James D. Schlicher - Page 7

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               When petitioner decided to purchase the Clayton property, he           
          did not do so because it would be conducive to his business                 
          operations.  Had this been petitioner's primary consideration, he           
          would have bought level land, rather than property consisting of            
          a steeply hilled area and a flood zone of archaeological                    
          importance.  In fact, when looking for a new residence,                     
          petitioner's first priority was to find a piece of property on              
          which he could live out "the rest of his life."  Petitioner                 
          enjoys living in Clayton, because it is a secluded rural area               
          where he can be close to nature.  He also likes being in the                
          country where the houses are not close together, and where he               
          does not have to contend with less than congenial neighbors.                
               Petitioner lived with his girlfriend, Patsy Lyons, at both             
          the Livermore and the Clayton residences.  Each of them rides               
          horseback and has ridden petitioner's personal horses on the                
          steeply-hilled portion of the Clayton property, and on the plain.           
          Petitioner uses the upper wooded area for hiking.  There is also            
          a dirt road that goes up the steeply hilled portion of the                  
          property, which is accessible by car, horse, and foot. During the           
          springtime, petitioner's personal horses graze up there to keep             
          the grass down.  Petitioner never allows the horses from his                
          boarding or breeding business to use this area.  Petitioner keeps           
          all 51 acres of the Clayton property fenced off from neighboring            

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