Contact: jamesmaredmond@gmail.com

1. • •STP1-14N BLANCI-1ARD AssocIATcs
March 12, 1992
Mr. Phillip D. London
London & Lichtenberg
11601 Wilshire Blvd.
Suite 400
Los Angeles, CA 90025
Dear Phil:
Pursuant to our conversation yesterday, and my suggestion of alternate collateral for the 601 Ocean
Front Walk purchase money note (in lieu of the subordination Agreement), enclosed please find an
aerial photo of my ranch, a map showing its location, along with an appraisal that was recently sent
to me by a local broker that wanted to know if I was interested in lending money to the owners of
the parcel identified in the appraisal.
My ranch is 1,980 acres consisting of five legal parcels. It has three streams that flow year round
and they also supply the water to my neighbor George Hearst. The ranch is zoned RA 40 and
could be divided into 40 acre parcels. You should be aware that my Ranch is on the south side of
Sulpher Mountain Road. Therefore, it is not located within the Ojai Clean Air District, making
it is easier to obtain a building permit and therefore far more desirable.
I presently lease my ranch to a cattle operation, and I am in the process of putting a couple of
mobile homes on it for my personal use. I also have my horses turned out to pasture there.
George Hearst has his 1,450 acre ranch for sale at $6.5 million. He has no water other than that
which he receives from my ranch and there are also three access easements thru his ranch to my
ranch. My ranch has no access easements thru it other than for Edison and some oil company
rights. My ranch also has incredible views of the Pacific Ocean and all of the Channel Islands, as
well as the entire Ojai Valley. Neither George's Ranch or the Ranch in the enclosed appraisal have
these views.
At a per acre value per the appraisal, my ranch would be valued at $15,600,000. At a per acre
value per the asking price of George Hearst on his ranch, my ranch would be valued at $8,875,000.
The underlying debt on my ranch is a purchase money note second by First Deed of Trust irrthe
amount of $725,000 due and payable in eight years (2000) and it is a payable interest at only 851.
The vast difference between the Hearst price per acre and the appraised ranch price per acre can
only be attributed to the water issue and the affordability of smaller parcels to a larger consumer
base.
PO BOX 110Q. VgNICQ CAL IF ORNIA oonA . (213) 415o ric SAX (713) 3c)? f-
81

2. lanchard
• II
Page Two
March 12, 1992
Mr. Philip London
My ranch is near and dear to me and I trust the Zitnicks will be extremely comfortable with themagnitude of the security this ranch would provide for their note. The Coastal Commission staffis growing impatient with me, as they need to have all of the recorded documents back before theycan issue the permit. I would very much appreciate anything you could do to expedite a decision.
Should you any further questions, please do not hesitate to contact me.
Very t yours,
SMB/pi
Enclosures
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