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accordance with County and State funding requirements, conditioning .the sale with <br />this restrictive covenant adversely affects the value of the Islands as appraised. <br />The reverter clause in Section 7 of the Option - which indicates that ownership of <br />the Islands will revert to Lost Tree if the Islands are used for anything other than <br />conservation, open space, or passive recreation - is unacceptable. Although the <br />County receives full title to the property under the FCT grant program, the FCT <br />retains an "executory interest," which allows the State to take the County to court in <br />the unlikely case that the Islands are not used or managed for conservation or passive <br />recreation. For this reason, the reverter (and any other encumbrances) are <br />unacceptable to the FCT. <br />Section 11, Page 5: the FCT program is a willing seller program, and FCT funds <br />cannot be expended towards any purchase that involves condemnation (or threat <br />thereof). <br />FCT will not accept any reference in the Option to the settlement of litigation <br />(Section 9 on Page 5 of the Option). <br />Ms. Peery indicated that these points were based on a quick review of the Option, and other details <br />may be in question upon a more thorough review. Ms. Peery also expressed concern about the two <br />different sale prices, depending on if the FCT participates or not; such an approach would set a <br />precedent for the FCT and she is not sure how the FCT Governing Board will react. <br />In summary, Ms. Peery indicated FCT's ongoing willingness to work with the County regarding <br />the FCT grant. However, for the FCT to approve the Option, the Option will need to be revised (as <br />indicated) to reflect the more standardized FCT document. <br />Please let me know if you have any questions (ext. 258). <br />Cc: Terry O'Brien <br />Jim Chandler <br />Joe Baird <br />Robert Keating <br />W:\USERS\ROLANDILAACEosTTREEIOPTREV.WPD <br />NOTE: SINCE THIS MEMORANDUM WAS WRITTEN, LOST TREE <br />VMUGE CORPORATION HAS REVISED THE EXECUTED FCT OPTION <br />TO ADDRESS FCT'S CONCERNS AS EXPRESSED HEREIN. <br />3: 3 D pw <br />May 26, 1998 <br />31 <br />