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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 19, 2000
Stratus Properties Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-19989 72-1211572
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
98 San Jacinto Blvd., Suite 220
Austin, Texas 78701
(address of principal executive offices)
Registrant's telephone number, including area code: (512) 478-5788
Item 5. Other Events.
The Texas Supreme Court ruled on June 15, 2000 that the Texas
legislation authorizing the creation of water quality protection
zones was unconstitutional. This ruling completes the appeal
process that originated from the case The City of Austin, Texas v.
Horse Thief Hollow Ranch Ltd., et al.(Cause No. 98-00248)
as filed with the Travis County 345th Judicial District Court,
Texas on January 9, 1998. Oral argument was presented to
the Texas Supreme Court on December 9, 1998. Stratus Properties
Inc. issued the following news release on June 19, 2000 in
connection with the Supreme Court's ruling:
AUSTIN, TX, June 19, 2000 - In a 6 to 3 decision, the Texas
Supreme Court in FM Properties Operating Co., et al. v. The City
of Austin (Cause No. 98-0685) recently affirmed the Travis County
District Court's decision that Texas Water Code Section 26.179
enabling the creation of water quality protection zones is
unconstitutional. For Stratus Properties Inc. (NASDAQ: STRS)
(formerly, FM Properties Inc.), this decision will primarily
affect future development of portions of the Barton Creek
community, but it will not have an impact on Stratus' long-term
profitability.
William H. Armstrong, Chairman and Chief Executive Officer
of Stratus, said, "Although we are disappointed with the Supreme
Court's decision, we are pleased to have a resolution on this
issue. During the past two years, this pending litigation has
created uncertainties that resulted in our deferring development
in certain areas of the Barton Creek community. With this issue
resolved, we can proceed with development."
Mr. Armstrong continued, "The current real estate market in
Austin continues to be very strong, especially in the southwest
area of the city where our Barton Creek community is located.
Accordingly, we have developed large high-end estate lots under
current City of Austin ordinances. Market response to these
large lots has far exceeded our original expectations,
establishing the very top of the market for the Austin area.
Given the Court's decision, we anticipate amending our land
development plans to include more of this type of real estate
product, which complies with all applicable City of Austin
regulations. Although we expect our modified land plans for
portions of the Barton Creek community to result in lower overall
density, we do not anticipate that the decision will have an
impact on Stratus' long-term profitability."
Stratus is a diversified real estate company engaged in the
development, marketing and management of real estate in the
Austin, Dallas, Houston and San Antonio, Texas areas.
Cautionary Statement. This press release contains forward-
looking statements regarding Stratus' sales and development plans
as well as its long-term profitability. Important factors that
might cause future results to differ from these projections
include regulatory approvals and environmental regulations as
described in detail in Stratus' 1999 Form 10-K filed with the
Securities and Exchange Commission.
# # #
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.
Stratus Properties Inc.
By: /s/ C. Donald Whitmire
------------------------------
C. Donald Whitmire
Vice President & Controller-
Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: June 22, 2000