Wy'East Color, Inc. An Oregon Corporation - Page 14

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          G.   Petitioner's Lease of the 4200 S.W. Corbett Street Property            
               Petitioner is located at 4200 S.W. Corbett Street, Portland,           
          Oregon (4200 S.W. Corbett St. property).  Before moving to 4200             
          S.W. Corbett Street, petitioner leased buildings at 4343 and 4321           
          S.W. Corbett Street (old property).  Petitioner leased the old              
          property from Mr. Cummings, doing business as Blackstone,3 under            
          an oral, month-to-month lease.  The buildings on the old property           
          had about 15,000 square feet.  Petitioner paid rent of $10,000              
          per month to Mr. Cummings.                                                  
               In 1986, Mr. Cummings leased the 4200 S.W. Corbett St.                 
          property from the American Red Cross for 12 years with an option            
          to buy.  The 4200 S.W. Corbett property was a three-story, wood             
          frame building with about 33,631 square feet, a detached shop and           
          storage building with 3,969 to 4,050 square feet, and an annex or           
          residence with about 2,400 square feet.  Mr. Cummings paid rent             
          of $8,164.61 per month ($97,975 per year) to the American Red               
          Cross.  He agreed to pay real estate taxes, maintenance, and                
          insurance expenses on the property.  The lease did not require              
          Mr. Cummings to perform major repairs.                                      
               The 4200 S.W. Corbett St. property was zoned for high                  
          density multifamily residences.  Before Mr. Cummings leased the             
          4200 S.W. Corbett St. property from the American Red Cross,                 


               3 Mr. Cummings did business in the name of "The Blackstone             
          Co." (Blackstone) before and during the years in issue.                     




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