Project DescriptionRed Fox Run is a luxurious and maintenance free living community for active adults, 55 and older, in Longmont, Colorado.

Red Fox Run will include 32 new homes when complete: Two buildings will be a triplex model Twelve buildings will be duplex model Existing house on property will be separated and modified to become a club house and single family home

Project Location: 12121 Saint Vrain RoadLongmont, Colorado 80501

Colorado Front Range Location

Location BenefitsClose proximity to city of Boulder, Front Range Foot Hills, and Denver-Metro Area, including Denver International AirportProperty is adjacent to Longmonts only private country club and golf courseSince 2000, the Longmont area has grown 17% In 2000, Forbes Magazine listed the Longmont/Boulder area as number 3 nationwide in Highest Educated population percentage In June of 2006, Longmont was named an All American City by the National Civic LeagueIn 2008, Money Magazine included Longmont in their Best Small Cities report4.69% state income tax rate7.96% property tax rate on homes

Arial View of Project LocationRed Fox Run is located across the street from the only private golf course in Longmont, Fox Hill Country Club

55 and Older Active AdultsThe aging of our population shows growth in housing projects that emphasize quality and maintenance free living. Amenities that enhance an active lifestyle are required for success.

Red Fox Run would provides the followingopportunities to its owners: Freedom from home & landscape maintenance Private club house with outdoor patio and entertaining area Greenway connections to the community Adjacent private golf course and county club access

Standard AmenitiesRanch style homes Utilization of green technologiesEnergy efficient stainless kitchen appliancesEnergy efficient natural gas heatTinted windowsBrick or stone with stucco constructionConnection to bike path and greenway opportunities

Fox Den Club House access with sauna, hot tub, state of the art (ROM) weight machine, outdoor fire pit and BBQ grillPrivate patio for each home10 and 18 wide garage doorsExterior maintenance of buildings and groundsCentral air conditioning

Optional AmenitiesFinished second storyOption of additional closets and configuration for upstairsBasementFinished/unfinishedFloorsHard woodTileSlateUpgraded carpetingUpgraded kitchen appliances, additional oven, etc.In home security camera for on & off site managementCrown moldingsWhirl pool jetted bath tubs with tank-less hot water heaters

Upgraded doorsConcrete enclosed sound proof area under garage floor for storage, wine cellar, protection, etc.Elevator option Extended garage for tandem parkingMembership to Fox Hill County Club (monthly dues paid by home owner) which includes access to:18 hole, par 72 golf courseDriving rangeTennis courtsSwimming poolWeight machineClub House restaurantBanquet room(s)

Model Floor Plans

Black Fox Model Street View

Black Fox Model Floor Plan 1,596 square feet

Silver Fox and Red Fox Model ComboStreet ViewSilver Fox ModelRed Fox Model

Silver Fox Model1,258 square feetRed Fox Model1,498 square feet

Red Fox Run Ownership DirectionIn the current development process of Red Fox Run, the project end-result is still able to be determined. The decision is still able to be made whether to:

sell each individual home under the government of a HOAb) retain ownership of the project, lease individual homes with a management company, and sell at a later date

Sales vs. Leasing of HomesSales advantages include:More immediate return on investmentShorter duration of project involvementConventional sales with a Home Owners AssociationAttached patio homes with unique community amenitiesLeasing advantages include: Positive cash flow when project is 80% leasedAppreciation of project over timeAttached patio homes with unique community amenitiesBest potential return on investmentUnique services for communityVehicle with Driver (8am 7pm)Handy Man services8hrs/7day Medical Services

SALESLEASING

Vertical Construction: 45,234 finished square feet will cost $148/square foot: = $6,694,632*

TOTAL CONSTRUCTION COST = $9,382,095

*This does not include any possible extras and upgradesOverview of Projected Expenses Sales or LeasingDevelopment Expenses: 33 Homes will cost $81,438 each

Detailed Projected Expenses Sales or LeasingLand Cost $1,200,000City Fees$ 450,000Affordable Housing ParticipationRaw WaterTrafficOffsite TransportationUtility ImprovementsInspectionsUtility Tapping FeesPhase 1 Site development $ 204,355Phase 2 Site development $ 270,136Phase 3 Site development $ 286,825Off-site Drainage $ 96,147Landscaping, Gas, Electric, General Conditions $ 450,000 TOTAL = $2,957,463

Sales Phasing Revenue PHASE 1PHASE 2PHASE 3

TOTAL COST$9,382,095TOTAL SALES$12,251,521GROSS PROFIT of 23% (before Real Estate Commissions)$2,869,426

Detailed Standard Home Pricing: Sales

Lease Price BreakdownTotal Construction Cost = $9,382,095Interest on 25 year loan at 8% interest = $9,382,200Payback of construction cost + interest = $18,764,295Project Yearly Payback Cost = $750,568Project Monthly Payback Cost = $62,547Individual Home per sq/ft Payback Cost = $1.38Leasing Management & Amenities Cost Project Yearly Cost = $451,512Project Monthly Cost = $37,627Individual Home per sq/ft Cost = $.83GRAND TOTAL LEASING EXPENSES TOTAL YEARLY = $1,202,170TOTAL MONTLY = $100,180TOTAL SQ/FT = $2.21

Detailed Leasing Expenses

RED, SILVER, SNOW & BLACK FOX HOMESAmenities ProvidedYearly BudgetLandscape (mowing, trimming, floral, etc.)$16,800Snow Removal$6,000Upkeep (roofing, paint, etc.)$28,342Utilities (gas & electric)$92,070Handy Man services$14,4008hrs/7days Medical Service$144,000Vehicle/Van$8,400Insurance & Taxes$59,200

FOX DEN CLUB HOUSEAmenities ProvidedYearly BudgetMaintenance and Cleaning$24,000Equipment Replacement$4,000Insurance & Taxes$2,500Utilities$7,800

GRAY FOX HOME FOR DRIVERAmenities ProvidedYearly BudgetDriver Salary (8am 7pm)$42,000Insurance & Taxes$2000

TOTAL YEARLY COSTTOTAL MONTHLY COSTCOST PER MONTH PER HOMERed, Silver, Snow & Black Fox Homes$369,212$30,768$962Fox Den Club House$38,300$3,192$100Gray Fox Home$44,000$3,667$115GRAND TOTAL$451,512$37,627$1,177

Leasing Home Revenue

Competing Active Senior Housing

Competitor: Aspen Grove

55 +SizePriceBuiltYes1,635 sq ft$284,0001998

Competitor: Hover Ridge Duplexes

55 +SizePriceBuiltYes2,600 sq ft$250,0001983

Competitor: Villas at HoverLuxury Senior Housing

55 +SizePriceBuiltYes1,419 sq ft$362,0002008

Competitor: Regent Apartments

55 +SizePriceBuiltYesn/a$1,320 - $2,5951987

Competitor: Sonoma Villa at Ute Creek

55 +SizePriceBuiltNo1252 sq ft$200,0002008

Current Project StatusMeets requirements from the City of Longmont and zoned as individual units for sale as a 55 and older communityVerbal agreement with adjacent property owner for utility crossingDraft of HOA documents1,200,000 equity value

Projected Partner Involvement OptionsPartner assumes existing mortgage from current lender; payback when project is 75% completed.Partner could assume any portion of equity based on the value of $1,200,000