Community Center Status Letter to Membership
from Glenn Duffy - 11/6/2006

Dear Member,

We are excited to share with you the status of your new Community Center.

Our entire focus is concentrated on providing you with a premier facility that will make all of us proud and enhance the value of your Ocean Pines property.

As you recall, association members approved construction of the project in the August 2005 referendum. It was our sincere hope the project would be under way by now. However, unanticipated and across-the-board increases in the costs of labor and construction materials in this area, as in most of the country, made it prudent for your Board of Directors to re-examine the entire project. We had to be certain we delivered you an architecturally pleasing finished product, meet the space needs of our community, and do so at the lowest possible cost.

We are now confident those goals have been met, and pleased to report the project is proceeding. Originally the anticipated construction cost was $3.9 million. Your board recently signed a contract with a very reputable company, Mervin L. Blades & Son, Inc., in the amount of $3.1 million for the building structure. Other associated costs for engineering, construction management, site work, parking, etc. now place the total finished cost of the project at $5.4 million.

While this cost is more than originally anticipated, your board believes this is the lowest price possible to complete your new Community Center. We are also confident this cost will be covered by the sale of OPA-owned commercial property and interior building lots, as provided by the referendum.

Many thanks for your patience and continued support of this fine addition to the Ocean Pines community. We expect to have a formal ground-breaking ceremony in the near future and everyone will be invited to attend and celebrate this milestone.

Finally, Tom Olson, our new General Manager, is actively surveying all of our existing amenities and developing a plan for adequate maintenance to further enhance and maintain the value of your property.

Sincerely,

On behalf of your Board of Directors

Glenn Duffy, President