Comal County, Texas, and 28.477 acres of | 
      
        |  | land being out of and a part of a 28.632 acre tract as conveyed by | 
      
        |  | SPECIAL WARRANTY DEED from the RESOLUTION TRUST CORPORATION (RTC) | 
      
        |  | to M.W. KRAFT, JR., executed on January 14, 1983, and recorded in | 
      
        |  | Volume 874, Pages 72-76 of the Official Public Records of Comal | 
      
        |  | County, Texas, and 27.474 acres of land being out of and a part of a | 
      
        |  | 27.611 acre tract as conveyed by GENERAL WARRANTY DEED from MICHAEL | 
      
        |  | PAYNTER and wife THETA SCHUG PAYNTER, to MARY EVELYN FREEMAN, filed | 
      
        |  | for record on June 10, 1985, and recorded in Volume 451, Pages | 
      
        |  | 695-697 of the Official Public Records of Comal County, Texas, and | 
      
        |  | 20.035 acres of land being out of and a part of a 26.6 acre tract as | 
      
        |  | conveyed by WARRANTY DEED WITH VENDOR'S LIEN from EGON KOHLENBERG | 
      
        |  | ET UX to LAWRENCE KOHLENBERG, and filed for record on October 18, | 
      
        |  | 1949, and recorded in Volume 92, Pages 43-44 of the Deed Records of | 
      
        |  | Comal County, Texas, and also being out of and a part of a 103.75 | 
      
        |  | acre tract as conveyed by WARRANTY DEED WITH VENDOR'S LIEN from J.M. | 
      
        |  | SMITH to EGON KOHLENBERG ET UX, filed for record June 21, 1943, and | 
      
        |  | Recorded in Volume 77, Pages 442-443 of the Deed Records of Comal | 
      
        |  | County, Texas, and 74.803 acres of land being out of and a part of a | 
      
        |  | 74.44 acre tract as conveyed by DEED OF GIFT from DORACILLE | 
      
        |  | KOHLENBERG, a widow, to KAREN WESCH and FAYE COOLEY, and filed for | 
      
        |  | record on March 4, 1993, and recorded in Volume 873, Pages 228-229 | 
      
        |  | of the Official Public Records of Comal County, Texas, and being out | 
      
        |  | of and a part of a 103.75 acre tract as described in a WARRANTY DEED | 
      
        |  | with VENDOR'S LIEN, filed for record June 21, 1943, and recorded in | 
      
        |  | Volume 77, Pages 442-443 of the Deed Records of Comal County, Texas, | 
      
        |  | and 1.002 acres of land being out of and a part of a 74.44 acre tract | 
      
        |  | as conveyed by DEED OF GIFT from DORACHILLE KOHLENBERG, a widow, to | 
      
        |  | KAREN WESCH and FAYE COOLEY and filed for record on March 4, 1993, | 
      
        |  | and recorded in Volume 873, Pages 228-229 of the Official Public | 
      
        |  | Records of Comal County, Texas, and being out of and a part of a | 
      
        |  | 103.75 acre tract as described in a WARRANTY DEED with VENDOR'S | 
      
        |  | LIEN, filed for record June 21, 1943, and recorded in Volume 77, | 
      
        |  | Pages 442-443 of the Deed Records of Comal County, Texas, and being | 
      
        |  | the same parcel designated as TRACT NO. 2 (1.003 acres) by DEED OF | 
      
        |  | GIFT from FAYE COOLEY to KAREN HESTAND, executed on March 14, 1996, | 
      
        |  | and recorded in Document No. 9606005988 of the Official Public | 
      
        |  | Records of Comal County, Texas, said 1252.958 acres of land being | 
      
        |  | more particularly described as follows: | 
      
        |  | BEGINNING: at a set 1/2" iron pin with plastic cap in the Southeast | 
      
        |  | Right of Way Line of I.H.35 and being the Northernmost corner of | 
      
        |  | this parcel and said 1015.701 acre tract and the Westernmost corner | 
      
        |  | of a 69.569 acre tract as recorded in Document No. 9506481804 of the | 
      
        |  | Official Public Records of Comal County, Texas; and | 
      
        |  | THENCE: (1)  SOUTH 45 deg. 00' 03" East, (all bearings in this | 
      
        |  | description are based on Grid North of the Texas Coordinate System, | 
      
        |  | NAD 83 (93) Zone 4204), a distance of 2148.79 feet along the | 
      
        |  | Northwest line of this parcel and said 1015.701 acre tract and the | 
      
        |  | Southwest line of said 69.569 acre tract to a found 2" iron pipe | 
      
        |  | being the Southernmost corner of said 69.569 acre tract; | 
      
        |  | THENCE: the following courses along the Northeast line of this | 
      
        |  | parcel and said 1015.701 acre tract and the Southwest line of an | 
      
        |  | 18.092 acre tract as recorded in Volume 972, Page 676 of the | 
      
        |  | Official Public Records of Comal County, Texas, and the CUATRO | 
      
        |  | AMIGOS SUBDIVISION as recorded in Volume 11, Page 100 of the Map and | 
      
        |  | Plat Records of Comal County, Texas, and an 18.062 acre tract as | 
      
        |  | recorded in Document No. 9906009211 of the Official Public Records | 
      
        |  | of Comal County, Texas, and a 35.370 acre tract as recorded in | 
      
        |  | Volume 85, Pages 564-565 of the Deed Records of Comal County, Texas, | 
      
        |  | and a 27.00 acre tract as recorded in Volume 433, Page 473 of the | 
      
        |  | Deed Records of Comal County, Texas, and a 27.00 acre tract as | 
      
        |  | recorded in Volume 433, Page 475 of the Deed Records of Comal County | 
      
        |  | Texas, and a 27.00 acre tract as recorded in Volume 433, Page 471 of | 
      
        |  | the Deed Records of Comal County, Texas, and a 15.00 acre tract as | 
      
        |  | recorded in Volume 862, Page 417 of the Official Public Records of | 
      
        |  | Comal County, Texas: | 
      
        |  | (2)  SOUTH 44 deg. 45' 25" East, a distance of 1675.16 feet to | 
      
        |  | a found 60d nail being an angle point; | 
      
        |  | (3)  SOUTH 44 deg. 16' 57" East, a distance of 243.82 feet to | 
      
        |  | a found 60d nail being an angle point; | 
      
        |  | (4)  SOUTH 46 deg. 04' 58" East, a distance of 1040.03 feet to | 
      
        |  | a found 60d nail being an angle point; and | 
      
        |  | (5)  SOUTH 45 deg. 39' 04" East, a distance of 2159.39 feet to | 
      
        |  | a found 1/2" iron pin being the Northernmost corner of a 125.571 | 
      
        |  | acre tract as recorded in Volume 744, Page 126 of the Official | 
      
        |  | Public Records of Comal County, Texas; | 
      
        |  | THENCE: the following courses along the Southeast line of this | 
      
        |  | parcel and said 1015.701 acre tract and the Northwest line of said | 
      
        |  | 125.571 acre tract: | 
      
        |  | (6)  SOUTH 47 deg. 05' 12" West, a distance of 1402.22 feet to | 
      
        |  | a found 1/2" iron pin being an angle point; | 
      
        |  | (7)  SOUTH 41 deg. 11' 48" East, a distance of 52.89 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap being an angle point; and | 
      
        |  | (8)  SOUTH 29 deg. 55' 10" West, a distance of 3.91 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap, being an interior corner of this | 
      
        |  | parcel and said 1015.701 acre tract and the Westernmost corner of | 
      
        |  | said 125.571 acre tract; | 
      
        |  | THENCE: (9)  SOUTH 44 deg. 18' 16" East, a distance of 759.93 feet | 
      
        |  | along the Northeast line of this parcel and said 1015.701 acre tract | 
      
        |  | and the Southwest line of said 125.571 acre tract to a set 1/2" iron | 
      
        |  | pin with plastic cap being an angle point; and | 
      
        |  | (10)  SOUTH 44 deg. 50' 59" East, a distance of 2402.27 feet | 
      
        |  | along the Northeast line of this parcel and said 1015.701 acre tract | 
      
        |  | and the Southwest line of said 125.571 acre tract to a found 1/2" | 
      
        |  | iron pin being the Northernmost corner of a 2.301 acre tract as | 
      
        |  | recorded in Volume 341, Page 63 of the Deed Records of Comal County, | 
      
        |  | Texas; | 
      
        |  | THENCE: the following courses along the Southeast line of this | 
      
        |  | parcel and said 1015.701 acre tract and the Northwest line of said | 
      
        |  | 2.301 acre tract and a 2.00 acre tract as recorded in Volume 62, | 
      
        |  | Page 862 of the Deed Records of Comal County, Texas: | 
      
        |  | (11)  SOUTH 44 deg. 34' 13" West, a distance of 633.91 feet to | 
      
        |  | a found 1/2" iron pin being an angle point; and | 
      
        |  | (12)  SOUTH 02 deg. 51' 44" East, a distance of 89.86 feet to | 
      
        |  | a set 1/2" iron pin with plastic cap being the Southeast corner of | 
      
        |  | this parcel and said 1015.701 acre tract and the Southwest corner of | 
      
        |  | said 2.00 acre tract and being in the North Right of Way Line of F.M. | 
      
        |  | 1101, and being a point of curvature; | 
      
        |  | THENCE: the following courses along the South line of this parcel | 
      
        |  | and said 1015.701 acre tract and the North Right of Way Line of F.M. | 
      
        |  | 1101: | 
      
        |  | (13)  493.60 feet along the arc of a curve to the right, | 
      
        |  | having a radius of 3769.80 feet, and a central angle of 07 deg. 30' | 
      
        |  | 07", and whose chord bears South 84 deg. 31' 13" West, a distance of | 
      
        |  | 493.25 feet to a found concrete highway monument (Type I); | 
      
        |  | (14)  SOUTH 88 deg. 19' 44" West, a distance of 800.02 feet to | 
      
        |  | a found concrete highway monument (Type I) being an angle point; | 
      
        |  | (15)  SOUTH 88 deg. 19' 51" West, a distance of 1598.80 feet | 
      
        |  | to a found concrete highway monument (Type I) being an angle point; | 
      
        |  | (16)  NORTH 86 deg. 11' 44" West, a distance of 295.61 feet to | 
      
        |  | a found concrete monument (Type I) being an angle point; | 
      
        |  | (17)  SOUTH 88 deg. 44' 07" West, a distance of 169.63 feet to | 
      
        |  | a found concrete highway monument (Type I) being an angle point; and | 
      
        |  | (18)  SOUTH 79 deg. 04' 08" West, a distance of 298.47 feet to | 
      
        |  | a found steel fence post being the Southwest corner of said 1015.701 | 
      
        |  | acre tract and the Easternmost corner of an 119.882 acre tract as | 
      
        |  | recorded in Volume 1015, Page 444 of the Official Public Records of | 
      
        |  | Comal County, Texas; | 
      
        |  | THENCE: the following courses along the Southwest line of this | 
      
        |  | parcel and said 1015.701 acre tract and the Northeast line of said | 
      
        |  | 119.882 acre tract: | 
      
        |  | (19)  NORTH 45 deg. 28' 52" West, a distance of 1565.19 feet | 
      
        |  | to a found 1/4" iron pin being an interior corner of this parcel and | 
      
        |  | said 1015.701 acre tract; | 
      
        |  | (20)  SOUTH 57 deg. 43' 21" West, a distance of 155.81 feet to | 
      
        |  | a found fence post being an angle point; | 
      
        |  | (21)  SOUTH 57 deg. 21' 38" West, a distance of 836.82 feet to | 
      
        |  | a found 3/8" iron pin being an exterior corner of this parcel and | 
      
        |  | said 1015.701 acre tract; | 
      
        |  | (22)  NORTH 44 deg. 02' 14" West, a distance of 507.09 feet to | 
      
        |  | a found fence post being an angle point; and | 
      
        |  | (23)  NORTH 45 deg. 03' 47" West, a distance of 469.71 feet to | 
      
        |  | a found 3/8" iron pin being the Easternmost corner of a 57.133 acre | 
      
        |  | tract as recorded in Volume 351, Pages 931-939 of the Deed Records | 
      
        |  | of Comal County, Texas; and | 
      
        |  | THENCE: (24)  SOUTH 56 deg. 54' 03" West, a distance of 1110.45 | 
      
        |  | feet along the Southeast line of this parcel and said 57.133 acre | 
      
        |  | tract and said 28.500 acre tract and the Northeast line of said | 
      
        |  | 119.882 acre tract to a found 1/2" iron pin being the Southernmost | 
      
        |  | corner of said 28.500 acre tract and the Easternmost corner of a | 
      
        |  | 28.632 acre tract as recorded in Volume 874, Pages 72-76 of the Deed | 
      
        |  | Records of Comal County, Texas; | 
      
        |  | THENCE: (25)  SOUTH 56 deg. 54' 03" West, a distance of 439.45 feet | 
      
        |  | along the Southeast line of this parcel and said 28.632 acre tract | 
      
        |  | and the Northwest line of said 119.882 acre tract to a found 1/2" | 
      
        |  | iron pin being the Southernmost corner of said 28.632 acre tract and | 
      
        |  | the Easternmost corner of a 27.611 acre tract as recorded in Volume | 
      
        |  | 451, Pages 695-697 of the Deed Records of Comal County, Texas; | 
      
        |  | THENCE: (26)  SOUTH 56 deg. 53' 33" West, a distance of 320.67 feet | 
      
        |  | along the Southeast line of this parcel and said 27.611 acre tract | 
      
        |  | and the Northwest line of said 119.882 acre tract to a found 3/8" | 
      
        |  | iron pin in the Northeast line of a 74.44 acre tract as recorded in | 
      
        |  | Volume 873, Pages 228-229 of the Official Public Records of Comal | 
      
        |  | County, Texas, and being the Southernmost corner of this parcel and | 
      
        |  | said 27.611 acre tract; | 
      
        |  | THENCE: (27)  SOUTH 44 deg. 49' 00" East, a distance of 291.65 feet | 
      
        |  | along the Northeast line of this parcel and said 74.44 acre tract | 
      
        |  | and the Southwest line of said 119.882 acre tract to a wood corner | 
      
        |  | post being the Easternmost corner of said 74.44 acre tract; | 
      
        |  | THENCE: (28)  SOUTH 45 deg. 08' 03" West, a distance of 1414.62 | 
      
        |  | feet along the Southeast line of this parcel and said 74.44 acre | 
      
        |  | tract and the Northwest line of a 49.18 acre tract as recorded in | 
      
        |  | Document No. 200006018425 of the Official Public Records of Comal | 
      
        |  | County, Texas, and a 3.00 acre tract as recorded in Volume 512, Page | 
      
        |  | 254 of the Deed Records of Comal County, Texas, to a set 1/2" iron | 
      
        |  | pin with plastic cap in the Northeast Right of Way Line of | 
      
        |  | Kohlenberg Road, and being the Southernmost corner of said 74.44 | 
      
        |  | acre tract and the Westernmost corner of said 3.000 acre tract; | 
      
        |  | THENCE: (29)  NORTH 44 deg. 37' 29" West, a distance of 1423.84 | 
      
        |  | feet along the Southwest line of this parcel and said 74.44 acre | 
      
        |  | tract and said 103.75 acre tract and the Northeast Right of Way Line | 
      
        |  | of Kohlenberg Road to a set 1/2" iron pin with plastic cap being the | 
      
        |  | Southernmost corner of a 1.736 acre tract and designated as TRACT | 
      
        |  | NO. 1, and recorded in Document No. 9606005988 of the Official | 
      
        |  | Public Records of Comal County, Texas; | 
      
        |  | THENCE: (30)  NORTH 33 deg. 57' 40" East, a distance of 411.84 feet | 
      
        |  | along the Northwest line of this parcel and the Southeast line of | 
      
        |  | said 1.736 acre tract to a found 3/8" iron pin being the Easternmost | 
      
        |  | corner of this parcel; | 
      
        |  | THENCE: (31)  NORTH 68 deg. 19' 31" West, a distance of 242.07 feet | 
      
        |  | along the Southwest line of this parcel and the Northeast line of | 
      
        |  | said 1.736 acre tract to a found 1/2" iron pin being the | 
      
        |  | Northernmost corner of said 1.736 acre tract; and | 
      
        |  | THENCE: (32)  SOUTH 22 deg. 37' 45" West, a distance of 332.23 feet | 
      
        |  | along the Southeast line of this parcel and the Northwest line of | 
      
        |  | said 1.736 acre tract to a found 1/2" iron pin in the Northeast | 
      
        |  | Right of Way Line of Kohlenberg Road, and being the Westernmost | 
      
        |  | corner of said 1.736 acre tract; | 
      
        |  | THENCE: the following courses along the Southwest line of this | 
      
        |  | parcel and said 74.44 acre tract and the Northeast Right of Way Line | 
      
        |  | of said Kohlenberg Road, and the cutback Right of Way Line to | 
      
        |  | I.H.35: | 
      
        |  | (33)  NORTH 44 deg. 37' 29" West, a distance of 399.53 feet to | 
      
        |  | a found concrete highway monument (Type I) and being an angle point; | 
      
        |  | (34)  NORTH 34 deg. 38' 01" West, a distance of 102.61 feet to | 
      
        |  | a found concrete highway monument (Type I) being an angle point; | 
      
        |  | (35)  NORTH 44 deg. 39' 10" West, a distance of 149.81 feet to | 
      
        |  | a found concrete highway monument (Type I) being an angle point; | 
      
        |  | (36)  NORTH 32 deg. 12' 31" West, a distance of 174.23 feet to | 
      
        |  | said 74.44 acre tract and the Southernmost corner of a 19.31 acre | 
      
        |  | tract as recorded in Volume 92, Pages 43-44 of the Deed Records of | 
      
        |  | Comal County, Texas; | 
      
        |  | (37)  NORTH 32 deg. 12' 31" West, a distance of 48.81 feet to | 
      
        |  | a found concrete highway monument (Type I) being an angle point; | 
      
        |  | (38)  NORTH 17 deg. 45' 14" West, a distance of 210.69 feet to | 
      
        |  | a found concrete highway monument (Type I) being an angle point; | 
      
        |  | (39)  NORTH 06 deg. 34' 20" West, a distance of 302.39 feet to | 
      
        |  | a found concrete highway monument (Type I) being an angle point; and | 
      
        |  | (40)  NORTH 58 deg. 18' 56" West, a distance of 173.56 feet to | 
      
        |  | a found concrete highway monument (Type I) at the intersection of | 
      
        |  | the Southeast Right of Way Line of I.H. 35 with the Northeast | 
      
        |  | cutback line of Kohlenberg Road and being the Westernmost corner of | 
      
        |  | this parcel and said 19.31 acre tract; | 
      
        |  | THENCE: (41)  NORTH 31 deg. 26' 12" East, a distance of 1091.64 | 
      
        |  | feet along the Northwest line of this parcel and the Southeast Right | 
      
        |  | of Way Line of said I.H.35 to a set 1/2" iron pin with plastic cap | 
      
        |  | being the Northernmost corner of this parcel and the Westernmost | 
      
        |  | corner of a 3.560 acre tract as recorded in Document No. | 
      
        |  | 200406003961 of the Official Public Records of Comal County, Texas; | 
      
        |  | THENCE: (42)  SOUTH 45 deg. 19' 36" East, a distance of 610.43 feet | 
      
        |  | along the Northeast line of this parcel and said 19.31 acre tract | 
      
        |  | and said 103.75 acre tract and the Southwest line of said 3.560 acre | 
      
        |  | tract to a found 1/2" iron pin being the Southernmost corner of said | 
      
        |  | 3.560 acre tract; | 
      
        |  | THENCE: (43)  NORTH 38 deg. 14' 02" East, a distance of 296.28 feet | 
      
        |  | along the Northwest line of this parcel and said 27.611 acre tract | 
      
        |  | and the Southeast line of said 3.560 acre tract to a found 1/2" iron | 
      
        |  | pin being the Easternmost corner of said 3.560 acre tract; | 
      
        |  | THENCE: (44)  NORTH 53 deg. 45' 08" West, a distance of 631.50 feet | 
      
        |  | along the Southwest line of this parcel and said 27.611 acre tract | 
      
        |  | and the Northeast line of said 3.560 acre tract to a found 1/2" iron | 
      
        |  | pin in the Southeast Right of Way Line of said I.H. 35, and being the | 
      
        |  | Northernmost corner of said 3.560 acre tract; | 
      
        |  | THENCE: (45)  NORTH 31 deg. 26' 12" East, a distance of 245.64 feet | 
      
        |  | along the Northwest line of this parcel and said 27.611 acre tract | 
      
        |  | and the Southeast Right of Way Line of said I.H. 35 to a found 1/2" | 
      
        |  | iron pin being the Westernmost corner of the remainder of a 2.35 | 
      
        |  | acre tract as recorded in Volume 293, Pages 371-373 of the Deed | 
      
        |  | Records of Comal County, Texas; | 
      
        |  | THENCE: (46)  SOUTH 41 deg. 20' 52" East, a distance of 507.94 feet | 
      
        |  | along the Northeast line of this parcel and said 27.611 acre tract | 
      
        |  | and the Southwest line of said 2.35 acre tract to a found 1/2" iron | 
      
        |  | pin being the Southernmost corner of said 2.35 acre tract; | 
      
        |  | THENCE: (47)  NORTH 53 deg. 30' 10" East, a distance of 151.22 feet | 
      
        |  | along the Northwest line of this parcel and said 27.611 acre tract | 
      
        |  | and the Southeast line of said 2.35 acre tract to a found 1/2" iron | 
      
        |  | pin being the Easternmost corner of said 2.35 acre tract and the | 
      
        |  | Southwest line of said 28.632 acre tract; | 
      
        |  | THENCE: (48)  NORTH 41 deg. 10' 27" West, a distance of 567.95 feet | 
      
        |  | along the Southwest line of this parcel and said 28.632 acre tract | 
      
        |  | and the Northeast line of said 2.35 acre tract to a found 1/2" iron | 
      
        |  | pin in the Southeast Right of Way Line of I.H.35; | 
      
        |  | THENCE: (49)  NORTH 31 deg. 26' 12" East, a distance of 249.72 feet | 
      
        |  | along the Northwest line of this parcel and said 28.632 acre tract | 
      
        |  | and the Southeast Right of Way Line of I.H.35 to a set 1/2" iron pin | 
      
        |  | with plastic cap being a point of curvature; | 
      
        |  | THENCE: (50)  152.44 feet along the arc of a curve to the right, | 
      
        |  | having a radius of 22784.31 feet, and a central angle of 00 deg. 23' | 
      
        |  | 00", and whose chord bears North 31 deg. 37' 42" East, a distance of | 
      
        |  | 152.44 feet to a found concrete highway monument being a point of | 
      
        |  | tangency; | 
      
        |  | THENCE: (51)  NORTH 31 deg. 50' 19" East, a distance of 263.09 feet | 
      
        |  | along the Northwest line of this parcel and said 28.500 acre tract | 
      
        |  | and the Southeast Right of Way Line of I.H.35 to a found 1/2" iron | 
      
        |  | pin being the Northernmost corner of said 28.500 acre tract and the | 
      
        |  | Westernmost corner of said 57.133 acre tract; | 
      
        |  | THENCE: (52)  NORTH 31 deg. 50' 19" East, a distance of 663.99 feet | 
      
        |  | along the Northwest line of this parcel and said 57.133 acre tract | 
      
        |  | and the Southeast Right of Way Line of I.H.35 to a found 1/2" iron | 
      
        |  | pin being the Northernmost corner of said 57.133 acre tract and the | 
      
        |  | Westernmost corner of said 1015.707 acre tract; | 
      
        |  | THENCE: the following courses along the Northwest line of this | 
      
        |  | parcel and said 1015.707 acre tract and the Southeast Right of Way | 
      
        |  | Line of I.H.35: | 
      
        |  | (53)  NORTH 31 deg. 50' 19" East, a distance of 1855.01 feet | 
      
        |  | to a found concrete highway monument (Type I) being an angle point; | 
      
        |  | (54)  NORTH 35 deg. 26' 30" East, a distance of 301.34 feet to | 
      
        |  | a found concrete highway monument (Type I) being an angle point; | 
      
        |  | THENCE: (55)  NORTH 32 deg. 05' 44" East, a distance of 72.07 feet | 
      
        |  | to a found concrete highway monument (Type I) being a point of | 
      
        |  | curvature; | 
      
        |  | THENCE: (56)  543.39 feet along the arc of a curve to the left, | 
      
        |  | having a radius of 23072.30 feet, and a central angle of 01 deg. 20' | 
      
        |  | 58", and whose chord bears North 31 deg. 12' 58" East, a distance of | 
      
        |  | 543.37 feet to a found concrete highway monument (Type I) being a | 
      
        |  | point of tangency; | 
      
        |  | THENCE: (57)  NORTH 30 deg. 26' 03" East, a distance of 789.05 feet | 
      
        |  | to a found concrete highway monument (Type I) being an angle point; | 
      
        |  | THENCE: (58)  NORTH 26 deg. 48' 12" East, a distance of 299.65 feet | 
      
        |  | to a found concrete highway monument (Type I) being an angle point; | 
      
        |  | and | 
      
        |  | THENCE: (59)  NORTH 30 deg. 29' 02" East, a distance of 2033.01 | 
      
        |  | feet to a set 1/2" iron pin with plastic cap being the POINT OF | 
      
        |  | BEGINNING, containing 1252.958 acres of land. | 
      
        |  | TRACT TWO | 
      
        |  | PART 1: | 
      
        |  | 635.060 acres (27,663,214 sq. ft.) of land out of the NANCY KENNER | 
      
        |  | LEAGUE survey No. 3, Abstract No. 306, Comal County, Texas and being | 
      
        |  | designated as a 236.949 acre tract (McDONOUGH) tract as conveyed by | 
      
        |  | SPECIAL WARRANTY DEED from NATIONSBANK OF TEXAS, N.A. TRUSTEE to | 
      
        |  | JAMES P. McDONOUGH, JR., dated December 31, 1996 and recorded in | 
      
        |  | Document No. 9706001893 of the Official Public Records of Comal | 
      
        |  | County, Texas and also being comprised of TRACT I (63.024 acre | 
      
        |  | tract) and TRACT III (164.150 acre tract) as conveyed by a SPECIAL | 
      
        |  | WARRANTY DEED from Bank of America, N.A., as Successor Trustee to | 
      
        |  | Nations / Bank of Texas, N.A., Trustee of the Bill and Darolyn Worth | 
      
        |  | Living Trust under Agreement dated January 9, 1987 and as Trustee | 
      
        |  | under Agreement of the Irvin Management Trust and Larry Irvin to | 
      
        |  | James P. McDonough, Jr., dated April 14, 2006 and recorded in | 
      
        |  | Document No. 200606016820 of the Official Public Records of Comal | 
      
        |  | County, Texas, and also being all of a 170.902 acre tract described | 
      
        |  | in a SUBSTITUTE TRUSTEE'S DEED from CECIL W. TALLEY, Trustee to | 
      
        |  | CECIL EARL HILLBURN, dated August 6, 1991 and recorded in Volume | 
      
        |  | 777, Pages 581-586 of the Official Public Records of Comal County, | 
      
        |  | Texas said 635.060 acres (27,663,214 sq. ft.) of land being more | 
      
        |  | particularly described as follows: | 
      
        |  | BEGINNING: at a set 1/2" iron pin with plastic cap "stamped 4233" in | 
      
        |  | the Northwest Right of Way Line of I.H. 35 and being Easternmost | 
      
        |  | corner of a 9.785 acre tract conveyed by Archie Ladshaw, et al to | 
      
        |  | John Ladshaw by Deed dated March 28, 1984 and recorded in Volume | 
      
        |  | 378, Pages 799-801 of the Official Public Records of Comal County, | 
      
        |  | Texas, and the Southernmost corner of this parcel and said 236.949 | 
      
        |  | acre tract (Grid N = 13,826,036.7772, Grid E = 2,270,776.7688, | 
      
        |  | Scale factor of 1.00014 for surface adjustment); | 
      
        |  | THENCE: (1)  NORTH 46 deg 00'07" West, (all bearings in this | 
      
        |  | descriptions are referenced to Grid North of the Texas Coordinate | 
      
        |  | System, Zone 4204, NAD 83 (93)), a distance of 3310.77 feet along | 
      
        |  | the Southwest line of this parcel and the Northeast line of said | 
      
        |  | 9.785 acre tract to a found 1/2" iron pin being the Northernmost | 
      
        |  | corner of said 9.785 acre tract and an interior corner of this | 
      
        |  | parcel; | 
      
        |  | THENCE: the following courses along the Southeast line of this | 
      
        |  | parcel and said 236.949 acre tract and the Northwest line of said | 
      
        |  | 9.785 acre tract and a 240.485 acre tract conveyed by Elizabeth | 
      
        |  | Wagner, a widow to Archie Ladshaw, et al by Deed dated January 14, | 
      
        |  | 1967 and recorded in Volume 153, Pages 331-333 of the Deed Records | 
      
        |  | of Comal County, Texas and the Northwest line of a 44.290 acre tract | 
      
        |  | conveyed by HARVEY PAPE and wife, LEORA PAPE to PAPE'S FAMILY FARM, | 
      
        |  | LTD, a Texas Limited Partnership, dated February 27, 2004 and | 
      
        |  | recorded in Document No. 200406007834 of the Official Public | 
      
        |  | Records of Comal County, Texas: | 
      
        |  | (2)  SOUTH 44 deg 34'57" West, a distance of 1355.26 feet to a | 
      
        |  | found 1/2" iron pin being an angle point; | 
      
        |  | (3)  SOUTH 45 deg 11'30" East, a distance of 43.65 feet to a | 
      
        |  | found 1/2" iron pin being an angle point; and | 
      
        |  | (4)  SOUTH 44 deg 30'57" West, a distance of 1742.25 feet to a | 
      
        |  | found 1/2" iron pin being the Easternmost corner of a 70.688 acre | 
      
        |  | tract conveyed by ALAN ROMPLE also known as ALAN E. ROMPEL, SR. and | 
      
        |  | wife LINDA ROMPEL to CONRADS ROAD, LTD, dated January 9, 2004, and | 
      
        |  | recorded in Document No. 200406000885 of the Official Public | 
      
        |  | Records of Comal County, Texas; | 
      
        |  | THENCE: (5)  NORTH 45 deg 23'39" West, a distance of 3537.43 feet | 
      
        |  | along the Southwest line of this parcel and said 236.949 acre tract | 
      
        |  | and the Northeast line of said 70.688 acre tract to a set 1/2" iron | 
      
        |  | pin with plastic cap "stamped 4233" in the Southeast Right of Way of | 
      
        |  | the Union Pacific Railroad (formerly known as the INTERNATIONAL & | 
      
        |  | GT NORTHERN RY. CO.) and being the Westernmost corner of this parcel | 
      
        |  | and said 236.949 acre tract and the Northernmost corner of said | 
      
        |  | 70.688 acre tract; and being a point of curvature; | 
      
        |  | THENCE: the following courses along the Northwest line of this | 
      
        |  | parcel and the Southeast Right of Way line of the Union Pacific | 
      
        |  | Railroad: | 
      
        |  | (6)  1319.73 feet along the arc of a curve to the right, | 
      
        |  | having a radius of 5679.65 feet, and a central angle of 13 deg | 
      
        |  | 18'48", and whose chord bears North 56 deg 11'48" East, a distance | 
      
        |  | of 1316.76 feet to a set 1/2" iron pin with plastic cap "stamped | 
      
        |  | 4233" being a point of tangency; | 
      
        |  | (7)  NORTH 62 deg 51'12" East, a distance of 1677.18 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap "stamped 4233" being a point of | 
      
        |  | curvature; and | 
      
        |  | (8)  1022.68 feet along the arc of a curve to the left, having | 
      
        |  | a radius of 2914.93 feet and a central angle of 20 deg 06'06", and | 
      
        |  | whose chord bears North 52 deg 48'09" East, a distance of 1017.43 | 
      
        |  | feet to a set 1/2" iron pin with plastic cap "stamped 4233" being a | 
      
        |  | point of tangency; and | 
      
        |  | (9)  NORTH 42 deg. 45' 06" East, a distance of 385.90 feet to | 
      
        |  | a set 1/2" iron pin with plastic cap "stamped 4233" being the | 
      
        |  | Northernmost corner of this parcel and said 63.024 acre tract and | 
      
        |  | the Westernmost corner of a 200.240 acre tract as conveyed by | 
      
        |  | SPECIAL WARRANTY DEED WITH VENDOR'S LIEN from MARTIN MARIETTA | 
      
        |  | MATERIALS SOUTHWEST, LTD. to BLUEGREEN SOUTHWEST ONE, L.P., A | 
      
        |  | Delaware Limited Partnership, executed July 19, 2005 and recorded | 
      
        |  | in Document No. 200506026533 of the Official Public Records of | 
      
        |  | Comal County, Texas; | 
      
        |  | THENCE: (10)  SOUTH 45 deg. 58' 46" East, a distance of 2471.01 | 
      
        |  | feet along the Northeast line of this parcel and said 63.024 acre | 
      
        |  | tract and the Southwest line of said 200.240 acre tract to a found | 
      
        |  | 1/2" iron pin being an interior corner of this parcel and the | 
      
        |  | Westernmost corner of said 170.902 acre tract and the Southernmost | 
      
        |  | of said 200.240 acre tract; | 
      
        |  | THENCE: the following courses along the Northwest line of this | 
      
        |  | parcel and said 170.902 acre tract and the Southeast line of said | 
      
        |  | 200.240 acre tract and a 7.46 acre tract conveyed by MCDONOUGH | 
      
        |  | BROTHER'S, INCORPORATED to CITY OF NEW BRAUNFELS (UTILITIES) | 
      
        |  | executed June 8, 1979 and recorded in Volume 283, Pages 775-776 of | 
      
        |  | the Deed Records of Comal County, Texas; | 
      
        |  | (11)  NORTH 43 deg 09'01" East, a distance of 2596.32 feet to | 
      
        |  | a wood fence post being an angle point; and | 
      
        |  | (12)  NORTH 42 deg 57'44" East, a distance of 1556.85 feet to | 
      
        |  | a found 1/2" iron pin with plastic cap stamped "OVERBY-DESCAMPS" | 
      
        |  | being the Northernmost corner said 170.902 acre tract and an | 
      
        |  | interior corner of said 200.240 acre tract; | 
      
        |  | THENCE: the following courses along the Northeast line of this | 
      
        |  | parcel and said 170.902 acre tract and the Southwest line of said | 
      
        |  | 200.240 acre tract: | 
      
        |  | (13)  SOUTH 46 deg 50'12" East, a distance of 702.27 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap "stamped 4233" being an angle | 
      
        |  | point; | 
      
        |  | (14)  SOUTH 46 deg 29'50" East, a distance of 817.93 feet to a | 
      
        |  | wood fence post being an angle point; and | 
      
        |  | (15)  SOUTH 47 deg 00'31" East, a distance of 722.97 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap "stamped 4233" in the Northwest | 
      
        |  | Right of Way Line of I.H. 35 and being the Easternmost corner of | 
      
        |  | this parcel and said 170.902 acre tract and a re-entrant corner of | 
      
        |  | said 200.240 acre tract; | 
      
        |  | THENCE: (16)  SOUTH 32 deg 08'27" West, a distance of 1684.15 feet | 
      
        |  | along the Southeast line of this parcel and said 170.902 acre tract | 
      
        |  | and the Northwest Right of Way Line of I.H. 35 to a set 1/2" iron pin | 
      
        |  | with plastic cap "stamped 4233" being a re-entrant corner to said | 
      
        |  | 170.902 acre tract and the Easternmost corner of a 164.150 acre | 
      
        |  | tract (designated TRACT III) conveyed by SPECIAL WARRANTY DEED to | 
      
        |  | James P. McDonough, Jr., dated April 14, 2006 and recorded in | 
      
        |  | Document No. 200606016820 of the Official Public Records of Comal | 
      
        |  | County, Texas; | 
      
        |  | THENCE: the following courses along the Southeast line of this | 
      
        |  | parcel and said 164.150 acre tract and the Northwest Right of Way | 
      
        |  | Line of I.H. 35: | 
      
        |  | (17)  SOUTH 32 deg. 08' 27" West, a distance of 704.69 feet to | 
      
        |  | a found Type I TxDOT concrete monument being a point of curvature; | 
      
        |  | (18)  338.16 feet along the arc of a curve to the left, having | 
      
        |  | a radius of 11,625.15 feet, and a central angle of 01 deg. 40' 00", | 
      
        |  | and whose chord bears South 31 deg. 15' 06" West, a distance of | 
      
        |  | 338.15 feet to a found Type I TxDOT concrete monument being a point | 
      
        |  | of tangency; | 
      
        |  | (19)  SOUTH 30 deg. 29' 02" West, a distance of 1147.92 feet | 
      
        |  | to a set 1/2" iron pin with plastic cap "stamped 4233" being an | 
      
        |  | angle point; | 
      
        |  | (20)  SOUTH 34 deg. 18' 02" West, a distance of 300.46 feet to | 
      
        |  | a set 1/2" iron pin with plastic cap "stamped 4233" being an angle | 
      
        |  | point; | 
      
        |  | (21)  SOUTH 30 deg. 29' 02" West, a distance of 1000.00 feet | 
      
        |  | to a found Type I TxDOT concrete monument being an angle point; and | 
      
        |  | (22)  SOUTH 26 deg. 39' 57" West, a distance of 266.94 feet to | 
      
        |  | a set 1/2" iron pin with plastic cap "stamped 4233" being the | 
      
        |  | Southernmost corner of said 164.150 acre tract and the Easternmost | 
      
        |  | corner of a 236.949 acre tract as conveyed by SPECIAL WARRANTY DEED | 
      
        |  | from NATIONSBANK OF TEXAS, N.A., TRUSTEE to JAMES P. McDONOUGH JR., | 
      
        |  | dated December 31, 1996, and recorded in Document No. 9706001893 of | 
      
        |  | the Official Public Records of Comal County, Texas; | 
      
        |  | THENCE: the following courses along the Southeast line of this | 
      
        |  | parcel and said 236.949 acre tract and the Northwest Right of Way | 
      
        |  | Line of said I.H. 35: | 
      
        |  | (23)  SOUTH 26 deg 39'57" East, a distance of 33.42 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap "stamped 4233"  being an angle | 
      
        |  | point; and | 
      
        |  | (24)  SOUTH 30 deg 29'02" East, a distance of 49.00 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap "STAMPED 4233" being the POINT OF | 
      
        |  | BEGINNING, containing 635.060 acres (27,663,214 sq. ft.) of land. | 
      
        |  | PART 2: | 
      
        |  | 96.074 acres (4,184,983 sq. ft.) of land out of the NANCY KENNER | 
      
        |  | LEAGUE SURVEY NO. 3, Abstract No. 306, Comal County, Texas, and | 
      
        |  | comprising of TRACT II (0.529 of an acre tract), TRACT IV (53.350 | 
      
        |  | acre tract) and TRACT V (14.423 acre tract) as conveyed by said | 
      
        |  | SPECIAL WARRANTY DEED dated April 14, 2006, and recorded in | 
      
        |  | Document No. 200606016820 of the Official Public Records of Comal | 
      
        |  | County, Texas, and also being all of a 27.593 acre tract as conveyed | 
      
        |  | NATIONSBANK OF TEXAS, N.A., TRUSTEE to JAMES P. McDONOUGH, JR., | 
      
        |  | dated December 31, 1996 and recorded in Document No. 9706001893 of | 
      
        |  | the Official Public Records of Comal County, Texas, said 96.074 | 
      
        |  | acres (4,184,983 sq. ft.) of land being more particularly described | 
      
        |  | as follows: | 
      
        |  | BEGINNING: at a found 1" diameter iron pipe in the Southeast Right | 
      
        |  | of Way Line of F.M. Road 1102 and being the Northernmost corner of | 
      
        |  | this parcel and said 14.423 acre tract and being the Westernmost | 
      
        |  | corner of an 88.193 acre tract (designated as TRACT 3) conveyed by | 
      
        |  | SPECIAL WARRANTY DEED WITH VENDOR'S LIEN, to BLUEGREEN SOUTHWEST | 
      
        |  | ONE, L.P., a Delaware Partnership, executed on July, 19, 2005 and | 
      
        |  | recorded in Document No. 200506026533 of the Official Public | 
      
        |  | Records of Comal County, Texas (Grid N = 13,832,027.6173, Grid E = | 
      
        |  | 2,266,296.3350, Scale factor of 1.00014 for surface adjustment); | 
      
        |  | THENCE: (1)  SOUTH 46 deg. 01' 39" East, a distance of 1319.31 feet | 
      
        |  | along the Northeast line of this parcel and said 14.423 acre tract | 
      
        |  | and the Southwest line of said 88.193 acre tract to a found 1/2" | 
      
        |  | iron pin in the Northwest Right of Way Line of the Union Pacific | 
      
        |  | Railroad (formerly known as the Missouri Kansas and Texas Railroad) | 
      
        |  | and being the Easternmost corner of this parcel and said 14.423 acre | 
      
        |  | tract and the Southernmost corner of said 88.193 acre tract; | 
      
        |  | THENCE: the following courses along the Southeast line of this | 
      
        |  | parcel and said TRACT V, TRACT II and TRACT IV and the Northwest | 
      
        |  | Right of Way Line of said Union Pacific Railroad: | 
      
        |  | (2)  SOUTH 42 deg. 45' 06" West, a distance of 365.33 feet to | 
      
        |  | a set 1/2" iron pin with plastic cap "stamped 4233" being a point of | 
      
        |  | curvature; | 
      
        |  | (3)  986.76 feet along the arc of a curve to the right, having | 
      
        |  | a radius of 2814.90 feet, and a central angle of 20 deg. 05' 06", and | 
      
        |  | whose chord bears South 52 deg. 47' 39" West, a distance of 981.71 | 
      
        |  | feet to a set 1/2" iron pin with plastic cap "stamped 4233" being a | 
      
        |  | point of tangency; | 
      
        |  | (4)  SOUTH 62 deg. 50' 12" West, a distance of 832.41 feet to | 
      
        |  | a set 1/2" iron pin with plastic cap "stamped 4233" being an angle | 
      
        |  | point; | 
      
        |  | (5)  NORTH 45 deg. 03' 04" West, a distance of 52.54 feet to a | 
      
        |  | found 1/2" iron pin being an angle point, and | 
      
        |  | (6)  SOUTH 62 deg. 50' 12" West, a distance of 799.35 feet to | 
      
        |  | a set 1/2" iron pin with plastic cap "stamped 4233" being the | 
      
        |  | Southernmost corner said 53.350 acre tract and the Easternmost | 
      
        |  | corner of a 27.593 acre tract as conveyed by SPECIAL WARRANTY DEED | 
      
        |  | from NATIONSBANK OF TEXAS, N.A., TRUSTEE to JAMES P. McDONOUGH, | 
      
        |  | JR., dated December 31, 1996 and recorded in Document No. | 
      
        |  | 9706001893 of the Official Public Records of Comal County, Texas; | 
      
        |  | THENCE: the following courses along the Southeast line of this | 
      
        |  | parcel and said 27.593 acre tract and the Northwest Right of Way of | 
      
        |  | said Union Pacific Railroad: | 
      
        |  | (7)  SOUTH 62 deg 50'12" West, a distance of 113.44 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap "stamped 4233" being a point of | 
      
        |  | curvature | 
      
        |  | (8)  293.35 feet along the arc of a curve to the left having a | 
      
        |  | radius of 5829.65 feet and a central angle of 02 deg 52'59", and | 
      
        |  | whose chord bears South 61 deg 23'42" West, a distance of 293.32 | 
      
        |  | feet to a found 1/2" iron pin being an angle point; | 
      
        |  | (9)  SOUTH 30 deg 16'22" East, a distance of 50.00 feet to a | 
      
        |  | set 1/2" iron pin with plastic cap "stamped 4233" being a point of | 
      
        |  | curvature; | 
      
        |  | (10)  417.76 feet along the arc of a curve to the left, having | 
      
        |  | a radius of 5779.65 feet, and a central angle of 04 deg 08'29", and | 
      
        |  | whose chord bears South 57 deg 53'05" West, a distance of 417.67 | 
      
        |  | feet to a set 1/2" iron pin with plastic cap "stamped 4233" being an | 
      
        |  | angle point | 
      
        |  | (11)  NORTH 44 deg 21'29" West, a distance of 30.48 feet to a | 
      
        |  | found 1/2" iron pin being a point of curvature | 
      
        |  | (12)  736.56 feet along the arc of a curve to the left, having | 
      
        |  | a radius of 5809.65 feet, and a central angle of 07 deg 15'51", and | 
      
        |  | whose chord bears South 52 deg 07'44" West, a distance of 736.07 | 
      
        |  | feet to found 1/2" iron pin being an angle point; | 
      
        |  | (13)  SOUTH 43 deg 16'40" East, a distance of 30.01 feet to | 
      
        |  | set 1/2" iron pin with plastic cap "stamped 4233" being a point of | 
      
        |  | curvature; | 
      
        |  | (14)  66.71 feet along the arc of a curve to the left, having | 
      
        |  | a radius of 5779.65 feet, and a central angle of 00 deg 39'41", and | 
      
        |  | whose chord bears South 48 deg 10'31" West, a distance of 66.71 feet | 
      
        |  | to a set 1/2" iron pin with plastic cap "stamped 4233" being a point | 
      
        |  | of tangency; and | 
      
        |  | (15)  SOUTH 47 deg 50'41" West, a distance of 437.51 feet to a | 
      
        |  | found 1/2" iron pin being the Southernmost corner of the parcel and | 
      
        |  | said 27.593 acre tract and the Easternmost corner of a 3 acre tract | 
      
        |  | conveyed by SHERMAN W. WEST ET UX TO CLAUDIO MENDEZ ET UX executed | 
      
        |  | on May 17, 1962, and recorded in Volume 128, Pages 374-376 of the | 
      
        |  | Deed Records of Comal County, Texas. | 
      
        |  | THENCE: (16)  NORTH 45 deg 40'16" West, a distance of 654.40 feet | 
      
        |  | along the Southwest line of this parcel and said 27.593 acre tract | 
      
        |  | and the Northeast line of said 3 acre tract to a found 1/2" iron pin | 
      
        |  | in the Southeast Right of Way Line of F.M. Road 1102 and being the | 
      
        |  | Westernmost corner of this parcel and said 27.593 acre tract and the | 
      
        |  | Northernmost corner of said 3 acre tract. | 
      
        |  | THENCE: the following courses along the Northwest line of this | 
      
        |  | parcel and said 27.593 acre tract and the Southeast Right of Way | 
      
        |  | Line of said F.M. Road 1102: | 
      
        |  | (17)  NORTH 44 deg 22'56" East, a distance of 133.92 feet to a | 
      
        |  | found 1/2" iron pin being a point of curvature; | 
      
        |  | (18)  645.06 feet along the arc of a curve to the right, | 
      
        |  | having a radius of 2824.90 feet, and a central angle of 13 deg | 
      
        |  | 05'00", and whose chord beard north 50 deg 57'36" East, a distance | 
      
        |  | of 643.66 feet to a found 1/2" iron pin being a point of tangency; | 
      
        |  | (19)  NORTH 57 deg 26'58" East, a distance of 149.84 feet to a | 
      
        |  | found 1/2" iron pin being an angle point; | 
      
        |  | (20)  NORTH 61 deg 11'34" East, a distance of 365.34 feet to a | 
      
        |  | found 1/2" iron pin being an angle point; | 
      
        |  | (21)  NORTH 64 deg 42'33" East, a distance of 388.56 feet to a | 
      
        |  | found 1/2" iron pin being a point of curvature; and | 
      
        |  | (22)  470.90 feet along the arc of a curve to the left, having | 
      
        |  | a radius of 1472.70 feet, and a central angle of 18 deg 19'14", and | 
      
        |  | whose chord bears North 55 deg 55'39" East, a distance of 468.90 | 
      
        |  | feet to a found 1/2" iron pin being the Northernmost corner of said | 
      
        |  | 27.593 acre tract and the Westernmost corner of said 53.350 acre | 
      
        |  | tract (designated as TRACT IV) of said SPECIAL WARRANTY DEED; | 
      
        |  | THENCE: the following courses along the Northwest line of this | 
      
        |  | parcel and said 53.350 acre tract, said 0.529 of an acre tract, and | 
      
        |  | said 14.423 acre tract and the Southeast Right of Way Line of said | 
      
        |  | F.M. 1102: | 
      
        |  | (23)  NORTH 46 deg. 34' 14" East, a distance of 419.44 feet to | 
      
        |  | a found 1/2" iron pin being a point of curvature; | 
      
        |  | (24)  296.68 feet along the arc of a curve to the left, having | 
      
        |  | a radius of 1950.10 feet, and a central angle of 08 deg. 43' 00", and | 
      
        |  | whose chords bears North 42 deg. 13' 24" East, a distance of 296.39 | 
      
        |  | feet to a found 1/2"iron pin being a point of tangency; | 
      
        |  | (25)  NORTH 37 deg. 52' 39" East, a distance of 625.38 feet to | 
      
        |  | a found 1/2" iron pin being a point of curvature; | 
      
        |  | (26)  392.79 feet along the arc of a curve to the right, | 
      
        |  | having a radius of 5689.70 feet, and a central angle of 03 deg. 57' | 
      
        |  | 19", and whose chord bears North 39 deg. 59' 23" East, a distance of | 
      
        |  | 392.71 feet to a set 1/2" iron pin with  plastic cap "stamped 4233' | 
      
        |  | being a point of tangency; | 
      
        |  | (27)  NORTH 40 deg. 31' 03" East, a distance of 46.82 feet to | 
      
        |  | a found 3/8" iron pin being an angle point; | 
      
        |  | (28)  NORTH 41 deg. 54' 40" East, a distance of 651.39 feet to | 
      
        |  | a found 1/2" iron pin being an angle point; | 
      
        |  | (29)  NORTH 47 deg. 13' 29" East, a distance of 350.23 feet to | 
      
        |  | a found 1/2" iron pin being an angle point; and | 
      
        |  | (30)  NORTH 52 deg. 37' 59" East, a distance of 47.66 feet to | 
      
        |  | a found 1" diameter iron pipe being the POINT OF BEGINNING, and | 
      
        |  | containing 96.074 acres (4,184,983 sq. ft.) of land. | 
      
        |  | SECTION 3.  (a) The legal notice of the intention to | 
      
        |  | introduce this Act, setting forth the general substance of this | 
      
        |  | Act, has been published as provided by law, and the notice and a | 
      
        |  | copy of this Act have been furnished to all persons, agencies, | 
      
        |  | officials, or entities to which they are required to be furnished | 
      
        |  | under Section 59, Article XVI, Texas Constitution, and Chapter 313, | 
      
        |  | Government Code. | 
      
        |  | (b)  The governor, one of the required recipients, has | 
      
        |  | submitted the notice and Act to the Texas Commission on | 
      
        |  | Environmental Quality. | 
      
        |  | (c)  The Texas Commission on Environmental Quality has filed | 
      
        |  | its recommendations relating to this Act with the governor, the | 
      
        |  | lieutenant governor, and the speaker of the house of | 
      
        |  | representatives within the required time. | 
      
        |  | (d)  All requirements of the constitution and laws of this | 
      
        |  | state and the rules and procedures of the legislature with respect | 
      
        |  | to the notice, introduction, and passage of this Act are fulfilled | 
      
        |  | and accomplished. | 
      
        |  | SECTION 4.  (a)  If this Act does not receive a two-thirds | 
      
        |  | vote of all the members elected to each house, Subchapter C, Chapter | 
      
        |  | 8489, Special District Local Laws Code, as added by Section 1 of | 
      
        |  | this Act, is amended by adding Section 8489.111 to read as follows: | 
      
        |  | Sec. 8489.111.  NO EMINENT DOMAIN POWER.  The district may | 
      
        |  | not exercise the power of eminent domain. | 
      
        |  | (b)  This section is not intended to be an expression of a | 
      
        |  | legislative interpretation of the requirements of Section 17(c), | 
      
        |  | Article I, Texas Constitution. | 
      
        |  | SECTION 5.  This Act takes effect immediately if it receives | 
      
        |  | a vote of two-thirds of all the members elected to each house, as | 
      
        |  | provided by Section 39, Article III, Texas Constitution.  If this | 
      
        |  | Act does not receive the vote necessary for immediate effect, this | 
      
        |  | Act takes effect September 1, 2013. | 
      
        |  | 
      
        |  | 
      
        |  | ______________________________ | ______________________________ | 
      
        |  | President of the Senate | Speaker of the House | 
      
        |  | 
      
        |  | 
      
        |  | I certify that H.B. No. 3941 was passed by the House on May | 
      
        |  | 14, 2013, by the following vote:  Yeas 143, Nays 0, 2 present, not | 
      
        |  | voting. | 
      
        |  |  | 
      
        |  | ______________________________ | 
      
        |  | Chief Clerk of the House | 
      
        |  | 
      
        |  | 
      
        |  | I certify that H.B. No. 3941 was passed by the Senate on May | 
      
        |  | 21, 2013, by the following vote:  Yeas 31, Nays 0. | 
      
        |  |  | 
      
        |  | ______________________________ | 
      
        |  | Secretary of the Senate | 
      
        |  | APPROVED:  _____________________ | 
      
        |  | Date | 
      
        |  |  | 
      
        |  | _____________________ | 
      
        |  | Governor |