CLUB BUILDING PROJECT APRIL 2019

FUNDING

Upon approval by the membership of the Clubhouse Building Project, the Community will enter into a loan agreement with a financial institution with the following details:

Total estimated project cost - $35 Million Loan will have a 30-month draw period (construction period) and then be divided into two parts:

Based on this model, amember paying the entire assessment loan upfront would pay $46,045. Member’s paying the $350/month would be paying an aggregate amount of $52,500. All dollar amounts and terms are estimates, since the loan documents will not be finalized until after the membership vote. Please note that we do not anticipate the numbers will be significantly different, as we have adjusted terms to account for a small increase in interest rates. 1. Assessment of approximately $350 per month, per house for a period of 12.5 years. 2. Loan amortization – estimated at 10 years. 3. Loan interest at 4.69% (estimate). 4. Can be prepaid without penalty any time after 7 years. 5. Members will have the option to elect monthly installments – total cost $52,500 (including interest). 6. Members will have the option to elect a non-refundable one-time upfront payment $46,065. 1. Loan amortization – 10 years 2. Floating interest rate based on LIBOR (3.32% as of 3/4/2019) will be capped and not exceed an all in rate of 5%. 3. Principal and interest will be paid from approximately 7 home sales of $115,000 each for an aggregate yearly total of $805,000. 4. The model assumes no member will elect the upfront payment option. Depending on the actual amount of those members electing this option, the number of home sales assigned to the loan will range from 5 to 7. The remaining cost of the project will be funded through members assessments. Upon approval of the project, in April 2019, assessments will begin as of the April 30th billing period (May 1, 2019).

16 Frenchman’s Creek Beach & Country Club