Seat 4: Carol Pontious - (c.) Seat 5: Borden Deane -(V.c.) Seat 3: Mike Costello - (A.S.)
Seat 2: Brenda Vansickle - (A.S.)		
Seat 1: Bob Ference - (A.S.)		

Lake Ashton
Community Development District
and

Seat 4: Doug Robertson (C.)	
Seat 1: James Mecsics (V.C.)	
Seat 3: Daniel Murphey (A.S.)
Seat 2: Stanley Williams (A.S.)		
		
Seat 5: Carla Wright {A.S.)	

Lake Ashton II
Community Development District
Toint Meeting Agenda

Friday
October 5, 2018
9:00 a.m.

Roll Call and Pledge of Allegiance

Lake Ashton II Health & Fitness Center 6052 Pebb�e Beach Boulevard Winter Haven, FL 33884

Public Comments on Specific Items on the Agenda (speakers will fill out a card and submit it to the District Manager prior to beginning ofthe meeting)

Update and Discussion Regarding the Potential Purchase of the Golf Courses

Supervisors Requests and General Public Comments

Adjournment

Lake Ashton Golf Course Preliminary Term Sheet
The below reflects our current understanding ofthe various items as presented by the Lake Ashton GolfClub (referred to herein as the "GolfClub" or "Seller") to thejoint committee formed by Lake Ashton I Community Development District ("LA I CDD") and Lake Ashton II Community Development District ("LA II CDD", collectively with LA I, the "Buyers"), and the understanding ofstaff. This information is compiled to present a summary ofpotential terms for discussion by the respective Board ofSupervisors.
Base Price
$477,000 for fee simple ownership ofthe GolfClub parcels (including the Pro Shop and Eagles Nest) to be conveyed by Seller via warranty deed to Buyers;
$477,000 amount payable in multiple payments up to 3 years
b. Payable with a smaller deposit up front followed by larger payments.
Long term lease to the Buyers on the storage area utilized for current GolfClub equipment storage, which shall last for as long as Buyers maintain ownership.
Other Terms
Seller and Buyer to 50 / 50 split pro-rated membership fees as ofdate ofclosing
Pro-rated membership fees will vary based on date ofclosing, but 50% would be allocated to Seller, 50% would be allocated to the Buyer.
Date of Closing to be Negotiated. Seller expressed preference for date ofclosing to be before December 31, 2018 but flexible on closing date so long closing date does not extend far into the future.
Seller to pay the following taxes, assessments and fees such that the :
	The total outstanding LA I and LA II debt assessment balance through maturity and operations and maintenance assessments through to date ofclosing.
Seller to settle total bond debt ($425,000), no reduction in purchase price (Buyers still must pay $477,000 over the course ofup to 3 years).
11. Note: The 50 / 50 split ofpro-rated membership fees is due to the fact that Seller must settle the bond debt.
Any homeowners association fees, charges or other costs due and owing through the date ofclosing
Any city, county or other local government assessments, fees, charges and costs through the date ofclosing
Seller to provide Survey and Title (title work done by GolfClub but from a title insurance company acceptable to the District) to provide marketable title
Seller to provide Phase I Environmental Study with a copy acceptable to the District using ASTM Standard Form 1527-13 or otherwise acceptable

Seller to provide Member Retention Information from the past 2 to 2 ½ years.
Seller to pay off balance of any current equipment contracts (including golf carts) and transfer the equipment.
Seller to provide a one-time up-front payment of $240,000 to the Buyers in order to	'I
accommodate for the free golf requirement for new homes (based on a calculation of 28%
%, rounded to 30%, of homeowners which actually play golf, which would be 60 golfers out of 200 remaining new homes to be sold, thus 60 golfers at $4,000 per membership), Buyers would be responsible for providing a year of free golf membership to all new homeowners regardless of how many actually play golf, however, a refund would not be due to the Seller if less than 60 homeowners play golf. Seller to release or otherwise terminate free golffor resales and provide the Buyers satisfactory proofof such termination of free golf for resales. Buyers to honor any free golf memberships issued by the Seller prior to the date of closing.
Seller to provide copies of Current Membership Information
Seller to provide all existing appraisals for the property
1 L Seller to provide copies ofall permits, licenses and other authority governing the Golf Club and to pay for the cost oftransferring such permits.
12. Seller to provide copies ofall contracts, leases, and any other agreement to be assigned.

LA I and	LA II Golf Course Joint Committee
SUMMARY OF JOINT COMMITTEE SCOPE, MEMBERS, BASIC CONTRACT TERMS AND OTHER CONSIDERATIONS

Overview
Scope of the Joint Committee Members of the Joint Committee Basic Terms
Future Considerations

Scope of the Joint Committee
•Issue: Prior to Joint Committee, Districts did not have clear terms

•Work with District Staff to meet with Seller and determine basic terms for potential golf course purchase

Committee was NOT authorized to make any authoritative decision or enter into any agreements

Members of the Committee
Mike Costello, Supervisor, Lake Ashton Community Development District

James Mecsics, Supervisor, Lake Ashton II Community Development District

Jillian Burns, District Manager1 Governmental Management Services

Darrin Mossing1 District Manager1 Governmental Management Services

Andrew d'Adesky, District Counset Latham Shuker, Eden & Beaudine

Jan Carpenter, District Counsel, Latham Shuker, Eden & Beaudine

Note
Seller expressed willingness to further negotiate terms,  Districts may 11counter-offer"

Preliminary Term Sheet is a draft summary of terms and not binding as of date. Even if Districts proceed, further negotiation is needed to establish final terms

Basic Terms
Terms in detail in Preliminary Term Sheet, summarized here as:
$477,000 for fee simple ownership of the Golf Club Parcels (including Pro Shop and Eagles Nest)
0 Payable in multiple payments up to 3 years
0 Payable with a smaller deposit up front

Long Term Lease on the Storage Area utilized for current Equipment Storage
0 Lease to last as long as Districts maintain ownership

Basic Terms (continued)
Seller and Buyer to SO/ SO split pro-rated membership fees as of date of closing

Date of Closing to be Negotiated
0 Seller desires to close before December 31, 2018 but flexible if closing date not too far out

Seller to pay outstanding taxes, assessments and fees
0 All O&M, debt Assessments, HOA Fees, city, county taxes to be paid through closing
0 Buyer to take title free and clear
0 50/50 split of pro-rated membership fees due to Golf Course paying $425,000 in Bond Debt

Seller to provide Phase I Environmental Study
Commercial Standard ASTM Form

Basic Terms (continued)
•Seller to provide Member Retention Information for past 2 to 2 ½ years

•Seller to provide up-front payment of $240,000 for free golf for new homes
Based on calculation·200 new homes, 30% golfing rate, 60 golfers, $4000 per membership
Buyer would be liable to provide free golf for up to 200 homes but no refund is less than 60 golfers
No  more free golf  offered for resales after date of closing
Any free golf granted  before date of closing to  be honored

•Seller to pay off balance of any current equipment contracts and transfer equipment

Basic Terms (continued)
Seller to provide copies of Current Membership Information

•Seller to provide existing appraisals

•Seller to provide copies and pay for the cost of transferring all permits, licenses, etc

•Seller to provide copies of all contracts, leases and any other agreement to be assigned

Other Considerations
Considerations either beyond Joint Committee Scope or future considerations:
Operational Cost Analysis

Assessment Analysis

Proposed Management of the Golf Course if acquired

Renegotiation or Consolidation of Golf Course Contracts with COD Contracts (i.e. landscaping}

Alternative Uses For Golf Course Property