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Hollow Park, Shore Oaks would also need to obtain the necessary
approvals from the Township. Faced with the prospect of
protracted litigation, petitioner, as an officer and agent of
both FSRC and DHF, engaged in negotiations with Shore Oaks for
the sale of the Deep Hollow Park property. In the course of
these negotiations, Shore Oaks asserted that Township officials
strongly favored the golf course and that the Township was
determined to eliminate Deep Hollow Park's concert business.
Nevertheless, neither petitioner nor the other shareholders of
FSRC or DHF received any oral or written notice from a Township
official that eminent domain or condemnation proceedings were
being contemplated. In mid-1988, FSRC sold the Deep Hollow Park
property to Shore Oaks for $1,065,993. The sale was recited in
the minutes of a June 11, 1988, meeting of FSRC's board of
directors, along with the following statement: "Signed was [sic]
the intent to disolve [sic] both the above corporations
[referring to FSRC and DHF] to save taxes".
Prior to 1988, FSRC had acquired land in Lake Placid, New
York, upon which it planned to construct a ski lodge and related
recreational facilities. In mid-1989, Lake Placid Recreation
Co., Inc. (LPRC), was incorporated in New York. The proceeds
from the sale of the Deep Hollow Park property were reinvested
through petitioner in LPRC. The outstanding stock of LPRC was
owned as follows: Petitioner and Mr. Long each owned 1 share,
and petitioner's six daughters each owned 15 shares.
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