RenovationPROJECT_FINAL

NEW CLUBHOUSE PRESENTATION

Will the cost of a New Clubhouse impede our ability to do other future capital projects? • No, there is nothing to suggest that at all. Let’s put the numbers into context: • The $2,000 per year difference between a New Clubhouse and a renovation, reduced by operating efficiencies and maintenance costs, is less than 2% of the yearly cost of maintaining a home at Frenchman’s. • The maximum total cost differential of $30,000 per Member, over the entire 15 year assessment period, is only about 2% of the average home value at Frenchman’s Creek. • We simply don’t believe that these small differences are the “straws that break the camel’s back” for our projects. • The Long-Term Projects Plan details $37 million of additional forecasted projects that need to be funded over the next decade to enhance and maintain our physical plant. The plan is, and has always been, to fund these projects through a combination of annual capital funding, new home sales and modest Member assessments… regardless of the clubhouse project chosen. Can you address the question being asked by some about the fire readiness of the New Clubhouse building? • Both projects will be built to the strict government regulations, fire codes and standards that are in effect today. Both will be well thought out and safe. • Since every Member venue is located along the exterior of the building, the New Clubhouse offers shorter access to the outside of the building than currently. Getting outside is the first key in any fire. • The New Clubhouse hallways are

simple, intuitive and easy to navigate in an emergency. Compare that to the maze of hallways today. • The main kitchen in the current building is in the interior of the 2nd floor which could impede egress through the front of the building in the event of a kitchen fire. The kitchen in the New Clubhouse is located entirely along the north wall of the 2nd floor, totally on the opposite side of the dining venues and the easy egress to the outside. • Finally, we would add that compared to today’s building, the New Clubhouse will have all new finishes with much lower flame spread characteristics and much more advanced and sensitive fire alarm systems. What are the projected build times for each project? • New Clubhouse: 20-24 months. • Renovation: 16-20 months Will each project require a temporary facility? • Yes

It’s not a 5 year decision, it’s a 30-year investment in our future.

18