FOCUSING ON THE FUTURE

H E R I TA G E B A YG O L F & C O U N T RY C LU B

ATTRACTING & RETAINING QUALITY STAFF

MAINTAIN COMMUNITY AESTHETICS & AMENITIES

CREATING A SHARED CULTURE

MARKETING / BRANDING OF HERITAGE BAY

CHICKEE HUT / POOL DECK RENOVATION

CASUAL OUTDOOR DINING

LONG RANGE PLANKEY STRATEGIC INITIATIVES

We have fifteen committees that, through their recommendations, help our Board of Directors govern Heritage Bay. Last year, with help from all of the committees’ members, the Board adopted a long-range Strategic Plan developed with the help of Dr. Gerald Schoenfeld, an expert in strategic planning from Florida Gulf Coast University. As part of this process, our Long-Range Planning Committee sent to our membership an online questionnaire and later held Strategic Planning Workshops attended by the Board, Committee Chairs and interested members. As a result, the Club identified six long-range Key Strategic Initiatives for Heritage Bay and clearly identified two major areas members considered high priority: (1) “Casual/Outdoor Dining” and (2) “Chickee Hut/Pool Deck Renovation”.

In response to this member input, the Board retained the services of the preeminent Southwest Florida architect, David Humphrey, to develop a plan to improve these two areas. David‘s planning process has included multiple member-attended focus groups and Town Hall meetings for additional member input and feedback.

We are now at a point of member decision to improve these two areas, not only to increase our competitive edge but also to enhance our enjoyment of Heritage Bay. Therefore, I proudly present to you our Heritage Bay Enhancement Proposal (HBEP)! The Board of Directors has endorsed this proposal as being in the best interests of the membership. We ask that you read the materials in this brochure carefully and consider the proposed plan thoroughly. We also urge you to vote YES for the HBEP at our annual meeting on April 25, 2019.

Sincerely,

Jim LemonsPresident, Heritage Bay Golf & Country Club Board of Directors

Greetings Heritage Bay Members,

We currently enjoy being one of Southwest Florida’s most desirable bundled communities. However, we have begun to fall behind some other clubs who have completed major renovations. As part of our Club’s Mission Statement, we seek not only to maximize member enjoyment, but also to reinforce Heritage Bay’s standing as the “best of breed”.

FROM THE PRESIDENT’S DESK

Heritage Bay Golf & Country Club will aspire to be among

the leading bundled golf communities in Southwest

Florida, providing a high-quality country club

lifestyle while emphasizing fiscal responsibility.

VISION STATEMENT

“There’s a great deal of evidence that suggests you’ll see a substantial erosion of your property value. With aging facilities plus an aging community, and no indication of improvement, that’s certainly a formula for lost property value. And the range of lost property value typically is 17-30%.”

Henry DeLozier at the Town Hall meeting on January 18, 2019explaining what happens if you take no action.

“I think it’s pretty easy to extrapolate from that data from the WSJ to the more general in what happens if you don’t keep up with amenities and improve the facilities, it can be pretty drastic.”Phil Newman is a Partner at RSM US, LLC, part of their National Club Service Team (NCST)

leading the private club practice, and head of the Naples office serving approximately50 local clubs. Mr. Newman was referring to a recent article in the Wall Street Journal.

“Capital improvements for up-market club communities like Heritage Bay are - by standards of best practice - on-going repairs and replacements of amenities and recreational assets. The customary standard for capital reserves is 7% to 9% of annual club revenues for capital replacements. In club communities characterized by sustained deferrals of capital funding, the annual contribution increases to more than 10% of annual gross revenue.

Some argue that reserves are unnecessary and that raising funds for capital repairs and replacements can be accomplished on an as-needed basis. We, at Global Golf Advisors, consider that approach to be unsound in light of the impact that capital spending has on surrounding property value.

The National Association of Realtors suggests that property value in club communities is uplifted by a margin of 9% over surrounding communities lacking updated amenities. Global Golf Advisors observes that this value-margin uplift ranges, in fact, from 17% to 30% for club communities with properly maintained lifestyle amenities.”

Henry DeLozier, Partner, Global Golf Advisors addressing the benefitsof dedicated capital reserves and upkeep of amenities.

WHAT THE EXPERTS SAY

HERITAGE BAY GOLF & COUNTRY CLUBCONCEPTUAL DRAWING OF EXTERIOR OF GRILLE ROOM EXPANSION

DESIGN CONCEPTS

HERITAGE BAY GOLF & COUNTRY CLUBCONCEPTUAL DRAWING OF INTERIOR OF GRILLE ROOM EXPANSION

DESIGN CONCEPTS

HERITAGE BAY ENHANCEMENT PROPOSALFLOOR PLAN FOR GRILLE ROOM EXPANSION

DESIGN CONCEPTS

Increase dining seatingIncrease bar seatingAdd weather resistant outdoor diningIncrease size of kitchen to allow simultaneous service in Main Dining and Grille RoomsAdd Grille Room dedicated restroomsRework Grille Room entrance to minimize crossover of wait staff with membersIncorporate an island bar to enhance member experienceIncorporate an operable glass wall to take advantage of golf course views and merge outdoors with indoorsAdd dedicated entrance to the Grille Room

••••

••

••

•

CONCEPTUAL DESIGN OBJECTIVES

Difference247021115

Proposed1047030

204

Existing8009

89

SeatingGrille Room DiningCovered TerraceGrille Room BarGrille Room Project Total

SEATING CAPACITY INCREASES 129%

Difference1,785

8151,900

400

445

5,345

Proposed3,3102,9201,900

400

4458,975

Existing1,5252,105

00

03,630

Square Footage AreaClubhouse KitchenGrille Room and BarCovered Terrace DiningMember RestroomsEmployee Breakroom &Restrooms in Kitchen Subtotal Total Additional Area

SQUARE FOOTAGE INCREASES

HERITAGE BAY GOLF & COUNTRY CLUBCONCEPTUAL DRAWING OF POOL CAFÉ & POOL DECK EXPANSION

DESIGN CONCEPTS

Create a more inviting“resort” style poolexperienceExpand Pool Deckseating areaExpand Pool and add zero entryCreate alternateseating optionsAdd shade options

•

•

•

•

•

CONCEPTUALDESIGN OBJECTIVES

HERITAGE BAY GOLF & COUNTRY CLUBCONCEPTUAL DRAWING OF INTERIOR OF POOL CAFÉ EXPANSION

DESIGN CONCEPTS

HERITAGE BAY ENHANCEMENT PROPOSALDRAWING OF FLOOR PLAN FOR POOL CAFÉ

Increase dining seatingIncrease bar seatingAdd weather resitant outdoor diningAdd kitchen to allow enhanced menu optionsAdd TVsAdd restroom fixturesProvide golfer pick-up windowProvide wet and dry member seating optionsIncorporate a peninsula bar to enhance member experienceProvide fans and screens to help control insects, wind and heat

• • • • • • • • •

•

Difference661170147

Proposed12219

160301

Existing568

90154

Pool SeatingPool CaféPool BarPool DeckPool Project Total

SEATING CAPACITY INCREASES 95%

CONCEPTUAL DESIGN OBJECTIVES

DESIGN CONCEPTS

$ 9,850,000 $ (1,900,000)$ 7,950,000$ 6,360

$ 860$ 72

ESTIMATED COST SUMMARYEstimated Project CostLess: Funding available from Capital & Reserve Funds & Operating SurplusBalance to be paid by Heritage Bay MembersEstimated cost to be assessed to each MemberEstimated costs @ 6.25% Interest rate for Ten (10) Year Term LoanInstallment Payment Options (Over Ten Years)Estimated Annual PaymentEstimated Monthly Payment

Prior to the member vote, all financing information can only be estimated. JS Held, LLC, our Project Manager, has provided cost estimates based on actual current construction costs and lender quotes. The estimate includes a 20% contingency. The total estimated cost for the Heritage Bay Enhancement Project is $9,850,000.

Some of this cost, an estimated $1,900,000, would be offset by Reserve funds, Capital contributions from home sales, and Operating Surplus. The available Reserve funds are from items already earmarked for replacement. The balance of the project cost would be member funded through a Special Assessment of an estimated $6,360 per member.

Members can opt to pay the Special Assessment in full or over ten years in annual or monthly payments.

FINANCING THE PROJECT

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HUMPHREY • ROSALA R C H l T E C T SN A P L E S, F L O R I D A (2 3 9) 2 6 3 -4 2 0 1

Construc�onLimits PHASE 1

PHASE 3 Construction LimitsPHASE 2 Construction LimitsPHASE 1 Construction Limits

DATESFeb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Approval of Site Engineering Package

Site Engineering Design and PreConstruction

Grille Room and Pool Design

Uutilities Relocation

Grille Room and Pool Permit

Covered Terrace Structure Begins

Grille Room Closed (kitchen and main dining room OPEN)

Pool and Chickee Hut Closed

Clubhouse Kitchen Closed

Pool and Pool Café Grand Opening

Grille Room and Bar Grand Opening

ACTIVITY

Aug - Oct 2020September 2020

October 2020November 2020November 2020

Grille Room Phase 3 - dining & kitchen CLOSEDPool Café Move-InPool Grand OpeningPost Construction Move-In & Sta� TrainingGrille Room Grand Opening

May - Nov 2019May - Sept 2019Begins Jan 2020

Mar - Apr 2020Apr - Sept 2020

Pre-ConstructionSite Utilities RelocationGrille Room Phase 1 - Covered Terrace StructureGrille Room Phase 2 - Grille dining CLOSED, kitchen OPENPool and Pool Café CLOSED

HERITAGE BAY ENHANCEMENT PROPOSAL CONSTRUCTION TIMELINE - 19 Months

Immediately after receiving a positive vote by the membership, in spring 2019 the enhancement project begins with pre-construction work. Construction activity begins with the exterior of the Grille Room in January 2020. The Grille Room and clubhouse kitchen expansions will be completed in three phases and are scheduled to re-open prior to year’s end 2020. Construction activity at the clubhouse pool and Chickee Hut will begin shortly after Easter 2020. This portion of the project, including an expanded pool deck, new Pool Café and bocce ball courts, is scheduled to re-open in October 2020.

NEXT STEPS

GOLF & COUNTRY CLUBH E R I TA G E B A Y

For HBEP updates and additional details visit the Enhancement Proposal page on the Member Website at www.GolfHeritageBay.com

We apologize if there are any unintentional omissions. We appreciate everyone’s involvement.

Mike Albarelli | Michel Anderson | Michael Apolzan | Claudette Azar-Kenyon | Bob Balser | Tom Bava | Tom Bohardt | Brenda Bouse | Linda Brodeur Robin Burkhart | Bill Cutcliffe | Doug D’Agata | Mike Davis | Ed Dean | Mary Jo Diegel | Maria DiTommaso | Mike Dubester | Bob Dubester | Denny Gant | James Geraghty | Bob Greiss | Joan Hall | Raymond Hart | Karl Heck | Jim Heckel | Bob Hill | Jerry Hollinden | Don Holmes | Donna Hunter | Jim Lemons | Bob Lukas | Mike Minor | Mark Moorhead | Frank Pepe | Janice Pons | Vince Pons | Don Porter | Maureen Pratscher | Laurie Puscas | Dan Puscas Ralph Reda | Rick Russell | Pat Seitsinger | Bill Sontag | Jim Stetson | Pat Vermeulen | Chris Vroom | Lisa Briggs, Club Design Group | Henry DeLozier, Gobal Golf Advisors | Linda Dillenbeck, Global Golf Advisors | Ron Epple, AMC Video | Melanie Frey, JS Held | Teddy Graham, Dimensional Design Group David Humphrey, Humphrey Rosal Architects | Rob Leitch, Edward Don & Co | Phil Newman, RSM | Dr. Gerald Schoenfeld / Florida Gulf Coast University

SPECIAL THANKS TO ALL THOSE WHO CONTRIBUTED TO THE HERITAGE BAY ENHANCEMENT PROPOSAL

THE VOTING PROCESS

Every Membership (we have 1,250) will have an opportunity to vote either by mail or in person. You can vote at the Annual Meeting on April 25, 2019, or return your proxy ballot to the Administration Office prior to the meeting. Proxy ballots will be mailed out to all Members no later than March 26, 2019. All votes will be tallied at the Annual Meeting on April 25, 2019.