CROWN HARBOR HOMEOWNERS ASSOCIATION

BOARD OF DIRECTORS

January 10, 2003

The Board of Directors has reviewed all of the comments and questions that were given during and after the dry dock boat storage information handouts of January 4-5. Many of the questions and comments are addressed in the final Development Agreement, available on the Crown Harbor web site. The following is a summary of the remarks from the BOD:

  1. Item 2k of the development agreement was revised to insure that a resident without a dry slip could obtain one within 60 days, if the facility happened to be full.
  2. On January 31, 2002 the Cornelius Town Planning Board approved the dry dock project, per the Planning Department Conditional Use Permit. A lease and development agreement between the Developer and Crown Harbor was part of the approval, and final documents were received from the Developer on December 27, 2002, after months of comments and questions from all parties involved. The BOD immediately made plans to mail notices that the plans, drawings and related documents would be available at the Crown Harbor pool area January 4th & 5th, and that the BOD would welcome any further comments and questions for review prior to January 7, 2003, and would be taken into consideration during further actions of the BOD. Of the 149 residents of Crown Harbor, 60 signed for a set of the documents made available and only 10 residents had negative comments.
  3. The Developer is responsible for obtaining all documents and information required for submittal to Duke Energy for processing a permit request to FERC. This process was a requirement imposed by the Town of Cornelius. The Developer has submitted a permit application to Duke Energy.
  4. The existing shoreline boardwalk along the common area and easement, provided in the Crown Harbor Covenants, will be removed. A new boardwalk will be built of Trec materials, and will terminate at the access to the wet slip area.
  5. Per the Development Agreement, the Developer will be allowed to lease only to Crown Harbor lot owners and/or their tenants. Leases will not be allowed to commercial entities. Duke Energy has indicated their approval of a FERC permit is contingent upon the project being for Crown Harbor lot owners.
  6. Provisions for speed humps were made at the request of some Crown Harbor residents with safety concerns expressed even before the idea of this project was proposed. The Development Agreement simply allows the option for installation at the expense of the Developer. Another option being considered is three-way stop signs along Crown Lake Drive.
  7. The Town of Cornelius approved the building capacity of 210 slips. The minimum of 170 would provide every lot within Crown Harbor, with or without a wet slip, to have one dry slip. Two slips are required by the Town of Cornelius to be dedicated to law enforcement and emergency watercraft.
  8. The Town of Cornelius approved what they considered to be adequate facility parking, fifty (50) spaces. Subsequently, the Developer redesigned the parking to sixty-four (64) spaces with an additional two (2) handicapped spaces.
  9. Members of the BOD visited two dry dock storage facilities to inspect and ask questions concerning noise and emissions of forklifts. Forklifts using LP gas, or equivalent will be used to reduce emissions. The proposed retaining wall, vegetation and elevation change will further reduce forklift noise at the pool. Noise created by traffic on I-77 will be reduced by the location of the building.
  10. Negotiated enhancements to the pool and other areas of Crown Harbor were added as part of the agreement. The pool house was specifically negotiated to provide a room for private and community activities, and to provide additional storage for the new pool furniture.
  11. Crown Harbor, LLC has an existing lease contract with Lightco, Inc., signed by Tom Scott, representing B. V. Belk, original developer of Crown Harbor. After the ten (10) year lease expires, the neighborhood would still not own the streetlights. The contract has an estimated total expenditure of $166,920. The CHHOA is obligated to pay the lease or take the matter to court, adding additional legal expenses. The Bill of Sale incorporated within the Development Agreement will convey the streetlights to Crown Harbor, eliminating this $166,920 debt, associated court cost and the uncertainty of a court judgment.
  12. The CHBSA BOD approved and executed a lease agreement, required by the Town of Cornelius, with Crown Harbor Dry Boat Dock Storage, LLC, recorded owner of the land beneath the existing wet slips. After the land is turned over to the CHBSA, the lease will no longer be a factor.
  13. Exhibit Z includes all corrections required by Duke Energy Company to obtain a new FERC permit. Dredging, shoreline erosion control, dock reconfiguration, and required moving of any lifts at Developer’s expense are also included in Exhibit Z. Duke Energy has stated on several occasions that all of the existing violations must be corrected, regardless if the project is or is not approved.
  14. Any CHBSA member wishing to sell or trade their wet slip to the Developer for a dry slip must be current on their dues and should contact the CHBSA BOD or the Developer. The Developer stated he will purchase or trade for up to, but not more than ten (10) wet slips, and has purchased two (2) to date.
  15. Any existing wet slips purchased by the Developer will be to reduce the number to the FERC permitted 35 wet slips, and for temporary mooring of boats leaving and returning to the facility. Wet slips used for temporary mooring will remain members of the CHBSA. Lessee of a dry slip but not a member of the CHBSA returning after hours of facility operation will be allowed to dock overnight only in wet slips purchased by the Developer, and along the actual launch area, until the next morning when the boats will be returned to their respective dry dock slip. Under no circumstances, will dry slip lessee be allowed to moor in any other existing wet slip, unless specifically authorized by the owner of that wet slip.
  16. Wet slip reconfiguration will be done by rotating the existing structures and, as best as possible, in such a manner as not to displace anyone from their existing slip.
  17. After the new configuration of wet slips, Duke Energy Company will inspect the docks. Any remaining violations will be noted and expected by Duke Energy Company to be corrected.
  18. As a separate matter, B. V. Belk has an obligation to sign over all common areas to Crown after this project is approved and certificate of occupancy issued. All paperwork has been presented to B. V. Belk and pending.