The Village at Izatys Association, Inc

The Village at Izatys Association, Inc. Board of Directors Meeting

Wednesday April 21, 2010 Zappa Management Group, LLC 14194 63rd Avenue North Maple Grove, MN 55311

President John Eggers called the Village at Izatys Association Board of Directors meeting to order at 6:05 pm. In attendance were Board Members Tom Kraus, Roger Swanson, Jerry Sauer, and Ron Zappa. Ad Hoc Committee Members in attendance were Michelle Baringer and Roger Rohlek. Board members Bill Everett and Erv Lentz were not in attendance. Representing Zappa Management Group were Tom Baltz, Executive Vice President and Resort General Manager, and Joan Lewis, Controller. Joan Lewis was appointed Recording Secretary.

The minutes of the January 6, 2010 Board of Directors meeting were unanimously approved.

Izatys Resort Sale Update

Resort Purchase Update

Ron Zappa reported on the status of the sale of Izatys Resort to Roy Winjum. Roy will be meeting with the County Board on May 5, 2010 to present his plan for the resort. The final purchase is contingent on Roy receiving approval from the County and Township for the proposed development of a high-end RV Park, as well as, approval to expand the current sewer system from both the Village Association and the Townhome Association. Members of the Village Association met with Roy on March 16, 2010 and, after hearing his proposal, gave Roy an approval in principal regarding his plans.

Interim Lease Agreement

Jason Tollette has an interim lease agreement with the banks to operate the Izatys Resort during the 2010 season. This includes operation of the golf course, clubhouse, hotel, and marina.

Amenities

After discussion with Jason Tollette and the current and prospective owners of the resort, Zappa Management arrived at a cost estimate for the operation of the tennis courts, leisure links, hot tub and the outdoor pool for the 2010 season. It was proposed that the

1 costs be allocated among the Tollette group and both Associations. As the costs for maintaining Leisure Links is an estimate and would be difficult to monitor, the suggestion is that the Tollette group pay 100 % of that cost and the Associations split the 2010 cost of starting up, operating and shutting down the pool. After discussion, the proposal was accepted.

Tom Kraus made a motion to accept the proposal that the Association participate in the cost of the pool start up, operation and shut down, up to a limit of 40% of the cost, actual percent to be determined after a committee discussion with Izatys Townhouse Association. The motion was seconded and passed with four affirmative and one opposed.

Committee Reports

Finance Committee

Tom Krause reviewed the 1st quarter financial statements. Net income is $38,000 over budget at this time. Expenses are being controlled and the Association financials reflect the reduction in the real estate taxes and the insurance costs.

The refinancing on the Administration/Maintenance building is in process. The Venture Bank has been reviewing financials and is currently awaiting the results of the appraisal.

Ron Zappa reported on the insurance costs for 2010. This appears to be the last year that insurance costs will decline.

The 2010 real estate taxes are down about 6% due to the reduced valuation of the property.

Tom Baltz reported on the status of the registration of B-4. The registration has been completed by the attorneys and has been delivered to the Department of Commerce. This has yet to be confirmed by direct communication with the Department of Commerce.

House and Grounds Committee

Tom Baltz reported on the landscaping project in the C units. There will be continued planting in C-5, 6, 7 & 8. The plants will be the same as were used in C-1, 2, 3 & 4.

The bathroom handrail issue was reviewed. The Management Company has researched options available for units C-1 through C-8.

Ron Zappa made a motion to approve the installation of 36 inch, 24 inch and 12 inch handrails in the lower bathrooms of C-1 through C-8 at an estimated cost of $2,000.00. The motion failed for lack of a second.

2 Communications Committee

The lighted sign in the reception area was discussed. Due to the many options discussed, it was recommended that the project be reviewed by the office staff and their ideas regarding the layout and what type of pictures would work best to deliver the message the Association wants to give.

Action Item – Office Staff is to develop a plan and will consider feedback. Report back at the July meeting.

After discussion, it was proposed that instead of spending $3,000 to send out a newsletter at this time, that we update the owners electronically and use the website to communicate as things progress regarding the status of the resort sale and the fact that the resort will be operating during the summer season.

Action Item – Michelle Baringer and Tom Baltz are to work out the details of electronic communication.

Policy Committee

There was no policy committee report.

Resort Manager/Property Management Report

Tom Baltz commented on the status of the 2010 Renovation/Replacement plan. The Adirondack chairs and the benches have been ordered from By the Yard, and should arrive in approximately 2 weeks. The new furniture is in, and the case goods will be assembled and installed in C-1 through C-8.

The roofing on A1 & A2 has been completed. The claim on the D, E and F units are still being negotiated due to the fact that the management company believes that a suitable color match has not been found.

The asphalt cracks on the road by the F units, as well as, cracks through the resort have been repaired using a method that routed out the cracks and then filled them with a rubberized material that is flexible.

Tom showed photos of the damage to the road by the C units. Repairs are estimated to be around $14,500 but definitely need to be done. After discussion regarding the details of the repairs the following motion was made.

Tom Kraus moved that the repairs be made to the road as detailed by Tom Baltz in his report. The motion was seconded and approved unanimously.

3 Old Business

There was no old business.

New Business

Tom Baltz read a letter from an owner, stating that due to medical reasons, they were no longer able to utilize their unit and asking to turn it over to the Association.

Jerry Sauer moved to accept the unit with the stipulation that the owner pay the deed registration fee. The motion was seconded and passed unanimously.

There was a discussion regarding the sales amount to apply to the unit on the web site. The consensus was to charge the following for any Annual units put on the web: A & B units $5,000 C Units $3,000 D E & F units $4,000

Bi-Annuals would be listed at ½ the above price.

Ron Zappa presented an updated appendix to the Sewer Agreement which states the approved categories of operating costs. It is a more formal presentation and covers all expense categories. It takes approval of 2 of the 3 owners in order to make this change.

Tom Kraus moved to approve the updated appendix. The motion was seconded and approved unanimously.

Tom Baltz reported that the windows in C-5 have been found to be rotting. The sashes are falling out. A total of 6 windows are in need of replacement at a cost of approximately $3,500.00

Tom Kraus moved to authorize the replacement of six windows in C-5. The motion was seconded and approved unanimously.

The meeting was adjourned at 8:50 p.m.

Respectfully submitted by Joan Lewis, Recording Secretary

4 Action Items and Motions to Act Upon

1. Motion – Tom Kraus made a motion to accept the proposal that the Association participate in the cost of the pool start up, operation and shut down, up to a limit of 40% of the cost, actual percent to be determined after a committee discussion with Izatys Townhouse Association. The motion was seconded and passed with four affirmative and one opposed.

2. Action Item – Office Staff is to develop a plan and will consider feedback. Report back at the July meeting.

3. Action Item – Michelle Baringer and Tom Baltz are to work out the details of electronic communication.

4. Motion – Tom Kraus moved that the repairs be made to the road as detailed by Tom Baltz in his report. The motion was seconded and approved unanimously.

5. Motion – Jerry Sauer moved to accept the unit with the stipulation that the owner pay the deed registration fee. The motion was seconded and passed unanimously.

6. Motion – Tom Kraus moved to authorize the replacement of six windows in C-5. The motion was seconded and approved unanimously.