Reference no: EM132848295
Question - Following the information: Mike Schoenfeld is vice-president of Left Bank in Lane Cove and active in Roseville community affairs. Schoenfeld also serves on the board of directors of Baker Publishing Company in Chatswood. Baker is expanding and relocating its plant. At a recent meeting the board members decided to buy land which is being rezoned. The owner of the property Jack Fletcher is a customer of Left Bank. Fletcher is completing a divorce and Schoenfeld knows that Fletcher is eager to sell his property. In view of Fletchers difficult situation, Schoenfeld believes Fletcher would accept almost any offer for the land. Realtors have appraised the property at $5 million.
Apply the ethical judgement to help Schoenfeld decide what his role should be in Baker's attempt to buy the land from Fletcher.
Consider Mike's dilemma, in addition to the facts in this problem, the board of Baker Publishing is considering additional options. First there is a comparable site in the same general area with and appraised value of $3.9 million. But this location is home to a woodland fungus that may aid in the treatment of diabetes. Second, the board is considering expanding the existing location's square footage by 25%. The board has received a bid of $3.2 Million on the new construction from Schoenfeld's brother-in-law.
Assume the following: if the board makes an offer on Fletcher's' property, it will propose a price of 3.5 Million.
If an offer is made on the comparable site, it will be $3.4 Million. If the board chooses to remodel and expand the current location, the bid price will be accepted.
If you were Schoenfeld which option would you recommend to the board and why?
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