Please read the case and put the negotiation price for the land on attached QA.

Easterly can be induoed to drop the challenge to the building permit now, you must get rid of this particular parcel at the best price you can, and move quickly to acquire and develop another site. {If there is any good news in all of this, it is 'lat someone else in your organization was responsible for buying the parcel next to die Easterly. Anything that you can do to untangle this mess will clearly be to your credit.) It is hard to know what is motivating the Easterly owner. The Easterly is a bed-and-breakfast inn, but it seems unlikely 'lat your operation would cut into their business. It may be that they are concerned that your structure will interfere with the inn's views of the harbor. In your opinion, if they didn't care enough about the views to protect them by buying ie parcel themselves, they should not tell o'ler people what to with their own land. In any event, a meeting with the Easterly owner is about to take place. In the best of all worlds, perhaps you can persuade them to drop their legal challenge. You denitely should not offer to pay them for doing so, however. This is a small town, and if word gets out that die Easterly owner has been paid off, then other \"interested citizens" might well pop up and make similar demands. In other words, paying off the Easterly owner would not insulate you from a lawsuit or guarantee your right to build a coffee shop. Instead, the most realistic option seems to be selling 'IE' parcel to the Easterly owner before boi of you invest too much money [and time} in regulatory and legal expenses. Indeed, you have already identified an altemative site for your shop that is equally attractive, iough somewhat more expensive. As a result, if you do sell the original parcel to the Easterly owner, you want to get as good a price as possible. You don't want to put any money into their pockets that you don't have to. It is impossible to get a definitive appraisal of the value of the disputed parcel. Its small size and the unresolved zoning issues makes the property unique. Ultimately, its value can only be set by what a willing buyer and willing seller happened to agree on. To help you plan for your negotiation, you have confirmed ie following figures: a. $IIII,IJDU: Hie amount Brims paid for die parcel three months ago. At Hie time, this seemed like an excellent price. The company has paid $l,f[l more in associated costs. b. $125,t'.|l'l [plus or minus Emit}: the current value of the land as residential lot. There is no doubt in your lawyers' minds 'lat 'IE' lot is legal for residential purposes. It's possible that the current dispute over the building pennit might be misunderstood by some people, however, and thus discourage some potential buyers. c. $Im: the likely cost of the alternative site for your new Blims shop. d. SEQUIN}: the estimated additional legal costs of defending a building pennit before local regulatory boards and in an initial tiial; a subsequent appeal would cost more. Your assignment thus is to try to sell the original paroel at the best price possible. {If you are unable to make a deal with due owner of the Easterly, you will put 'le property on due market and try to sell it as a house lot.) For the sake of this exercise, please do not introduce other issues or terms. Simply try to reach agreement on a cash price. Your respective lawyers can handle the legal technicalities. The Easterly owner will have to arrange their own financing. Complete 'le attached form as pa rt of your preparation, but do not show it [or this case} to the other side. Grmd luck! The following questions are intended to crystallize your thinking about what price you might negotiate to sell the land to the Easterly. in planning for your meeting with therm you may well want to 'link about o'ler issues, as well. 1. 5. [Flake the first offer? After preliminary conversation; someone will likely have to put the first serious figure on the table, either you or the Easterly representative. Do you want to make the first offer? a. Definitely yes 1:. Probably yes c. Don't care d. Probably no e. Definitely no What is the first offer? Regardless of your preferences; if you do have to put the first serious number on the table; what amount would you offer: ? 1What is the very best price you realistically hope for [an "A" or \"A+'"' deal]: i' What specic price would be a good outcome [a \"B" or a 15+" deal]: 2' \"Walk-away\" Brice? I{liven the infomation in case, what is the absolute least you will accept for the land? That is, if Easterly were to insist on one dollar less than that amount, you would reluctantly abandon negotiations and pursue other alternatives: '3 MICHAEL WHEELER Salt Harbor: Condential Information for Brims You are the regional manager for Brims, d1e highly regarded and fastgrowing chain of coffee shops. Three months ago, your company acquired a parcel of property in the resort community of Salt Harbor where it planned to build and operate a new shop as soon as possible. Your task today, however, is to try to negotiate the sale of that same parcel. Here is the key background information. The Salt Harbor market is extremely promising. It was once mainly a summer vacation spot, but has become popular in all seasons. Though d1ere are a number of local restaurants and a bakery, there is currently no direct competition with a Brims outlet, so now is the time to act. You have developed shops in similar communities, so you were not surprised when your planned opening drew mixed reactions. Many people seem to welcome the prospect of a purveyor of fine coffee and pastries, and others are happy that jobs will be created and the tax base enhanced. As is often 'IE' case, however, there also has been some opposition. There has been some grumbling about the impact of chains on local business, and the potential loss of "community character.\" 1t'ou have had goo-cl sucoess in persuading some of these skeptics that Brims is not a fast-food operation, specically, that your new shop will be in keeping with traditional architecture. Therefore, you were disappointed to learn that die issuance of your building permit has been formally challenged by 'le owner of the Easterly, a bed-and-brealcfast inn located adjacent to the parcel diet you just bought. The owner contends that your parcel is smaller than the minimum required by zoning, hence is not buildable. Appeals through the local regulatory boards could take months. Even if your rights are upheld, your opponents could subsequently take their claim to court, where it might well be years before the dispute is definitively resolved. Your corporate lawyers and d1eir outside experts have advised you that you have a strong case. While it is true that the parcel is smaller than the current zoning requires, the lot was fully legal when it was originally carved off of another piece of land. A state statute provides that such lots are \"grandfathered,\" that is, they remain legal even if subsequent zoning becomes more restrictive. [t was on that understanding that Erims bought the land several months ago. Now that the Easterly owner has brought this challenge, however, your own lawyers have begun to retreat a little. Specifically, d1ey are condent that the state statute does protect your lot for residential uses, however they now admit there may be a little ambiguity about whether commercial uses are also grandfathered. That is the specific point that H\"? Easterly owner has raised. In spite of this ambiguity, the lawyers still say that Brims has at least an EU percent d1anoe of being vindicated, if this issue goes to trial and is appealed. Their opinion has given you no comfort, however. 1r"r1ru simply cannot wait months or years - to open your shop. Unless the owner of the