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On June 21, 1989, MedChem P.R. paid $842,500 to the Puerto
Rico Industrial Development Co. for approximately 8.5 acres of
land in Juncos, Puerto Rico (Juncos), to be used as the site of
MedChem P.R.’s proposed manufacturing facility. Conditions of
the sale included that MedChem P.R. would submit plans for
construction of an industrial building within 6 months, that
construction of the building would begin within 6 months of the
plans’ approval, that the completed building would be devoted to
manufacturing operations for a minimum period of 10 years, that
the building would include 30,000 square feet of ground floor
space and 13,000 square feet of mezzanine space, and that MedChem
P.R. would use its reasonable efforts to employ 50 people at the
commencement of the facility’s manufacturing operations and 120
people within 18 months thereafter. Petitioners anticipated that
the proposed facility would cost at least $9 million to build,
and, through January 31, 1990, MedChem P.R. made $885,216.56 of
capital expenditures relating to the facility’s proposed
construction. Most of these expenditures concerned the services
of Unipro, an engineering and architectural firm retained by
MedChem P.R. to work on the proposed facility. Unipro prepared
architectural drawings and designs for the facility.
In early 1990, MedChem U.S.A. suffered a devastating
financial blow from the Amvisc litigation. On February 2, 1990,
the District Court hearing the case issued a preliminary
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