05.05.2023.FINAL ANNUAL REPORT

(Pages 10 — 13) Standing Committees

ARCHITECTURAL REVIEW BOARD Kim Winn, Chairperson

Linda Pack, Vice - Chairperson Jeffrey Glazer, Board Liaison

Ellen Goldstein Esther Gordon Michele Haber Stuart Halpert

Lois Kleinberg Ruth Krall Bruce Malasky Alexis Shaw

We have streamlined, and will continue to streamline, the appli cation process and created more efficient meetings by utilizing the ability to screen share architectural plans, renderings, site plans, landscape/hardscape plans, etc. This provides architects and designers with the opportunity to easily present, and explain, the perspective project and also provides the Committee members with the opportunity to ask questions, and provide feedback, with the convenience of having the item/issue being discussed easily viewed by all in attendance.

Frenchman ’ s Creek continued to undergo a major architectural transformation during this past year. The ARB has reviewed an unprecedented number of applications for improvements to members ’ residences, with a view to promote innovative and creative architecture while maintaining quality and harmony throughout the community. We have considered over 65 applications for tear downs and new builds; second story, front and rear additions; new pools and new roofs. We have also reviewed and approved new land scape/hardscape designs. The Committee has also revised the ARB Manual (with the continued help of Richard Adler) to reflect changes in the de signs of new construction and address issues which have arisen as a result of the volume of construction, much of which has been quite extensive, to custom, villa, and patio homes.

During this fiscal year, the ARB collected a total of $87,393 in fees to Frenchman ’ s Creek.

Kim Winn, Chair and Linda Pack, Vice - Chair Architectural Review Board

FINANCE Herbert Selzer, Chairperson Bill Glassman, Vice - Chairperson Jeffrey Parker & Jeffrey Maurer, Board Liaisons

Jon Barovick Richard Fentin Paul Konigsberg Robert Shaw

Donna Smolens Fred Stern Anne Sternlicht Michael Strongin

ed with First Republic Bank. The community ’ s excess cash has been invested in a series of US Treasury bonds with a variety of short - term maturities to take advantage of higher interest rates. These funds will be absorbed as we fund the expenses related to the new clubhouse construction project. The community also welcomed our new Executive Director, Miles Tucker, who commenced his tenure in April 2022.Proctor, our building consultant, recommended the demo lition of our existing clubhouse, which began in August 2022. Although we had predicted the Pavilion to be open for food service by June 15, 2022, it did not occur until December 10. This delay produced significant reductions in operating income, coupled with additional and unforeseen costs to open up the Pavilion. Then two factors resulted in an operational deficit pro jected to be $ 2.4 million at fiscal year end. This operational deficit was covered by a Member assessment of $4,000.

The fiscal year ending April 30, 2023 was a most challenging year and frankly unprecedented in Frenchman ’ s history. After approving the new clubhouse plan in December 2021, our building oversight committee in coordination with our architect and building consultant began the process of developing de tailed construction documents to allow bidding for the project. It became apparent that the cost of materials, equipment, fur nishings, and labor were increasing rapidly due to inflationary pressures caused primarily by the invasion of Ukraine. The new estimated cost of the project is $95.7 million. In March 2023, the community approved additional funding of $17 million to meet the new costs of the project. The additional $17 million loan will be added to the existing revolver loan with Truist Bank. In addition the community was required by the City of Palm Beach Gardens to fund an escrow account for the completion of the areas around the new clubhouse. This obligation was funded by $3.5million of US Treasuries deposit

2022/2023 Annual Report Page 10