COMMUNITY MASTER PLAN GOLF & RESORT COMMUNITY

Conceptual Improvement to Trailways NORTH BEACH CLUB GOLF & RESORT COMMUNITY SOUTH BEACH CLUB GOLF & RESORT COMMUNITY

GATE

Island Hills Golf and Resort Community Overall Development Plan

I. Background The Island Hills Golf Club began development in 1999. Bob Griffioen and his family purchased the majority of the golf course and surrounding lots and in 2010. Over the past several years a number of additional lots have been purchased throughout the golf property. Mr. Griffioen and his related entities currently own the following: Griffioen Lots Total Lots Island Hills Condo Assoc. Phase I 28 65 Island Hills Condo Assoc. Phase II 103 124 Island in the Hills Condo Association 22 48 153 237

Additionally the LTPOA maintains Raintree Boulevard and has approximately 51 lots in the LTPOA Association directly east of Island Hills Phase II.

The original master plan approved in 1999 envisioned substantial residential and commercial development and amenities to serve golfers and residents. The goal of the development is to create a high quality destination resort that will rival other resorts in Michigan including Crystal Mountain, Boyne Highlands, Harbor Shores, etc. Given the improving residential markets today, Island Hills would like to continue its expanded development to respond to today’s real estate market needs. The following describes the amenities and the expansion plans to complete this project that will improve the value not only for existing and future residents in the Island Hills Golf area, but the surrounding Lake Templene areas as well.

II. Development Areas There are four development areas described as follows:

A. South Beach Area B. Trail System/Miscellaneous Improvements C. North Beach Area D. Beach Club Concepts

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A. South Beach Area The South Beach development area would extend from the existing clubhouse in a northerly direction to the corner of Lake Templene where the existing boat docks are located. The highlights of this area includes the following:

Phase I  Construct underground cart barn building  Event tent on top of golf cart building for weddings, fund raisers, etc.  Swimming pool and bathrooms, Tiki bar at pool  Small beach near pool and/or along Lake Templene shoreline with boat club  6 single family cottage homes  Expansion of clubhouse o new porte cochere o restaurant improvements o Golf starter shed

Future Phase Improvements  Future activity center (an alternate location for the activity center may be near the existing golf maintenance barn) containing: o health club/fitness area o game/card room o Zumba/yoga class room o related activity center that you would find in high quality resorts  Indoor pool to enhance winter activities

B. Trail System and Miscellaneous Improvements – Phase I

Trails: Construction of trails throughout the golf course will enhance the master plan which will promote and encourage pedestrian, biking and golf cart usage. We have discussed the potential of additional trails around Lake Templene with the LTPOA and hope that these can be expanded in the future in other subdivisions as well.

Storm Drainage: We plan to provide improvements to the storm water drainage system in particular in the Island Hills Condo Association Phase II area to meet proper engineering standards.

Dredging: We are considering dredging of the south-westerly end of the lake to improve water quality etc. This dredging is subject to permits, which will be pursued in the coming months from the MDEQ.

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Gates/Landscaped Entry Points: Our plan is to install 3 gates; one at Raintree near Findlay Road, a second by the end of the cul-de-sac on Raintree and a third by the Golf Course parking lot. The gates will be accessible by Residents and Club Members. Extensive landscaping is also planned at the entry points to bring the development to a much higher level of distinction.

Island Hills Associations: Most quality resorts have a “Master Association” with the goal to simplify road maintenance/usage/landscaping where efficiencies can be achieved. The Master Association would be responsible for the maintenance and collection of HOA dues and the operations/maintenance/management of all common elements such as:  Roads including Drainage  Signage  Gates  Landscaping

It is the intent of the development company to pay for all capital costs of the improvements with no assessment to any existing owners (except the asphalt overlay road improvement already underway). The operations/maintenance/management costs of the improvements would be shared, on a pro-rata basis among those benefiting/using the common areas.

C. North Beach Area This is a future development which we will pursue approvals later this summer. The concept for the North Beach area is an initial of 10 acres which would contain a mixed community including the following:  24 Single Family Home Sites (we call them cottages)  Recreational Amenities including: o Beach o Boat Club o Swimming Pool o Tiki Bar o Restrooms o Tennis Courts o Open Space/Soccer Field o Community Septic Field

The density of these individual home sites is consistent with existing R-2 . This area will require a combined septic system subject to county and state approvals and we intend to comply with all standards as appropriate. We are planning on providing over10 acres in this initial development area; therefore there are no changes in traffic or overall density. Again it is simply reconfigured to be compatible single family housing in today’s real estate market. An example of this would be the cottages at high quality golf resorts at Crystal Mountain, Harbor Shores, etc. Based on the success of this initial North Beach development zone, additional

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cluster housing zones could be considered to replace the existing platted 100’ x 200’ lot grid.

D. Beach Club Concept – Phase I – South Beach Club The idea of the two Beach Club areas will be to provide a variety of amenities that can be utilized on a membership basis by residents in the Island Hills Club development area and neighborhoods. This would be operated similar to Golf Clubs/Yacht Clubs/Association Amenities at various quality resorts throughout the Midwest. Essentially a membership initiation fee and annual dues support the club cost of operation. The preference of membership in the Beach Clubs (subject to availability) will include the following:

1. Existing Association Residents in Island Hills 2. Lake Templene Association Members 3. Other Residents

The beach club rules will also have nuisance provisions to restrict noise, etc. We will enforce that provision by canceling a membership for nuisance violators.

We have also reached an agreement with the Lake Templene Property Owners’ Association (LTPOA) which includes a boat restriction in our boat club as follows:

Boat Club Restrictions: The beach club could contain a boat club that will have a number of watercraft which can be utilized by its members. However, the watercraft, since they are owned by the club, will be restricted to non-wake boat and non-high speed watercraft. Allowable watercraft will be pontoon boats with electric motors (utilizing solar power generation where possible), small sailboats, kayaks, and the like. The boat club will NOT have any high-speed power craft, wake boards, etc. The marina area may have a future fuel facility; however, that is something that may also be considered AT alternative, more convenient sites on the Lake, in conjunction with the Lake Association plans.

III. Summary We believe the amenities described herein and the future direction for development of the Island Hill Golf Resort ensures the long term success and values of both the golf club and Island Hills Community neighborhoods. This will be a phased program which likely will be completed over 5+ years. The residential construction is also likely to extend beyond 10 years pending market conditions.

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