AgendaDue Diligence Process Status

~ Ray Dertz, LDLA Member At Large~ Jack Kellogg, LDLA Treasurer

Transition Documents~ Dave DeYoung, LDLA Vice President

Closure and Next Steps~ Dave DeYoung, LDLA Vice President

Open Forum~ LDLA Provisional Board & Eligible Member

Attendees

Due Diligence Process Status

Property Survey Dam Inspection Spillway Title Searches Legal Reviews & Committee Inputs Conclusion & Determination to

ProceedFinance Update

Due Diligence Process Status (cont.)

Property Survey Sale Properties include –

Lake Bottom 10 foot Land Barrier Surrounding the Lake The Main Beach Access Parks – A through E, Parkway, and

“Outlot” Private Roads Boat Launch

Current Rights Generally Deeded Ingress and Egress

Current Use Allowed Use of Revocable Permission

Due Diligence Process Status (cont.)

Dam Inspection Inspection is Complete Confirms the Dam’s integrity

**As a normal maintenance item, cleanup

steps are required for the dry side of the dam.

Due Diligence Process Status (cont.)

Spillway Inspection is Complete Function is Deemed Sound

**As a precautionary safeguard, consultants recommended installation of a valve on the front end of the spillway pipe for ensured future integrity.

Due Diligence Process Status (cont.)

Title Searches Complete for LDDC Property offered for

sale Complete for Lake Doster Access Holders

Identified all properties with ingress & egress rights

All Deeded Lake Doster access holders are offered the rights and benefits of membership.

Due Diligence Process Status (cont.)

Legal Reviews & Committee Inputs Retained a legal firm to review, advise, and

draft necessary documentation Committees and Advisory Committees

researched data and offered input

**Some items need to be addressed; however, our legal counsel advises that no major issues prevent property transfer.

Due Diligence Process Status (cont.)

Finance Update Initial Funding Request Fund Participation Expenditures Current Budget Status

Due Diligence Process Status (cont.) Finance Update – Fund Participation

Payment Amount

Number of Parcel Owners

Percent of Parcel

OwnersFunds

Received

Withheld Funds

Sponsors $350 176 67.7% $ 61,600 $ -

Contributors Partial 27 10.4% $ 7,400 $ 2,050

Noncontributing $0 57 21.9% $ - $ 19,950

Total Targeted LDLA Members   260 100.0% $ 69,000 $ 22,000

Other support funds received $ 2,833 $ -

Total Funds $ 71,833 $ 22,000

Lake Doster Access Holder's Support

17668%

2710%

5722%

Sponsors $350 Contributors Partial Noncontributing $0

Due Diligence Process Status (cont.) Finance Update - Fund Participation

Due Diligence Process Status (cont.) Finance Update - Expenditures

LDLA Expenditures by Category

Initial Support Funding   $ 71,833

Expenditures    

Legal $ 35,606  

Survey $ 15,000  

Dam and Spill Way Inspections $ 4,956  

Title Searches $ 5,280  

LDDC Deposit $ 1,000  

Administrative (Printing/Postage) $ 1,521  

Total Expenditures   $ 63,363

Fund Balance **   $ 8,470 ** Additional incurred and expected cost through Lake Acquisition and Membership Drive

include legal, document recording fees, administrative, and other necessary costs.

Due Diligence Process Status (cont.)

Finance Update - Current Budget Status

Funds will be required soon to complete necessary tasks

** Payment of full initial contribution is encouraged**Contributions to date will apply to $350 Membership

Fee

2006 Annual Dues are set at $350 per Membership Membership participation (revenue) is unknown. Some Annual Dues may be used for remaining

transition expenses Future revenue will determine annual budget

A Two Year Budget Plan is underway (Through 2007)

Transition DocumentsArticles of IncorporationMembership Rights and PrivilegesMembership BylawsApplication For Membership and

Statement of Declarations

Transition Documents (cont.)

Articles of Incorporation• Establishes a non-profit corporation• Holds the Property Assets for its Members• Provides authority to a Board of Directors for the

rights, powers, duties, and responsibilities relative to the management and control of the Associations property, activities and affaires in the best interests of the Association’s members.

• Provisional Board Members may be replaced by a newly elected Board at its first annual meeting by a vote of the Association Members.

Transition Documents (cont.)Membership Rights and Privileges

Converts many previous USES into Irrevocable RIGHTS Rights “run with the land” to enhance property values Provides voting right for:

Board Member Elections Policies and Procedures Lake Maintenance and Improvements Building Control Committee issues

Allows for shared lake and common area maintenance costs Establishes a venue to voice interests and concerns Common ownership and control of the lake and Association

property with other Members A vote in lake quality improvements, therefore, personal

property value enhancement Use of Boat Ramp, Main Beach, Assigned Access Parks, and

Water

Transition Documents (cont.)

Membership Bylaws • A filed legal document• Documents the procedures and rights of

Association Board, Officers, and Members.• Provides for common understanding for all

Members

Transition Documents (cont.)

Application For Membership and Statement of Declarations• Must be signed to be an LDLA Member• Signing is agreement to –

– Be an ongoing LDLA Member– Pay duly authorized Annual and Special Assessments– Acceptance of the Bylaws

• Is a recorded document where Membership “runs with the land” for secure property value

Closure and Next Steps

Property Acquisition Closure – Transfer from LDDC to LDLA

Membership DriveMembership Document Execution and

FilingsLDLA Board Recruitment and Membership

VoteFuture Meetings

Closure and Next Steps (cont.)

Property Acquisition Closure

• Request a 6 Month Extension (From February 15)• Secure LDLA Liability Insurance• Board Vote Adopting LDLA Member Bylaws• Purchase Association Properties

**Intense effort is being made to close by March 31, 2006.

Closure and Next Steps (cont.)

Membership Drive Seek contact information for all eligible Members Hold Informational Meetings Answer questions as they arise Provide initially available documents and policies

(via web site or email to minimize costs) Encourage all to prepare for Membership decision Compile and print customized documents for Member

signature

Closure and Next Steps (cont.)

Membership Document Execution and Filings Accept Member Declarations Immediately

following closing Set dates for other Member’s Declaration signings Provide for ease of finalizing – Meeting with

notary present File signed documents with Allegan &/or Barry

County Register of Deeds Set a 60 day period after closing for Membership

drive to end Any eligible parties after that date will be

assessed an additional joining fee

Closure and Next Steps (cont.)

LDLA Board Recruitment and Membership Vote Notice Members that a Board election will occur at

the annual meeting on May 15th

Seek out nominations and volunteers Prepare listing of LDLA Members in accordance

with Bylaws voting rights Implement procedures for proper vote

Closure and Next Steps (cont.)

Future Meetings TBD depending on closure timing

Open Forum

Questions?