WHITE MILL PROPERTIES INFORMATION

The various properties that the IDA and the City of Danville are proposing to
purchase from Gibbs International and affiliated subsidiary companies
provide a good investment for the IDA to assist in the ongoing development
of the River District while maintaining control of that development along the
south side river front between the Martin Luther King and the Union Street
Bridges.

The properties consist of eight individual parcels which were purchased by

Gibbs International companies for a total purchase price of $2,401,000 plus
associated closing costs. A newspaper article published in the March 16 th
Register and Bee indicated that Gibbs has purchased the property for slightly
more than $1,500,000. The actual purchase price of Parcel #21344, the
White Mill and surrounding land, from Dan River Properties was $1,700,000,
but Gibbs purchased an additional seven parcels at a total purchase price of
$701,000 for total of $2,401,000. Those seven parcels were owned by
various parties for a variety of uses including retail and a tobacco sales
warehouse. They were all vacant and were rapidly becoming blighted.

The newspaper article neglected to account for the additional parcels which
constitute the entire package that the IDA is proposing to purchase. In
addition to the purchase price of the real estate itself, the City has records
showing that Gibbs spent just over $1,500,000 to abate asbestos and lead
paint in both the White Mill itself and other structures which were eventually
demolished, once more at Gibbs expense. The total cost of the real estate,
environmental abatement, demolition, and various legal fees and closing
costs was clearly in excess of $4,000,000. At the agreed upon purchase
price of $3,000,000, the IDA and City staff consider this purchase a good
bargain.