Progress since our last update has been slow and minimal with the proceedings under the Chapter 11 taking most of the attention. Several significant events have been completed.  An order was approved by the court to release funds for the completion of some required offsite sewer work which involves a crossing of Route 66 and some additional work in the area of NAU.  With regard to the bankruptcy hearings, the court ordered completion of the reorganization plan prior to October 2^nd of this year.  This plan requires the owner to provide a detailed plan for the completion of the project and payment of all obligations.  Prior to that submittal, we have been informed that the developer will seek approval for the release of an additional sum of money to pay for and commence construction on the balance of the Phase I improvements.  These improvements will allow us to re-commence construction activity on our first homes.
The developer is awaiting the completion of a new appraisal for the property.  The appraisal will help to complete negotiations for new overall financing and provide the basis of a new bond with the City of Flagstaff to provide assurances for completion of all Presidio in the Pines site improvements. Once these important items are completed, the developer will be able to proceed with our remaining street improvements. We will need an accurate schedule of their completion dates which will allow us to establish a schedule of construction for our buyer’s homes. We are following the court’s activity closely and intend to stay in contact with all of our buyers.