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On May 5, 1994, the final plat was recorded for development
of the Property as a golf course residential community, and VRI
exercised its option and entered into a binding agreement with
the sellers to purchase the Property for a total purchase price
of $5,715,345.2
Beginning in May of 1994 and thereafter through the time
these cases were submitted to the Court for decision in February
of 2000, VRI improved and sold residential building lots on the
Property and realized the sales proceeds therefrom.
Also on May 5, 1994, VRI entered into a contract (the
Contract) with Valley Club, Inc. (VCI), a nonprofit Idaho
membership corporation whose members would purchase memberships
in the golf club. Under the Contract, VRI reaffirmed its
obligation to construct on the Property an 18-hole golf course, a
driving range, and two practice putting greens. Hereinafter, we
refer to these nondepreciable improvements that VRI was obligated
to construct on the Property as “the Golf Course”.
Under the May 5, 1994, Contract between VRI and VCI, VRI
also obligated itself to construct on the Property a golf
clubhouse with a restaurant and bar facilities, a golf pro shop,
2 The total purchase price reflected $2,941,000 paid in cash
and a $2.5 million promissory note in favor of the sellers of the
Property. The $274,345 balance of the total purchase price
reflected fees and closing costs associated with purchase of the
Property.
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Last modified: May 25, 2011