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The owner of the subject property has under contract
three parcels of land that abut the original 174.5
acres [Vero Beach property] to the west. These parcels
under contract make up the balance of the 228.05 acres
of the subject property and are considered to be cru-
cial attributes of the subject property by which the
acquisition of this property will provide additional
upland acreage, increased ingress and egress to the
eastern portion of the subject and frontage for future
commercial development on U.S. Highway One. Two of
three parcels have disclosure provisions within the
contract which prevent the buyer or seller from dis-
closing information such as price, terms or closing
date etc. * * * The third parcel of land under contract
is from J.C. Enterprises, Inc. (Grantor) to Indian
River Farms, Inc. (Grantee) for $552,000 cash to the
seller. This parcel has frontage on U.S. Highway One
and contains approximately 8.51 acres or 370,695 square
feet. This parcel like the other two parcels is zoned
RM-6 by Indian River County allowing residential devel-
opment at a maximum density of six units per acre. The
sales price results in a value per acre of $64,864 or
$10,823 per unit.
The appraiser estimated that the "as is" value of the appraised
property as proposed to be developed was $10,250,000.
On September 19, 1994, Atlantic Gulf Communities sent a
letter to OIP as the borrower of the loan that General had made
to OIP on December 11, 1990, in order to finance in part OIP's
acquisition from General of the Vero Beach property. That letter
stated in pertinent part: "The following information is provided
to you pursuant to your request of September 19, 1994 for payoff
information".
Petitioners reflected the condemnation of the CCJV real
property and the receipt by OIP of the condemnation proceeds
(collectively, the condemnation transaction) in both their books
and records and their consolidated return for the taxable year
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