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considered entering into other types of activities, such as a
craft activity, petitioners chose the model railroad activity
because they believed it would be a feasible activity for them to
pursue given Mr. Lencke's extensive model railroad knowledge and
his physical limitations.3
Prior to forming Red Caboose, petitioners had a retail
merchant certificate for one of their former activities, a craft
activity called Kiln Classics. In early 1990, they attempted to
have the name Red Caboose substituted for the name Kiln Classics
on their retail merchant certificate. However, the name was not
changed by the State of Indiana until several years later.
Petitioners are not zoned to conduct a retail business in their
home.
During 1990, after petitioners had selected Red Caboose as
the activity they would conduct, they asked various suppliers
whether they would sell model railroad merchandise to them at
wholesale prices. However, the suppliers refused to do so until
sometime in 1991. Petitioners also contacted credit card
companies, Visa and MasterCard, to discuss the possibility of Red
Caboose accepting their credit cards for its model railroad
3 During the years in issue, Mr. Lencke suffered from
glaucoma and diabetes, and previously he had had open heart
surgery. In addition, he is deaf in one ear, completely blind in
one eye and partially blind in the other eye, and must keep one
of his legs in a cast. Thus, Mrs. Lencke, along with Mr.
Lencke's brother, does most of the physical work involved in the
operation of Red Caboose, and Mr. Lencke does most of the
paperwork.
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