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Mountain Resort Development Corporation

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Submitted By eclabush123
Words 1267
Pages 6
I. Introduction

Thomas Anderson, the president of Mountain Resort Development Corporation, is considering on purchasing a property(current date is January 1, 2014) for they intend to expand their business and earn additional profit by building and selling a complex of luxury condominiums. On the other hand, this property that is held for sale is currently zoned for single-family residences only.

Thomas believes that in order to have an change in the zoning of the property; to permit the construction of the condominiums, he’d be placing a referendum on the voting ballot that is actually in time for the November election. Then if the majority of votes agrees the zoning change can be granted, but if the zoning change is rejected the best option for Mr. Anderson is not to proceed on purchasing the property.

Another thing is that this property could only be attained and owned by the corporation through bidding. The bid requires a certified check, with is worth 10% of the amount bid, this will serve as an initial payment but if the bids are rejected, the deposits are refunded. Mr. Anderson is willing to bid P5 million to secure and purchase the property, for he relies on his initial judgment and experience. The deadline of submission of bids is on May 15, 2014 and the winning bid will be announced on August 1, 2014.

Mr. Anderson had conducted a preliminary analysis and it showed that the referendum for a zoning change will be approved and it also provided some estimated revenue and costs. He also suggested that the company should conduct a survey of voters because its likelihood of approval plays an important role in the decision process; and to develop probabilities that the zoning change is approved or not, based on the voters choice of accepting or rejecting it.

II. Statement of the Problem Mr. Thomas Anderson

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