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Enron Mail |
Jacques,
George finally sent me some information. Please look over his email. He wants us to buy him out. Keith and I think this is a joke. We still need to speak to his engineer and find out about his soil study to determine if it has any value going forward. I don't believe the architect work will be of any use to us. I don't think they deserve any compensation for their time due to the fact that intentional or not the project they were proposing was unsupportable by the market. My version of a buyout is attached. I need your expert advise. I am ready to offer my version or threaten to foreclose. Do they have a case that they are due money for their time? Since their cost and fees didn't hold up versus the market and we didn't execute a contract, I wouldn't think they would stand a chance. There isn't any time to waste so I want to respond to their offer asap. Call me with your thoughts. Phillip ---------------------- Forwarded by Phillip K Allen/HOU/ECT on 03/14/2001 08:36 AM --------------------------- "George Richards" <cbpres@austin.rr.com< on 03/13/2001 11:29:49 PM Please respond to <cbpres@austin.rr.com< To: "Phillip Allen" <pallen@enron.com<, "Keith Holst" <kholst@enron.com< cc: "Larry Lewter" <LLEWTER@austin.rr.com<, "Claudia L. Crocker" <clclegal2@aol.com< Subject: Bishops Corner, Ltd. Buyout [IMAGE][IMAGE]??????????? ??????????? 8511 Horseshoe Ledge, Austin, TX? 78730-2840 Telephone (512) 338-1119? Fax(512)338-1103 E-Mail? cbpres@austin.rr.com ? ? ? ? March 13, 2001? Phillip Allen Keith Holst ENRON 1400 Smith Street Houston, TX? 77002-7361 Subject: Bishops Corner, Ltd. -- Restructure or Buyout Dear Phillip and Keith: We are prepared to sell Bishops Corner, Ltd. for reimbursement of our cash expenditures; compensation for our management services and your assumption of all note obligations and design contracts.? As shown on the attached summary table, cash expenditures total $21,196 and existing contracts to the architect, civil engineer, soils testing company, and appraisal total $67,050.? The due on these contracts is $61,175, of which current unpaid invoices due total $37,325. Acting in good faith, we have invested an enormous amount of time into this project for more than five months and have completed most of the major design and other pre-construction elements.? As it is a major project for a firm of our size, it was given top priority with other projects being delayed or rejected, and we are now left with no project to pursue.? Two methods for valuing this development management are 1) based on a percentage of the minimum $1.4MM fee we were to have earned and 2) based on your prior valuation of our time.? For the first, we feel that at least 25%, or $350,000, of the minimum $1.4MM fee has been earned to date.? For the second, in your prior correspondence you valued our time at $500,000 per year, which would mean this period was worth $208,333.? Either of these valuations seem quite fair and reasonable, especially as neither includes the forfeit of our 40% interest in the project worth $0.8--$1.2MM. ?However, in the hope that we can maintain a good relationship with the prospect of future projects, we are willing to accept only a small monthly fee of $15,000 per month to cover a portion of our direct time and overhead.? As shown in the attached table, this fee, plus cash outlays and less accrued interest brings the total net buyout to $78,946.? We still believe that this project needs the professional services that we offer and have provided.? However, if you accept the terms of this buyout offer, which we truly feel is quite fair and reasonable, then, we are prepared to be bought out and leave this extraordinary project to you both.? If this is your choice, either contact us, or have your attorney contact our attorney, Claudia Crocker, no later than Friday of this week.? The attorneys can then draft whatever minimal documents are necessary for the transfer of the Bishops Corner, Ltd. Partnership to you following receipt of the buyout amount and assumption of the outstanding professional design contracts. Thank you. ? Sincerely, [IMAGE] ? ? ? George W. Richards President P.S.????? Copies of contracts will be forwarded upon acceptance of buyout. ? cc:??????? Larry Lewter ??????????? Claudia Crocker - image001.wmz - image002.gif - image003.png - image004.gif - header.htm - oledata.mso - Restructure Buyout.xls
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