Newsletter September 2005

POINT PLEASANT VILLAS OWNERS ASSOCIATION

To: All Members of PPVOA

The board held a meeting on August 26, 2005 to conduct the on-going business of our association. As we continue to face the many on-going challenges at Point Pleasant, I will summarize the results of the meeting.

In my June newsletter I advised the owners that the board approved a revised purchase of assets from Tim and Karen Reynolds. The revised purchase includes the middle and upper pools, upper maintenance building, and the land on which the sewage treatment plant is located along with the land underneath the RO plant (1.83acres). In addition, the Reynolds’ agree to grant PPVOA a utility easement to the ocean following the outflow line and a lease for the well to serve Point Pleasant.

The price for the revised package is $210,000. While still gaining control of key assets by our association, the revised purchase agreement reduces the potential debt by $490,000. Additionally, by securing the easement to the ocean, we ensure that the association will always have a backup source of water supply should anything happen to the well. Neighboring properties like Pools and Pavilions, Sapphire Beach and other properties on island had assets of this type which were sold to a third party which resulted in their respective owner’s associations no longer having control of property rentals and leases. The effective result of this situation was that those associations have become subject to outrageous lease charges and user fees imposed by their current third party owner. In light of what has happened to these neighboring properties, PPVOA’s moving forward to purchase the above described assets has become even more important now than back in June when the board decided to move forward to purchase these assets.

We had over an 85% approval of the owners to make the original purchase worth $700,000 and the board feels strongly we have the authority to make the reduced purchase of assets. But since we have a very small group of owners who constantly challenge the board on almost everything we do, we have decided to put the revised purchase on the proxy for the annual meeting so there will be no doubt in anyone’s mind that this is what our ownership wants.

The board urges you to vote “Yes” on the proxy for the revised purchase agreement so we can protect our association from situations like what has happened to neighboring properties. While Tim and Karen Reynolds have been reasonable developers and sponsors, we have no guarantee that they might not sell their assets to a third party in the future if PPVOA does not purchase these assets at this point in time. If we were to get third party ownership of these assets like what happened at Pools and Pavilions and Sapphire Beach, we could find ourselves in the same situation.

I CAN NOT EMPHASIZE ENOUGH HOW IMPORTANT A “YES” VOTE IS FOR THE REVISED PURCHASE AGREEMENT IF THE POINT PLEASANT VILLAS OWNERS ASSOCIATION IS TO PROTECT ITSELF IN THE FUTURE.

There will be three other issues for your vote on the proxy for the annual meeting. First is approval of the 2006 annual budget, second is the election of two open board positions, and third is the decision of whether or not we should include the asset purchase in our declaration.

1. The proposed 2006 annual budget was approved by the board and we recommend your approval. The proposed 2006 budget reflects no increase in the monthly assessment and will remain at $760 per studio share including the $50 capital assessment reserve approved at last years annual meeting. The finance committee spent many hours working through this budget to try to keep our budget reasonable without affecting the progress we have made on property.

2. We have three people running for the two open positions on the board; i.e., Lew Wilson, Brooke McCauley and Tom Custer. While all three have excellent credentials, the board recommends your vote for Lew Wilson and Brooke McCauley. Lew is a former president of the board and he was instrumental in obtaining the small business loan for us to help us reopen the property after Hurricane George. Lew is well connected in the insurance industry in the islands and would bring other needed skills to the board. Brooke McCauley is also a former board member who was instrumental in obtaining the tax relief for all Point Pleasant owners. Brooke is extremely well versed in Virgin Island law in regard to easements and user fees which will be important to us as we purchase assets now and in the future. You are invited to review all three resumes on the PPVOA website prior to casting your vote.

3. We are asking owners if they want the purchase of assets to be incorporated in the declaration.

It will not be a problem to do so, but if we do not make that incorporation, we would save paying taxes on the assets.

Each year we have a hard time getting owners to send in their proxies, so I am making my annual plea for all owners to please mail in your proxies as soon as possible. You will have this newsletter in the annual meeting packet which will include all the information for the annual meeting to be held on October 22, 2005.

EVEN IF YOU WILL BE ATTENDING THE ANNUAL MEETING, WE REQUEST THAT YOU SEND IN YOUR PROXIES PRIOR TO THE MEETING SO THAT WE CAN DETERMINE IF WE WILL HAVE A QUORUM AND THE STATUS OF THE ISSUES UP FOR VOTE. BE ADVISED THAT YOU WOULD STILL HAVE THE OPPORTUNITY TO CHANGE YOUR VOTE AT THE ANNUAL MEETING SHOULD YOU DESIRE TO DO SO.

July 1 was the due date for the second payment of the 2005 special assessment and September 1 is the 60 day mark for any owners who have not made their payment. Remember, an owner who is 60 days or more delinquent in payment to PPVOA is subject to utilities being shut off without further notice and there is a $50 fee for utilities to be re connected.

Please remember that no owner may make changes to the exterior of his unit or cut down trees or other plants without approval from the board of directors.

In the last ten months with Gary Van Oostan as our property manager, we have seen a lot of changes in our property all for the good as we move forward in the restoration and preservation of Point Pleasant. Gary’s leadership has been very important in keeping the property values up on our property. Many of the special assessment projects have been completed, some are still underway and others pending. We will give you a detailed report at the annual meeting. Our main power consumption is now back to normal; however, raising fuel costs are making electricity very expensive on island. You will notice on your next visit that lighting has improved on property with the replacement of our exterior building and path lights.

This will be my last newsletter to you as I will be leaving the board this year. Being your President over the last 6 years has been challenging and at most times rewarding as we have all worked together to make Point Pleasant a premier property again. I want to thank the many owners who have supported the board’s difficult tasks over those years. To those few owners who have at times resisted and not supported the boards tasks, I ask you to join the team and give the new president and board your cooperative support. Point Pleasant has been an important part of my life for almost 30 years and I will continue to support and work for our property even though I am going off the board.

I would like to challenge all owners to work with your new president and board so that Point Pleasant can continue its restoration and preservation. I would encourage as many of you who can to attend the annual meeting, but whether you plan to attend or not, please remember to send in your proxy as soon as possible. Your vote is important.

I look forward to seeing and chatting with all owners who will be at the annual meeting.

Jack Cistriano

President PPVOA