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Date: October 7, 2006 Costa Brava Lot Size and Rent Rates Rent rates will be established by a survey of comparable properties in the local area every two years. The first comparable study was conducted in August 2007. The values established will be used for rentals for the years 2008 and 2009. The second comparable study will be conducted during the 4th Quarter of 2009 and will establish the rental rates for the years 2010 and 2011. Additional comparable studies will continue to be done at two year intervals. Rent rates will also be based upon location within Costa Brava and the size of the lot. Costa Brava has been divided into 3 different location levels. Each level has an assigned rent rate per square foot. The initial rental rates established are: Costa Brava Location Levels
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Guidelines for Issuing Land Rental Agreements
1. Single Term Land Rent Agreements – 9 years 11 months or less.
A Land Rental Agreement (LRA) will be granted for a single term under the following terms and conditions:
1. Price will be determined by lot location and current rental rate per square foot.
2. Payment for entire amount due for the LRA must be made at the time the LRA is issued by Bravo del Mar
3. A single term LRA can be renewed at any time prior to the expiration of the original term of the LRA at the rental rate in effect at the time of the LRA renewal
4. Bravo del Mar’s Costa Brava Community Guidelines will be incorporated into the LRA
Multiple Term Land Rental Agreements
Bravo del Mar will participate in the issuance of LRA with guaranteed renewals under the following terms and conditions.
1. Price will be determined by lot location and current rental rate per square foot.
2. Payment for entire amount due for the LRA must be made at the time the LRA is issued by Bravo del Mar
3. Bravo del Mar’s Costa Brava Community Guidelines will be incorporated into the LRA
4. Price for a Guaranteed Renewable LRA will be calculated as follows
First term = Cost of First term
Cost of Second term = (Cost of First term)+(5% of cost of First term)
Cost of Third Term = (Cost of Second term)+(5% of Cost of Second term)
Cost of Fourth term = (Cost of Third term)+(5% of cost of Third term)
Cost of Fifth term = (Cost of Fourth term)+(5% of Cost of Fourth term)
Cost of a 50 year LRA equals the sum of all five terms discounted by 30%
For example:
Land Rental Agreements of shorter terms will be offered smaller discounts off the total Land Rent amounts.
For example: a 40 year LRA could (perhaps) have a 30% discount, and a 20 year LRA could have a 25% discount.
Timing and the Sequence of Costa Brava Offering
Sequence of Offerings
1. First offering for new rents would be to existing residents/charter BDM members (This does NOT affect the BDM members original deal. Nor is it intended to be an extension of the original deal on different lots.)
2. Second offering for new rents would be to family and friends.
3. Third offering for new rents would be to outside parties.
Timing for the offerings would depend upon BDM's need for cash and rate of development desired by the community.