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second closing or June 30, 2000, whichever occurred first. The
per lot price was also to increase $50,000 for each dwelling lot
approved in excess of 250 with 616 dwelling units stated as the
outside limit. Accordingly, the combined 88-acre price could
vary from a low of $13,200,000 to a high of $31,500,000. In
addition to the purchase price, Ponderosa paid $100,000 down and
was to pay $10,000 per month with respect to the Dana portion,
and the payments were to stop at the time of the first closing
with no credit being allowed against the purchase price. With
respect to the Busch portion, Ponderosa was to pay $5,000 every
30 days beginning after the first closing until the earliest of
the date of the second closing or June 30, 2000. The $5,000
payments were to be applied to the purchase price.
The parties to the June 30 agreement expected that the first
closing (to occur no later than June 30, 1997) would complete the
transfer of the Dana portion and the second closing (to occur no
later than December 30, 2000) would complete the transfer of the
Busch portion. The parties were also aware that the necessary
approval for development would take time and money, and Ponderosa
expected to spend up to $250,000 in seeking approval to develop.
Ponderosa had estimated that on a “fast-track” basis, the
entitlement process would take 18 months. Ponderosa’s practice
was not to make an outright purchase but to option an interest in
property for development. At the time of the June 30 agreement,
the parties were aware that the Pleasanton city government and
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Last modified: May 25, 2011