1. Introducing FCSN Senior Facility Project Discussion on Senior Housing And Business Operation

2. Long-term Goal  To be a profitable and sustainable business that provides cost effective general public senior housing facility  Project will also provide an opportunity for FSCN community as an investment vehicle, and self (investor) occupied facility

3. Business Operation and Capital Investment Questions (1)  Type of senior housing:  Focus on assisted living with:  Drug management  Memory management  Nursing support  Food service (on-site bistro/restaurant)  On-site retail space for physical therapy, medical office, etc  Independent living facility close by, but not associated with the assisted living facility

4. Business Operation and Capital Investment Questions (2)  Detail cost structure of senior housing:  Capital costs:  Building/land (importance of location?):  Cost per sq ft?  Optimal total square footage for operation? (e.g. 100 rooms @ 200 sq ft per room)  Are there scaling penalties? (if we go smaller or larger than the optimal, are there penalties either way?)  Equipment cost:  Specialized furniture for different type of accommodations?  Cost per room (sq ft)?

5. Business Operation and Capital Investment Questions (3)  Recurring costs:  Staffing costs:  Average total per month  Average for specific field:  On-site nursing  Care giver  Food service  Janitorial  Office staff (facility manager, office manager, etc)  Maintenance costs:  Building maintenance (per sq ft)  Utilities  Transportation (shuttle service)  Insurance  Staff training

6. Business Operation and Capital Investment Questions (4)  Income:  What are the prevailing rate for comparable facility:  Average per resident?  Average per sq ft?  What is the industry norm in terms of ROI? What is a reasonable rate of return?  What are the major business and governmental regulation hurdles?  How is the competition?

7. Senior Facility Survey Questionnaire