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financed by the sale of the six villas to be constructed on
the vacant parcel. After the development and sale of the
six villas, the developers would own the luxury duplex and
the land making up the first parcel free and clear.
As one of the first steps in acquiring and developing
the subject property, Mr. Dixon agreed with the owner of a
California construction company, Mr. Walter J. van Boxtel,
to form a partnership, the Moonlight Beach Venture (here-
inafter referred to as the joint venture). On October 21,
1982, Dondi Properties, Inc. (Dondi Properties), a Texas
corporation organized by Mr. Dixon, and Value Plus
Industries, Inc. (Value Plus), Mr. van Boxtel's construc-
tion company, executed the Moonlight Beach Joint Venture
Agreement (joint venture agreement). Dondi Properties took
an 80-percent interest in the joint venture, and Value Plus
took a 20-percent interest. The joint venture agreement
states that Mr. van Boxtel and his wife had entered into
a contract dated August 10, 1982, to purchase certain
property described as "Lots 4, 5, 6, 11, 12 and 13
(including a closed street and alley) in Encinitas Pitchers
Subdivision of the City of Encinitas, California." The
joint venture agreement describes the purposes of the
venture in the following terms:
(i) acquiring the Property [Moonlight Beach
Property] pursuant to the terms of the Purchase
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Last modified: May 25, 2011