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Mr. Donald Pauley <br />April 9, 1987 <br />Page 2 <br />I can assure you that the construction business is so competitive <br />that anytime we, as a builder, can find a way to reduce the cost, <br />the reduction automatically is given to the consumer. No matter <br />what price range the home or the type of the home or what the land <br />cost is, in order to compete we determine what the total cost to <br />construct the housing unit is, including land, and then apply our <br />overhead expenses to it, using the same percentage of overhead ex- <br />penses to each and every unit. Therefore the lower the total expense <br />the lower the overhead and therefore the lower the total price to <br />the buyer. <br />We are not in a'market where any windfall profit can be kept <br />by a builder. <br />I will appreciate the opportunity to meet with the members of <br />the City Council on April 20 to answer any specific questions that <br />they may have in this regard. Thank you for your consideration <br />in this matter. <br />Sincerely yours, <br />MARVIN H. ANDERSON CON CO <br />J.D. v� <br />�rlin Grant `''' <br />Presid nt <br />MDG:lw <br />