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January 12, 2012

January 12, 2012. Meeting to Consider Refinance of Club Loan. Meeting Agenda Meeting Only to Consider Refinance Acquisition Background Current vs. Proposed Loan Terms & Conditions of New Loan Voting Requirements Questions? Vote Results Adjourn. Background

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January 12, 2012

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  1. January 12, 2012 Meeting to Consider Refinance of Club Loan

  2. Meeting Agenda • Meeting Only to Consider Refinance • Acquisition Background • Current vs. Proposed Loan • Terms & Conditions of New Loan • Voting Requirements • Questions? • Vote • Results • Adjourn

  3. Background • February 2010 – SLV Acquires Remaining Lots in TBG&CC • Club Owned by Tampa Bay Golf & Recreation, LLC • Decision to Pursue Acquisition of Club by HOA • October 29, 2010 – HOA Acquires Club for $3,500,000 using a $3,750,000 Short-Term Loan from SLV Tampa, LLC • Starting March 2011, Begin Discussions with Lenders on Potential Refinance

  4. Existing Loan Terms • Principal Amount $3,750,000 • Term – 3 years • Interest Only at 9.5% • Monthly Payments – $29,688 • Origination Date – October 29, 2010

  5. New Loan Terms • Loan by BB&T • Principal Balance – $3,750,000 • Term– 7 years Amortized Over 15 years • Interest Rate Fixed at 4.85 – 5%. Requesting • approval at 5% • Monthly Payments – $29,796 • PrincipalBalance at Term of Loan – $2,377,126 • Closing on or before 2/17/2012

  6. Partial List of Other Loan Conditions/Terms • Pre-Payment Penalty • 3% Fee if Loan is Prepaid in 1st or 2ndYear • 2% Fee if Loan is Prepaid in 3rd or 4th Year • 1% Fee if Loan is Prepaid in 5th or 6th Year • Up to 10% of Loan Balance can be Prepaid Annually Without Penalty • Loan Costs – Borrower Bears All Costs Incurred in Connection • with Financing • Estimated Costs ?? • Appraisal Complete – Value of $5,700,000 • Accepted Existing Environmental Report – Fee only $450 • Complete Survey Not Required • Loan Origination Fee of 0.625% on $23,437.50 • Loan Costs Paid Out of Operating Account

  7. Partial List of Other Loan Conditions/Terms • HOA to Establish & Maintain Primary Golf & Country Club • Operating Account With BB&T • Starwood Required to Establish an Escrow Account of • $250,000 with BB&T to be Reduced Based on Closings • Annually • HOA Required to Maintain Liability & Hazard Insurance • Requirement to Provide Financial Information Annually to • Bank

  8. Summary & Conclusions • Reduction of Interest Rate from 9.5% to • a Maximum of 5% • Same Original Principal Balance of $3,750,000 • Monthly Payment on Old Loan – $29,688 • Monthly Payment on New Loan - $29,796 • Association Responsible for All Closing Costs • No Affect on HOA Fees!

  9. Vote Requirements • Multiple Requirements in Governing Documents Related to Mortgaging Property • Section 2.3.2 of Declaration Provides that While Declarant Controls Board, No Mortgage on Common Area Without Consent of at Least 51% of Owners Other than Declarant • Section 5.19.9 of Bylaws Provides Board Authority to Borrow Money but Requires 2/3 Vote of Owners to Borrow Money in Excess of $25,000. This Vote Includes Declarant Lots at 2 Votes for Each Lot Owned.

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