Estate of F. Wallace Langer, Deceased, Clarence D. Langer, Jr., Executor - Page 5

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          farming became less practicable, and the Langers turned their               
          attention to commercial development.                                        
               In 1995, the Langers created the Langer MarketPlace Planned            
          Unit Development (the Langer PUD), which defined the development            
          permitted on a 55.59-acre tract owned by a trust for decedent and           
          a contiguous 29.88-acre tract owned by a trust for Clarence                 
          Langer.  While it did not create separate legal parcels, the                
          Langer PUD divided the land into eight phases of development.  On           
          April 25, 1995, the Sherwood City Council approved the Langers’             
          application for the PUD.  However, the approval was conditioned             
          upon their agreement to, among other things, develop parks,                 
          pedestrian walkways, and:                                                   
               At each phase of development, and with each site plan                  
               submitted to the City, the applicant shall provide a                   
               traffic impact analysis for City, County and ODOT                      
               [Oregon Department of Transportation] review and                       
               approval.  Recommended traffic safety and road                         
               improvements shall be considered by the City and may be                
               required with each phase.                                              
                                                                                     
               By agreement dated May 9, 1998, decedent, Clarence Langer,             
          and other members of the Langer family formed the Langer Family             
          Limited Liability Company (LFLLC).  The trusts for decedent and             
          Clarence Langer contributed to LFLLC the land subject to the                
          Langer PUD.  At his death, decedent held a 29.19-percent interest           
          in LFLLC.                                                                   
               Prior to decedent’s death, LFLLC sold Phase 1 of the Langer            
          PUD.  On the date of death, LFLLC still owned Phases 2 through 8.           






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