10-Q 1 g65498qe10-q.txt INTERSTATE LAND INVESTORS I LP 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly Period Ended SEPTEMBER 30, 2000 Commission file number 33-22420-A INTERSTATE LAND INVESTORS I LIMITED PARTNERSHIP (Exact name of Registrant as specified in its charter) NORTH CAROLINA 56-1610635 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) IJL FINANCIAL CENTER, P. O. BOX 1012 CHARLOTTE, NC 28201-1012 (Address of principal executive offices) (Zip Code) (704) 379-9164 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the Registrant has (1) filed all reports required to be filed required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date. 5,100 limited partnership units outstanding at November 10, 2000 Page 1 of 9 Sequentially Numbered Pages 2 INTERSTATE LAND INVESTORS I LIMITED PARTNERSHIP CONDENSED BALANCE SHEETS AS OF SEPTEMBER 30, 2000 AND DECEMBER 31, 1999

See attached notes to the condensed financial statements 2 3 INTERSTATE LAND INVESTORS I LIMITED PARTNERSHIP Condensed Statement of Operations (Unaudited)

See attached notes to the condensed financial statements 3 4 INTERSTATE LAND INVESTORS I LIMITED PARTNERSHIP CONDENSED STATEMENT OF PARTNERS' EQUITY (DEFICIT) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 (Unaudited)

See attached notes to the condensed financial statements 4 5 INTERSTATE LAND INVESTORS I LIMITED PARTNERSHIP CONDENSED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

See attached notes to the condensed financial statements 5 6 INTERSTATE LAND INVESTORS I LIMITED PARTNERSHIP NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2000 1. BASIS OF PRESENTATION: The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 2000, are not necessarily indicative of the results that may be expected for the year ending December 31, 2000. 2. ORGANIZATION AND SUMMARY OF ACCOUNTING POLICIES: Interstate Land Investors I Limited Partnership (the "Partnership" or "Registrant") is a North Carolina limited partnership. The Partnership filed a registration statement in 1988 and offered the sale of the limited partnership interests to persons who were admitted as limited partners. The offering became effective September 7, 1988, and was terminated September 30, 1988. Capital Contributions of $100 were received from the general partners and $5,100,000 from the limited partners. The limited partnership interests were sold in $1,000 units. On November 10, 2000, there were 524 unit holders of record. The Partnership's business now consists of holding for investment, disposing, and otherwise dealing in 97 acres of undeveloped land (the "Property") located in York County, South Carolina. As of November 10, 2000, the Partnership held all 97 acres of the Property. ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1. LIQUIDITY AND CAPITAL RESOURCES As of September 30, 2000, the Registrant had excess cash on hand in the amount of $114,774. This amount reflects the remainder that was retained for working capital from the $500,000 proceeds received from the William Garith Allen legal settlement, less the $306,000 distribution to the partners on August 11, 1998, and the payoff of the $50,337 outstanding loan. Until the Registrant disposes of its approximately 96.74 acre tract of land located in York County, South Carolina, its only sources of additional capital are loans and the interest earned on its short-term investments and proceeds from the sale of the resources (i.e., timber) on the property, if any. 6 7 2. RESULTS OF OPERATIONS The Partnership reported a net loss of $9,829 for the nine months ended September 30, 2000, as compared to the net loss of $17,082 for the nine months ended September 30, 1999. Professional and legal fees increased to $8,181 up from $6,682 reflecting higher legal fees incurred from the review of documents pertaining to the proposed sale of the property. General and administrative expenses increased to $5,807 up from $4,698. The increase is due to ballot mailing and property appraisal costs. All other expenses were roughly in line with 1999 third quarter results. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES None ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS On July 10, 2000, ballots were sent to the limited partners requesting their vote in favor of the proposed sale of the property to Greenfield Development Company, LLC. A majority of the limited partners voted their approval of the proposed sale. ITEM 5. OTHER INFORMATION On October 31, 1998, the Partnership entered into a listing agreement with The Crosland Group to sell the property . The property is listed for sale at $45,000 per acre. In December of 1999, the Partnership entered into a contract to sell the land for approximately $3,740,000. However, on March 17, 2000, the potential purchaser, Crescent Resources, elected to cancel the contract. Crosland Commercial continues to list the property for sale. On June 29, 2000, the Partnership entered into a contract with Greenfield Development Company, LLC, to sell the land for approximately $4,153,000 which is $45,000 per acre (assuming that the total wetlands does not exceed 6 acres). The potential purchaser deposited $50,000 earnest money with a title agency. Under the terms of the contract, the potential 7 8 purchaser has 90 days from the date that the limited partners vote their majority agreement to the sale, to complete their due diligence. Limited partners have voted their majority as of this filing. Notice of limited partner majority vote approving the sale was given on August 7, 2000. The contract also includes the purchase of approximately 97 acres of land owned by Interstate Lane Investors II. A majority of the investors in that Partnership have approved the sale. The contract closing date is 30 days after completion of the due diligence period, which would have made the probable closing date December 6, 2000. However, Greenfield has requested two 90-day extension periods, with additional earnest money being deposited for each extension, making the first possible new closing date March 6, 2001 and, if necessary, the second possible closing date June 6, 2001. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits EX-27 FINANCIAL DATA SCHEDULE (FOR SEC USE ONLY) (b) Reports on Form 8-K No reports on Form 8-K were filed during the nine months ended September 30, 2000. 8 9 INTERSTATE LAND INVESTORS I LIMITED PARTNERSHIP SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. INTERSTATE LAND INVESTORS I LIMITED PARTNERSHIP (REGISTRANT) BY: /S/J. CHRISTOPHER BOONE ----------------------- J. CHRISTOPHER BOONE ISC REALTY CORPORATION, GENERAL PARTNER AND PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER OF THE REGISTRANT DATE: NOVEMBER 17, 2000 ----------------- 9

INTERSTATE LAND INVESTORS I LTD PARTNERSHIP 10-Q