Lake Arrowhead - Exciting Community Updates... New Amenities!

August 5, 2019

Dear Friends and Neighbors,

You may have heard me in the past say that it is a New Day at Lake Arrowhead as a result of the new cooperative relationship that has been built with the Lake Arrowhead Property Owners Association Board and the community as a whole. We as the Developer are now able to invest in the community in ways that weren't previously possible. I would like to once again commend the LAPOA board for the wisdom and foresight they demonstrated in working to resolve so many longstanding issues, paving the way for harmony and success at Lake Arrowhead for many years to come.

- New Amenities

We are thrilled to announce a number of new initiatives and new amenities that Lake

Arrowhead Communities, LLC will be providing at our cost to the community in the coming months. We are making these investments to increase the value of all property and to enhance the quality of life for every owner in Lake Arrowhead. We hope that you are as excited about these improvements as we are.

- Marina Pavilion

Construction is targeted to start before the end of the year on a 2-story pavilion

that will be floating on the lake with a walkway to the marina where the existing pavilion is currently located.

- 32' x 32' first floor

- 20' x 20' second floor

- This will be available to everyone in the community to provide better lake access

- We will program events to utilize it

- It can be reserved for special events

- All property owners can use it during daylight hours

- We are also exploring the logistics of adding a kayak launch on the walkway leading to the pavilion

There will be some differences, e.g. the walkway will be centered on the structure, etc.

Paved walking path to Swimming Area Lake Arrowhead Communities plans to extend the paved path from the marina all the way to the Lakeside Swimming Area, in order to enhance the access to this amenity for our owners and guests.

- Gates at the South Entrance

As part of our agreement from last fall, we agreed to install electronic gates at the

South Entrance. These have been installed at our expense, along with all new

landscaping, decorative street lights and new security cameras. In conjunction with our investment, LAYCC repainted and repaired both the North and South guard houses, greatly enhancing their appearance. We believe these new gates will dramatically improve the guards' ability to control access to the community. The use of these gates will begin in the coming weeks. The same entry devices you use for the North Gate will also provide access to the South Gate.

- Sport court

The existing Tennis Courts 5 and 6 at Red Cloud Park have not been used or

maintained for a number of years. We plan to convert these courts into a sport court. It will definitely include basketball and may also include 4-square, pickleball, badminton, paddle ball, etc. (We are still exploring alternatives.)

- Tennis backboard at Red Cloud Park

We are going to provide a tennis backboard at Red Cloud Park to allow people to

practice on their own, without the necessity of finding a workout partner.

Fishing Pier at end of Flat Rock Trail Lake Arrowhead Communities plans to create access to the Fishing Hole at the end of Flat Rock Trail by building a fishing pier. We are exploring the best location of this pier. This is a great location for fishing. It was reported that a resident recently pulled out a 10-lb. bass from this location.

- Status of On-Going Projects

Electric Powerline Project

Lake Arrowhead Communities paid for decorative lights and for Amicalola to bury

two new 3-phase power lines along the South Entrance Road. This greatly enhanced the aesthetics and has resulted in much more consistent electrical service. This project has been fully completed.

Cherokee Loop Trail

The new Cherokee Loop hiking trail has been completed. You must belong to the

LAYCC Hiking Club to utilize this trail (similar to the requirements for the Summit Trail). There is no charge, you merely need to receive some important safety information and sign a release form. You should always carry your Hiking Club card when on this trail. We will be installing trailhead signs in the near future. This new trail was created in cooperation between the Developer, the Lake Arrowhead Foundation, and members of the Lake Arrowhead Hiking Club. It is a nice walk

in the woods, although you will be challenged! Please pick up the new Trail Map from the Membership Office (and sign up for the Hiking Club if you haven't already!) It will help provide a snapshot of the 11+ miles of hiking trails that are now in use.

Cooperative Projects

New Boat Slips

Through cooperation with the LAPOA board, we have mutually agreed that LAC will fund the construction of 25 new floating boat slips at the marina. The pier will branch off from the walkway to the Pavilion and run parallel to the shore, providing sufficient ingress and egress from the new and existing slips. LAC will receive the revenue generated by these new slips until the costs plus interest have been repaid, anticipated to be approximately four years. Thereafter, LAYCC will receive all the rental from these new slips. These will be single slips with a greater depth than the existing slips. We will charge a premium for these slips, and existing renters will get first opportunity to rent them.

Rolling Gates at Dry Storage

We have also agreed with the LAPOA board that LAC will fund the construction of

a rolling gate and fencing at the Dry Storage area. LAC will receive 50% of the Dry Storage rental income until these costs are repaid.

Development Within the Community

Townhomes

The sitework for the Park Overlook townhomes is nearly complete, the road is

paved and we are about to submit the final plat to the county. Once we receive the

recorded plat, construction will begin. These master-down townhomes will be priced starting at $319,900. If you are interested to learn more or be put on our VIP Interest list, please contact Elaine Zurn atElaineZ@LakeArrowheadGA.com, or come by the Sales & Information Center.

Marina Parc Villas

The land disturbance permit for this project has been received and grading should

start any day now. These 1,000 - 1,400 sf homes will have lake views and are directly

above the marina and Lakeside Park. Again, please speak with Elaine Zurn to get on the VIP Interest List.

Highlands Vista Grading

When the Highlands Vista section (i.e. Phase 2) was developed, the roads and

utilities were put in but the lots were not padded out for the construction of homes.

Rather than continuing to clear and grade each lot individually, we are now going to

prepare a number of lots concurrently. This is more efficient and allows us to create

higher quality lots and more slab homes, which are more popular with our buyers. This activity has recently begun.

Final Thoughts

I apologize for such a long letter. There is a lot going on, all of which is exciting and

supportive of the long-term success and prosperity of Lake Arrowhead. The benefits of cooperation are clearly being demonstrated. We hope that you look forward to the future with the same anticipation that we do!

Best regards,

Steve Roe

V.P. and General Manager

For more information on Lake Arrowhead homes, click here.

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