INDIAN CREEK GOLF CLUB Post Flood Analysis September

SCHEDULE OF OPTIONS REVIEWED  Base Line - 36 Holes – Pre Flood  Scenario 1 – 18 Hole Course with Executive 9 and training facility – Eagle Proposal  Scenario 2 – 18 Hole Only - Lakes  Scenario 3 – 36 Hole Renovation – Independent Consultants  Scenario 4 – Nature Center Only  Scenario 5 (Possible Election) – Public/Private Partnership  Convert Creeks to Championship Course and build a Hotel (both would be run by a Developer (Private Capital) while City would operate Lakes Course  Developer manages entire property  Scenario 6 (Possible Election) – Reclaim Property for Unknown Development Purposes  Requires consulting study, including market and flood plain analysis, recommendations and proposed outcomes 2

BASE LINE ANALYSIS  Assumes Pre-Flood 36 Hole Operations  Includes remaining debt service payments for 2016 and 2017  77,000 Rounds (45,000 Creek and 32,000 Lakes)  Estimated resident 15-20%  Revenue to the City is Based on 28% of Net Revenues 3 FY 2016FY 2017FY 2018FY 2019FY 2020 GROSS REVENUES 3,883,6653,941,6544,020,4884,100,8974,182,915 Carrollton revenue 1,011,3051,026,0231,046,5431,067,4741,088,823 Carrollton Revenue Less Debt Service and Operating Expenses 218,675259,662645,989658,909672,087 *Revenue is currently used for capital projects (bridges, restrooms, cart path repair, etc.)

SCENARIO 1 ANALYSIS  18 Hole Championship Course with 9 Hole Executive Course and Teaching Facility  Construction cost $11,000,000  Opens in approx. 18 months  75,000 Rounds (45,000 on 18 Holes and 30,000 on Exec Course)  City’s lease payment is reduced from 28% to 20% of Net Revenues  New bond is assumed for $11 million with a 10 year maturity at 3% interest rate 4 (Upgraded 18 holes, 9 hole executive course, and teaching facility) FY 2016FY 2017FY 2018FY 2019FY 2020 GROSS REVENUES -3,318,0003,384,3603,452,0473,521,088 Carrollton Revenue -545,100556,002567,122578,464 Carrollton Revenue Less Debt Service and City Operating Expenses (2,251,630)(221,261)155,448158,557161,728 - New Debt Payment (and Bond Repayments) 11,000,000(1,289,000) Total Operating Expense with new debt payment (2,251,630)(1,510,261)(1,133,552)(1,130,443)(1,127,272)

SCENARIO 2 ANALYSIS  Lakes Course Only (18 Holes)  Reopen in 2016  Estimated 40,000 Rounds per Year once fully renovated  City’s lease payment is reduced from 28% to 0% of Net Revenues  New bond is assumed for $3 million with a 10 year maturity at 3% interest rate 5 (Upgrade and open Lakes Course only) FY 2016FY 2017FY 2018FY 2019FY 2020 GROSS REVENUES 138,9562,056,0002,097,1202,139,0622,181,844 Carrollton Revenue -204,631208,723212,898217,156 Carrollton Revenue Less Debt Service and City Operating Expenses (2,263,175)(766,361)(400,554)(408,565)(416,736) - New Debt Payment (and Bond Repayments) 3,000,000(352,000) Total Operating Expense with new debt payment(2,263,175)(1,118,361)(752,554)(760,565)(768,736)

SCENARIO 3 ANALYSIS  Lakes Phase I Renovation - Reopens in Spring 2016 ($500,000)  Creek reopens October 2016 – ($2.5 million)  Lakes Phase II Renovation - may begin in 2017 ($2.5 million)  Payment to the City is Based on 28% of Net Revenues  New bond is assumed for $2.5 million for Phase II of Lakes Renovation in 2017 with a 10 year maturity at 3% interest rate 6 (Keep 36 holes, open Lakes Course, then Creek Course & phase in upgrade to Lakes Course) FY 2016FY 2017FY 2018FY 2019FY 2020 GROSS REVENUES 1,718,8673,850,6234,356,1364,443,2594,514,740 Carrollton Revenue 449,736997,3251,137,2511,159,9961,178,328 Carrollton Revenue Less Debt Service, and City Operating Expenses (786,430)230,964736,697751,431761,592 - Funded with Cash 3,000,000 - Phase II (Lakes) - New Debt Payment (and Bond Repayments) 2,500,000(293,000) Total Operating Expense with new debt payment(786,430)(62,036)443,697458,431468,592

SCENARIO 4 ANALYSIS  Replace both golf courses with a Nature Center  $2.5 million for CapEx to build Nature Center and make necessary removal of golf course infrastructure  Estimated $250,000 annual cost to operate the Nature Center  No revenue generated from the Nature Center  Operating costs would be funded from the General Fund 7 (Nature Center only) FY 2016FY 2017FY 2018FY 2019FY 2020 GROSS REVENUES Carrollton Revenue Carrollton Expense Including CapEx, Operating Expenses, and Current Golf Debt Service (for 2016 & 2017) (2,970,132)(623,661)(255,000)(260,100)(265,302)

SUMMARY OF NET PRESENT VALUE OF SCENARIOS Net Present Value (5 Years) Net Present Value (10 Years) Net Present Value (15 Years) Scenario 1Eagle Proposal – 18 Hole Championship with 9 Hole Executive and Training Center ($12.5 million)($11.9 million)($11.3 million) Scenario 218 Hole Only (Lakes with $3 million Renovation) ($6.8 million)($8.3 million)($9.7 million) Scenario 336 Hole Renovation ($5.5 million Phased) ($3.8 million)($1.0 million)($0.6 million) Scenario 4Convert Indian Creek to a Nature Center ($4.0 million)($5.0 million)($6.0 million) Scenario 5 – Possible Election Private/Public PartnershipTo Be Determined Scenario 6 – Possible Election Reclaim Property for Future Development Evaluate Property ($50,000 study) 8