04-02-21.EXTER.PRESIDENT REPORT.ISSUE 1

F R E N C H M A N ’ S C R E E K , I N C .

President’s Report

Diane Exter, President

April 02, 2021—Issue 1

For those members who were unable to attend the March 24, 2021, Board meeting via Zoom, this Report highlights some of the matters discussed at this meeting, as well as other items of interest.

Hello Members, I’d like to begin my first report as President of the Board by thanking the Board of Governors and the membership for allowing me to serve this wonderful community as President for the com- ing year. I am honored. This past year has been a challenging one, and I want to acknowledge and thank Mr. Goswami, the extraordinary Frenchman’s staff and the retiring and continuing Board members for their tireless efforts in providing remarkable service and bringing us some “Frenchman’s magic” during these unprecedented times. Reflecting on the innovation (food trucks, Bistro19), efficiency (extensive food delivery, positive financial variances) and the relatively few COVID cases in the community, we should all be thankful. As most of us are now or will soon be vaccinated, we can look to our bright future. Now, on to business...

FINANCIAL MATTERS The community had a positive vari- ance compared to budget of $536K for the first ten months of the fiscal year; the Club income being favorable to budget by $288K and the POA favorable by $248k. Results from February operations resulted in a favorable variance for the Club of $20K while the POA was $83K unfavorable. Please note that this year’s operational budget was prepared and approved in a pre-pandemic environment resulting in management making significant changes to operations. Current projections for the Club remain at break-even while fore- casts for the POA show a year-end positive variance of approximately $100K. Year-to-date gross revenue has an un- favorable variance to budget of $1.38M. Savings in cost of sales, housekeep- ing expenses, Clubhouse décor & entertain- ment, and elimination of most overtime have

been major factors in offsetting the loss of reve- nue. Unbudgeted expenses related to the pan- demic total $721K year-to-date including an ad- ditional $61K spent in February. Herb Selzer, our Treasurer, reported as part of his financial update that all of the bank loan documents were successfully executed with Truist Bank. The bank loan’s interest rate risk has been fully hedged. As previously shared, the member assessment for the renovation will be $262/ month through the 15-year life of the loan. REAL ESTATE As of this writing, fifty-one (51) home sales to new members have been contracted (39 closed and 12 pending), for fiscal year ending April 30, 2021. Our inventory is at a record low with only 5 homes currently on the market. We continue to have strong interest in our Communi- ty by prospective purchasers.

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BOARD GOALS FOR THE COMING YEAR

At the Board Organizational meeting and again at the March 24th Board meeting, I estab- lished the following goals for the coming year:

1. Clubhouse Project. Work together to ensure that we complete a beautiful renovation that comes in on time and on budget.

2. Member Services during Construction. Under Mr. Goswami’s leadership, and with the support of his management team, assure that Members are well taken care of during the construction process. 3. Bringing our Community Together. With nearly 10% of our community joining since the beginning of COVID, and with the recent clubhouse vote causing strife between Members, we will explore new ways to bring our new and existing Members together and encourage socialization. We hope to have a fun year! 4. Increased Transparency. Create an open line of communication between the Board and Members to allow for more transparency both to and from the Board. We will reinstitute the monthly “Meet the President” forums and the “Communications from Members” will be placed back on the Board Agendas, beginning with the April 22, 2021, Board meeting. 5. Elevate the Work of the Committees. Increase the visibility and impact of our member committees. Create forums with specific topics for Members to give focused feedback. Create member surveys that will give management and the Board a broader view of what Members would like on various aspects of our daily life at Frenchman’s Creek.

6. Highly Functioning Board. Work together more cohesively as one Board as we work on many different topics together.

7. Strategic Plan. Building on our Long-Term Projects Plan and bolstered by future member surveys, the Board will begin the process of creating an updated strategic plan for our community.

2021/2022 BOARD OF GOVERNORS

Officers: Diane Exter, President

Board Members: Martin Cohen Stewart Friedman Michael Gianatasio Brett Handler Ellen Malasky Krista Nicklaus Jeffrey Parker Gale Salz Harvey Schulweis

Michael Azeez, 1st Vice President Robert Scherer, 2nd Vice President Robert Annunziata, 3rd Vice President Herbert Selzer, Treasurer Martin Krall, Secretary Jeffrey Glazer, Ex Officio

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CLUBHOUSE RENOVATION UPDATE Harvey Schulweis, Chair of the Club- house Ad Hoc Committee, announced that the committee would consist of himself, Mi- chael Azeez, Jeffrey Stanfield, Patricia Fisher and myself as ex-officio. Bruce Malasky has since been added. The committee’s work will be completed in two phases. • Phase One will include review and approv- al of contracts with the various profession- als, completion of a final site plan and ar- chitectural design drawings and bid docu- ments, monitoring the permitting and ap- proval process with the necessary munici- pal agencies, and finally a thorough bid process resulting in a GMP (Guaranteed Maximum Price). After discussions with the professionals and management, the com- mittee is evaluating early demolition of parts of the building to permit the profes- sionals to increase their early knowledge of the building with the goal of reducing costs and speeding up the timeline. This will allow the drawings to anticipate areas which might reveal unusual conditions. • Phase Two of the Committee’s responsibil- ity will be to oversee the construction and decorating/design processes through completion and occupancy. The current expected occupancy of our substantially renovated building is in the fourth quarter of 2023. • The Clubhouse Ad Hoc Committee will continue to report on the progress of the project at all future Board meetings through both Phase One and Phase Two.

COMPLETELY UNACCEPTABLE LETTERS As some of you know, two ugly letters were recently circulated in our community. These anonymous letters were completely unac- ceptable. Our board unanimously renounces the letters, and the Club is actively investigating their source. For nearly three years our community dis- cussed and debated options for our clubhouse. On February 17th the membership voted for the Substantial Renovation Plan. The board unani- mously agreed to support whichever choice the membership made, and we are moving for- ward with the implementation of the Substantial Renovation, which will be beautiful when it is completed. Frenchman’s is a vibrant, healthy com- munity of 1,000+ professional, charitable and family oriented adults who choose to live in this remarkable and unique community. Let’s turn down the volume, ignore (and not pass on) let- ters that are meant to hurt or disparage others and put our efforts into strengthening the won- derful community that we live in. In closing —I would like to wish everyone hap- py holidays. I hope you are enjoying this time with your family and friends in good health. I look forward to speaking to many of you in the coming months.

Sincerely, Diane Exter Diane Exter President President@Frenchmanscreek.com

BOARD MEETINGS 2021

April 22 May 20 June 24

September 23 (tentative)

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October 21 November 18 December 16

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July 22 (tentative) August 26 (tentative)

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Please look for the Zoom links in your email, prior to each meeting.

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