04-08-18.LETTER TO MEMBERS

Dear Members,

Many of you have received an email this morning from Marty Myers, Laura Lustig, Bill Brachfeld, and Joel Freedman regarding the Clubhouse project. For those who have not received this email, a copy is attached. While the Board appreciates their decision not to proceed any further with the “repair first” proposal, we need to call to your attention that their email is misleading and does not disclose the true nature of their proposal as stated in yesterday’s meeting in the office of Peacock & Lewis. Please be advised of the following: 1. The group present at the meeting, at Peacock & Lewis, decided to recommend the construction of a new Clubhouse on the area now occupied by the 9 th green and the lake in the back of the current Clubhouse. At this meeting, Jim Fazio (our North Course architect), recommended that Holes 8 & 9 on the South Course (designed by Bob Cupp) be altered to allow a new clubhouse on the location where the lake and 9 th green presently exists.

For a variety of reasons, our preliminary analysis discloses the following problems with this “proposal”:

a. Currently, the lake and the adjacent pumping station provide the irrigation for both of our golf courses.

b. An entire new surface drainage plan would have to be submitted to the South Florida Water Management District (“SFWMD”), a process which would be lengthy. We would have to build a new lake on the property to replace the irrigation capacity lost by the lake. Current requirements for the construction of a new lake are much more restrictive and expensive then were involved in the construction of the existing lake. c. Building a new Clubhouse on the lake & 9 th green and relocating portions of Holes 8 & 9 would be a major alteration of the golf course. The back yards of homes on the northern part of Verdun Drive would be significantly impacted by the adjacent new clubhouse. Depending on the proposed alteration of Holes 8 & 9, other homes on Verdun Drive and Loire Lane would also be adversely impacted.

2. The Architect referred to in the email is Brian Idle, of Peacock & Lewis. You should know that the last time that Brian Idle worked for Frenchman’s, a lawsuit resulted because of his choice of unacceptable flooring in the 19 th Hole. Further, Brian Idle was the architect for the recent Mirasol Clubhouse & Spa project. We understand that the estimated costs numbers given by Brian to the construction committee at Mirasol were inaccurate and well below the final cost of the project. The result was many costly change orders. The entire episode ended in threats of a lawsuit which was ultimately settled by mediation. 3. The estimated costs in the email of the proposed project, is listed at between $40 million and $50 million. When you have a spread of $10 million in your proposal, you really do not have a reasonable estimate at all. 4. Based upon the work that the Board has done over the last 18 months in reviewing various construction project proposals, it is inconceivable that this new building could be constructed and furnished for $50 million, which would be adequate to serve the needs of the community. We suspect that little consideration has been given to the cost of creating a new irrigation lake, compacting the soil on the current lake in order that it would support a new building, tearing up the parking lots to bring utilities to this new clubhouse, redesign of Holes 8 & 9 and the temporary road system that would have to be constructed in order to access the construction site at the rear of the current clubhouse. 5. The site planning and permitting issues which would involve the SFWMD, Florida Power & Light, a major revision to our flood plain map and a full site plan review by the City of Palm Beach Gardens, would likely take several years. 6. Be careful of the words “a smaller clubhouse”. It reminds us of the mistake we made in building a smaller Fitness & Spa building. More importantly, our Clubhouse is used in a far different manner than most of the country clubs in our area. For example, none serve breakfast to an average number of 450 members and guests each day. Our Clubhouse is the center of activity of this community. 7. The suggestion that we take out a long term mortgage which was made at the meeting at Peacock & Lewis, is a poor financial choice. A mortgage of approximately $50 million with a lengthy amortization schedule would severely impact the Boards fiduciary duty to address the needs of the Club including future projects and out year needs of the Clubhouse. THE BOARD HAS PROPOSED NOT ONLY AN EXCELLENT CONSTRUCTION PLAN BUT ALSO A FISCALLY RESPONSIBLE PLAN. WE ARE CONTINUING TO VOTE ON THIS PLAN. WE CONTINUE TO ASK FOR YOUR SUPPORT WITH A YES VOTE!

Sincerely,

FRENCHMAN’S CREEK, INC. BOARD OF GOVERNORS

COPY OF EMAIL: From: Marty Myers, Laura Lustig, Bill Brachfeld, and Joel Freedman Sent to Marty Slepkow & Others: Monday, April 8, 2019 2:33 AM Subject: For a New Clubhouse

Dear Member, Re: For a New Clubhouse

This email will surprise all of you and probably disappoint some of you but we have reached the point where the very best option for ALL MEMBERS is to vote Disapprove to the Board's current $35 Million Plan and proceed with one to BUILD A NEW CLUBHOUSE. We are now convinced that our Repair First proposal has lost. Only 60 Members responded "No" to our inquiry of March 31 as to how they planned to vote on the Board's plan. In the meantime, a far superior alternative has emerged.  Yesterday, a presentation was made by the president of South Florida's leading clubhouse architectural and design firm at their offices showing preliminary conceptual plans for a new clubhouse constructed on a site that would enable us to continue to use our existing clubhouse until the new one is completed . Notwithstanding the fact that every Board Member was invited to attend this meeting, all but one refused . All of the Club Members who attended (names listed below) were excited by this presentation . With an efficient design, the new Clubhouse would be smaller than our present building but would include all of the spaces and amenities that we require and to which we are accustomed. Its capital cost would probably be somewhat more than $35M but its operating costs would be lower due to a 35% reduction in energy consumption and staff reductions made possible by having fewer kitchens, better placement and utilization of dining spaces and less areas to clean and maintain. As a result, Members' costs would not exceed $350 per month, the same as proposed by the Board's Plan . Steven Bernstein, the only Board Member who was willing to attend, did so not representing the Board but as a club member interested in a potential new proposal. At the end of the meeting, he stated that he found it to be "interesting" and will report it back to his fellow Board Members.  The firm is prepared to make a presentation of its plans for a new Clubhouse to all of our Members here at Frenchman's Creek but only if invited by our Board of Governors to do so. We urge you to contact Board Members and insist that all of us be given the opportunity to see the presentation this week, especially those Members who have already voted to support the Board's plan, to enable them to change their vote if they chose to do so before the April 17 voting cutoff date.  The firm's president questioned our Board's promise that under their Plan, Members could continue to utilize at least one floor of the Clubhouse during renovations. In his experience with extensive renovation work of the type proposed, Members almost always end up in a tent.

 We recognize the financial implications of investing probably between $40 and $50M in this project. But we believe putting our money in a brand new more efficient building that is built to withstand the vicissitudes of the next 25+ years is much safer than spending $35M refitting a building, the core of which dates back to an era when climate change concerns did not exist.

Only if the "Disapprove" votes prevail will the Board offer a new plan to the Members to build a new Clubhouse.

Other major benefits of a new Clubhouse include the following: 1. It will meet Class 5 Hurricane standards of 170 mph. The firm's president indicated that when the first 60% of our Clubhouse was constructed in 1988, it only had to meet wind standards of 90 mph. The Board's plan does not materially improve things since there are no plans to change our Clubhouse's exterior walls or roof joists. 2. When our Clubhouse was constructed, there were no insulation requirements for walls or ceilings. Unless all interior sheetrock of our Clubhouse is gutted to expose its exterior walls and the walls are then studded, such insulation cannot be installed to meet current code requirements of R-13 and R-30. The Board's plan does not do this. 3. As a result of climate change, ground water levels are rising. Only a new building can be built at a higher elevation to deal with this as required. 4. The new Clubhouse will be close to the fitness center, enabling Members to park their cars adjacent to that facility. 5. It will assure that long term insurance premiums remain reasonable. If our existing building is substantially damaged by a future storm, insurance costs thereafter will skyrocket or insurance may be impossible to obtain altogether. We apologize to our core supporters who may now conclude that we have abandoned them. We assure you that this is not the case. We are being realists dealing with the situation as we find it. For whatever reasons, a majority of our fellow voting Members have decided that they want a Clubhouse with a new appearance and are willing to spend $35M to get it, even if it's not much more than a facelift to our existing building . The best thing we can do now, both for the long term interests of our Club and to restore harmony among Members that makes our place so special is to seriously explore and ultimately realize this imaginative yet thoroughly rational new proposal. A Disapprove vote is the only way we can do this.

Marty Myers, Chairman Laura Lustig, Vice Chairman Bill Brachfeld, Member Joel Freedman, Member

Clubhouse Preservation Committee Members Attending the Meeting: William Brachfeld Judi & Lou Cosentino

Thomas & Diann Mann Marty Myers Leon Pollack Linda Robbins Gail & Lewis Rubin

Joel Freedman Bob Friedman Martin Gregge Robert Julius Arnold Lampert

Diana Wendy Vicki Wildstein