To: All Unit Owners

From: Board of Trustees

Re: Assessment Financing

As a result of considerable deliberation among Trustees and constructive input from a number of unit owners (particularly Wayne Sharpe and Steve Zolnay), we have voted to revise the way we will handle the financial (assessment) aspect of our pending projects.

The combination of: (a) responding to pertinent unit owner questions and concerns, (b) honoring our pledge to keep everyone informed as things evolve so that, among other things, we all can plan accordingly, (c) devising an overall financing approach that is as fair as possible to all concerned, (d) anticipating as many potential contingencies/variables as possible and (e) the reality that we can not know our actual costs (and hence cannot determine unit specific assessments) until the major projects are completed presents a complex and delicate balancing act.

The approach that follows is predicated upon the assumption that the roofing/trim and painting projects will be completed in 2002. In the event that that does not happen, we will have to adjust our financing strategy so that will carry us, at the lowest possible cost, until the work is done.

1. During the construction period: We will collect no unit owner funds up front. Rather, we will draw down our WarrenBank approved line as needed. All unit owners will participate (per beneficial interest) in the carrying costs (interest expense). Our lending rate during this time period will be Prime plus _%. We will expect the vendors we select to make every reasonable attempt to complete this work within the 2002 calendar year as long as it is done without sacrificing quality in any way.

2. After the roofing/trim and painting work is completed: At that time, we will know our final costs for these major ingredients. Those costs plus a hard estimate of the limited road repairs we must do (they can only be done after the major work is completed) will be totaled and that amount will be the basis for final unit specific assessments. We will then ask owners to make a binding choice relative to their final assessment (lump-sum payment or financing). Assuming the work is completed in one season, the foregoing decision will have to be made sometime in the October-November timeframe with lump-sum payments following quickly. Only the above two financing alternatives will be available. We cannot provide for a combination of the two or for lump-sum installments.

From the beginning, we have been dedicated to approaching this project thoroughly and to making sure that it is done in a first class manner. Similarly, we have been committed to treating all unit owners as fairly as possible. While there is no perfect solution, our judgment is that the above revision accomplishes that objective to the greatest degree possible.

It also provides two other advantages. First, the assessment amount will be based upon final costs thus virtually eliminating the risk that we will have assessed too little or too much. Secondly, it will permit those choosing the lump-sum option to defer making that payment until the major components are completed.

Related information: Following minor changes by our outside firm to our bid specifications, we are ready to solicit final bids. We will give bidders a two-week response time which means that final bids should be in our hands early next month. Given all the variables such as ordering materials etc., we expect that work will not begin until early May.

Naturally, we will keep you updated. Rest assured that we remain very focused on beginning this work and getting it completed in a timely and outstanding fashion.

Board of Trustees