upr000095 41

(COPY) Omaha - February 4, 1953 704-36 Mr. W. R. ROUSE: (ec - Mr. A. E. Stoddard Mr. Wm. Reinhardt Mr. W. H. Hulsizer) This refers to conference on December 16, 1952 and subsequent correspondence regarding proposed sale of the water facilities at Las Vegas to the Las Vegas Valley Water District: As a result of the discussions, further exploration was to be made as to the procedures which might be followed in transferring the properties owned by the Railroad Company and the Laa Vegas Land & Water Company, respectively, to the Water District. Herewith statement (marked Exhibit l). showing the ap­praised values of the two water properties at Las Vegas, Ne­vada, as separately determined by Union Pacific and Las Vegas Valley Water District, together with a percentage assignment to the two properties of the aggregate purchase offer based on the relative appraisals. This statement has been brought down to September 1, 1952, the date of the purchase offer, and the land has been added. On this basis, our total appraisal aggregates $3,280,253 as follows: LA&SL $1,711/295 52.11% LVL&W 1,566,958 47.83 Total $3,280,253 100.00$ The above figures are, of course, subject to adjustment when the actual values are determined as of the date of the sale. Several possible ways of handling which occurred to us have been considered, and the results of each have been out­lined in memorandums attached, designated as follows: BASIS No. 1: Convey LA&SL facilities to UP at tax base. UP and LVL&W each sell properties direct to Water District, de­termining respective proportions of purchase offer by per­centages based on appraised values, as per'^paragraph 4 above.