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(2) Housing Market and Sales
Petitioner also asserts that another factor in petitioner's
determination not to develop the 48 lots was the unsuccessful
sales program for the 14 lots in Tract No. 10018-1. In light of
the slow sales, petitioner concluded that a market for entry-
level homes in Beaumont did not exist.
On or about October 1986, petitioner contracted for the
construction of 14 single family residences in Tract No. 10018-1.
The 14 houses were constructed in two phases, the first phase
consisting of 6 houses (construction commenced on October 17,
1986) and the second phase consisting of 8 homes (construction
commenced on June 25, 1987).
Mr. Baker testified that the sales of the first six homes
were slow, at a rate lower than anticipated or acceptable to
petitioner. Mr. Baker remarked that petitioner held the
completed homes for an average for 9 months. The second phase
sold quicker, but sales were still unacceptable to petitioner.
Mr. Baker felt that it was not worth further subdividing the
property due to the slow sales, the amount of money expended, and
the trouble of building the 14 houses.
In regard to the holding period, petitioner relies on the
fact that the 14 houses sold from July 21, 1987, to March 31,
1989, which is approximately a 20-month span. Additionally,
petitioner points out that only three houses sold during 1987 and
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