DWAYNE PATTERSON

The following article appeared recently in the Kingman Daily Miner...

KINGMAN - Parts of Rhodes Homes properties in Mohave County,
including more than 1,300 acres of the 5,700-acre master planned
community Pravada, will hit the auction block in September.

Colliers International of Nevada has put out a request for bids on the Pravada
property, four model homes, five unfinished homes and nine additional
parcels within five miles of the Pravada community.

According to information from Colliers, a minimum bid on the property is $1.4
million, which includes the more than $1.2 million purchase price and a
$200,000 minimum overbid increment. Each bidder must also show that they
can post a replacement bond for the project and show that they already
have financing in place to purchase the property.

The deadline to post a bid on the property is 4 p.m. Pacific Standard Time
on Aug. 30. If a bid is received before the deadline, then Colliers will
auction off the property for a better price on Sept. 7.

Pravada was supposed to be a 33,000-home master planned community that would
use more than 12,000 acre-feet of water. Rhodes Homes ran into trouble
with the project when the Arizona Corporation Commission questioned its
application for a certificate of convenience and necessity (CC&N)
for the community's wastewater and water treatment plants. Especially
after Clark County, Nev. County Commissioner Erin Kenny testified in
court that Jim Rhodes, the owner of Rhodes Homes, paid her to be a
consultant after she left office for his projects in Nevada.

After several years of battling with the ACC over whether Rhodes Homes was a
fit and proper company to run the two plants, Rhodes Homes sold its
shares in the plants to Utilities, Inc. The ACC eventually approved
Utilities, Inc.'s application for a CC&N.

Rhodes Homes also ran into trouble when it tried to purchase several plots of
land owned by the city of Kingman that were surrounded by the Pravada
property. The city was forced to place the properties up for bid twice
after questions were raised about the first bidding offer. During the
first bid offer on the property, several bidders alleged that Rhodes
Homes turned in and the city accepted a bid from the company after the
deadline for accepting bids had passed.

Rhodes Homes filed for Chapter 11 bankruptcy in April 2009, in order to protect
32 individual companies owned by Rhodes, the master planned communities
Rhodes Ranch and Tuscany in Las Vegas, and parts of Pravada in Golden
Valley from Credit Suisse.

Rhodes Homes used the two master planned communities as collateral for a $500 million
credit facility in November 2005 that was funded by Credit Suisse,
Highland Capital, General Electric Investment Corporation, Cypresstree
Investment Management and Sorin Capital Management. Parts of Rhodes
Homes' Las Vegas properties and other companies are already in the
process of being sold.

For more information on the sale of the property, visit www.rhodesarizonaassets.com.