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hereinafter sometimes referred to as Nelson Bros. The Nelson
Bros. lease was entered into in 1976 for 10 years with two 5-year
renewal options. At decedent’s death, the lease was in its final
5-year renewal period with 48 months remaining and scheduled
expiration of April 30, 1996. Under the lease, Nelson Bros. paid
monthly rent of $3,500 and was responsible for all operating
costs of the property, including real property taxes.
In December 1991, Nelson Bros. had one underground gasoline
storage tank removed from the Lafayette Property. After removal
of the tank, Nelson Bros. had the soil tested for fuel
contamination. The test result showed unacceptable levels of
fuel contamination. On May 4, 1992, a reasonable buyer would
have discovered the ground contamination and adjusted the sales
price of the Lafayette Property downward by about $100,000
because of cleanup concerns.
At decedent’s death, the highest and best use for the
Lafayette Property was for heavy industrial usage.
4. The Parker Property
The Parker Property is 2.93 acres, about 127,631 square
feet. The Parker Property is on level land; it fronts on Parker
Street, Lafayette Street, and Grant Street, and it adjoins the
Lafayette Property on the south. It is flag-shaped.
In 1992, the Parker Property was zoned heavy industrial,
which allowed manufacturing, assembling, research wholesale, or
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