Daniel L. Reeves - Page 3




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          on the river behind and down a hill from the residence.  The                
          residence was a two-story house with approximately 2,200 square             
          feet per floor.  The first floor was a daylight basement used by            
          the previous owner to store automobiles.  The houseboat and the             
          dock were connected to petitioner’s property by a rundown                   
          gangway.  The houseboat, the dock, and the gangway were in a poor           
          and dangerous condition.                                                    
               Shortly after petitioner purchased the property, petitioner            
          and VVI entered into a lease agreement for $1,000 a month to                
          provide VVI with access from petitioner’s residence to the                  
          houseboat and the dock, the use of his utilities, and the use of            
          his parking lot, boat, and jet skis for advertising and                     
          promotional purposes.3  VVI also rented the first floor of                  
          petitioner’s residence for $700 a month to store goods.                     
               In 1995, petitioner and VVI removed the dilapidated                    
          houseboat and the dock and hired a contractor to build a new                
          houseboat, a 100-foot dock, and a floating garage (floating                 
          structures).  Construction of the floating structures was                   
          completed in the spring of 1996, and they were placed into                  






               3 The $1,000 a month also allowed access to petitioner’s               
          tennis court and an enclosed area where corporate guests could              
          place their children so they would be safe from accidently                  
          falling into the Willamette river.                                          





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