 Chuck Pigg With regular media reports about a struggling economy and a real estate market that is slowly making a comeback, the excitement of our recent KRC share offering and successful capital raise is a very bright moment for The Reserve. It is my pleasure to share with you a brief snapshot of The Reserve at Lake Keowee as we conclude the summer season. Keowee River Club Share Offering and Capital Raise The Reserve is as strong and viable as ever, largely due to the success of our recent capital raise. This additional capital will ensure our economic future and well-being as a community for years to come. New shares were purchased by 65 members, along with Greenwood and some existing investors, which helped us exceed our goal. We all know that The Reserve is a strong community—built on land with a strong history, developed with strong leadership and vision, and filled with strong friendships. Now, more than ever, we can believe in the strength of our financial future and The Reserve’s position as one of the strongest communities in the country. As many of you know, The Reserve has a very positive, long-standing relationship with Wachovia Bank, now Wells Fargo. With the help of our capital raise, Wells Fargo has agreed to renew our financing through 2015 subject to certain performance criteria. The Reserve Real Estate Our team of real estate professionals has worked hard to bring new families to The Reserve, closing a respectable number of property sales to date. We continue to see new projects come to life like the village enclave of Guest House Cottages, which are now moving into “Phase II” with the release of a collection of Cottages at Laurel Pond. This construction activity is a welcome sight that is exciting for both current owners and our real estate guests. We have already welcomed more than 25 new families to The Reserve so far this year and our sales pace is ahead of 2010. Our members have referred friends and family, many of whom have taken advantage of the Share the Legacy program that we unveiled in the spring. Part of the Share the Legacy program included the release of two new waterfront sections. In just a few short months, five of these lake properties have been sold or are under contract. The success of our capital raise and our strong financial position should put us in an enviable position in the marketplace. Club Operations and Fiscal Conservancy The Reserve has always aimed to operate with the utmost efficiency, but as is the case with businesses all over the country, we have enforced even tighter budgetary controls in the last few years to bolster our fiscal responsibility. The Club is projected to reach a balanced budget this year for the first time in history, without having increased the club dues and with no food and beverage minimums. This accomplishment is possible largely in part by strict accountability and fiscal discipline, closely managed by our Club GM, Frank Santoro. The Club has seen its largest participation ever. This increase can partly be attributed to the Legacy Membership Program that kicked off early in the year. The Legacy Membership allows members to extend their privileges to their parents and grandparents, children and grandchildren, celebrating the multi-generational family atmosphere that already exists as the heart of The Reserve lifestyle. More than 650 new Legacy Members from 163 families have activated their membership since January, bringing welcome growth in business and revenue for the Club, golf course, pool, marina and market. Last year The Reserve announced a reciprocal agreement with Balsam Mountain Preserve, which extended our current membership to also include the use of all Balsam facilities. The Balsam Mountain amenities complement The Reserve well, enabling our members to enjoy another golf course, additional hiking and nature activities, an equestrian facility, and lodging options for a mountaintop get away. These additional benefits have been well received by our membership, and we plan to continue the relationship with Balsam Mountain Preserve. Property Owners Association and Home Update The Property Owners Association is operating on a balanced budget and has seen quite a bit of construction activity. A total of 192 homes are complete, 21 currently are under construction, and so far 18 Reserve residents have moved into their homes in 2011. The POA also works very closely with The Reserve Showcase Builder Program, helping to pre-approve homeplans and make the building process as simple as possible for new members. As many of you know, Ken Tamsin, our POA Manager will be leaving us at the end of this month. We will miss Ken’s leadership and will make sure that there is a smooth transition as we work to find a replacement. An announcement will be made once his successor has been identified. Community Foundation We are pleased this year to have two artists-in-residence who will be coming to The Reserve to share their talents. Jhon Akers, a master classical guitarist will be here next week and Martha Beaudrot will be here in October demonstrating her talents as an accomplished pianist. We are also looking forward to our largest ever Community Foundation Charitable Golf Tournament coming up on October 17th. We encourage your participation in what has become our biggest event in supporting local charities. The Community Foundation continues to work hard to bring quality programming to The Reserve and enrich the lives of our Members. Looking Forward It’s sometimes hard to believe how special and beautiful The Reserve has become. The path we’ve followed from the very first days has led us to great success, even in the face of the recent economic challenges. But we have done it, and we owe an enormous gratitude to all of you who have such a passion for this place. As we continue to plan for the next phases of our community, our success is more assured than ever, because all of you have resoundingly said, “We love The Reserve, and we want to stay here a long time.” There’s no better affirmation than that.
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