TOWN MEETING January 17 th 2006

AGENDA 2006 Budget Major Maintenance Funding Crisis Funding Solutions – Tract C Sale

2006 Budget

Current Property Maintenance Issues Assumes No Additional Emergency Funding

Possible Funding Solutions Sale of Tract C Single special assessment – Single payment – Payment over X years Increase in HOA Dues – Decrease funding time – Pay Bank financing Add HOA services with fees – Pay for monthly Parking at Boat dock lot

Sale of Tract C

Tract C Sale Real Estate Broker’s Agreement – Exclusive World of Homes – Tract C for sale for $550,000 – Contract period 8/24/2005 to 8/24/2006. – Early termination penalty of $1,000 – Some use restrictions

Currently Agreed Restrictions Sales agreement, stipulates that the intended “…..use “ – non-offensive with the single family residential use of Lake Ajay Compatible uses shall be considered that of a – convenience store, pharmacy, financial institution, restaurant “Offensive uses” include but are not limited to, – bar, nightclub, liquor store, storage facility All points are negotiable. Potential buyers are not required to use the LAVHO P&S. Specific covenants must be made a part of the deed restrictions at time of sale to make certain subsequent sales of the property are consistent with original use stipulations

Offers Received to Date – First Bidder: Initial offer of $700,000 Escrow deposit of $5,000 and five-year closing period Offer was accepted on February 8, 2005, with a $35,000 escrow deposit. The buyer terminated the agreement on March 4, 2005, Remediation of the property was too costly to pursue. – Second Bidder: Verbal offer of $250,000, declined by the Board. Second offer: $350,000; received November 29, 2005 Escrow deposit of $10,000; 6-month closing period; No protections for LAVHO; Declined on December 13, 2005

Pending Offer for Tract C – Third Bidder: First offer of $500,000; received October 4, 2005 Escrow deposit of $25,000; minimum 12-month closing period Declined by the Board. Second offer of $500,000; received December 13, 2005 Escrow deposit of $25,000 Minimum 8-month closing period with maximum of 12- month to closing Response to be given by January 31, 2006