1. South Fork East Final Report December 28, 2015 Kevin Nobles 1

2. 2 Background Meritus Corp. seeks to conduct a survey among the homeowners in a Riverview community they manage to explore the interest and support of additional amenities within the community. The results from the survey will be used to provide guidance to the community’s Board of Supervisors. Objectives Assess the interest among South Fork East residents for new amenities within their community Determine the relative appeal of the proposed amenities Identify the annual amount residents would be willing to pay for the additional amenities Facts of the Study Homeowners, builders and real estate investors in the South Fork East Community were given access to the online survey from November 9 – December 13, 2015. Postcards were mailed out to residents informing them of how to access the survey. 184 respondents accessed the survey with 150 completing all of the questions.

3. 3 1.The majority of residents are definitely not interested in having the amenities proposed by the Board of Supervisors built in the South Fork East community. 2.The cost of the project and the subsequent increase in CDD fees are the main reasons respondents were not interested in the amenities. Net, residents do not see the value the proposed amenities will add to their community. 3.The most common response when asked what they like about the proposed amenities is “nothing”. 4.The fitness center is the most appealing of the proposed amenities. Some participants believe a fitness center would help boost their health. 5.New playground equipment and a pickleball court are the least appealing of the proposed amenities. 6.The average annual amount that respondents are willing to pay for the proposed amenities is $118. 7.The majority of the respondents are satisfied with the maintenance of the current amenities within the community. 8.Over 80% of the respondents desire to see the current bonds paid off before additional debt is incurred. 9.Many residents believe the current CDD is too high. Some express concerns with being able to afford their home and its resale value if the CDD is increased. 10.A few believe the current amenities are not sufficient or comparable to other developments. 1.The majority of residents are definitely not interested in having the amenities proposed by the Board of Supervisors built in the South Fork East community. 2.The cost of the project and the subsequent increase in CDD fees are the main reasons respondents were not interested in the amenities. Net, residents do not see the value the proposed amenities will add to their community. 3.The most common response when asked what they like about the proposed amenities is “nothing”. 4.The fitness center is the most appealing of the proposed amenities. Some participants believe a fitness center would help boost their health. 5.New playground equipment and a pickleball court are the least appealing of the proposed amenities. 6.The average annual amount that respondents are willing to pay for the proposed amenities is $118. 7.The majority of the respondents are satisfied with the maintenance of the current amenities within the community. 8.Over 80% of the respondents desire to see the current bonds paid off before additional debt is incurred. 9.Many residents believe the current CDD is too high. Some express concerns with being able to afford their home and its resale value if the CDD is increased. 10.A few believe the current amenities are not sufficient or comparable to other developments. TAKEAWA YS

4. Implications & Recommendations 4 Implications An overwhelming majority of residents are not in favor of building the proposed amenities in the South Fork East Community. The cost of the project is seen as too high, resulting in higher CDD payments. The fitness center is the most appealing amenity as some residents believe additional fitness equipment would be beneficial to them. In general, the community is satisfied with current maintenance of existing amenities. Recommendations The Board of Supervisors for the South Fork East Community should not pursue building the amenities as proposed. Should the Board of Supervisors seek to improve the amenities in the future it should consider fitness related improvements as this was the most appealing amenity. The Board of Supervisors should also seek to pay off existing bonds before incurring additional debt.

5. Who are the participants? 5

6. All participants in the study are homeowners in the South Fork East community. The majority of the respondent have lived in the community for at least 4 years. 6

7. Every subdivision had a least one respondent with the exception of the Enclave. 7

8. What did we learn? 8

9. Two-thirds of the respondents are “definitely not interested” in having the proposed amenities built in the South Fork East community. 9

10. The cost of the project (potentially resulting in an increase in CDD fees) is the primary reason for being opposed to the proposed amenities. 10

11. 11 “The cost is not worth it. What happens to the area that has the playground once the equipment is moved?” “The new amenities are nice in theory, but our current CDD rates are too high. Nothing proposed is worth making them even more expensive.” “If folks want a fitness center, let them join a gym. I am already paying for current amenities and don’t even use them. I don’t want to pay for something I will never use.” “I don’t want a smaller pool. My husband and I do laps several times a week. The style of the new pool does not allow for that.” “We do not wish to pay more than we already do and feel it will hurt resale when our CDD / HOA is even higher than it is now.” Negative Comments

12. When asked what they like about the proposed amenities, “nothing” is the most common response followed by the fitness center. 12 Given that “nothing” is the most common response for what is liked about the proposed amenities, this further underscores the lack of support for the project.

13. 13 “Fitness center if done correctly would be something most residents could use. If done correctly. I pay $32 monthly for a membership.” “Would be good to have more things to do in the community” “Nothing. We moved here with the current amenities as is. We’re good with no additional amenities / changes.” “A real clubhouse, fitness center, tennis courts and shaded playground.” “It gives residents more options and will potentially build a better sense of community and pride in ownership. Having a fitness facility is wonderful.” Positive Comments

14. The fitness center is the amenity with the most interest. Pickleball and new playground equipment are the least appealing. Amenities Center Fitness Center Swimming Pool Tennis Court Pickle- ball Courts Basket- ball Court Relocate Playground Equipment Relocate Community Park Equipment New Playground Equipment Average Rank Order 5.882.395.154.246.234.684.665.166.61 14 Amenities Center Fitness Center Swimming Pool Tennis Court Pickle- ball Courts Basket- ball Court Relocate Playground Equipment Relocate Community Park Equipment New Playground Equipment Average Level of Interest 3.793.063.703.914.393.833.883.794.09 Rank order amenities from most appealing to least appealing; n = 118 Rate level of interest (1=very interested, 5=very uninterested) ; n = 150

15. The average amount residents are willing to pay for the amenities is $118 annually. 15 N = 148AverageMinimumMaximum Proposed Amenities $118.29$0.00$601.00 The average cost respondents are willing to pay is far below the estimated cost of $500. Exploring lower cost amenities or ways to lower the cost of the project could boost support for additional amenities.

16. Residents overwhelmingly desire to see current bonds paid off before the community takes on additional debt. 16

17. The majority of participants express positive to neutral satisfaction with the maintenance of current amenities. 17

18. 18 “I purchased here in 2007 knowing what amenities were in place. I don’t use the ones now and don’t have any desire to pay for more that we won’t use.” “The fact that this could potentially make our already high CDD fees even more expensive is ridiculous. Where does the money that we already pay go? Why are other communities able to have all of this and pay LESS than us?” “I feel as if South Fork East needs more amenities as it is growing / expanding and lacking common amenities such as tennis courts and fitness center compared to other similar planned developments.” “This proposed project has never been justified. There is not substantial reason to take on the project other than to keep up with the joneses. We already have the highest CDD in the area with the least amenities. This project will raise fees far above others and will still not have equal amenities which will result in a drop of home values.” Additional Comments

19. Appendix 19 Positive Comments Negative Comments Additional Comments

20. Contact Information 20 Kevin Nobles, President Phone: 813.977.7700 Fax:813.971.0346 Email:kevin@noblesresearch.com