Epco, Inc. and Subsidiaries - Page 5




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          consisting of 266 trailer pads.  The trailer park, named                    
          Brookshire Village Mobile Home Park (Brookshire), was to be                 
          developed in three stages.                                                  
               Before commencing development of Brookshire, Mr. McArthy               
          consulted Mr. Fribis in order to arrange sewer service.  The                
          method of providing sewer service had to be approved by the                 
          Missouri Department of Natural Resources (DNR), an agency of the            
          State of Missouri responsible for water quality.  Mr. Fribis told           
          Mr. McArthy that the sewage from Brookshire could be treated by             
          using either an onsite lagoon, an onsite sewage treatment plant,            
          or an underground sewer line connecting Brookshire to a                     
          centralized treatment plant.                                                
               Mr. McArthy ultimately chose the third sewage treatment                
          option which involved the construction of a sewer line connecting           
          Brookshire to Imperial's Country Club Manor sewage treatment                
          facility (treatment facility), 2-1/2 miles north of Brookshire.             
          Since the northern boundary of Brookshire abutted a tract of                
          undeveloped land owned by Interstate Development Corp.                      
          (Interstate), the completed sewer line would also bisect                    
          Interstate's land, thereby providing sewer service to any future            
          development.                                                                
               In order to determine the economic feasibility of the                  
          project, Mr. Fribis determined the costs of construction,                   
          operation, and maintenance of both the sewer line and treatment             





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Last modified: May 25, 2011