January 20, 2009

Dear Neighbors,

Re: Pelican Reef Tennis Courts

The Board of Directors requests your feedback on the following issue:

As you may or may not know, The Pelican Reef Tennis Courts (Topsail Tennis Club) are owned by the original Pelican Reef Developer, Don Rhine, not by the Pelican Reef Homeowners Association.

Mr. Rhine is looking to sell the Tennis Courts (Club) and has offered them to the Pelican Reef HOA. If Pelican Reef does not purchase the courts (Club) he will offer them to other entities. We have told Mr. Rhine that we are interested and asked him to give us time to investigate our options. As we see it, we have three (3):

1. Decline his offer and we would then be faced with an “Outsider” owning the courts and the issues that would entail. 2. Ask the entire Pelican Reef membership if they would support an assessment to purchase the courts (approximately $210.00 per member). 3. Determine if there are enough Pelican Reef HOA members to support the courts (Topsail Tennis Club) and have it pay for the purchase and upkeep.

The Board of Directors does not support options 1 or 2 and is in favor of pursuing option 3.

Some facts for you consider:

• Every Pelican Reef Property Owner has been given a free membership to the Topsail Tennis Club with the purchase of their lot.
• The cost for Property Owner members to play is $25.00 per month or $12.00 per hour.
• The cost for Non-Property Owners to play is $35.00 per month and the majority of them paid a fee, to the developer, to join the club.
• The Club is currently run by Mr. Howard Hess of Hampstead and he is compensated by Don Rhine for his work. Mr. Hess is well known in the Hampstead area for his efforts in getting the tennis courts at Topsail High School built. He is also involved in coaching the THS tennis teams.
• The courts are “Har-Tru” clay courts and have a working underground irrigation system.
• Currently there is no “Night Play” on the courts as the Pelican Reef HOA controls the lights.
• Mr. Hess has indicated that the courts will support approximately 40 to 50 members if we allow “Night Play”. This number is determined by the time needed to play and the wear & tear on the courts themselves. “Tennis” shoes are a must for play on this type of surface; any other type of footwear will cause excessive wear and increased maintenance of the playing surface.
• Mr. Hess has indicated that he would continue to run the club for us, at his current rate of compensation, until such time as we could take it over.
• “Night Play” and the lighting cost could be controlled by installing a timer for the lights.
• Non-Property Owners could be limited to a specific number and their playing times could be controlled to allow Property Owners adequate playing time.
• We would need approximately 30 - 40 “Owner Members” paying $20.00 per month ($240.00 per year) to make the purchase viable. If we do not have 30 - 40 interested “Owner Members” a limited number of “Non-Owner Members” could be added to make up the difference and they could be charged a fee for joining.
• The “Club” could be rented out to a “Tennis Pro” for lessons and a specific time slot assigned so as not to interfere with “Member Play”.
• If purchased, the Pelican Reef HOA would own the Topsail Tennis Club and more importantly the land upon which the tennis courts sit.

Your timely input on this matter will be greatly appreciated as we wish to make a decision as to how to proceed at the earliest possible date.

Please contact Dennis O’Bannon dennisobannon@charter.net, 270-0318 (home) or 297-2010 (Cell) if you would be willing to join the Tennis Club.

Sincerely,

Pelican Reef HOA/BOD