Michael H. Johnson and Patricia E. Johnson - Page 9

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          property.  Mr. Asturias also frequently informed Mr. Johnson that           
          Lancaster would condemn the 23d Street property.                            
               A letter to Mr. Johnson regarding condemnation of the 23d              
          Street property was drafted, and Mr. McEwen approved it as to               
          form and content (with one change).  This letter was edited,                
          dated August 4, 1991, and signed by Mr. Dukett.  The letter                 
          stated the following:                                                       
               This letter is to confirm conversations which you are                  
               having with the staff of the Lancaster Redevelopment                   
               Agency concerning the acquisition of your property.                    
               The property, located at 45640 North 23d Street West,                  
               commonly known as the Johnson Ford/Lincoln Mercury                     
               Dealership location, is currently proposed to be                       
               acquired by the Agency through negotiations.  As you                   
               are aware, the Agency is authorized to acquire property                
               by the use of eminent domain.  If these negotiations                   
               are unsuccessful, staff will recommend to the Agency                   
               Board that they proceed with proceedings for the                       
               acquisition of your property through the exercise of                   
               the power of eminent domain.                                           
          On or about August 4, 1991, Mr. Dukett delivered this letter to             
          Mr. Johnson.                                                                
          Mr. Johnson Seeks Advice After Being Told That Lancaster Would              
          Condemn the 23d Street Property                                             
               In October 1990, after Mr. Theophanis informed Mr. Johnson             
          that Lancaster would condemn the 23d Street property, Mr. Johnson           
          sought advice from Mr. Wright regarding Lancaster's threats.  Mr.           
          Johnson specifically asked Mr. Wright, "Can they do that?"  Mr.             
          Wright advised Mr. Johnson that (1) Lancaster had the authority             
          to condemn the 23d Street property, (2) whether or not Lancaster            
          and the LRA had the ability to condemn was not an issue, and (3)            




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