2. Millions of dollars’ worth of real estate and the accompanying ad valorem and Accommodation taxes lost year in and year out. No protection for other existing structures that may be in the same condition in the near term. Costs of the cleanup should these houses should they collapse into the ocean ( North Topsail Beach cost to the Town for six structures $2.3M, removal and litigation.) Structures most likely may not collapse, but they may sit in the surf for several years on pending litigation Dangerous debris left in the surf. Beach could be unusable permanently Negative publicity, and damage to home prices town wide for the Town’s negligence in allowing this to happen The Consequences

3. Lost tourism and accommodation tax dollars, (No one wants to sit on a washed out beach.) Individual loss in property values, for the WHOLE TOWN ( Towns that have an active beach nourishment program have 20% higher property values) Loss of expensive Town infrastructure (Roads, sewer and water lines, underground electric lines parking lots etc.) The expensive process of debris removal from erosion will most likely have to be bourn by the Town. ( FEMA money would only be available for a declared disaster) Consequences (Continued)

4. State of the Beach Prior to the Project Prior to 2001 – The Beach was severely eroded East Beach had completely eroded – lots of property loss The Sea Horse Apartments were near collapse along with about a dozen other houses. The Federal Upton Jones Amendment help to pay for their removal. ( That option is no longer available) One of the two Town owned cabanas had been destroyed. Hurricane Diana imitated the damage to the beach and several years of Nor'easters and lunar high tides played continuing negative role. State of the Beach after the project The beach has lasted for 15 years and has not had any significate damage, but will need to be renourished in the near future.

5. Federal None State of NC None ( With the exception of Dredging Funds ) Brunswick County None ( With the Exception of 2014 Funding and participation of property tax commitment by the Town) There are no Sand Fairies or Sandy Claus ’.

6. OKI Taxpayers- 0% Day Trippers- 0% Beach Renters - 100%

10. Beach Nourishment Works

11. Kure Beach Carolina Beach Wrightsville Beach, Emerald Isle Beach, Indian Beach Atlantic Beach, Holden Beach Nags Head Topsail Beach Ocean Isle Beach NC Beaches that Have Sand or Beach Management Programs

12. Holden Beach Current Beach Nourishment Program to Start This Year ( November 2016) 1.5 Million Yards of Sand 4-5 Miles of Beach ( Middle of the Island Cost Estimate $15M Financing $12M Accommodation Tax Fund $3M Financing – Special Obligation Bonds

21. The Two Primary Responsibilities of Municipal Government is to Provide for:  1. The Public’s Safety, and  2. The Protection of Property

22.  The Committee recognizes the eminent danger of erosion to the Town, economically, recreationally, and the Town’s financial future.  Therefore:  The Beach Committee respectfully recommends to Council that Council start funding a beach nourishment fund in the upcoming fiscal year FY 16-17 commensurate with projected amounts as recommended by the Peter Ravella Study.