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I. The Lowe’s Sale
On July 1, 1999, Bear Valley Partners sold 15.87 acres of
the Victorville property to Lowe’s for a stated purchase price of
$4.1 million. The sale agreement provided that Bear Valley
Partners would be obligated to reimburse Lowe’s for up to
$600,000 of development costs. Mr. Dicker testified that
approximately $1.5 to $2 million was spent by Bear Valley
Partners to improve the Victorville property as part of the sale
to Lowe’s. This was spent to build a storm drain, widen an
exterior road, and install traffic signals. Most of these
improvements benefited the entire Victorville property, not just
the portion sold to Lowe’s. On the basis of these figures, we
can estimate that Bear Valley Partners received, net of
development costs, approximately $2.7 million for the Lowe’s
property. Under the partnership agreement, the trustees
presumably received only 75 percent of this amount, or
approximately $2,025,000, for the most marketable tract in the
92.91 acres of the Victorville property. We give this
transaction limited weight, because it occurred 3 years after the
valuation date. We conclude that it is consistent with our
conclusion that the Victorville property as a whole was worth no
more than $5,463,666 on the valuation date.
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