David C. Hutchinson, et al. - Page 4

                                        - 4 -                                         

               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            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011