Neal T. Baker Enterprises, Inc. - Page 28

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          establish petitioner's projected budget for costs or its                    
          estimated profit (or loss).  Additionally, petitioner argues that           
          Mr. Lohr's statement that the costs for the 48 lots were "no more           
          than average" does not change the fact that Mr. Baker believed              
          that the cost per lot was too expensive for building entry-level            
          homes.  However, petitioner provided no evidence to support Mr.             
          Baker's statements.  Petitioner acknowledges this:12  "The only             
          testimony before the court is the testimony of Baker who                    
          testified that he concluded that it would not be profitable to              
          do so."  We are reluctant to accept Mr. Baker's conclusion.                 
               We find that the off-site costs for the Exchange Property              
          were not prohibitive in regard to petitioner's development of the           
          Exchange Property.                                                          











               12  Mr. Garner, petitioner's engineer, mentioned a                     
          conversation with Mr. Baker: "I don't know whether he used the              
          word 'horrendous,' but he used some terminology saying the this             
          was far, far more than the other 14 lots would cost him, and he             
          was discouraged at this amount."  Petitioner uses the statement             
          to support its position that the costs were exorbitant, but the             
          statement merely shows what Mr. Baker told Mr. Garner about the             
          costs.                                                                      





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