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partnership that purchased 160 acres for farming of jojoba in
Yuma, Arizona, in March or April of 1982. Peterson, Meinke,
Damer, and Almand, the original members of the partnership
provided the capital for the purchase of the 160 acres. There is
no evidence in the record regarding the amount of capital
provided by Peterson, Meinke, or Damer. Almand, a 25-percent
owner in both HTP and Mesa, advanced $100,000 to Hilltop Ventures
to purchase this land. Funds paid for subscriptions to Yuma Mesa
and Cactus Wren were used subsequently to repay the $100,000
Almand advanced Hilltop Ventures as a downpayment for the land.
Additionally, Almand provided working capital as needed to keep
the Hilltop Ventures operating. Hilltop Ventures purchased the
irrigation equipment necessary to prepare the land in Yuma,
Arizona, for the planting of jojoba. Otherwise, the land did not
need extensive development work and was suitable for immediate
farming.
Subsequent to the purchase of the 160 acres in Yuma,
Arizona, in order to limit the shareholders' liability, Hilltop
Ventures was incorporated in Texas as Townhill Equities, Inc.,
also owned in equal shares by Peterson, Meinke, Damer, and
Almand. Following a tax-free exchange, Townhill Equities, Inc.,
8(...continued)
Peterson, Meinke, Damer, and Cecil Almand, with $80,000 cash, and
the balance in notes. Testimony at trial indicates that the
$80,000 investment was repaid through proceeds of "land lease"
payments under the rental agreement.
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