Residential Community Owners Association, Inc.

2

Town Hall PresentationJan 9, 2015

Proposed Onsite Office/Meeting Building

Susan Parish, PresidentRonnie Miranda, Vice President

Jerry Ballard, TreasurerGigi Myung, SecretaryLes Van Dyke, Director

3

Town Hall PresentationJan 9, 2015

Special Guests

Chris Barnhart, PE: Barnhart ConstructorsMike Carter, Designer: Westin Homes

Jonathan Clark, Esq : Hoover Slovacek LLCDennis Hamann: Hamann Insurance Group

Jonathan Morin: JP MorinCapt. Dante Scott: US Security

David Orr: Principal Management Group

Proposed On Site Office/Meeting Building

• Purpose of this meeting is to give you a broad overview of our thinking regarding the proposed new office and meeting building

• Extensive due diligence was performed, including lease/purchase analysis involving approximately 30 available rental options.

• Detailed numbers are available on the website.

4

Why Build an On Site Royal Oaks Office/Meeting Building?

• Significant dollar savings—immediate and long term.• Office lease expires in June. Rent increasing

significantly.• Reduces market risk. Not at landlord’s mercy.• HOA land is available in the community.• Bonus: Greater convenience for the residents

– Convenient location: center of community

5

Other Motivators

• Current space insufficient. More office and meeting space needed– No room for residents/guests in current meeting rooms

• Renting other meeting space is costly• Eliminate costly off-site storage ($530/mo)• New construction loan estimated at $290,000• Broad survey of rental space in area found new construction

would save an estimated minimum of $173,000 over first 15 years and another potential $1.3 million over the second 15 years.

6

7

Note: phones, internet, copy machine & appliances are needed at all locations and are excluded from cost comparisons.

RORCOA Office Facility OptionsFirst Year Costs

Size Class Office

Cost Storage

Cost

Total Monthly

Cost

11200 Richmond Ave. (Expand current suite) 2,474 sf A

$5,800 $529 $6,329

11222 Richmond Ave. 2,424 sf B $5,286 $529 $5,815Westchase Corporate Park J108-109 2,366 sf B/C $4,549 $529 $5,078RORCOA On Site Office -- Owned 2,424 sf NA $3,294 Incl. $3,294

8

Westchase Corporate Park Bldg J Suite 108/109 2,366 sf ("As Is" Condition)

First 15 YearsFirst Year Rent: 4,549$ First 15 Years Cost: 828,708$

Onsite Office -- Owned by the AssociationFirst 15 Years

First Year Monthly Costs: 3,294$ Ongoing Ownership Costs 655,312$

First 15 Years

Estimated Savings 173,396$

Renting vs Ownership

Ownership Savings

Bottom Line Lease vs Ownership First 15 Years

9

Build Out Costs

Ownership Estimates

10

• 2,424 sq ft (356 sq ft storage included)• Construction costs approx $120/sq ft• 15 yr fixed cost mortgage estimated @ 4.75-5.25%• Mortgage and operational costs $3,294/mo• Beginning year 16, the mortgage payment drops off reducing

the monthly cost to $1,251 (including inflation).

Ownership Estimates, Cont’d

11

• Estimated operational costs of the owned building.– Taxes: $706– Insurance: $50– Water: $50– HVAC Maint.: $30– Maintenance: 150 Total: $986 (2015)

• Electrical, janitorial & gas utilities are required for both the Westchase rental and the owned locations

Proposed Building

12

Proposed Location

13

Street ViewBonnebridge and Gallant Ridge

14

15

Preliminary Site Plan

16

Preliminary Floor Plan

17

Thank You