01-23-20.COMMUNICATION TO COMMUNITY

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Project Funding and Financing: This Committee remains keenly aware that certain factors can be even more important than price differentials in determining what this clubhouse will actually cost our members. How this project is financed, interest rate levels (they are down since the renovation financing was originally obtained), amortization periods (a new structure can be rationally amortized over a longer useful life) and of course the very realizable operational and capital savings that results from a newer, smaller and more effi- cient structure will all be important elements of the effective member cost. In regard to this last item, our management team will be working very closely with our professionals on the func- tional design of the clubhouse to maximize fu- ture efficiencies and budgetary savings. In ad- dition, several members with significant experi- ence in project financing are already at work narrowing down financial institutions and fi- nancing alternatives ahead of the project’s de- velopment. Now The Request – We Need Your Help To Approve The Next Stage Of Funds In order to come back to the community with the right project…and with reliable cost estimates…we will need to expend some of the project’s ultimate budget during the course of these next few weeks for essential items such as architectural layouts, surveys, site testing, civil engineering, and presentation materials and, of course, the professionals who perform this work. There is simply no other way to get a prudent and reliable proposal to the membership without performing all of these necessary and desirable steps. As stated, this entire process is guided by GGA and is for the protection of the membership. At this juncture we need the membership’s support to authorize the funds, as requested. This is not a request for an assessment… but simply an approval of funds that we al- ready have currently available in the Capital Improvement Fund. The current club by-laws require that the community’s members must approve any expenditure in excess of $200,000 for any project not otherwise provided for in the

budget for that fiscal year. The total amount sought for approval is $545,600. This is a purposely conservative estimate that includes a 10% contingency. The exact list of these po- tential expenditures was presented on Monday, January 20th at the Special Meeting and is at- tached to the ballot distributed to each member. These costs are NOT additional costs to the New Clubhouse project but simply the part of the cost that will be spent to deliver the pro- posed project for a membership vote . All funds will be held in abeyance until spent and, given our conservative estimate, it is possible that not all the funds will be spent. Any leftover funds will be put towards future project costs. Conclusion: This is both a very exciting time for French- man’s as well as a critical inflection point. GGA has been clear in its advice that a New Club- house is important to protect our brand, our value, our competitive standing and even our sustainability . We are being guided by a great group of professionals and hope to deliver a fully vetted New Clubhouse project for a membership vote in the early spring. We are receiving sup- port from a wide and diverse group of the mem- bership and this is a hopeful sign. It is indeed our fervent hope that this New Clubhouse project will act as a long overdue catalyst for greater com- munity harmony and it is indeed our intent that this project will benefit every single member. Therefore, the Ad Hoc Committee asks that you vote to “APPROVE” the funding neces- sary to complete our mandate.

Thank you, in advance, for your support.

Sincerely,

The Clubhouse Planning Ad Hoc Committee