The Board of Directors is notifying all owners of a vote regarding the removal and replacement of the Water Tower Road wall, which has been identified as requiring full replacement to ensure the continued safety, appearance, and structural integrity of the community.

After reviewing engineering recommendations and project costs, the Board has determined that approximately $4,000,000 will be required to complete the removal and replacement of the wall. To move forward with the project, the Association must select one of the following funding options.

Voting Options:

Option 1 – Approve Board Authorization to Secure a Line of Credit

Owners may vote to authorize the Board of Directors to apply for a Multiple Advance Term Line of Credit up to the amount of $4,000,000 (as needed) to fund the project. The figure amount of $4,000,000 is the worst case scenario and the entire amount may not be needed.

Key terms of the proposed financing include:

• Line of Credit Amount: $4,000,000
• Term: 6 years (72 months)
• Draw Period: First 12 months with interest-only payments as funds are advanced for construction
• Repayment: Principal and interest payments over the remaining 5 years
• Interest Rate: Fixed rate based on the 5-year U.S. Treasury plus a spread of 1.90%, with a minimum rate floor of 5.65%
• Estimated Monthly Payment: Approximately $76,681.90 after the draw period
• Collateral: Assignment of future association income and assessments
• Origination Fee: 0.25% of the line of credit amount
• Legal Fee: $3,500
• No personal guarantees, personal liens, or credit inquiries required of owners

This option would allow the Association to complete the project immediately while spreading the cost across the community over the line of credit term.

Option 2 – Special Assessment

Owners may instead vote to fund the project through a one-time special assessment.

• Estimated Assessment: Approximately $1,250 per door/unit

This option would allow the Association to fund the project without borrowing but would require owners to pay the full assessment amount within the timeframe established by the Association.

Owner Vote

All owners will have the opportunity to vote on one of the two funding options. The option receiving the required approval will determine how the Association proceeds with financing the Water Tower Road wall replacement project.

The Board of Directors encourages all owners to carefully review the information and participate in this important decision affecting the long-term infrastructure and safety of Barefoot Resort.

If you have questions regarding the project or the financing proposal, please contact the Association management office or a member of the Board.

Thank you for your participation and continued support of the Barefoot Resort community.