TUSCANY A MASTER PLANNED ACTIVE ADULT COMMUNITY Bayshore Realty - - PowerPoint PPT Presentation

• 1 -

TUSCANY

A MASTER PLANNED ACTIVE ADULT COMMUNITY

Bayshore Realty Advisors, Inc. Telephone 954-966-9036 Facsimile 954-989-3803

• 2 -

Joint Venture Structure: Entitled land contributed to venture. Land owner paid from closing proceeds. Builder’s share of Profit is $ 132 million. IRR (unleveraged with Community Development District): 22% Number of Units: 4316 Stabilized Absorption: 275 Average House Price: $ 204,000 Estimated Annual Pre-Tax Profit: $ 7.3 million

JOINT VENTURE HIGHLIGHTS

• 3 -

Tuscany is a master plan approved adult community located in Central Florida, suitable for the development of at least 4,316 homes around an existing golf course and two additional proposed golf courses and other amenities. The Property has an approved D.R.I. and the availability of utilities to service the

• property. The Owner is prepared to contribute the Property to a JOINT

VENTURE with an established builder/developer. His compensation for the land will be paid upon the closing of the housing units after an initial payment to consummate the joint venture agreement. By deferring these payments to closings and taking advantage of Community Development District (CDD) financing for certain amenities, the project demonstrates an unleveraged internal rate of return (IRR) in excess of 22%. Tuscany is located in Citrus County, Florida approximately 20 miles southwest

• f Ocala and approximately 60 miles from either Tampa or Orlando. The

Property is on Highway 491 across the street from the Black Diamond golf course community, the Pine Ridge estate lot community and the nearby Citrus Hills adult community (see exhibits 1A-Location Map, 1B-Site Map and 1C- Proposed Master Plan).

OPPORTUNITY

• 4 -

Exhibit 1A-Location Map

• 5 -

Exhibit 1B-Site Map

• 6 -

Exhibit 1C-Proposed Master Plan

• 7 -

One of the major assumptions in the business plan is the number of residential units sold per year or absorption. Based upon visiting most of the master planned adult communities in the Central Florida market, we believe lifestyle amenities and marketing drive the absorption for each community. A traditional community with an amenity package that generally includes golf, tennis and a country club and utilizing local advertising will absorb about 150 units per year. Taking this as a base point and adding an offsite marketing program brings the absorption to about 200 units per year. Adding additional lifestyle amenities brings the absorption to the 250-300 unit level, which is the basis for this business plan1. Examples of this new type of community in Florida are Solivita and Lake Ashton2, which take advantage of extensive lifestyle amenities and strong marketing programs. Pro Forma absorptions in these communities are in the 300-500 units per year range.

1 The enclosed business plan assumes a gradual ramp up over three years to 275 sales per year that is then held constant through the

life of the project.

2 The analysis excludes reference to the Villages, which utilizes the above concepts and has a huge existing customer base to yield

• ver 2,000 sales per year.

MARKETING PERSPECTIVE

• 8 -

The major business assumptions in the preparation of the financial model are:

• Amenities include two new 18-hole golf courses, two clubhouses, and a

lifestyle community center all of which will be built in phases during the life

• f the project.
• As a lifestyle community, the financial model assumes the amenities are

controlled by the developer until the end of the project and are then sold.

• Residents pay $100 per month for use of the amenities, $70 per month for the

homeowner’s association and $58 per month for a Community Development District assessment (CDD).

• Based on resident's payment of $58 per month($700 per year), the financial

model assumes a CDD that will be funded over time with a total bond

• ffering of $39 million with net proceeds of $29 million that occur in three

stages from inception through the year 2010.

• The revenue model consists of three sizes of single-family homes and a high

density villa product, all of which range from a maximum of 2,500 SF to a minimum of 1,650 SF. Average sales price for the product is $95 per SF including all upgrades but before lot premiums. Construction costs average $55 per sq. ft.

BUSINESS PLAN ASSUMPTIONS

• 9 -
• Based on a joint venture the landowner receives from each house closing 8%
• f the gross sales price as his consideration for his contribution of the land to

the venture. Upon the execution of the joint venture documents, it is anticipated that the builder/developer partner will make a payment to the landowner of $2 million.

• The financial model and building plan is predicated on a marketing program

that includes an off-site sales program in addition to traditional local marketing and advertising. The sales and marketing budget is approximately 8% of the gross sales price of the home and excludes real estate commissions and closing costs.

• The project excludes any of the benefits that may result from the commercial

development opportunity contained within this community. The Owner is contemplating the creation of a town center that will serve as the focal point and tie into the residential amenity package that will be developed over time as absorption is achieved.

• Inflation and escalation are excluded from the plan assumptions.
• Based on the above assumptions the project shows an unleveraged IRR of

22% at a stabilized absorption of 275 units per year (see exhibit 2-Sensitivity Analysis of IRR vs. Absorption).

• 10 -

Exhibit 2-Sensitivity Analysis of IRR vs. Absorption

UNLEVERAGED IRR ANALYSIS

11% 14% 18% 22% 27% 31% 36% 41% 45% 51% 56% 62% 66% 0% 10% 20% 30% 40% 50% 60% 70% 200 225 250 275 300 325 350 375 400 425 450 475 500 Absorption (Units Per Year) IRR

• 11 -

It should be noted that the development plan assumes a single community that absorbs the 4,316 units over approximately 16 years. There is the possibility to increase absorption by having two different types of communities under development at the same time. Based on existing infrastructure and the existing golf course, it is possible to accelerate absorption by starting one of the communities through the immediate development of 300 lots along the existing golf course.

Please refer to the attached appendix, which provides a detailed summary of the history of the community and the entitlements contained therein.

COMPLIMENTARY STRATEGY

• 12 -

The “Owner” has retained Bayshore Realty Advisors, Inc. (“Bayshore”) on an exclusive basis to arrange for a joint venture of Tuscany (the “Property”), an entitled proposed master-planned community site consisting of approximately +/- 1,511 acres, located in Beverly Hills, Citrus County, Florida. The Property consists of approximately 951 acres included in the 1981 Beverly Hills Development

• f Regional Impact (the “D.R.I.”) and approximately 560 adjacent acres zoned for low-density

residential development. Tuscany is a proposed active adult lifestyle master planned residential golf course community located southeast of County Road (“CR”) 491 and east of Beverly Hills, Florida. The site is adjacent to Black Diamond Ranch (home of the renowned Tom Fazio designed Black Diamond golf courses) approximately 10 miles from the town of Crystal River and the West Central Florida Gulf Coast, in the northern portion of Citrus County. The Property’s central Florida location provides convenient access to the attractions and cultural amenities of Ocala (20 miles north), Gainesville (45 miles north), Tampa (60 miles south) and Orlando (65 miles east). Surrounded by the magnificent natural landscape found in the heart of Florida’s gulf coast hill country, Tuscany’s current development scenario envisions 4,316 single family homes (although approximately 5,396 residential units are approved), 400,000 square feet of retail and office space, 41,368 square feet of community and neighborhood service space (the “town center”) and two additional golf courses that would include a full service clubhouse, community center and other related amenities.

APPENDIX - OVERVIEW

• 13 -

Development of Regional Impact (D.R.I.) Approved Site: The offering is unique in that a majority of the Property’s developable acreage is included in a D.R.I. The D.R.I. greatly facilitates the development process as it grants the Property approved and established building densities and as a result reduces the time it takes for development to commence. The D.R.I. further provides for substantial land use flexibility, allowing for the substitution of residential uses (with Citrus County approval) on the site provided the overall density of the Property is not increased. It is anticipated that Tuscany will contain two additional 18-hole golf courses and that 560-acres of adjacent owned land will be incorporated into the D.R.I. The Owner believes that to make the aforementioned changes, it would require a less cumbersome non-substantial deviation to the D.R.I., as density for the Property would not increase.

APPENDIX – D.R.I.

• 14 -

In 1964 construction of the 5,000-acre master planned community of Beverly Hills (located directly east of the Property) commenced with an ultimate conceptual plan that included approximately 9,800-home sites, 36-holes of golf and 700,000 square feet of commercial/retail space. In 1979, the Owner purchased the Property. From commencement, development of the project was limited to the residential portions of the development plan and to date, approximately 3,440 acres have been improved with approximately 5,800 homes, 18-holes of golf and approximately 250,000 square feet of retail space. In 1986, the site for the Twisted Oaks Golf Course was sold to a developer who began construction of the 18-hole course in 1988. Twisted Oaks Golf Course had its grand opening in 1990. In 1987, the Owner continued the home building operation at Beverly Hills and sold a record 366 homes. In 1989, the Owner sold its home building operation to Wimpey International, which builds homes in the US under the name Morrison Homes (“Morrison”). Morrison concurrently entered into an agreement under which they were required to “take down” lots each year at pre-determined prices. Morrison began building homes under the name Monarch Homes. They then developed 871 homes in Beverly Hills and terminated the contract in 1998.

APPENDIX – HISTORY

• 15 -

PROPERTY SHADE: Irregular LOCAL GOVERNMENT JURISDICTION: Citrus County, Florida TOPOGRAPHY: The property’s topography is dominated by gently rolling hills ranging from approximately 40 feet to 145 feet above sea level that provide views unique to Florida. VEGETATION: The Property is mostly wooded with pine forests and areas of hardwood forest. SOILS: Based upon information provided in the DRI, soil composites in the Property include: Candler (85 percent), Paola (4 percent), Tavares (4 percent) and various other soils (7 percent) that do not constitute a significant percentage of the soil association on their own. The soil is characterized as a sandy droughty soil not subject to flooding, and occurs on nearly level to sloping terrain. The soil association forms well-drained soils with very thick sandy layers over thin loamy or sandy loam lamelia. Excessively and moderately drained soils occur throughout. FLOOD ZONE: According to the Federal Emergency Management Agency (FEMA) Flood Insurance Rate Map, community panel numbers 120063-130-B, 120063-140-B and 120063-150-B, dated August 15, 1984, the Property is located in Zone C, an area not prone to flooding. The 1981 D.R.I., also indicates that no portion of the Property is located in a flood hazard zone. ENVIRONMENTAL: There are no known or recognized environmental conditions at the Property. An allowance has been made for the relocation of inhabiting wildlife. FRONTAGE: The property has approximately two miles of frontage along CR-491, which is the major north/south traffic artery running through Citrus County. CR-491 has been approved to be expanded from one lane in each direction to two lanes in each direction in the area adjacent to the Property and between CR-486

PROPERTY INFORMATION

• 16 -

and CR-200. The CR-491 expansion is scheduled to commence in the summer of 2003 and be completed by 2004. AREA ROAD IMPROVEMENTS: The Florida Transportation Department plans to extend the Suncoast Parkway route north of its current terminus with US 98 in Hernando County to the hamlet of Red Level on US 19 in Citrus County by 2010. This route would intersect CR-486 a few miles west of Tuscany. The addition of this highway will alleviate some north-south traffic congestion in Citrus County and will provide a more direct route into Tampa, shortening the driving distance to approximately 45 to 60 minutes down from the current drive time of 75 to 90 minutes. The anticipated result of the Suncoast Parkway extension is that a greater number of retirees will be attracted to Tuscany due to the benefits of the Tampa MSA being closer to their front door. Citrus County, also, plans on widening CR-486 (located due south of Tuscany) from two lanes to four lanes between Forest Ridge Boulevard (which runs through Beverly Hills and intersects with CR-486) east to US-

• 41. The road requires increased capacity due to the recent residential and commercial construction and

anticipated future growth. The project is scheduled in two phases. Phase I is planned for 2003 and will consist of widening CR-486 from Forest Ridge Boulevard to Annapolis Avenue. Phase II is planned for 2005 and will extend the widening from Annapolis Avenue to US-41. The four-laning of CR-486 will ease traffic congestion in the area and reduce the drive time to the town of Inverness and Orlando. EXISTING GOLF COURSE FRONTAGE/LOTS: Development and sales of homes at the Property will benefit from the existence of approximately 21,030 lineal feet of golf course frontage along the in-place Twisted Oaks golf course, allowing for the immediate sale of approximately 300 home sites. UTILITIES: Utility services will be available from extensions of existing systems serving Beverly Hills.

Page 1 FINANCIAL SUMMARY Page 2 PRODUCT Page 3 PROJECTED CASH FLOW Page 4 SALES Page 5 CONSTRUCTION AND DEVELOPMENT COST Page 6 SELLING, GENERAL AND ADMINISTRATIVE Page 7 ANCILLARY OPERATIONS Page 8 COMMUNITY DEVELOPMENT DISTRICT (CDD)

Bayshore Realty Advisors, Inc. Telephone 954-966-9036 Facsimile 954-989-3803

TUSCANY

FINANCIAL MODEL

TABLE OF CONTENTS

FINANCIAL SUMMARY

TUSCANY FINANCIAL SUMMARY PER % OF PER SQ TOTAL UNIT SALES FOOT SALES 881,109,000 $ 204,149 $ 100.0% 100.65 $ CONSTRUCTION AND DEVELOPMENT COST: RESIDENTIAL CONSTRUCTION (480,683,200) (111,372)

• 54.6%

(54.91) SITE DEVELOPMENT: COMMUNITY WIDE (24,049,823) (5,572)

• 2.7%

(2.75) SUBDIVISION COSTS (59,453,679) (13,775)

• 6.7%

(6.79) RECREATION FACILITIES AND GOLF (17,098,878) (3,962)

• 1.9%

(1.95) MODEL PARK (2,413,714) (559)

• 0.3%

(0.28) HOMEOWNER'S ASSOCIATION SUBSIDY (1,012,215) (235)

• 0.1%

(0.12) LAND COST TO VENTURE (72,488,720) (16,795)

• 8.2%

(8.28) TOTAL COSTS (657,200,229) $ (152,271) $

• 74.6%

(75.07) $ GROSS PROFIT 223,908,771 $ 51,879 $ 25.4% SELLING, GENERAL AND ADMINISTRATIVE (151,578,270) (35,120)

• 17.2%

ANCILLARY OPERATIONS 9,241,456 2,141 1.0% SALE OF FACILITIES 33,407,925 7,740 3.8% NET EFFECT OF CDD FINANCING 17,083,758 3,958 1.9% CASH FLOW BEFORE INCOME TAXES 132,063,640 $ 30,599 $ 15.0% UNLEVERAGED IRR 22%

Page 1

PRODUCT

TUSCANY PRODUCT SALES COST TOTAL AVG. NUMBER TOTAL PER PER AVG PREMIUM SALES PRICE

• SQ. FT.

OF UNITS

• SQ. FT.
• SQ. FT.
• SQ. FT.

PER UNIT PER UNIT SINGLE FAMILY-SMALL 2,130 1,250 2,662,500 95.00 $ 55.00 $ 10,000 $ 202,350 $ SINGLE FAMILY-MEDIUM 2,300 1,024 2,355,200 95.00 $ 56.00 $ 15,000 $ 218,500 $ SINGLE FAMILY-LARGE 2,500 432 1,080,000 95.00 $ 57.00 $ 50,000 $ 237,500 $ HIGH DENSITY SINGLE FAMILY 1,650 1,610 2,656,500 95.00 $ 53.00 $

• $

156,750 $ ALL PRODUCT TYPES 2,028 4,316 8,754,200 95.00 $ 54.91 $ 11,460 $ 204,149 $ 100.65 $

Page 2

PROJECTED CASH FLOWS

TUSCANY PROJECTED CASH FLOW TOTAL 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CASH RECEIPTS SALES

• HOUSING

881,109,000 9,997,636 29,267,237 47,856,893 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 62,562,075

• RECREATIONAL FACILITIES

24,407,925 24,407,925

• GOLF COURSES

9,000,000 9,000,000 914,516,925 9,997,636 29,267,237 47,856,893 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 95,970,000 CASH DISBURSEMENTS: CONSTRUCTION AND DEVELOPMENT COST 584,711,509 466,325 27,965,801 20,960,842 39,868,606 39,301,728 42,147,494 35,267,054 34,964,353 39,204,866 34,312,795 34,312,795 34,312,795 34,312,795 34,312,795 34,312,795 34,312,795 34,312,795 30,062,082 SELLING, GENERAL AND ADMINISTRATIVE 151,578,270 700,000 2,484,431 6,361,372 9,842,829 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 7,557,904 6,257,904 6,636,883 ANCILLARY OPERATIONS (9,241,456) 225,000 350,000 350,000 1,761,159 1,356,159 951,159 546,159 166,159 (238,841) (593,841) (948,841) (1,303,841) (1,658,841) (2,013,841) (2,368,841) (2,723,841) (3,096,521) 727,048,323 1,166,325 30,675,232 27,672,214 50,061,434 51,220,791 53,661,557 46,376,117 45,668,416 49,528,929 44,231,858 43,876,858 43,521,858 43,166,858 42,811,858 42,456,858 39,501,858 37,846,858 33,602,445 CASH FLOW (DEFICIT) BEFORE FINANCING 187,468,602 (1,166,325) (20,677,596) 1,595,023 (2,204,541) 5,042,683 2,601,917 9,887,357 10,595,058 6,734,545 12,031,616 12,386,616 12,741,616 13,096,616 13,451,616 13,806,616 16,761,616 18,416,616 62,367,555 NET EFFECT OF CDD FINANCING 17,083,758 10,000,000 (765,386) 9,427,114 (380,386) (1,229,679) 7,962,821 (844,679) (1,589,793) (1,397,293) (1,204,793) (1,012,293) (819,793) (627,293) (434,793) CASH FLOW BEFORE LAND PAYMENT 204,552,360 (1,166,325) (10,677,596) 1,595,023 (2,969,927) 14,469,797 2,221,531 8,657,678 18,557,879 5,889,866 10,441,823 10,989,323 11,536,823 12,084,323 12,631,823 13,179,323 16,326,823 18,416,616 62,367,555 LAND PAYMENT (72,488,720) (2,000,000) (625,150) (2,176,992) (3,660,877) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (4,501,078) (5,511,689) CASH FLOW BEFORE INCOME TAXES 132,063,640 (3,166,325) (11,302,745) (581,969) (6,630,804) 9,968,719 (2,279,547) 4,156,600 14,056,801 1,388,788 5,940,745 6,488,245 7,035,745 7,583,245 8,130,745 8,678,245 11,825,745 13,915,538 56,855,866 CUMULATIVE CASH FLOW 132,063,640 (3,166,325) (14,469,070) (15,051,039) (21,681,843) (11,713,123) (13,992,670) (9,836,070) 4,220,731 5,609,519 11,550,264 18,038,509 25,074,254 32,657,500 40,788,245 49,466,490 61,292,235 75,207,773 132,063,640 INTERNAL RATE OF RETURN 22%

Page 3

SALES

TUSCANY SALES TOTAL PER UNIT 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NEW SALES CONTRACTS (#) 4,316 92 183 275 275 275 275 275 275 275 275 275 275 275 275 275 275 191 CLOSINGS (#) SF-SMALL 1,250 11 38 64 79 79 79 79 79 79 79 79 79 79 79 79 79 111 SF-MEDIUM 1,024 9 32 54 66 66 66 66 66 66 66 66 66 66 66 66 66 71 SF-LARGE 432 4 14 23 28 28 28 28 28 28 28 28 28 28 28 28 28 23 HIGH DENSITY SINGLE FAMILY 1,610 14 49 83 102 102 102 102 102 102 102 102 102 102 102 102 102 141 TOTAL CLOSINGS 4,316 38 133 224 275 275 275 275 275 275 275 275 275 275 275 275 275 346 CUMMULATIVE CLOSINGS 38 171 395 670 945 1220 1495 1770 2045 2320 2595 2870 3145 3420 3695 3970 4316 BASE REVENUES SINGLE FAMILY-SMALL 252,937,500 202,350 2,218,121 7,724,281 12,989,319 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 15,970,474 22,389,620 SINGLE FAMILY-MEDIUM 223,744,000 218,500 2,002,917 6,974,863 11,729,080 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 14,421,000 15,564,141 SINGLE FAMILY-LARGE 102,600,000 237,500 934,332 3,253,672 5,471,446 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 6,727,188 5,487,113 HIGH DENSITY SINGLE FAMILY 252,367,500 156,750 2,215,182 7,714,047 12,972,108 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 22,125,101 TOTAL BASE REVENUES 831,649,000 192,690 7,370,552 25,666,863 43,161,952 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 53,067,974 65,565,974 PREMIUM REVENUES SINGLE FAMILY-SMALL 12,500,000 10,000 109,618 381,729 641,923 789,250 789,250 789,250 789,250 789,250 789,250 789,250 789,250 789,250 789,250 789,250 789,250 789,250 1,106,480 SINGLE FAMILY-MEDIUM 15,360,000 15,000 137,500 478,824 805,200 990,000 990,000 990,000 990,000 990,000 990,000 990,000 990,000 990,000 990,000 990,000 990,000 990,000 1,068,476 SINGLE FAMILY-LARGE 21,600,000 50,000 196,701 684,984 1,151,883 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,416,250 1,155,182 HIGH DENSITY SINGLE FAMILY TOTAL PREMIUM REVENUES 49,460,000 11,460 443,819 1,545,536 2,599,007 3,195,500 3,195,500 3,195,500 3,195,500 3,195,500 3,195,500 3,195,500 3,195,500 3,195,500 3195500 3,195,500 3195500 3195500 3,330,138 TOTAL SALES REVENUES SINGLE FAMILY-SMALL 265,437,500 212,350 2,327,739 8,106,010 13,631,242 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 16,759,724 23,496,100 SINGLE FAMILY-MEDIUM 239,104,000 233,500 2,140,417 7,453,686 12,534,280 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 15,411,000 16,632,617 SINGLE FAMILY-LARGE 124,200,000 287,500 1,131,033 3,938,656 6,623,329 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 8,143,438 6,642,294 HIGH DENSITY SINGLE FAMILY 252,367,500 156,750 2,215,182 7,714,047 12,972,108 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 15,949,313 22,125,101 TOTAL SALES REVENUES 881,109,000 204,149 7,814,371 27,212,399 45,760,959 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 68,896,112 Adjustments for deposits: 10% OF BASE + PREM AFTER CONTRACT 88,110,900 20,415 1,871,370 3,742,740 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 3,899,254 10% ADDT'L UPON COMMENCE OF CONSTR 88,110,900 20,415 1,871,370 3,742,740 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 5,614,110 3,899,254 TOTAL DEPOSITS RECEIVED 176,221,800 40,830 3,742,740 7,485,480 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 11,228,219 7,798,509 TOTAL DEPOSITS APPLIED AT CLOSING (176,221,800) (40,830) (1,559,475) (5,430,642) (9,132,285) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (11,228,219) (14,132,545) TOTAL ADJUSTMENTS FOR DEPOSITS 2,183,265 2,054,838 2,095,934 (6,334,037) TOTAL CASH RECEIPTS FROM SALES 881,109,000 204,149 9,997,636 29,267,237 47,856,893 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 56,263,474 62,562,075

Page 4

CONSTRUCTION AND DEVELOPMENT COST TUSCANY CONSTRUCTION & DEVELOPMENT COST

TOTAL 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TOTAL RESIDENTIAL CONSTRUCTION COST (IV - RCC) 480,683,200 7,231,471 17,440,606 27,649,741 34,455,831 30,627,405 30,627,405 30,627,405 30,627,405 30,627,405 30,627,405 30,627,405 30,627,405 30,627,405 30,627,405 30,627,405 30,627,405 26,376,692 SITE DEVELOPMENT COMMUNITY WIDE FEES 466,325 466,325 STREETS 2,753,680 861,804 270,268 270,268 270,268 270,268 270,268 270,268 270,268 WATER 430,857 52,479 54,054 54,054 54,054 54,054 54,054 54,054 54,054 SANITARY SEWER 533,592 185,658 168,826 179,108 REUSE SEWER 430,857 52,479 54,054 54,054 54,054 54,054 54,054 54,054 54,054 DRAINAGE 1,127,476 530,450 597,026 WILDLIFE RELOCATION 1,603,168 1,603,168 UTILITY EXPANSION 8,009,383 2,387,025 2,686,618 2,935,740 COMMON AREA LAND ACQUISITION 3,559,725 1,060,900 1,194,052 1,304,773 COLLECTOR ROAD LANDSCAPING 2,707,949 795,675 273,182 273,182 273,182 273,182 273,182 273,182 273,182 PERMANENT ENTRY 795,675 795,675 PARK AREAS 815,568 132,613 136,591 136,591 136,591 136,591 136,591 WALKWAYS / TRAILS 815,568 132,613 136,591 136,591 136,591 136,591 136,591 TOTAL SITE DEVELOPMENT COMMUNITY WIDE 24,049,823 466,325 8,590,539 924,740 1,093,566 924,740 5,581,544 924,740 651,558 4,892,071 SUBDIVISION COSTS ENGINEERING 4,952,832 187,832 215,000 303,333 303,333 303,333 303,333 303,333 303,333 303,333 303,333 303,333 303,333 303,333 303,333 303,333 303,333 303,333 EARTHWORK 7,493,531 201,880 361,651 462,000 462,000 462,000 462,000 462,000 462,000 462,000 462,000 462,000 462,000 462,000 462,000 462,000 462,000 462,000 STORM DRAINAGE 6,395,880 172,271 308,609 394,333 394,333 394,333 394,333 394,333 394,333 394,333 394,333 394,333 394,333 394,333 394,333 394,333 394,333 394,333 SANITARY SEWER 5,343,985 144,008 257,977 329,467 329,467 329,467 329,467 329,467 329,467 329,467 329,467 329,467 329,467 329,467 329,467 329,467 329,467 329,467 WATER 4,782,548 131,518 134,070 301,131 301,131 301,131 301,131 301,131 301,131 301,131 301,131 301,131 301,131 301,131 301,131 301,131 301,131 301,131 ELECTRIC 1,301,624 35795 36,489 81,956 81,956 81,956 81,956 81,956 81,956 81,956 81,956 81,956 81,956 81,956 81,956 81,956 81,956 81,956 PAVING 11,836,124 325,405 331,719 745,267 745,267 745,267 745,267 745,267 745,267 745,267 745,267 745,267 745,267 745,267 745,267 745,267 745,267 745,267 SOD 3,845,745 106,756 107,809 242,079 242,079 242,079 242,079 242,079 242,079 242,079 242,079 242,079 242,079 242,079 242,079 242,079 242,079 242,079 IMPACT FEES 13,179,487 499,816 587,661 806,134 806,134 806,134 806,134 806,134 806,134 806,134 806,134 806,134 806,134 806,134 806,134 806,134 806,134 806,134 OTHER FEES 321,923 12,209 14,355 19,691 19,691 19,691 19,691 19,691 19,691 19,691 19,691 19,691 19,691 19,691 19,691 19,691 19,691 19,691 TOTAL SUBDIVISION COSTS 59,453,679 1,817,490 2,355,340 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 TOTAL SITE DEVELOPMENT 83,503,502 466,325 10,408,029 3,280,080 4,778,956 4,610,130 9,266,934 4,610,130 4,336,948 8,577,461 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 3,685,390 RECREATION FACILITIES TOWN CENTER - STREETSCAPE 1,072,762 1,072,762 RECREATION BUILDING 6,828,557 6,828,557 RECREATION BUILDING EQUIPMENT 54,234 54,234 RECREATION BUILDING FURNISHINGS 172,611 172,611 POOL AND TENNIS COURTS 798,626 798,626 GUEST LODGING - BUILDING 1,287,314 1,287,314 GUEST LODGING - FURNISHINGS 108,468 108,468 TOTAL RECREATION FACILITIES 10,322,572 3,267,170 7,055,402 GOLF GOLF CLUBHOUSE 2,129,669 2,129,669 GOLF CLUBHOUSE - FURNISHINGS 542,341 542,341 GOLF COURSE - 1 1,930,971 1,930,971 GOLF COURSE - 2 2,173,325 2,173,325 TOTAL GOLF 6,776,306 4,602,981 2,173,325 TOTAL AMENITY COSTS 17,098,878 7,870,151 7,055,402 2,173,325 TOTAL MODEL PARK 2,413,714 2,413,714 TOTAL BUILDER H.O.A. SUBSIDY 1,012,215 42,436 240,156 384,507 235,767 79,830 29,519 TOTAL CONSTRUCTION & DEVELOPMENT COST 584,711,509 466,325 27,965,801 20,960,842 39,868,606 39,301,728 42,147,494 35,267,054 34,964,353 39,204,866 34,312,795 34,312,795 34,312,795 34,312,795 34,312,795 34,312,795 34,312,795 34,312,795 30,062,082

Page 5

SELLING, GENERAL AND ADMINISTRATIVE

TUSCANY SELLING, GENERAL & ADMINISTRATIVE TOTAL 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 DEVELOPMENT OVERHEAD 4,215,000 500,000 250,000 240,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 215,000 CONSTRUCTION OVERHEAD 18,430,000 250,000 480,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 1,180,000 GENERAL AND ADMINISTRATIVE 29,825,000 200,000 500,000 1,000,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 CLOSING COSTS @ 1% 8,811,090 78,144 272,124 457,610 562,635 562,635 562,635 562,635 562,635 562,635 562,635 562,635 562,635 562,635 562,635 562,635 562,635 688,961 SALES COMMISSIONS @ 2% 17,622,180 156,287 544,248 915,219 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,125,269 1,377,922 SALES AND MARKETING 72,675,000 1,250,000 3,825,000 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000 2,600,000 1,300,000 1,300,000 TOTAL SELLING, GENERAL & ADMINISTRATIVE 151,578,270 700,000 2,484,431 6,361,372 9,842,829 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 10,157,904 7,557,904 6,257,904 6,636,883

Page 6

ANCILLARY OPERATIONS

TUSCANY ANCILLARY OPERATIONS TOTAL 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 RECREATION OPERATIONS REVENUES PER MONTH @ 100.00 $ 39,016,456 638,841 968,841 1,298,841 1,628,841 1,958,841 2,288,841 2,618,841 2,948,841 3,278,841 3,608,841 3,938,841 4,268,841 4,598,841 4,971,521 EXPENSES (29,400,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) (2,100,000) NET INCOME(LOSS) 9,616,456 (1,461,159) (1,131,159) (801,159) (471,159) (141,159) 188,841 518,841 848,841 1,178,841 1,508,841 1,838,841 2,168,841 2,498,841 2,871,521 NET GOLF OPERATIONS (375,000) (225,000) (350,000) (350,000) (300,000) (225,000) (150,000) (75,000) (25,000) 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 225,000 TOTAL RECREATION OPERATIONS 9,241,456 (225,000) (350,000) (350,000) (1,761,159) (1,356,159) (951,159) (546,159) (166,159) 238,841 593,841 948,841 1,303,841 1,658,841 2,013,841 2,368,841 2,723,841 3,096,521 SALE OF RECREATION FACILITIES 24,407,925 24,407,925 SALE OF GOLF COURSES 9,000,000 9,000,000 NET ANCILLARY OPERATIONS 42,649,381 (225,000) (350,000) (350,000) (1,761,159) (1,356,159) (951,159) (546,159) (166,159) 238,841 593,841 948,841 1,303,841 1,658,841 2,013,841 2,368,841 2,723,841 36,504,446

Page 7

COMMUNITY DEVELOPMENT DISTRICT

TUSCANY COMMUNITY DEVELOPMENT DISTRICT 30 YEAR PASS THRU BOND @ 6.75% WITH FIXED ANNUAL PAYMENT OF: 700.00 $ PER UNIT TOTAL 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 BOND "A" 10,000,000 10,000,000 PAYMENTS ON UNSOLD UNITS (1,901,929) (765,386) (572,886) (380,386) (187,886) 4,614 BOND "B" 10,000,000 10,000,000 PAYMENTS ON UNSOLD UNITS (4,381,980) (1,041,793) (1,041,793) (844,679) (652,179) (459,679) (267,179) (74,679) BOND "C" 9,000,000 9,000,000 PAYMENTS ON UNSOLD UNITS (5,632,333) (937,614) (937,614) (937,614) (937,614) (819,793) (627,293) (434,793) NET BENEFIT 17,083,758 10,000,000 (765,386) 9,427,114 (380,386) (1,229,679) 7,962,821 (844,679) (1,589,793) (1,397,293) (1,204,793) (1,012,293) (819,793) (627,293) (434,793)

Page 8