Residential Community Owners Association, Inc.

2 Town Hall Presentation Jan 9, 2015 Proposed Onsite Office/Meeting Building Susan Parish, President Ronnie Miranda, Vice President Jerry Ballard, Treasurer Gigi Myung, Secretary Les Van Dyke, Director

3 Town Hall Presentation Jan 9, 2015 Special Guests Chris Barnhart, PE: Barnhart Constructors Mike Carter, Designer: Westin Homes Jonathan Clark, Esq : Hoover Slovacek LLC Dennis Hamann: Hamann Insurance Group Jonathan Morin: JP Morin Capt. Dante Scott: US Security David Orr: Principal Management Group

Proposed On Site Office/Meeting Building Purpose of this meeting is to give you a broad overview of our thinking regarding the proposed new office and meeting building Extensive due diligence was performed, including lease/purchase analysis involving approximately 30 available rental options. Detailed numbers are available on the website. 4

Why Build an On Site Royal Oaks Office/Meeting Building? Significant dollar savings—immediate and long term. Office lease expires in June. Rent increasing significantly. Reduces market risk. Not at landlord’s mercy. HOA land is available in the community. Bonus: Greater convenience for the residents – Convenient location: center of community 5

Other Motivators Current space insufficient. More office and meeting space needed – No room for residents/guests in current meeting rooms Renting other meeting space is costly Eliminate costly off-site storage ($530/mo) New construction loan estimated at $290,000 Broad survey of rental space in area found new construction would save an estimated minimum of $173,000 over first 15 years and another potential $1.3 million over the second 15 years. 6

7 Note: phones, internet, copy machine & appliances are needed at all locations and are excluded from cost comparisons. RORCOA Office Facility Options First Year Costs SizeClass Office Cost Storage Cost Total Monthly Cost Richmond Ave. (Expand current suite) 2,474 sfA $5,800$529$6, Richmond Ave.2,424 sfB $5,286$529$5,815 Westchase Corporate Park J ,366 sfB/C $4,549$529$5,078 RORCOA On Site Office -- Owned2,424 sfNA $3,294Incl.$3,294

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Bottom Line Lease vs Ownership First 15 Years 9 Build Out Costs

Ownership Estimates 10 2,424 sq ft (356 sq ft storage included) Construction costs approx $120/sq ft 15 yr fixed cost mortgage % Mortgage and operational costs $3,294/mo Beginning year 16, the mortgage payment drops off reducing the monthly cost to $1,251 (including inflation).

Ownership Estimates, Cont’d 11 Estimated operational costs of the owned building. – Taxes: $706 – Insurance: $50 – Water: $50 – HVAC Maint.: $30 – Maintenance: 150 Total: $986 (2015) Electrical, janitorial & gas utilities are required for both the Westchase rental and the owned locations

Proposed Building 12

Proposed Location 13

Street View Bonnebridge and Gallant Ridge 14

15 Preliminary Site Plan

16 Preliminary Floor Plan

17 Thank You