03-26-19.Slepkow.BUILDING PROJECT[1]

March 26 2019, Issue 5

One Project…. One Community!

Clubhouse Building Project update

Dear Members:

Please remember to stop by the Board Room during at least one of the two, 2-hour Q&A sessions scheduled on Wednesday, March 27 and Thursday, March 28, from 2:00 p.m. to 4:00 p.m. Members of the Building Committee and the Professionals assisting in the Project will be on hand to answer any individual questions your may have. Clubhouse Building Project Update. The purpose of this update is two-fold. First, to present the list of the projects contained in the Long Term Projects Plan (see Page 3) as well as the Cash Flow Analysis of the Plan (see Pages 4 & 5) . Secondly, a message endorsing the Clubhouse Building project by our Executive Director Achal Goswami (see Page 6 & 7) , which explains in detail the services that will be available to the membership during the entire construction process.

LONG TERM PROJECTS PLAN

For the Fiscal Year Ending April 30, 2020

It should also be noted that the costs of projects are conservatively estimated. A cash flow anal- ysis is provided with the plan. Of course, all fu- ture major projects would have to be approved by the Board of Governors and subsequently by the Community.

The Long Term Projects Plan was prepared to address the capital expenditure needs of the community beyond the clubhouse renovation project. The Plan addresses the major capital expenditures for both the recreational facilities and the community’s infrastructure over the next ten years, excluding the annual capital budget. The initial Plan identifies ten major capital ex- penditures totaling $21.9 million with one pro- jected membership assessment of $7,000 in 2022, which will likely be financed over ten (10) years. The largest annual funding source for these expenditures is the equity from new member home sales which have been conser- vatively established at an annual average of eighteen per year. If new member homes sales exceed this average the membership assessment could be reduced.

LONG TERM PROJECTS PLAN

DEVELOPMENT

The Long Term Projects Plan is a living docu- ment that will be updated on a regular basis in conjunction with the community’s operating and capital budget process and will assist future Boards and management:

1. The Plan will provide a steady point of refer- ence for taking future action;

2. The Plan will be framed around well- researched information and facts on existing

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conditions and trends, for the Board and management to better understand the im- pact of their decisions; 3. The Plan will promote predictability, de- scribing where and what type of develop- ment the community desires; and 4. The Plan will target resources and be used to prioritize which projects can be undertak- en.  Expansion of the Spa & Wellness areas.  Renovation of the Beach Club swimming pool and patio exteriors.  Construction of a Golf Teaching Center.  Start of a renovation of one of the golf courses.  Replacement of the common area and home irrigation systems.  Paving of the neighborhood roadways.  Replacement of the landscape mainte- nance building.  Replacement of the community’s security camera systems.  Replacement of street lights and house post lights.  Community-wide reinforcement of lake bank slopes. The major capital items identified in the Plan are estimated to cost $21.9 million. These items will be funded from the following sources: POA The following major capital items have been included in this initial Plan: Club:

 New home sales will average eighteen (18) per year.

 Five (5) new home sales will be used to re- pay the clubhouse renovation loan, five (5) will fund the annual capital spending and eight (8) will be used to fund the Long Term Projects Plan.  The annual capital budget averages ap- proximately $2 million a year. The improve- ments planned for the clubhouse renova- tion will allow the capital budget to be re- duced for the immediate four years follow- ing the completion of the clubhouse reno- vation project and then revert back to the annual average.

 A minimum of $1 million will remain at all times in the Capital Improvement Fund.

POA Reserve Funds

 The POA Infrastructure Reserve is funded from POA maintenance fees.

Special Assessment

 The Long Term Projects Plan expenditures will exceed available funds in fiscal 2022.

 A Special Assessment will need to be lev- ied in fiscal year 2022 in the amount of $7,000 per member.  The primary reason for the Special Assess- ment is the expenditure related to the Spa & Wellness expansion.

Capital Improvement Fund under the

following assumptions:

 Members will continue to pay $200 per month into the capital fund.

 The new member equity will remain at $175,000, with a refundable portion of $60,000.

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CLUB BUILDING PROJECT

LONG TERM PROJECT PLAN LIST

GRAND TOTALS

$ 21,910,000 $ 425,000 $ 1,077,000 $ 402,000 $ 10,502,000 $ 4,002,000 $ 5,502,000 YEAR

COST ESTIMATE

Items

2019

2020

2021

2022

2023

6 TO 10

Spa & Wellness $ 8,000,000 $ - $ - $ -

$ 8,000,000 $ 8,000,000

$ - $ -

Spa & Wellness

$ 8,000,000

Projects

$ 13,910,000 $ 425,000 $ 1,077,000 $ 402,000 $ 2,502,000 $ 4,002,000 $ 5,502,000

Beach Club Exterior $ 1,500,000

$ 1,500,000

Golf Teaching Center

$ 400,000

$ 400,000

Start of Golf Course Renovation

$ 2,500,000

$ 2,500,000

Common Irrigation $ 2,000,000

$ 2,000,000

Home Irrigation Street and Post Lights Lake Bank Slopes

$ 1,000,000

$ 1,000,000

$ 1,000,000

$ 200,000 $ 200,000 $ 600,000

$ 2,200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 1,200,000

Roadways

$ 1,400,000

$ 1,400,000

Maintenance Building

$ 900,000 $ 225,000 $ 675,000

Security Cameras

$ 1,010,000 $ - $ 202,000 $ 202,000 $ 202,000 $ 202,000 $ 202,000

Notes: It is anticipated that a golf course total renovation will begin in the tenth year of this Plan.

Upcoming Meetings Town Hall Meeting Wednesday, April 3—2:30 p.m. Main Dining Room Review & Discuss the Clubhouse Building Project Special Meeting Wednesday, April 17—2:30 p.m. Announce the Membership Vote on The Clubhouse Building Project

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CLUB BUILDING PROJECT

Report Continues on Page 4

LONG TERM PRO

Page 4

CLUB BUILDING PROJECT

ECT PLAN—CASH FLOW

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A Message from our

Executive Director

Dear Members:

I would like to take this opportunity to express my endorsement of the Clubhouse Building Project.

This plan will address all the necessary operational needs and infrastructure repairs to the Club- house building, including but not limited to the following:

 Correct the negative air pressure and roof problems to remediate the moisture issues throughout the clubhouse;

 Upgrading to current standards, all the mechanical, electrical, plumbing and drainage sys- tems throughout the building;

 Address the layout of the main kitchen and replace the majority of the current kitchen equipment which will improve functionality, efficiency, storage and safety;

 Expand the laundry area to accommodate the increase workload and the relocation of the Beach Club laundry to the main clubhouse;

 Reconfigure and upgrade the engineering work shop to address the workload for all need- ed maintenance of all operating facilities;

 Install hurricane rated windows to further protect the Clubhouse;

 Address the traffic flow to the Sports Bar from the main entrance; and

 Adds 34 parking spaces to the current parking areas.

Much of the Clubhouse “except the Sports Bar, Grille Room and Administrative Offices” are in need of design changes, new furniture and fixtures, and audio/visual improvements. The current plan ad- dresses all of these needs in order to modernize and redecorate the Club. During the entire construction process, all membership services will be available to you. These ser- vices include – valet, fitness & pool, Beach Club, Sports Bar, golf, tennis & pickleball facilities, all POA services, golf shop, card and locker rooms, and Clubhouse dining rooms. The goal is to renovate the upstairs first during the summer of 2020. During this period, the down- stairs card rooms, 19th Hole, POA offices, locker rooms and golf shop will all be functional. Access to the Sports Bar will be from the rear of the Club. As soon as the upstairs is completed, construc- tion will begin downstairs. During this period, the Grille, Sports Bar and Main Dining Room will be open. Card playing will be set up in the lounge, living room and main dining room. Temporary guest lockers will be provided upstairs. The Golf Pro Shop will be relocated to a trailer.

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Management will make available a full lineup of all services you have come to expect within the com- munity and will make all necessary arrangements to minimize any disruption.

This renovation will be a major asset to the future of the community and I fully support this project and look forward to its successful completion.

Sincerely,

Achal Goswami Executive Director

Going forward, the Board will continue to update the Community on the Building Project. Thank you for your support!

Sincerely, Board of Governors

Norman Barham Steven Bernstein Martin Cohen Liam Egan Jeffrey Glazer Richard Golber Brett Handler Jonathan Nelson Krista Nicklaus David Rosenblatt Robert Scherer Herbert Selzer Martin Slepkow Frank Spitalny Jeffrey Stanfield

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13495 Tournament Drive / Palm Beach Gardens, FL 33410 www.frenchmanscreek.com

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