BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY

Transcription

1 6A BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY PLACEMENT: PUBLIC HEARINGS PRESET: 10:00 AM TITLE: PUBLIC HEARING TO APPROVE THE ISSUANCE OF TAX-EXEMPT REVENUE BONDS, IN TWO OR MORE SERIES, BY THE MARTIN COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY FOR THE BENEFIT OF ONE HC-JENSEN BEACH, LLC AND TWO HC-JENSEN BEACH, LLC TO FINANCE THE JENSEN DUNES PROJECT AND THE CONSIDERATION OF A RESOLUTION BY THE COMMISSION TO APPROVE THE BOND ISSUE AGENDA ITEM DATES: MEETING DATE: 12/17/2013 COMPLETED DATE: 12/5/2013 COUNTY ATTORNEY: 11/25/2013 ASSISTANT COUNTY ADMINISTRATOR: 12/2/2013 REQUESTED BY: DEPARTMENT: PREPARED BY: Name: Martin County Industrial Development Authority Name: Procedures: None EXECUTIVE SUMMARY: Department of Administration This information will be forthcoming via a Supplemental Memorandum. APPROVAL: LEG ACA CA David Graham Director of Administration of 50

2 BACKGROUND/RELATED STRATEGIC GOAL: The required Public Notice announcing the Public Hearing is attached. ISSUES: N/A RECOMMENDED ACTION: RECOMMENDATION Hold the noticed Public Hearing. ALTERNATIVE RECOMMENDATIONS Per Board direction. FISCAL IMPACT: RECOMMENDATION Please refer to the Supplemental Memorandum. Funding Source County Funds Non-County Funds Authorization Subtotal Project Total ALTERNATIVE RECOMMENDATIONS N/A DOCUMENT(S) REQUIRING ACTION: Budget Transfer / Amendment Chair Letter Contract / Agreement Grant / Application Notice Ordinance Resolution Other: ROUTING: _ ADM _ BLD _ CDD _ COM _ ENG _ FRD _ GMD _ GSD _ ITS _ LIB _ MCA _ MPO _ PRD _ USD X CA X ACA X LEG of 50

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4 BCC MEETING DATE: December 17, 2013 AGENDA ITEM: 6A TO: VIA: FROM: MARTIN COUNTY, FLORIDA SUPPLEMENTAL MEMORANDUM Honorable Members of the Board DATE: December 10, 2013 of County Commissioners Taryn Kryzda County Administrator David Graham, Director of Administration SUBJECT: Public Hearing to approve the issuance of tax-exempt revenue bonds, in two or more series, by the Martin County Industrial Development Authority for the benefit of One HC-Jensen Beach, LLC and Two HC- Jensen Beach, LLC to finance the Jensen Dunes project and the consideration of a resolution by the Commission to approve the bond issue EXECUTIVE SUMMARY The Martin County Industrial Development Authority (Authority), at a meeting held on November 8, 2013, adopted a resolution expressing its intent, subject to additional review and public hearings, to issue up to $68,000,000 in principal amount of revenue bonds of the Authority, to be issued in two or more series, the proceeds of which will be loaned by the Authority to One HC Jensen Beach, LLC (One HC) and Two HC Jensen Beach, LLC (Two HC) to finance the acquisition and construction of a senior living and assisted living facility to be known as Jensen Dunes, to be located at 1537 NE Cedar Street, Jensen Beach, Florida BACKGROUND / RELATED STRATEGIC GOAL One HC and Two HC have requested the Martin County Industrial Development Authority to issue bonds to finance the acquisition, construction and equipping of a two-phase, two-story senior living facility containing a total of 355 beds, in a combination of single and double occupancy units, plus additional support and common areas including multi-use rooms, cafes, fitness clubs, and dining areas. Phase I will contain 130 beds and related improvements, including 48 memory care beds and 82 assisted living beds. Phase I improvements will be approximately 105,000 square feet in size on a parcel of approximately 12 buildable acres. Phase I is anticipated to create approximately 65 full-time jobs. Phase II will contain 225 beds and improvements on a parcel of approximately 14 buildable acres. Phase II is anticipated to create approximately 50 full-time jobs. Both phases are anticipated to contribute substantially to the local economy through increased employment in the construction phase and the ongoing purchase of local goods and services, as well as local and state taxes. ISSUES There is no known opposition to the Authority issuing the bonds on behalf of One HC and Two HC. The bonds will be payable from certain loan payments to be made under a Loan Agreement and other documents among the Authority, One HC and Two HC, and shall not be deemed to constitute a debt, liability or general obligation of the County, the Authority, the State of Florida or any political subdivision thereof, or a pledge of the faith and credit or taxing power of the County, the Authority, the State of Florida or any political subdivision thereof. Page 1 of 2 adm2014m97 SUPPLEMENTAL.docx 4 of 50

5 BCC MEETING DATE: December 17, 2013 AGENDA ITEM: 6A County Attorney s Legal Analysis The County will have no obligation to pay the debt service on the IDA Bonds. The IDA Bonds will be paid solely from loan payments to the IDA from the Borrower pursuant to a Loan Agreement to be executed between the IDA and the Borrower. Additionally, the issuance of the Bonds by the IDA will not impact the amount of bonds the County may designate as qualified tax-exempt obligations (i.e., bank qualified bonds) within the meaning of Section 265(b)(3)(B) of the Internal Revenue Code during the calendar year in which the IDA Bonds are issued. RECOMMENDED ACTION RECOMMENDATION The Board of County Commissioners adopt the Resolution approving the tax-exempt bond financing for One HC and Two HC. ALTERNATIVE RECOMMENDATION The Board of County Commissioners decline to adopt the Resolution approving the taxexempt bond financing for One HC and Two HC. FISCAL IMPACT RECOMMENDATION N/A ALTERNATIVE RECOMMENDATION N/A Page 2 of 2 adm2014m97 SUPPLEMENTAL.docx 5 of 50

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11 SUBJECT PROPERTY MAPS, PHOTOGRAPHS & DESCRIPTION SUBJECT PROPERTY MAPS, PHOTOGRAPHS & DESCRIPTION Subject Maps Subject Map Area Map File 4005 Page 6 AMH APPRAISAL CONSULTANTS, INC. 11 of 50

12 Exhibit D: The entity is a newly formed single purpose LLC. Its Members will include, Joe Hummel, Dave Edwards, and Stu Mills, which hold their membership in the form of additional entities. Stu Mills is anticipated to be the Managing Member. Navy Boulevard Warehouse, L.L.C. is considering a non-controlling membership in One HC-Jensen Beach, LLC. William Hinson, is the President and Manager of NBW. Matt Weaver and Matt Hinson of Piper Jaffray are members of NBW. Exhibit E: N/A, Living Ventures has been engaged as the manager of the project. Dave Edwards contact information has been provided in item 14 above. 12 of 50

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15 Exhibit G: The project site will contain a portion of the larger site, the legal description for the project site has not been finalized. However, the legal description for the larger site is included below 15 of 50

16 Exhibit H: Piper Jaffray & Co. is working with One HC Jensen Beach, LLC (the Owner ), an affiliated entity of Heartland Communities LLC, (the Sponsor ) to arrange for the equity and debt financing for the ground-up construction of the faith-based sponsored project (the Project ). The Project will be comprised of a senior living facility containing a total of 130 beds, including 48 memory care beds, and 82 assisted living beds, in a combination of single and double occupancy units, plus additional support and common areas for a total of approximately 105,000 square feet. The net rentable area of the Project is anticipated to be approximately 63,000 square feet, with average unit sizes of approximately 750 square feet. The Project will be designed to include multi-use, open areas including cafes, fitness clubs, dining and other common area elements will be presented as shops along a common street complete with lamp posts, landscaping and occasional markets and other activities. Also known as an aging-in-place facility, the new design incorporates ADA accessible spaces in all common areas and residential units, allows for units to be expanded and contracted, and provides common areas that can be reconfigured. Sustainable and active facility design is employed in the development program. Some of the key features of the Project include: Incorporates traditional residential qualities of privacy, choice, and personalization of resident surroundings Incorporates a variety of familiar finishes and varied colors and textures throughout the facility environment Sustainable elements and materials for medical and spiritual fulfillment Reduced operational and energy impact Variety of spatial experiences, including access to programmed outdoor courtyards Resident autonomy by making spaces easy to find, identify and use Transportation to shopping, entertainment, doctor visits, and religious services Green design features that focus on access to natural light, air quality, water and energy savings 16 of 50

17 Economic Impact: The project will bring many construction jobs to the Martin County area during the construction period of approximately 12 months. Thereafter, the Project will employ approximately 65 FTEs. Environmental Impact: N/A 17 of 50

18 Jensen Dunes One HC - Jensen Beach, LLC Statement of Cash Flow Model Assumptions (Dollars in Thousands) PROJECT DESCRIPTION PRICING (AT START-UP) Project Name... Jensen Dunes Community Fee - ALU... 2, Company Name... One HC - Jensen Beach, LLC Other ILU Revenue - Meals, etc First Year ALF Unit A Monthly Fee - First Person... 3, Total Assisted Living Beds ALF Unit B Monthly Fee - First Person... 3, Care Level 1 Upcharge/Day FILL-UP ASSUMPTIONS Care Level 2 Upcharge/Day ALU (A) Months to Stabilize Months Care Level 3 Upcharge/Day ALU (B) Months to Stabilize Months OTHER RATES UTILIZATION RATES Interest Earnings Revenue % ALU (A) Stabilization Level % Management Fee (% of Gross Rev) % ALU (B) Stabilization Level % Pledge (Amount of Month 1 & 13 Rent) % Aggregate Stabilization Occupancy % Pledge (Amount of Distributable Cash) % ALU Care Level 1 (% of All ALU) % Distribution Threshold (DCOH) Days ALU Care Level 2 (% of All ALU) % Distribution Threshold (Occupancy) % ALU Care Level 3 (% of All ALU) % Fee Increases (Global) % Revenue & Expense Inflator (Year 4+)... 4% TURNOVER RATES (ANNUAL) ALU (A) Turnover Assumption % CAPITAL STACK ALU (B) Turnover Assumption % Senior Debt... 18,800 Senior Debt % CRITICAL FINANCIAL RATIOS Senior DSCR (First Year Stabilized) x Subordinate Debt / Equity... 6,000 Total DSCR (First Year Stabilized) x Subordinate Debt / Equity % DCOH (First Year Stabilized) Days DCOH (Bottoming on Fill) Days Cash to Debt (First Year Stabilized)... 13% Prepared by: Matt Hinson Friday, September 27, of 50

19 File Name: Heartland JB PF 2013_09_26.xlsx CASH SOURCES Operating Revenue... FINANCING / EQUITY Senior TE Draw Down Loan... Equity (Form TBD)... Interest Income... P R O F O R M A - Jensen Dunes One HC - Jensen Beach, LLC Sources and Uses of Funds - Summary (Dollars in Thousands) Pre - Const. Year Year Year Year Year Year Year Year Finance Period TOTAL - - 3,204 6,320 6,865 7,140 7,426 7,723 8,032 8,353 38,678-18, ,800-6, , TOTAL CASH SOURCES: ,825 3,224 6,340 6,885 7,160 7,446 7,743 8,052 8,373 63,623 CASH USES Operating Expenses... CONSTRUCTION / INVESTING Land... Construction/GMP... Architectural & Engineering... Administrative... Contingency... Furniture, Fixtures, & Equipment... Financing Costs... Develop/Market (Pre-Con)... Marketing Costs (Construction)... Pre-Opening Costs... Development Fees... RETURN OF PRINCIPAL / FINANCING Senior TE Draw Down Loan... Equity (Form TBD) ,291 4,279 4,359 4,471 4,650 4,836 5,030 5,231 25,912-2, ,671-13, , , ,025-1, , , , INTEREST PAYMENT Senior TE Draw Down Loan... Equity (Form TBD) , ,590 TOTAL CASH USES: ,165 4,771 6,009 6,122 6,234 6,413 6,599 6,793 6,994 61,840 CHANGE IN CASH BALANCE - 2,660 (1,547) ,033 1,144 1,259 1,379 1,783 Unrestricted Cash Balance - BOY - - 2,660 1,113 1,444 2,207 3,133 4,165 5,309 6,568 Unrestricted Cash Balance - EOY - 2,660 1,113 1,444 2,207 3,133 4,165 5,309 6,568 7,947 Debt Balance - EOY - 24,800 24,800 24,800 24,517 24,220 23,908 23,580 23,236 22,875 Max Annual Debt Service ,763 1,763 1,763 1,763 1,763 1,763 Cash to Debt DS Coverage Ratio - Senior x 2.07x 2.20x 2.29x 2.38x 2.47x 2.57x DS Coverage Ratio - All x 1.43x 1.53x 1.59x 1.65x 1.71x 1.78x Operating Margin Pure Operating Margin % 37% 38% 38% 38% 38% 38% Daily Cash Operating Expense Days Cash on Hand Aggregate Average Occupancy % 89.6% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% Occupancy (End of Year) % 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% Available for Distribution (Surplus Fund) ,027 1,109 1,192 Pledge Payments (Rental) Pledge Payments (NOI) Total Pledge Payments Heartland Communities Distribution ,072 Prepared by: Matt Hinson 19 of 50 9/27/2013 2:53 PM

20 File Name: Heartland JB PF 2013_09_26.xlsx CASH SOURCES Operating Revenue... Year Year Year Year Year Year Year Year Year Year ,687 9,034 9,396 9,772 10,163 10,569 10,992 11,432 11,889 12,364 FINANCING / EQUITY Senior TE Draw Down Loan Equity 0 (Form TBD) Interest Income TOTAL CASH SOURCES:... 8,707 9,054 9,416 9,792 10,183 10,589 11,012 11,452 11,909 12,384 CASH USES Operating Expenses... 5,440 5,658 5,884 6,119 6,364 6,619 6,883 7,159 7,445 7,743 CONSTRUCTION / INVESTING Land Construction/GMP Architectural & Engineering Administrative Contingency Furniture, Fixtures, & Equipment Financing Costs Develop/Market (Pre-Con) Marketing Costs (Construction) Pre-Opening Costs Development Fees RETURN OF PRINCIPAL / FINANCING - Series A Fixed Revenue Bonds Equity (Form TBD) INTEREST PAYMENT Series A Fixed Revenue Bonds Equity (Form TBD)... P R O F O R M A - Jensen Dunes One HC - Jensen Beach, LLC Sources and Uses of Funds - Summary (Dollars in Thousands) TOTAL CASH USES:... 7,203 7,421 7,647 7,882 8,127 8,382 8,646 8,922 9,208 9,506 CHANGE IN CASH BALANCE 1,504 1,634 1,769 1,909 2,055 2,207 2,365 2,530 2,701 2,878 Unrestricted Cash Balance - BOY 7,947 9,451 11,085 12,854 14,763 16,818 19,026 21,391 23,921 26,622 Unrestricted Cash Balance - EOY 9,451 11,085 12,854 14,763 16,818 19,026 21,391 23,921 26,622 29,500 Debt Balance - EOY 22,496 22,098 21,680 21,241 20,780 20,296 19,788 19,254 18,694 18,106 Sr. Max Annual Debt Service 1,763 1,763 1,763 1,763 1,763 1,763 1,763 1,763 1,763 1,763 Cash to Debt DS Coverage Ratio - Senior 2.67x 2.78x 2.89x 3.00x 3.12x 3.25x 3.38x 3.51x 3.65x 3.80x DS Coverage Ratio - All 1.85x 1.93x 2.00x 2.08x 2.17x 2.25x 2.34x 2.43x 2.53x 2.63x Operating Margin (w/ Interest) Pure Operating Margin 38% 38% 38% 38% 37% 37% 37% 37% 37% 37% Daily Cash Operating Expense Days Cash on Hand ,041 1,124 1,207 Aggregate Average Occupancy 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% Occupancy (End of Year) 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% Available for Distribution (Surplus Fund) 1,275 1,359 1,443 1,528 1,614 1,699 1,786 1,873 1,960 2,048 Pledge Payments (Rental) Pledge Payments (NOI) Total Pledge Payments Heartland Communities Distribution 1,147 1,223 1,299 1,375 1,452 1,530 1,607 1,686 1,764 1,843 Prepared by: Matt Hinson 20 of 50 9/27/2013 2:53 PM

21 File Name: Heartland JB PF 2013_09_26.xlsx P R O F O R M A - Jensen Dunes Operational Sources and Uses ALF 130 Year 1 of Operations Month TOTAL CASH SOURCES: Average Occupancy - ALU (A) Average Occupancy - ALU (B) Other ILU Revenue - Per/Unit/Month Monthly Fee - ALU (A) (Care 0) 3,853 3,853 3,853 3,853 3,853 3,853 3,853 3,853 3,853 3,853 3,853 3,853 Monthly Fee - ALU (B) (Care 0)... 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 Community Fee - ALU (All) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Care Level 1 - Upcharge/Day... Care Level 2 - Upcharge/Day... Care Level 3 - Upcharge/Day Monthly Fees - ILU Monthly Fees - ALU (A) 30,824 61,647 77,059 88, , , , , , , , ,941 1,402,470 Monthly Fees - ALU (B) 23,326 49,984 59,981 69,977 79,974 89,971 99, , , , , ,619 1,106,310 Second Occupant Revenue (ILU) Community Fee Revenue (ALL) 67,500 18,414 16,151 16,354 16,557 16,760 16,964 17,167 17,370 17,573 17,776 17, ,565 Care Level Revenue (ALU) 8,777 18,139 22,235 25,746 29,257 32,768 36,279 39,790 43,300 46,811 50,322 53, ,258 Other Revenues ,395 1,710 1,980 2,250 2,520 2,790 3,060 3,330 3,600 3,870 4,140 31,320 TOTAL CASH SOURCES: , , , , , , , , , , , ,513 3,203,923 CASH USES: Administration... 44,852 44,113 44,852 44,852 42,632 44,852 44,113 44,852 44,113 44,852 44,852 44, ,045 Dietary... 33,636 34,209 36,457 37,759 35,846 40,363 40,509 42,967 43,029 45,571 46,873 46, ,027 Healthcare... 58,578 57,224 62,344 66,075 63,468 74,665 77,811 85,553 88,378 96, , , ,954 Hskpg/Maint... 24,061 23,488 24,061 24,061 22,340 24,061 23,488 24,061 23,488 24,061 24,061 23, ,716 Recreation... 19,261 18,812 19,261 19,261 17,918 19,261 18,812 19,261 18,812 19,261 19,261 18, ,993 Building... 25,416 25,416 25,416 25,416 25,416 25,416 25,416 25,416 25,416 25,416 25,416 25, ,992 Property Taxes... 14,583 14,583 14,583 14,583 14,583 14,583 14,583 14,583 14,583 14,583 14,583 14, ,996 Church Pledge (Rental Only)... 48,662 13,275 11,644 11,790 11,937 12,083 12,229 12,376 12,522 12,669 12,815 12, ,964 Management Fees... 6,555 7,479 8,857 10,134 11,411 12,688 13,965 15,268 16,545 17,822 19,099 20, ,196 Subtotal (Operating) , , , , , , , , , , , ,459 3,290,884 Net Operating Income (144,503) (89,019) (70,338) (51,255) (17,335) (14,217) 8,369 21,018 44,009 55,781 73,475 97,053 (86,960) Debt Service Requirements (Senior) 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 Debt Service Requirements (All) 123, , , , , , , , , , , ,333 Change in Cash Balance (267,836) (212,352) (193,671) (174,588) (140,668) (137,550) (114,964) (102,315) (79,324) (67,552) (49,858) (26,280) Cash Balance - BOM... 2,659,924 2,392,088 2,179,736 1,986,065 1,811,476 1,670,808 1,533,258 1,418,294 1,315,979 1,236,655 1,169,102 1,119,244 Cash Balance - EOM 2,392,088 2,179,736 1,986,065 1,811,476 1,670,808 1,533,258 1,418,294 1,315,979 1,236,655 1,169,102 1,119,244 1,112,964 Cash to Debt DS Coverage Ratio - Senior (1.84)x (1.14)x (0.90)x (0.65)x (0.22)x (0.18)x 0.11x 0.27x 0.56x 0.71x 0.94x 1.24x DCOH DS Coverage Ratio - All (1.17)x (0.72)x (0.57)x (0.42)x (0.14)x (0.12)x 0.07x 0.17x 0.36x 0.45x 0.60x 0.79x Tie-Out Daily Cash Operating Expense 13,116 11,899 12,191 12,403 12,128 12,865 12,962 13,403 13,487 13,939 14,197 14,262 13,071 Days Cash on Hand Prepared by: Matt Hinson 21 of 50 9/27/2013 2:53 PM

22 File Name: Heartland JB PF 2013_09_26.xlsx P R O F O R M A - Jensen Dunes Operational Sources and Uses ALF 130 Year 2 of Operations Month TOTAL CASH SOURCES: Average Occupancy - ALU (A) Average Occupancy - ALU (B) Other ILU Revenue - Per/Unit/Month Monthly Fee - ALU (A) (Care 0) 4,007 4,007 4,007 4,007 4,007 4,007 4,007 4,007 4,007 4,007 4,007 4,007 Monthly Fee - ALU (B) (Care 0)... 3,466 3,466 3,466 3,466 3,466 3,466 3,466 3,466 3,466 3,466 3,466 3,466 Community Fee - ALU (All) 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 Care Level 1 - Upcharge/Day... Care Level 2 - Upcharge/Day... Care Level 3 - Upcharge/Day Monthly Fees - ILU Monthly Fees - ALU (A) 204, , , , , , , , , , , ,452 2,917,138 Monthly Fees - ALU (B) 162, , , , , , , , , , , ,467 2,318,453 Second Occupant Revenue (ILU) Community Fee Revenue (ALL) 19,619 19,971 20,323 20,675 18,428 18,709 8,591 8,591 8,591 8,591 8,591 8, ,271 Care Level Revenue (ALU) 59,638 62,680 65,114 68,766 71,200 73,634 74,851 74,851 74,851 74,851 74,851 74, ,139 Other Revenues... 4,586 4,820 5,008 5,288 5,476 5,663 5,756 5,756 5,756 5,756 5,756 5,756 65,380 TOTAL CASH SOURCES: , , , , , , , , , , , ,118 6,320,381 CASH USES: Administration... 45,974 45,220 45,974 45,974 43,709 45,974 45,220 45,974 45,220 45,974 45,974 45, ,408 Dietary... 49,861 49,497 52,031 52,899 49,147 54,201 52,647 54,201 52,647 54,201 54,201 52, ,177 Healthcare , , , , , , , , , , , ,056 1,518,126 Hskpg/Maint... 24,602 24,018 24,602 24,602 22,847 24,602 24,018 24,602 24,018 24,602 24,602 24, ,133 Recreation... 19,701 19,245 19,701 19,701 18,331 19,701 19,245 19,701 19,245 19,701 19,701 19, ,220 Building... 26,179 26,179 26,179 26,179 26,179 26,179 26,179 26,179 26,179 26,179 26,179 26, ,148 Property Taxes... 15,021 15,021 15,021 15,021 15,021 15,021 15,021 15,021 15,021 15,021 15,021 15, ,252 Church Pledge (Rental Only)... 48,305 23,717 22,825 23,182 21,664 21,970 14,778 14,881 14,984 15,087 15,190 15, ,876 Management Fees... 22,554 23,683 24,579 25,914 26,680 27,573 27,506 27,506 27,506 27,506 27,506 27, ,019 Subtotal (Operating) , , , , , , , , , , , ,185 4,279,360 Net Operating Income 84, , , , , , , , , , , ,933 2,041,021 Debt Service Requirements (Senior) 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 Debt Service Requirements (All) 123, , , , , , , , , , , ,333 Change in Cash Balance (38,470) 8,348 14,097 34,270 67,046 60,040 73,114 65,861 72,908 65,655 65,552 72,600 Cash Balance - BOM... 1,112,964 1,074,495 1,082,843 1,096,940 1,131,210 1,198,257 1,258,297 1,331,410 1,397,271 1,470,179 1,535,834 1,601,386 Cash Balance - EOM 1,074,495 1,082,843 1,096,940 1,131,210 1,198,257 1,258,297 1,331,410 1,397,271 1,470,179 1,535,834 1,601,386 1,443,986 Cash to Debt DS Coverage Ratio - Senior 1.08x 1.68x 1.75x 2.01x 2.43x 2.34x 2.51x 2.42x 2.51x 2.41x 2.41x 2.50x DCOH DS Coverage Ratio - All 0.69x 1.07x 1.11x 1.28x 1.54x 1.49x 1.59x 1.53x 1.59x 1.53x 1.53x 1.59x Tie-Out Daily Cash Operating Expense 16,095 15,298 15,698 15,913 15,339 16,156 15,682 15,921 15,689 15,928 15,931 15,699 15,779 Days Cash on Hand Prepared by: Matt Hinson 22 of 50 9/27/2013 2:53 PM

23 File Name: Heartland JB PF 2013_09_26.xlsx P R O F O R M A - Jensen Dunes Operational Sources and Uses ALF 130 Year 3 of Operations Month TOTAL CASH SOURCES: Average Occupancy - ALU (A) Average Occupancy - ALU (B) Other ILU Revenue - Per/Unit/Month Monthly Fee - ALU (A) (Care 0) 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 Monthly Fee - ALU (B) (Care 0)... 3,604 3,604 3,604 3,604 3,604 3,604 3,604 3,604 3,604 3,604 3,604 3,604 Community Fee - ALU (All) 2,704 2,704 2,704 2,704 2,704 2,704 2,704 2,704 2,704 2,704 2,704 2,704 Care Level 1 - Upcharge/Day... Care Level 2 - Upcharge/Day... Care Level 3 - Upcharge/Day Monthly Fees - ILU Monthly Fees - ALU (A) 266, , , , , , , , , , , ,710 3,200,517 Monthly Fees - ALU (B) 212, , , , , , , , , , , ,646 2,551,754 Second Occupant Revenue (ILU) Community Fee Revenue (ALL) 8,934 8,934 8,934 8,934 8,934 8,934 8,934 8,934 8,934 8,934 8,934 8, ,214 Care Level Revenue (ALU) 77,845 77,845 77,845 77,845 77,845 77,845 77,845 77,845 77,845 77,845 77,845 77, ,143 Other Revenues... 5,987 5,987 5,987 5,987 5,987 5,987 5,987 5,987 5,987 5,987 5,987 5,987 71,840 TOTAL CASH SOURCES: , , , , , , , , , , , ,122 6,865,467 CASH USES: Administration... 47,112 46,342 47,112 47,112 44,802 47,112 46,342 47,112 46,342 47,112 47,112 46, ,955 Dietary... 54,815 53,247 54,815 54,815 50,111 54,815 53,247 54,815 53,247 54,815 54,815 53, ,802 Healthcare , , , , , , , , , , , ,784 1,600,805 Hskpg/Maint... 25,158 24,561 25,158 25,158 23,367 25,158 24,561 25,158 24,561 25,158 25,158 24, ,714 Recreation... 20,148 19,682 20,148 20,148 18,750 20,148 19,682 20,148 19,682 20,148 20,148 19, ,515 Building... 26,964 26,964 26,964 26,964 26,964 26,964 26,964 26,964 26,964 26,964 26,964 26, ,568 Property Taxes... 15,472 15,472 15,472 15,472 15,472 15,472 15,472 15,472 15,472 15,472 15,472 15, ,664 Church Pledge (Rental Only)... 16,370 16,548 16,726 16,905 15,767 15,910 10,789 10,789 10,789 10,789 10,789 10, ,959 Management Fees... 28,606 28,606 28,606 28,606 28,606 28,606 28,606 28,606 28,606 28,606 28,606 28, ,273 Subtotal (Operating) , , , , , , , , , , , ,446 4,359,255 Net Operating Income 201, , , , , , , , , , , ,677 2,506,212 Debt Service Requirements (Senior) 101, , , , , , , , , , , ,914 Debt Service Requirements (All) 146, , , , , , , , , , , ,914 Change in Cash Balance 54,903 62,003 54,547 54,369 77,319 55,364 67,763 60,484 67,763 60,484 60,484 67,763 Cash Balance - BOM... 1,443,986 1,498,889 1,560,892 1,615,438 1,669,807 1,747,126 1,802,490 1,870,253 1,930,737 1,998,500 2,058,984 2,119,468 Cash Balance - EOM 1,498,889 1,560,892 1,615,438 1,669,807 1,747,126 1,802,490 1,870,253 1,930,737 1,998,500 2,058,984 2,119,468 2,207,231 Cash to Debt DS Coverage Ratio - Senior 1.98x 2.05x 1.98x 1.98x 2.20x 1.98x 2.11x 2.04x 2.11x 2.04x 2.04x 2.11x DCOH DS Coverage Ratio - All 1.37x 1.42x 1.37x 1.37x 1.53x 1.38x 1.46x 1.41x 1.46x 1.41x 1.41x 1.46x Tie-Out Daily Cash Operating Expense 16,229 15,996 16,241 16,247 15,492 16,214 15,806 16,046 15,806 16,046 16,046 15,806 15,998 Days Cash on Hand Prepared by: Matt Hinson 23 of 50 9/27/2013 2:53 PM

24 File Name: Heartland JB PF 2013_09_26.xlsx P R O F O R M A - Jensen Dunes Operational Sources and Uses ALF 130 Year 4 of Operations (STABILIZED) Month TOTAL CASH SOURCES: Average Occupancy - ALU (A) Average Occupancy - ALU (B) Other ILU Revenue - Per/Unit/Month Monthly Fee - ALU (A) (Care 0) 4,334 4,334 4,334 4,334 4,334 4,334 4,334 4,334 4,334 4,334 4,334 4,334 Monthly Fee - ALU (B) (Care 0)... 3,748 3,748 3,748 3,748 3,748 3,748 3,748 3,748 3,748 3,748 3,748 3,748 Community Fee - ALU (All) 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 Care Level 1 - Upcharge/Day... Care Level 2 - Upcharge/Day... Care Level 3 - Upcharge/Day Monthly Fees - ILU Monthly Fees - ALU (A) 277, , , , , , , , , , , ,378 3,328,538 Monthly Fees - ALU (B) 221, , , , , , , , , , , ,152 2,653,824 Second Occupant Revenue (ILU) Community Fee Revenue (ALL) 9,292 9,292 9,292 9,292 9,292 9,292 9,292 9,292 9,292 9,292 9,292 9, ,502 Care Level Revenue (ALU) 80,959 80,959 80,959 80,959 80,959 80,959 80,959 80,959 80,959 80,959 80,959 80, ,509 Other Revenues... 6,226 6,226 6,226 6,226 6,226 6,226 6,226 6,226 6,226 6,226 6,226 6,226 74,713 TOTAL CASH SOURCES: , , , , , , , , , , , ,007 7,140,086 CASH USES: Administration... 47,826 47,826 47,826 47,826 47,826 47,826 47,826 47,826 47,826 47,826 47,826 47, ,913 Dietary... 55,297 55,297 55,297 55,297 55,297 55,297 55,297 55,297 55,297 55,297 55,297 55, ,566 Healthcare , , , , , , , , , , , ,209 1,634,510 Hskpg/Maint... 25,370 25,370 25,370 25,370 25,370 25,370 25,370 25,370 25,370 25,370 25,370 25, ,438 Recreation... 20,329 20,329 20,329 20,329 20,329 20,329 20,329 20,329 20,329 20,329 20,329 20, ,950 Building... 27,773 27,773 27,773 27,773 27,773 27,773 27,773 27,773 27,773 27,773 27,773 27, ,274 Property Taxes... 15,936 15,936 15,936 15,936 15,936 15,936 15,936 15,936 15,936 15,936 15,936 15, ,234 Church Pledge (Rental Only)... 14,123 14,123 14,123 14,123 14,123 14,123 14,123 14,123 14,123 14,123 14,123 14, ,477 Management Fees... 29,750 29,750 29,750 29,750 29,750 29,750 29,750 29,750 29,750 29,750 29,750 29, ,004 Subtotal (Operating) , , , , , , , , , , , ,614 4,471,367 Net Operating Income 222, , , , , , , , , , , ,393 2,668,720 Debt Service Requirements (Senior) 101, , , , , , , , , , , ,914 Debt Service Requirements (All) 146, , , , , , , , , , , ,914 Change in Cash Balance 75,479 75,479 75,479 75,479 75,479 75,479 75,479 75,479 75,479 75,479 75,479 75,479 Cash Balance - BOM... 2,207,231 2,282,710 2,358,190 2,433,669 2,509,148 2,584,628 2,660,107 2,735,587 2,811,066 2,886,545 2,962,025 3,037,504 Cash Balance - EOM 2,282,710 2,358,190 2,433,669 2,509,148 2,584,628 2,660,107 2,735,587 2,811,066 2,886,545 2,962,025 3,037,504 3,132,983 Cash to Debt DS Coverage Ratio - Senior 2.18x 2.18x 2.18x 2.18x 2.18x 2.18x 2.18x 2.18x 2.18x 2.18x 2.18x 2.18x DCOH DS Coverage Ratio - All 1.51x 1.51x 1.51x 1.51x 1.51x 1.51x 1.51x 1.51x 1.51x 1.51x 1.51x 1.51x Tie-Out Daily Cash Operating Expense 16,266 16,266 16,266 16,266 16,266 16,266 16,266 16,266 16,266 16,266 16,266 16,266 16,266 Days Cash on Hand Prepared by: Matt Hinson 24 of 50 9/27/2013 2:53 PM

25 File Name: Heartland JB PF 2013_09_26.xlsx P R O F O R M A - Jensen Dunes OCCUPANCY / FILL SCHEDULE Month Occupancy - Aggregate Year 1 Beginning of Month Move - In Move - Out End of Month % Occupied (EOM) 20.8% 26.2% 30.8% 35.4% 40.0% 44.6% 49.2% 53.8% 58.5% 63.1% 67.7% 72.3% Average Units Occupied Double Occupancy % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Residents (EOM) Year 2 Beginning of Month Move - In Move - Out End of Month % Occupied (EOM) 76.2% 80.0% 83.8% 87.7% 90.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% Average Units Occupied Double Occupancy % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Residents (EOM) Year 3 Beginning of Month Move - In Move - Out End of Month % Occupied (EOM) 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% 93.8% Average Units Occupied Double Occupancy % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Residents (EOM) Units Occupied Occupancy Month 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Aggregate Occupancy Prepared by: Matt Hinson 25 of 50 9/27/2013 2:53 PM

26 Exhibit M: Below is a preliminary project budget, excluding some additional liquidity reserves which are shown in the cash flow projections attached as Exhibit I, hereto. y j Land / A cq uisitio n - Land 2,623,500 2,623,500 Building - - Other Acquisition Costs & Brokerage Fee 47,103 47,103 2,670,603 C o nstructio n Permits and Impact Fees 150, ,000 M inor Equipment & Furniture - Site Work & Landscaping 800, ,000 Builders Risk Insurance 0.7% 85,800 85,800 New Construction Costs & Fees $ ,025,000 11,025,105 Furniture and Fixtures 875, ,000 Kitchen Equipment and Systems 150, ,000 Other - - Construction Contingency 2.0% 261, ,716 13,347,621 Pro fessio nal F ees Architect Design 350, ,000 Engineering 75,000 75,000 Testing 35,000 35,000 Survey 6,000 6,000 Reports -Environmental 3,000 3,000 Reports-Appraisal 20,000 20,000 Reports-M arket/feasibility 20,000 20,000 Reports-Geotech 8,000 8,000 Other ,000 A d m inistrative Legal 100, ,000 Account ing 50,000 50,000 Property Taxes 35,000 35,000 Insurance Owner Liability 50,000 50,000 Accounting Fees 50,000 50,000 Other Administrative Costs-Cert of Need - 285,000 Financial Loan Fees/ Commitment 2.0% 380, ,000 Construction Period & Capitalized interest 639, ,509 Cost of Issuance see page 4 853, ,581 Title, Recording and Other Closing Costs 135, ,000 Debt Origination Fee - Equity Placement Fee 227, ,876 Bank Inspector 24,000 24,000 Application Fee - Ot her - - 2,259,966 R eserves M arketing Reserves 500, ,000 Working Capital Reserve 586, , ,540 Debt Service Reserve 1,223,953 1,223,953 Preopening costs 258, ,004 2,568,497 D evelo p m ent and O ther Fees Church Consulting and Marketing - - Construction Management 250, ,000 Development Fee 1,000,000 1,000,000 Project Contingency (to be allocated) 400, ,000 M isc Rounding 23,299,972 1,390 1, ,651, of 50

27 Exhibit N: The ownership group is investing approximately $6,000,000 into the project. There is a possibility, that a portion of the equity is contributed in the form of tax-exempt subordinated debt. 27 of 50

28 ! "# $% &$'(!#)))))))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) *# + ((!+,)))))))))))))))))))))))))))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) -#./(($(!,)))))))))))))))))))))))))))))))))))))))))))).'/ (0+%!1('02))))))).!/!$ +(!,)))))))))))))))))))))))))))))))))))))))))))))./$(3(+0,))))))))))))))))))))))))) ))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))./ 4&$.$%% &%(!$5$/&!! '!2)))))))))))))))))))))))))))))))))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) 6#./!1(!78".!/.-/(&2 ))))))))))).'/($($&!,))))))))))))))))))).!/ ($!4&0%!4%!393%!3 $1$#)))))))))))))))))))))))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) 7#./!( (!+,))))))))))))))))))))))))))))))))))))))))))))).'/$(4,)))))))))))))))))))))))))))))))))))))))))))))))))) :#!&4(&($ & + 4&!&& ;! ''2)))))))))) (%$% &$'(!&,))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) <# (!('++( ;!'!$ 2)))))))))) 0'++ ($'+,))))))))))))))))))))))))))))))))))))))))))))))) =# ( (!+,)))))))))))))))))))))))))))))))))))))))))))))))))))) >#./&((!3( (!+,))))))))))))))))))))))))))))))))))))!"# 28 of 50

29 )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))).'/&'+'+!,))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) "8# $( ',))))))))))))))))))))))))))))))))))))))))))))))) ""# $% &$'( 4,))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) "*# 4?!,)))))))))))))))))))))))))))))))))))))))))))))) "-# $%% &$'%(!$$'5$(!( 4,)))))))))))))))))))))))))))))))))))))))))))))))))))))) ))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) "6# &!$3$!!(& ;!2 ))))))))))) (+%$% &$'($3$3'(+!'& $3$3$,)))))))))))))))))))))))))))))))))))))))))))))))))) ))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) "7# $% &$'( ;!!&!,))))))))))))))))))))))))))) ))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))./ &!(!&!!(+(!1 $& 2 )))))))))).'/ (+%!'&(!+@1 $&$&((!3,))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))).!/ ('+'%!'&$(&%&%!(% +$3'3&,)))))))))))))))))))))))))))))))))))))) ))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))./ &!%!$ +.(!'/%'(' +&$&((!32))))))))))) (+%!',)))))))))))))))))))))))))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) ":# (&!&4(& + 4&!&& (!+'!%!'&$(!&( +,))))))))))))))))))))))))) )))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) "<#!'& 3$4&'+'4'!.##%% 3$%$33%&3$/,))))))))))))))))))))))))))))))))))))!"# $ 29 of 50

30 30 of 50

31 BC &(43D&'&!$ +&!&''4&&&# '$&!./<! (&!3&4&./<! (1D&'#!&!''3&4&1D&'#(1D&'!'%! 34&&D&'.##D&'EF/&4E!'F# D&'EF D&'EF D&'EF D&'EF D&'EF D&'E0F D&'EHF D&'EF D&'EF D&'EIF D&'EJF D&'EF D&'EF D&'EF D&'E F +(!(! (!3&4&$$&#!DD$ %!'0$ # &43&!(& ;!# &43 & ;!4&&$&(# $% &$'(!&(!$$'(&(!(& (!+3&4&&! (!%(!'# $% &$'($G+$3$ (& (!+# (& (!+# 3! +(& ;!#! (& ;!%!3$&!$! $$!(& ;! +.&$! +%( +/# +( ;!('++# (!$(&++#! 3$'!&# ;!!&# '3(& ;!!!# (!(4?1+# (!'(&!$(#!"# & 31 of 50

32 D&'EF &(4 ;!!(!(('&!! (& ;!#!"# 32 of 50

33 SUBJECT PROPERTY MAPS, PHOTOGRAPHS & DESCRIPTION SUBJECT PROPERTY MAPS, PHOTOGRAPHS & DESCRIPTION Subject Maps Subject Map Area Map File 4005 Page 6 AMH APPRAISAL CONSULTANTS, INC. 33 of 50

34 Exhibit D: The entity is a newly formed single purpose LLC. Its Members will include, Joe Hummel, Dave Edwards, and Stu Mills, which hold their membership in the form of additional entities. Stu Mills is anticipated to be the Managing Member. Navy Boulevard Warehouse, L.L.C. is considering a non-controlling membership in Two HC-Jensen Beach, LLC. William Hinson, is the President and Manager of NBW. Matt Weaver and Matt Hinson of Piper Jaffray are members of NBW. Exhibit E: N/A, Living Ventures has been engaged as the manager of the project. Dave Edwards contact information has been provided in item 14 above. 34 of 50

35 35 of 50

36 36 of 50

37 Exhibit G: The project site will contain a portion of the larger site, the legal description for the project site has not been finalized. However, the legal description for the larger site is included below 37 of 50

38 Exhibit H: Piper Jaffray & Co. is working with Two HC Jensen Beach, LLC (the Owner ), an affiliated entity of Heartland Communities LLC, (the Sponsor ) to arrange for the equity and debt financing for the ground-up construction of the faith-based sponsored project (the Project ). The Project will be comprised of a senior living facility containing various unit types in a combination of single and double occupancy units, plus additional support and common areas. The Project will be Phase II of the then completed Phase I project owned by One HC - Jensen Beach, LLC. The Project will be designed to include multi-use, open areas including cafes, fitness clubs, dining and other common area elements will be presented as shops along a common street complete with lamp posts, landscaping and occasional markets and other activities. Also known as an aging-in-place facility, the new design incorporates ADA accessible spaces in all common areas and residential units, allows for units to be expanded and contracted, and provides common areas that can be reconfigured. Sustainable and active facility design is employed in the development program. Some of the key features of the Project include: Incorporates traditional residential qualities of privacy, choice, and personalization of resident surroundings Incorporates a variety of familiar finishes and varied colors and textures throughout the facility environment Sustainable elements and materials for medical and spiritual fulfillment Reduced operational and energy impact Variety of spatial experiences, including access to programmed outdoor courtyards Resident autonomy by making spaces easy to find, identify and use Transportation to shopping, entertainment, doctor visits, and religious services Green design features that focus on access to natural light, air quality, water and energy savings 38 of 50

39 Economic Impact: The project will bring many construction jobs to the Martin County area during the construction period of approximately 12 months. Thereafter, the Project will employ in excess of 50 additional FTEs. Environmental Impact: N/A 39 of 50

40 Exhibit N: The ownership group is investing in excess of $6,000,000 into Phase I of the project. There is a possibility, that a portion of the equity is contributed in the form of tax-exempt subordinated debt. The Equity contribution for Phase II will largely be determined by the financial feasiblity study and appraisal as prepared for the Phase I existing project and to be constructed Phase II. 40 of 50

41 41 of 50

42 42 of 50

43 43 of 50

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45 45 of 50

46 RESOLUTION NO. A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MARTIN COUNTY, FLORIDA, APPROVING A PLAN OF FINANCE CONCERNING THE ISSUANCE BY THE MARTIN COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY OF THE AUTHORITY'S HEALTH CARE FACILITY REVENUE BONDS, IN ONE OR MORE SERIES, IN AN AGGREGATE PRINCIPAL AMOUNT NOT EXCEEDING $68,000,000 FOR THE PURPOSE OF PROVIDING FUNDS TO MAKE A LOAN OR LOANS TO ONE HC- JENSEN BEACH, LLC AND TWO HC-JENSEN BEACH, LLC TO FINANCE THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF SENIOR LIVING AND ASSISTED LIVING FACILITIES DESCRIBED HEREIN. WHEREAS, the Martin County Industrial Development Authority, a public body politic and corporate (the "Authority") previously adopted on November 8, 2013, its Resolution (the "IDA Resolution") approving a plan of finance for the issuance of (i) the Authority's Health Care Facility Revenue Bonds in one or more series, on certain conditions specified therein, in an aggregate principal amount not to exceed $28,000,000 (the "Phase I Bonds"), to provide funds to make a loan to One HC-Jensen Beach, LLC (the "Phase I Borrower"), a Florida limited liability company, to finance the first phase of a senior living and assisted living facility consisting of a two-story building containing approximately 99 units and 130 beds (the "Phase I Project") and to pay the costs of issuance related to the Phase I Bonds and (ii) the Authority s Health Care Facility Revenue Bonds, in one or more series, on certain conditions specified therein, in an aggregate principal amount not to exceed $40,000,000 (the "Phase II Bonds" and, together with the Phase I Bonds, the "Bonds"), to provide funds to loan to Two HC-Jensen Beach, LLC, a Florida limited liability company (the "Phase II Borrower" and, together with the Phase I Borrower, the "Borrowers"), to finance the second phase of a senior living and assisted living facility consisting of a three-story building containing approximately 175 units and 225 beds (the "Phase II Project" and together with the Phase I Project, the "Projects") and to pay costs of issuance related to the Phase II Bonds, both Projects to be located on approximately 37 acres of land located at 1537 NE Cedar Street, Jensen Beach, Florida, the Phase I Project to be owned by the Phase I Borrower and the Phase II Project to be owned by the Phase II Borrower; and WHEREAS, the Authority has by the IDA Resolution, approved the Borrower's application and has recommended that the Board of County Commissioners (the "Board") of Martin County, Florida (the "County") approve the issuance of the Bonds in an aggregate principal amount not to exceed $68,000,000, to finance the Projects and has requested that the Board hold a public hearing in connection with such approval; 46 of 50

47 BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MARTIN COUNTY, FLORIDA, THAT: SECTION 1. Authority. This Resolution is adopted pursuant to the laws of the State of Florida, including, in particular, Section (z) and Section (1)(f), Florida Statutes, and other applicable provisions of law (the "Act"). SECTION 2. Findings. The Board hereby finds, determines and declares as follows: A. Notice of a public hearing to be held on the date hereof before the Board, inviting comments and discussions concerning the plan of finance for issuance of the Bonds by the Authority to finance the Projects was published in THE STUART NEWS, a newspaper of general circulation in Martin County, Florida, at least fourteen (14) days prior to the date hereof, as evidenced by the proof of publication attached hereto as Exhibit "A." B. Following such notice, a public hearing was held by the Board on the date hereof, during which comments and discussions concerning the issuance of the Bonds by the Authority to finance the Projects and to pay certain costs of issuance were requested and heard. C. The Bonds shall not be deemed to constitute a debt, liability or obligation, or a pledge of the faith and credit or taxing power, of the Authority, the County or the State of Florida or any political subdivision thereof, but the Bonds shall be limited, special obligations of the Authority, secured solely by and payable solely from the revenues and proceeds to be derived by the Authority from the sale, operating or leasing of the Projects, including payments received under the financing agreements entered into between the Authority and the Borrower. SECTION 3. Approval. Solely for the purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended, and Sections (1)(z) and (1)(f), Florida Statutes, the Board hereby approves the issuance of the Bonds by the Authority, in one or more series, in an aggregate principal amount not exceeding $68,000,000 to finance the cost of the Projects. This approval shall not be construed either (a) as an approval of any zoning application or (b) regulatory permit application required in connection with the Projects, or as (i) creating any vested rights with respect to any land use regulations, or (ii) a waiver or estoppel of the Board's assertion of any rights or authority it may have in that regard. Additionally, the approval given herein shall not be construed as an approval by the Board or the County of the financial feasibility of the Projects or creditworthiness of the Borrowers or of any other financial matters with respect to either of the Projects, the Borrower or the Bonds or as a recommendation to any prospective purchaser to purchase the Bonds. The approval granted herein is subject to the condition that any offering or sale of the proposed Bonds be accompanied by such offering documents as are necessary, in the opinion of counsel to the Authority, to 2 47 of 50

48 comply with the provisions of Rule 10b-5 of the Securities and Exchange Act of 1934, and that such offering documents contain therein a recital that such offering documents have not been reviewed, and have not been approved, by the County and that the County makes no representations as to the Bonds or the security therefor. SECTION 4. No Obligation. The Authority will not be obligated to pay the Bonds except from the proceeds derived from the repayment of a loan to the Borrowers and any collateral therefor provided by the Borrowers. Neither the faith and credit of the Authority nor the faith, credit or taxing power of the County or the State of Florida or any political subdivision thereof is pledged to the payment of the principal of or the interest, or premium, if any, on the Bonds. SECTION 5. Effective Date. This Resolution shall take effect immediately upon its passage. PASSED AND ADOPTED this day of December, MARTIN COUNTY, FLORIDA (SEAL) ATTEST: By: Sarah Heard, Chair Board of County Commissioners By Carolyn Timmann, Clerk of the Circuit Court and Comptroller APPROVED AS TO FORM AND CORRECTNESS: # _v By: Michael D. Durham, County Attorney 3 48 of 50

49 49 of 50