FAQ’S ABOUT THE EVERGREEN PROPOSAL (posted 5-20-08):

How can I be assured that I will still be able to afford to play golf at MMGC?

A: Current local residents will be given a membership card that will give them special pricing for the long-term. EverGreen has proposed that locals will get the current price they pay in year 1 and then price increases will be capped at the annual CPI inflation rate. There will still be an annual membership like there is now.

Will locals have the first opportunity to buy some of the development lots?

A: Yes

Are you planning on selling the golf course?

A: The golf course will continue to be owned by the County. The lease that EverGreen is seeking would ensure that if the County sells the golf course the lease will remain in effect.

What will the sequence of development be?

A: This is the anticipated sequence: (1) secure water rights for the existing course and the new 9 holes, (2) construct the new 9 holes, (3) EverGreen closes on the purchase of the development land, (4) upgrade and expand the clubhouse, (5) begin construction on the golf course new-home community.

What happens if the golf course can’t meet its debt obligations?

A: One benefit of the proposal is that EverGreen land Co. will assume the current golf course debts. EverGreen has sufficient financial resources to retire the debt immediately if it chooses to do so.

Does EverGreen have the resources to complete the development once it is started?

A: Yes. EverGreen is well-capitalized, with no bank debt. Depending on the scale and timing of its development activities in Lake County, the company may seek additional equity funding as the projects progress. It intends to stay bank debt-free to avoid the possibility of a bank foreclosing on its properties.

We don’t have enough water for our existing nine holes. How do we get enough for 18 holes?

A: The preferred option is to reuse water from the wastewater plants that EverGreen intends to build to support its developments upstream from the golf course. It is also possible that the wastewater facility associated with the golf course homes could be used to water the golf course. EverGreen is currently working with water attorneys to determine the legal ramifications of that plan. As a last resort, EverGreen would buy water rights for the water needed, and is in the discussion stage with possible suppliers of those rights.

Understanding that EverGreen will have a significant investment in the golf course, but that MMGC will be operating it, how will EverGreen protect its financial interest?

A: The arrangement would be similar to many golf clubs around the country where the course is owned by non-members and the members have a Board that makes the day-to-day decisions on the operations of the golf course. In matters that would have a significant financial impact on EverGreen, the company would have final say.

MMGC owes $330,000 on the irrigation system, and the golf course land is the collateral. What becomes of that debt?

A: EverGreen would assume the debt. It has the financial resources to pay off that debt immediately, if it chooses to do so.

When would construction begin?

A: If EverGreen’s proposal is accepted this summer, it is likely that construction of the new 9 holes would begin in the summer of 2009. The construction of the new home community would likely not begin until after the new 9 is completed and the timing would depend on (a) the pace of the other EverGreen developments in Lake County and (b) market demand for the new golf course homes.

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