Oliver W. and Edna D. Wilson - Page 6




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          Los Angeles determined that many old buildings, including                   
          petitioner’s building, required retrofitting to bring them up to            
          prescribed earthquake safety standards, and petitioner was issued           
          a notice requiring him to retrofit his building.  If petitioner             
          failed to retrofit his building, the city ultimately would close            
          the building and demolish it.                                               
               In planning and carrying out the earthquake retrofitting and           
          refurbishing work on the building, petitioner acted as his own              
          general contractor.  He hired architects and civil and structural           
          engineers and prepared a plan for the work required.  He applied            
          to the city of Los Angeles for plan approval.  Beginning in 1987,           
          petitioner also entered into contracts with various engineers and           
          contractors in connection with the building’s renovation and                
          improvement.                                                                
               On or about July 2, 1987, petitioners received a $213,700              
          Small Business Administration program loan to retrofit and                  
          refurbish the building (the SBA loan).                                      
               From September 1980 through early July 1987, petitioner had            
          continued to rent space on the first floor of the building to               
          various tenants.  Shortly after petitioner received the SBA loan,           
          petitioner’s tenants vacated the premises to allow the earthquake           
          retrofitting work on the building to proceed.  From about July              










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