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income-producing nature of the property. To project the number of
time-share sales, she relied on Powhatan Associates’ annual reports
to the Virginia Department of Professional and Occupational
Regulation’s real estate board, the public offering statement for
the project, and computer printouts of 1989 and 1990 sales provided
by petitioners. Ms. Maiden determined that potentially 500 units
could be built, and after taking into account the number (5,497) of
intervals which had been sold as of February 16, 1989, 20,003
intervals remained for sale.3 She projected annual sales of 1,800
intervals for 1989 and 1,900 intervals for each of the subsequent
years until the total number of intervals (20,003) that remained to
be sold as of February 1989 was sold. To determine a weighted
average interval sales price, Ms. Maiden used the audited financial
statements of Powhatan Associates and a price list for sale in 1997
(the only existing price list), in addition to the information used
to project the number of time-share units sold. On the basis of
this information, Ms. Maiden determined a weighted average sale
price of $14,000 for all years in the projection period. The net
operating income per interval was then estimated, using Powhatan
3 In calculating the number of intervals which could be
sold, both experts used 51 intervals per unit.
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