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find a match with a developer that understood the politics of
Pleasanton and the entitlement process. He recommended that the
offer of Ponderosa Homes (Ponderosa) be accepted.
By a February 25, 1994, letter, Ponderosa presented a letter
of intent to option the Busch property for 36 months or 60 months
after governmental approval, for an exercise price of $12,275,000
or $139,500 per acre (using 88 acres as the base). Ponderosa
offered $5 million down and $7,275,000 due in two equal payments,
one due in 18 months and the other due 30 months after escrow.
Ponderosa agreed to pay a nonrefundable $10,000 per month for its
option until the sale closed, with no crediting of these payments
to the final price.
Ponderosa, with about 25 years of residential development
experience, had 75 employees, 6 to 10 active projects, and began
1 to 2 new projects each year. In its business history,
Ponderosa experienced only a few projects that it was forced to
abandon. As of January 1994, Ponderosa had built about 1,000
homes in the Pleasanton area and was familiar with the city’s
entitlement process. Ponderosa was aware of the referendum
against other projects (the Kottinger Hills project and
controversy surrounding the Pleasanton Ridge development), and
the political climate in Pleasanton, but Ponderosa believed that
the Busch property project could work and bid on it.
In addition to the option agreement by Ponderosa, several
other developers made offers as follows: (a) Mission Peaks Homes
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Last modified: May 25, 2011