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Florida land trust and in the L&C Properties. Under that option,
the stated purchase price for L&C Springs’ interest in the L&C
Properties was reduced from $2.8 million to $2,450,000 (reflected
by a nonrecourse promissory note), and L&C Springs immediately
reconveyed to Tanglewood ownership of the underlying land and
effectively ownership of the apartments and other improvements
associated with the L&C Properties. L&C Springs, through the
Florida land trust, retained only nominal title to the L&C
Properties and a 15-year leasehold interest in the land, in the
apartments, and in other improvements on the land. For the 15-
year lease of the underlying land, L&C Springs agreed to make
separate, fixed lease payments of $36,000 each year.
In effect, for the reduced stated purchase price of
$2,450,000, L&C Springs retained, through the Florida land trust,
only a 15-year leasehold interest in the L&C Properties.
Under the lease agreement that L&C Springs and Tanglewood
entered into, during the last year of the 15-year lease of the
land (namely, from January 1, 1995 through July 1, 1996), L&C
Springs, through the Florida land trust, had an option to
purchase from Tanglewood the L&C Properties and the related land.
L&C Springs' $2,450,000 debt obligation agreed to in
connection with the reduced purchase price for L&C Springs' 15-
year leasehold interest in the L&C Properties was due to be paid
to Tanglewood with four annual principal payments to Tanglewood
of $50,000 each, due on July 1 of 1982, 1983, 1984, and 1985, and
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Last modified: May 25, 2011