HOTC Board meeting December 27 2017

Call to Order

Attendance/Quorum

Approval of 11/29/17 Meeting Minutes

Treasurers Report

Newsletter

Hotel Update/Repairs, Etc.

Developer Agreement

Harbormaster Restaurant Update

Adjournment

Mike Hiese

Brian Hein

John Loftus

Tim Maclay

Paul. Huss

Fran Scuderi

Francis Balthazor

Guest Fred Graham

Motion to approve Fran second mike passed unanimous

Treasurers report.

Question: How are coming with maintenance fees collections coming.

Answer: Final numbers will be updated by end of the year.

Mike says that as soon as we have those numbers John needs to send those out
to the board. Because we will need to know how many rooms are owned by the
hotel and the timeshare owners.

Escrow is right where it should be. Checking is up to 50k and savings is
down a bit.

Treasurer’s report… as of 27 DEC 2017

Bank Balances: Fiscal Year to Date (Oct 1st, 2017 – Dec. 27, 2017)

– Checking                     $   49,173.72

– Savings                        $ 254,811.23      

-Escrow                         $   94,247.47

These are totals as of today for the balances but there are many checks to
clear.

The hurricane cost us Lost revenue plus only 50 k cash

Have we made up any money on FEMA people Not really we missed the window
because of power. Are we making some money on the new rack rates

John will post numbers for the budget on the website by the end of the year.

Newsletter is done and shipped

Repairs

Dock house is open and ready for business the right half is mostly gone.

The building over the propane tanks is done just some roofing

5 HM rooms are done out of 8 re-dry walled and repainted. Ready to be
occupied 3 last rooms are to be done around first week of February

Rooms are the priority for repair.

All the rest of rooms are fine and able to reoccupied

Bad review on TripAdvisor for not using local labor Lake Country will
respond

Veranda is still in bad shape

Bar is in bad shape

Conference room is bad

Pool is drained and pressure washed patched and filled

We have a lot burning to do. But we have to wait for the right wind.

DEVELOPERS

The developers set forth a deal and we rejected and then we sent them an
proposal in which we are trying to set the guidelines for the turnover. The
entire process is to make sure as much as possible to keep the owners whole.

The developer needs to convince the government to extend the lease to the
new developers.

We are trying to protect our long term lease holders

Mike thinks 350 weeks until 2039

Cathy will send out the numbers to the board for that data.

Mike solicited comments from the board about what we want to see in the
agreement from the draft and what we would like to see added.

The biggest assets we have for an investor is the ferry’s.

The buildings revert to the government once the lease ends.

The developers can try to buy out timeshare owners on their own.

We want to keep the association intact. We would have some type of hold on
the property in case the developers go bankrupt.

The board looked at the draft of a proposal to the developers and discussed
each point in the draft. In order to be clear on what we want to try to get
from the developers.

There are many different ways to try and negotiate the turnover. None has
any substantial objections to the draft and we had some discussion on what
would be nice additions to any agreement.

Once we have any type of agreement with the developers then it will go to
the attorneys for a legal contract.

Harbormaster update

Ed Barry contacted Sophia’s attorney and he was threatened. With a law suit
and so we sued for abandonment and lack of response. We served her last
week.

Her LLC is not registered.

She owes us backrent and services fees for three months.

So we are hoping to get some action that way. She has not done anything to
reopen.

We have beer and wine for sale in the dock house. We cannot sell food. No
matter what happens the bar will not be open for high season.

Next meeting January 1st 2018