Residential Retal Agreement with Option to Purchase

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                     January, 2008
                    Volume 5, Issue 5

By Joan Sass
Secretary/Chairperson Communications Committee
Bay Indies Homeowners Association, Inc.

With the help of volunteers and the Communications Committee, we are sending out our
fifth newsletter issue door-to-door. We render this service so we can reach all members of
the community to provide each and every individual with facts and information pertinent
to your lifestyle here in Bay Indies.

As you probably know your Homeowners Association is your only legal representative
concerning issues dealing with ELS. Therefore, your volunteer Board needs you to assist
us on our committees, newsletter distribution, and dues collection. It is most important
that this year each and every household in the community joins the Association to support
us in our upcoming negotiations for a new lot rental agreement in 2009. Presently we feel
that the climate has changed with regard to a better relationship with Park Management
and ELS. We anticipate negotiations in which both parties will attain a mutually
satisfactory contract.

The following are important dates for you to remember:

    Solicitors (dues) Meeting, Friday, Jan. 18, 9:00 a.m. Bay House
    Board Meeting, Friday, Feb. 1, 1:30 p.m. Bay House Arts & Crafts
    BIHOA Annual Meeting, Wednesday, Feb. 13, 7:00 p.m., Indies Hall
    BIHOA Fundraiser Show, Saturday, Feb. 16, 7:00 p.m., Indies Hall (see flier)

Communications Committee Members:
Joan Sass Committee Chairperson & BIHOA Secretary
Joseph G. Floyd, BIHOA Treasurer
Merle W. Landau, BIHOA Director
Richard D. Welch, BIHOA Director
Page 2

Service Committee

By: William Butts, Chairperson

The Service Committee met with the Regional Manager, Judy Lounsberry, December 20 –
a very productive meeting. Through her efforts attention is being given to correction of
many service problems! The Committee received an action plan from the lawn service
company to repair damage they had caused with a number of long standing items. Ms.
Lounsberry stated that ―ELS has budgeted for the Indies Hall Spa area to be remodeled in
2008.‖ Also Indies Hall will be painted in 2008. (Note: complaints which we have had on
the agenda for a long time). She further stated that additional road repairs will be
performed during 2008. A promise by her that the watering system approvals are in place
and work is scheduled to begin this month. Other complaints which were corrected: Indies
Hall roof repaired, new amplifiers to the sound system, and ditch and bike path

We had considerable discussion along with pictures on the general maintenance of the
pools and spas. Attention was given to the needs and corrective action. As a result of the
Committee’s effort the ELS owned houses are being cleaned up, power-washed, and
shrubs trimmed – this has been a long time coming. A number of our/your issues are
finally being addressed.

Again, your Service Committee encourages you to keep us informed of any and all
problems as your input is so important. Any member of the Committee can be contacted
with your complaints.

Our next meeting with the Regional Manager is scheduled for January 17.

Service Committee:
William Butts, Chairperson, First Vice President, BIHOA
Merle Landau, Director, BIHOA
Joan Sass, Secretary/Director, BIHOA
Richard Welch, Director, BIHOA
Page 3

What to expect in 2008 legislation.

By: Anthony V. Pinzone, President

State Representatives and State Senators are already working on establishing their
priorities for the upcoming legislative year. Committee meetings began during December
2007. The regular sessions are scheduled for March 2008 and will end early in May 2008.

Hank Curran and I met with Representative Doug Holder and his legislative assistant to
discuss pending legislative changes that may affect us here in Bay Indies and in
mobile/manufactured home parks throughout the State of Florida. Representative Holder
stated that he would be supportive and believed in the rights of mobile/manufactured
homeowners. We discussed possible changes to Chapter 723 to include the following:

    The right of first refusal whether there is a solicited or unsolicited offer to purchase
     the park.
    To add definitions to the meaning of adequate and suitable relocation in cases of a
     change of land usage. We suggested amplifying the definition requiring that prior to
     rezoning of a park, a determination that affordable and comparable adequate
     mobile/manufactured home parks exist for the relocation of the homeowners.
    We suggested that the statute includes binding arbitration rather than the current
     non-binding arbitration.
    We suggested that park owners be required to unbundle parks that they offer for
     sale. Specifically, to allow residents the option to purchase the park that they reside
     in and not be forced to purchase bundled parks being offered for sale.
    We suggested the need to increase dollar values for relocation costs and
     abandonment costs from the current 1984-dollar values to current dollar values.

We had a follow-up meeting with Representative Holder and the President of The Alliance
of Park Residents, Inc. after he had an opportunity to discuss our concerns with colleagues
in Tallahassee. The Representative told us that many of his colleagues support the
amendments to Chapter 723 which we discussed, but were concerned with reimbursement
of costs that another buyer may incur while attempting to purchase a park if the residents
exercised the right of first refusal. We agreed that a ―due diligence‖ clause should be
added to any amendments relative to the right of first refusals. The proposed purchasers
should have an option of reimbursement of costs if there is a transfer of the benefits to the
residents choosing to purchase the park. Representative Holder agreed and said that he
would discuss with his colleagues such an option as an addition to our proposals.

We agreed to meet again following the first of the year to discuss further strategies.
Page 4

Cont’d—By Anthony Pinzone:

The Alliance of Park Residents, Inc. has continued to employ the services of Travis Moore
the professional lobbyist in Tallahassee to assist with our legislative proposals. This
means that the residents of Bay Indies will have the benefit of a professional lobbyist
without any cost.

As members of The Alliance of Park Residents, Inc. we must monitor pending legislation
and need to act as a unified body. We cannot let our efforts over the past few years go to
waste. We did make a difference and have to continue to do so. You, too, can stay in
touch with our Legislators by going online to: and/or .
                          *        *       *           *

NOTE: FEBRUARY 13 is BIHOA’s Annual Meeting. At that meeting there are
elections of Directors. Directors serve a three year term. This year there will be
elections for three directors, two are incumbent. We are recruiting for people who
are interested in serving on the Board. If you are a dues paying member interested in
working hard, spending a minimum of 2-3 hours a week, own a computer, can
communicate via e-mail and a resident of the Park from Oct-May, please contact any
Board member.

                          *        *          *        *

December 4, 2007 Residents’ Meeting
By: Anthony V. Pinzone, President

For those of you who missed the December 4, 2007 Residents’ Meeting, here is a recap of
the presentation.

On December 3, 2007, the Executive Committee of the Board of Directors met with Equity
Life Style Properties’ representatives. Representing ELS was Roger Maynard, Chief
Operating Officer for ELS (in charge of all ELS parks in the country), Mike Edwards,
Regional Sales Manager, Jeff Leeds, Regional Manager of Operations, and Judy
Lounsberry, Regional Park Manager. Joan Sass, Bill Butts, Henry Curran and I
represented the park residents. This meeting was called at the request of Roger Maynard
and we were very pleased to attend the meeting.

Why did we have the meeting? Well, I would like to say that the meeting was requested as
a routine management meeting; however, in my opinion, the scheduled meeting was the
Page 5

Cont’d—Anthony Pinzone:

result of the residents’ meetings here in the park, the Homeowners Association
newsletters, the petitions and the residents’ recommendations for impending possible
actions due to the rental program, the lack of maintenance and the prevailing market rental
amounts. In fact, during the meeting, we referenced the newsletters and the petitions and
the ELS folks acknowledged that they were well aware of the meetings, newsletters and
petitions. We informed them that we currently had in excess of 800 signatures on the
petitions and more signatures were coming up every day.

What’s happening with the petitions that the residents so willingly signed? You all
need to know that the petitions were not signed in vain, and, in fact, were likely the
very reason for the meeting. The petitions are being kept on file and will be utilized
as necessary if needed. Clearly, ELS noted all the work that the residents did and are
willing to do. Kudos to all the residents!

Now, what happened at the meeting!

Roger Maynard started the meeting with an explanation of the rental policies of ELS. Mr.
Maynard stated that ELS firmly believes that rentals give birth to potential homeowners.
He told us that most renters end up being buyers. Mr. Maynard told us about future
thoughts being discussed in the ELS offices. Thoughts such as rental programs with
promotional packages; i.e., if you rent a new home for an annual period, you may receive a
promotional package that includes free golf for a period of time or dinner for two at a
luxury restaurant or other such promotional features. He spoke to us about a concept that
he referred to as a ―SMART LEASE‖. He gave us an example of a SMART LEASE as a
five-year lease with an option to buy at a fixed price.

Mr. Maynard spoke about a future concept called FRACTIONAL RESIDENTAL
OWNERSHIP. He explained the future consideration as one in which one may own a
home for a period of time rather than a full year and others would also own the same home
for other periods of time. The thought is that these owners would be required to meet all
the requirements that other residents meet; such as, age, financial requirements, credit
checks, criminal checks, etc. These fractional residential ownerships would be required to
pay an annual maintenance fee in addition to the purchase price. One benefit to this
concept would be the opportunity to exchange locations thoughout the country with other
fractional residential ownership programs. If and when ELS would enter into this
program, they would construct model homes in the Fort Myers area as a preview center.
Page 6

Cont’d.—Anthony Pinzone

We discussed the concept and suggested that the ownership period have a minimum time
frame of at least three months of ownership. We thought that there would be more
ownership and community involvement with longer ownership periods. Mr. Maynard
acknowledged our comments and said they would give them consideration.

About the rental program!

We stated that we are not in objection to the rental program and acknowledged the rental
program to be a sound business decision in light of the real estate economy. However, we
strongly objected to the specifics of their rental program.

We explained that advertising the rental program to attract 30 or 40 year old people was
not compatible with the very style of life that we enjoy in Bay Indies. And, in fact, cited
incidents of problems relative to rental within the park to 30 and 40 year old folks. Mr.
Maynard acknowledged our concerns and directed the Regional Sales Manager to
immediately stop such advertising and restate the advertisements to include that Bay Indies
is an age-restricted community. Mr. Maynard did state that of their most recent rentals,
only one individual was in the 40+ age bracket.

We continued to voice our objections relative to the pricing of rentals starting at $650 per
month. We stated that the prevailing market rental rates established by ELS far exceed
$650, namely $715 to $780 per month, just to lease the land which does not include the
cost of the house, insurance, maintenance, etc. We gave them specific examples of
monthly ownership costs that reflected average expenditures of $850 to $900 or more
monthly for ownership in the park and that at $650 rental per month, an owner would
sustain a negative cash flow each month. As such, an owner could not compete with ELS
on a rental basis. Once again, Mr. Maynard acknowledged our concerns and directed the
Regional Sales Manager to immediately increase the monthly rental amount to a minimum
of $900 per month.

Other considerations during the meeting!

During the meeting, we shared photographs of homes in the park owned by ELS and the
very poor condition and maintenance of these homes. We stated that residents are required
to maintain their home to an established standard and therefore ELS should maintain their
homes to the same standard. It is fair to state that Mr. Maynard was surprised to see the
condition of the homes in the pictures. We displayed pictures of the Curry pool rest rooms
and the very bad maintenance conditions within the area. Mr. Maynard stated that
Page 7

Cont’d—Anthony Pinzone

following the meeting the staff would visit these sites and see the condition of the areas we
discussed and assured us of corrective actions.

They informed us that the necessary parts have been ordered for the new well and
corrections should be completed very soon. They acknowledged that they might have
structural problems with the sprinkler systems that will require attention once the new well
is functional.

The ELS representatives informed us that they are reviewing maintenance staff
requirements and work loads and that we may see some changes even to possibly include
increased staff.

Mr. Maynard approved the replacement of the defective sound amplifier in Indies Hall at a
cost estimated to be approximately $1200 to $1500. Mr. Maynard stated that ELS is not
interested in selling their used rental homes in the park. He said once the real estate market
turns around, they would like to install new homes. There was agreement that our Service
Committee would continue to meet with the Regional Manager on a scheduled basis.

Mr. Maynard announced that Judy Lounsberry, the Regional Manager, would serve as the
temporary manager of Bay Indies and would be our contact person. Ms. Lounsberry told
us that she plans on being in the park at least three days per week. Mr. Maynard stated
that they are actively advertising for a new park manager and that interviews are being

We complimented the ELS management for the condition of the park and stated that the
park is in a 100% better shape than it was just recently. Mr. Maynard stated that the
congratulations belong to the Regional Manager and the Regional Sales Manager
following their tour of the park.

All in all the meeting was extremely successful and we feel a sincere effort will be made to
accomplish those things we have been talking about for several years and keep our park in
a manner of which we all can be proud. The proof of the pudding is that Mr. Maynard
agreed to fly back down to Bay Indies in 90 days to meet with us again to assess the
progress to which we agreed.

By no means does this mean we should stop being on top of things. Time will tell what
results we will see in the park.
Page 8

Treasurer’s Report
By Joseph Floyd

This will prove to be an exciting year for your Board and Park Residents. Our present rent
contract is up Dec. 31, 2008 and soon we will be entering into negotiations for a new rent
contract. Negotiations are time consuming and expensive. Soon we will start our
Membership drive for 2008. We would like to see everyone in the park do their share by
paying their dues. For those who have already paid we say thank you very much and those
who have not had an opportunity to pay the Board will be sending solicitors to ask
residents for their support and financial backing. We would like to enter negotiations
knowing we have the full support of all residents.

Dues remain at $50.00 and for your dues you will get the services of a very dedicated, hard
working, all VOLUNTEER Board. Many hours have been spent and will be spent
working with ELS for the best interest of your park. Our main goal is to keep you
informed in newsletters like this and to protect our way of life here in Bay Indies. Your
support is needed especially this year. We will work hard to serve your best interest and
our future here in Bay Indies.

                              December Treasurer’s Report

Money Market Acct. 12/01/07   $57,758.05    Checking Acct. 12/01/07        4,190.95
 Interest earned                  259.76      Deposit                         50.00
 Deposit Dues                   8,820.00      Balance                      4,240.95
 Deposit Show Tickets             855.00      Disbursements
 Bank charges                     (29.15)     Printing                      -405.53
Balance 12/31/07              $67,663.66      Legal Fees                   -2,551.01
                                             Office Supplies                  -84.38
                                             Balance                       1,200.03

         MMKT & CHECKING Combined Balance 12/31/07                       $68,863.69

Homeowners dues are $50. annually, payable to BIHOA. Please drop off or mail your
dues along with the form below. I have set up a special BIHOA mail box on my lanai
railing. Please do not place your dues in my U.S. mail box. You may also mail your dues
to Joseph G. Floyd, 911 Posadas W., Venice Fl. 34285. We also have a table set up at
Information Coffee on the first Saturday of the month.
NAME: _________________________________________________________

ADDRESS:____________________________________________          LOT NUMBER:____________

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