Michael H. Johnson and Patricia E. Johnson - Page 4

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          dealership in the Fox Field Redevelopment Project at the 23d                
          Street property.  Petitioners were then the owners of the 23d               
          Street property.                                                            
          The Car Dealerships and City Tax Revenue                                    
               During the relevant time period, Mr. Johnson operated Ford             
          and Lincoln-Mercury motor vehicle dealerships on the 23d Street             
          property.                                                                   
               Cities in California receive 1 percent of the gross sales              
          tax from auto sales in that city.                                           
          The LCC, the LRA, and the Attorneys Involved                                
               The LCC had five members.  The LCC comprised the five voting           
          members (directors) of the LRA.                                             
               During the relevant time period, George Root (Mr. Root),               
          Arnie Rodio (Mr. Rodio), Henry Hearns, William Pursley (Mayor               
          Pursley), and George Theophanis (Mr. Theophanis)2 were members of           
          the LCC and directors of the LRA.                                           
               Steven Dukett (Mr. Dukett) was the Redevelopment Director of           
          the LRA, and Mark Asturias (Mr. Asturias) was the Senior                    
          Development Projects Coordinator of the LRA.                                
               David McEwen (Mr. McEwen) was the city attorney of Lancaster           
          and counsel for the LRA.  In April 1990, Mr. Johnson retained               
          David Wright (Mr. Wright) in connection with the Palmdale Auto              
          Mall transaction.                                                           

               2  Mr. Theophanis died before the trial in this case.                  




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