2003-10-22 Amended Findings of Fact Conclusions of Law Order Regarding Trial on Count IV of the Fifth Amended Complaint

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homes in several destinations around the world); and 7) owns a current primary home in West Coast or in Japan. Exk PKO-194, Marketing Plan 1121199P. 16. 21. The Hokuli'a project, like all Lyle Anderson developments of which Richard Frye is personally aware, is geared to the high-end buyer that was targeted in the Marketing Plan dated January 21, 1999. Test. R. Frye 7110103. None of the Anderson projects involve development of an agricultural lot subdivision, other than one project which involved ranching. However,ranching has since been discontinued on that project. Test. R Frye (7110103);Exh. PKO- 727. 22. Oceanside's legal disclosure of the land use for which property is being offered for sale is a"high-quality community to be enhanced with agriculture."Exh PKO--458, Public Offering Statement(1012 7199)p. 3. The agricultural component of the project will be located in common areas and roadways. Some agriculture may occur on easements on lots if deemed necessary and appropriate by the homeowners' association. Id at p. 27. The intended agricultural use is to enhance the beauty of Hokuli'a. Id "Buyers should not expect material financial benefits from agricultural activities."Id 23. Farming operations must be able to adapt and diversify with changing market conditions. Test. G. Teves(718103). If a farmer does not have complete control over his farming activities,he will not be able to adapt to these changing conditions, and his prospects for a successful fanning operation would be severely constrained. Id 24. Land, labor, water cost, and water availability must be factored into any analysis to determine the feasibility of the various and sundry agricultural plans for Hokuli'a. Id Oceanside's agriculture plan did not include these factors. 25. Oceanside sold more than 90 lots in the Hokuli*a project between May 1998 and December 2000 and more than 190 lots between May 1998 and July 2003. Test. R. Stuit(7123103). 6