Due Diligence Considerations for Property Development

Your business partner, Lewis Teague just got a hot lead on a property for development. He is looking at this property for a development proposal to build 40 single family homes. He has asked you to write him a memo evaluating due diligence considerations for the property. He knows you took this class and thinks you might have some important contributions before he takes next steps. 
You have conducted records reviews, interviewed some people, and discovered all the information discussed in the information summary below. 
Provide a well-written, grammatically correct, logically organized memo to Frank Teague that addresses due diligence issues or concerns about the following property. 
The memo should analyze previous transactions and potential applicable regulations regarding the property and how information gleaned from your investigation might impact the development proposal. 
Please refer to the Rubric, also in the content area of D2L for an example of how to approach this assignment. 
Information Summary
Sales Info: Seller is Jason Voorhees, who signed a contract with a local realtor, Mr. Lasko, to sell the property. Your partner Lewis Teague is negotiating to buy the campground with plans to subdivide it and develop a lakefront subdivision with 40 luxury homes, to be called Cuesta Verde Estates. 
Title Info: Pam Voorhees is currently listed in property records as the owner. The parcel is a 20-acre property on Crystal Lake, in the town of Cadiz. Title records show that Pam purchased the property in 1985 with her then husband Elias. The title is held as joint tenants with right of survivorship with Elias and Pam. 
Location and Current Zoning: The property lies between Car Crash Road on its north boundary and the Crystal Lake lakefront on the south. The Voorheeses operated the property seasonally as a summer camp for children called “Camp Crystal Lake.” The property is in a residential zone that has a minimum lot size of one house per acre. The town of Cadiz established its zoning ordinance ten years ago, but the campground has been operating since 1985. 
Physical Conditions Investigation: You were able to access the property freely for a visual inspection. A group of teens in a van, along with their large dog, was poking around the campground when you visited. Although you have a general policy to distrust anyone wearing an ascot, Fred, one of the teens told you very earnestly that the property was an ancient Native burial ground and that patches of a creepy oily residue emerge from the grounds after hard rain. At a follow up conversation with Cadiz officials, you were told that these are just silly stories made up by meddling kids. 
A few years ago, Pam built a small tunnel through a hilly portion of the property to provide access to the lakefront for her neighbor to the east, Alice Hardy. Alice runs a seasonal bed and breakfast, also located on Car Crash Road, but without direct lake access. Pam paid for the tunnel construction and agreed to maintain it. For the past decade, Alice’s summer guests have used the tunnel to get to the lake. However, the tunnel collapsed six months ago (in October, after the summer season was over) and no one has been able to use it since. But no one has complained about not being able to use it. Alice Hardy hasn’t been seen since the collapse, either. 
There is an old structure near the entrance to the property. The structure was built in 1935 in a whimsical, storybook style and originally functioned as a fuel station and boat repair depot so boat users on the lake could refill their tanks and maintain their boats conveniently without having to leave the area. At some point in the past – unclear when – it was remodeled into a house. 
Violation Review: Cadiz Code Enforcement cited Pam for a violation on the property related to having constructed the tunnel without a permit. 
Leasehold Information: Pam rented out the former fuel depot/house to a writer named Jack Torrance, who lives there with his wife and son, while he works on his novel. The rental terms, as far as you could make out from interviewing Jack, are that in exchange for living in the old boathouse, Jack is to do odd jobs around the campground, maintain the campground’s fun hedge maze, and warn people about any dangers. It is a verbal rental agreement for a three-year term. There are two years left on this agreement. Jack does do odd jobs (very odd) and tells people that the campground is dangerous, but he also seems to be drunk a lot. 

Assume an example based on a set of facts that includes many potential issues to discuss. (I have left out the example as you can basically infer it from the answer).  In reading the set of facts, one issue that you have identified is a potential adverse possession claim.  Here is how you would approach that issue.  Note, that you would write a similar paragraph or two for each issue you spot.  Also note that the language here is not particularly legalistic.  I want you to be able to cite the legal basis for your issue, and discuss it, but you don’t have to  The paragraph should identify the issue you’ve spotted, discuss what the rules for that issue are, analyze the issue (it helps to describe the context here), then discuss how the issue would probably be addressed.