- 6 -
for a significant period and because it was clear to Walker that
petitioner was not going to obtain the requested zoning approval.
Petitioner withdrew the zoning request after the hearing but
before a vote was taken.
Walker began to market the property to other major
developers after the November 17, 1997, meeting, as he expected
petitioner to cancel escrow on the property. Petitioner
contacted Joseph Janas (Janas), FRGC’s certified public
accountant, a few days after the hearing and told Janas that the
real estate transaction would not go forward. Petitioner then
instructed Janas to do a final accounting to determine how much
cash in the partnership was available to distribute to the
investors.
PCB and Cherry executed mutual cancellation instructions for
the 1996 purchase agreement to the escrow company on December 29,
1997. The escrow company refunded the $25,000 in earnest money
to PCB upon cancellation of the escrow. At the time that PCB and
Cherry canceled escrow, petitioner did not attempt to renegotiate
a new purchase agreement for the subject property.
Sometime in early January 1998, Walker approached petitioner
and suggested new terms for the purchase that would be acceptable
to Rex Maughan. The terms included a nonrefundable payment of
$150,000, an increase in the purchase price from $5.25 million to
$5.775 million, closing in 6 months with no contingencies, and
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