LEATHERWOOD MOUNTAINS PROPERTY OWNERS ASSOCIATION, INC.
Board Meeting, October 14, 2006

10:00 am - Meeting called to order by President Chuck Mann. Present were Board members Diane Ertel, David Beckett, Lelia Ivey, Vance Stine, and Mike Everett. Absent were members Randy Burke, Delaine Parker, and John Single. Also present were property owner guests Roy Amler and John Kimbril.

First order of business was to recognize the guests and to to hear Roy Amler address the Board about his concerns with the Ginn purchase of the equine facilities, restaurant, and use of the trails. Mr. Amler, a CPA, had done extensive research on Ginn’s other resorts, including financial statements and room occupancy rates, with a copy of the SEC 1017 Report and charts demonstrating the potential number of people who would be guests or owners at Laurelmor. He stated that he had bought in Leatherwood because of its privacy and limited access. He expressed concern for the loss of community, the lack of security, and the potential competition to the rental program due to Ginn’s plans to have a rental program.

Mr. Amler’s presentation opened up discussion among the Board members which included a background conversation of previous attempts at security and making improvements to the gate. Included in the topics covered was the number of people who visit Leatherwood now who are not property owners, the impact on the roads, property values, trail use, and the rental program in general. Various members explained how the Board was responding to these issues, including reading emails and letters from the POA attorney Tony diSanti, which gave the Board a clear direction on the POA’s legal rights. Vance Stine thanked Mr. Amler for his interest and time, and asked if the Board had answered all his questions to the best of its ability. Roy Amler stated that the Board had done more on these issues than he realized and thanked the Board for its work.Guest John Kimbril was then given a chance to speak and he replied that all his questions had also been answered and he appreciated the work being done by the Board.

Contracts and Agreements – Chuck Mann reported that we are still waiting on Gary Gibson to finish work on the culverts.

Activities and Events – Diane Ertel stated that the remaining October events include the Pumpkin Carving Contest at the party barn at 6:00 pm on Thursday, October 26. Everyone is to bring their own pumpkin, carving tools, and a large bowl for the waste. The POA will provide drinks and pizza. The annual Halloween Costume Party will be on Saturday night, Oct. 28, at 6:00 pm at the party barn. One dollar admission at the door goes into the prize pool. The POA will provide a hot dog dinner, with side dishes. A 5k run will be that Saturday morning, sponsored by Leatherwood Rentals. The last Celebration Dinner for 2006 will be held on Thursday, Nov. 2, at 6:00 pm at the restaurant.

Roads – Paving has been completed on Granny’s Ridge, but some repairs will have to be done to the drain, which was broken. The paver worked on Saturday, instead of on Monday as agreed so that a POA member could be present. Chuck Mann said that the paver has not been paid, and would not be paid until all work is satisfactory. In another matter, Chuck reported that Randy Burke had found someone who could take core samples of the road. The cost is between $1500 to $2,000 a mile to do this. We have to decide if we want to do this or what course of action to take to make sure that roads are put in properly. Discussion took place about the continued concern over new roads being put in now. Mike Everett discussed some of the problems involved in putting in Crockett Cove road. He said he believes the contractors were compacting the soft spots in the road beds. He said that the preparation included putting down vinyl mesh in those spots and using a rubber tired machine designed for compacting on the whole road. Mike stated he believed the contractor was doing a good job. On other roads being developed, it was mentioned that the roads varied in width, and that the developer was still putting in one-way roads. Mike Everett stated that where there is a lot of patch work, the POA may want to consider a tar and gravel resurfacing.

Diane Ertel reported that the intersection of Elk Ridge Road and Cabin Ridge Road was still dangerous even though the yield sign had been moved to the Cabin Ridge side of the intersection. The Board agreed that another yield sign should be added from the Elk Ridge/Elk Horn side of the street.

David Beckett mentioned the continued concern over construction being done in Leatherwood. He said that we should require the proper safety equipment and signage when the roads are being worked on or there is construction vehicles blocking the roads. He suggested that the Board require this of all contractors and that the Board should purchase the equipment and signage to warn drivers of obstacles and to charge the contractors if they don’t supply their own. The Board agreed this is necessary. Various methods were suggested to slow down traffic and keep drivers on the right side of the roads. No decisions were made.

Vance Stine asked Chuck to be sure to get a certificate of insurance from any contractor doing work for the POA. The certificate should show the contractor has workers’ compensation and also general liability protection. Vance said we need to keep copies of these certificates for our records to keep our premiums down. (Chuck has one on file for our current contractors.)

Covenants Compliance – David Beckett shared the opinion of POA attorney Tony deSanti of the Board’s right and duty to impose fines for violations of the covenants. He reviewed the Position paper and its intent for the members who were absent at the previous Board meeting. Vance Stine asked for written documentation from the Declarant passing the responsibility of enforcing the covenants to the Board. He said he agreed with the attorney’s letter that the Board could enforce and fine for speeding, but didn’t believe the Board could fine for or enforce other violations. David said the next step in implementing the new guidelines is to be sure that the Position paper and set of Compliance Fines be in line with the North Carolina Planned Community Act, Chapter 47F. His committee will review this and proceed with the final presentation before submitting the paper to the general membership.

Insurance and Legal – Chuck said that he had not seen the final contract from Ginn with the POA involving the trails and rights-of-way. As soon as that is available, the Board will meet again to review the contract.

Election Committee – Vance Stine reported that the Election Committee, consisting of Vance, Randy Burke, and David Beckett, will continue to work on the ballots and nominating procedures for the next annual meeting. Chuck suggested that the annual meeting be on the second or third weekend of April. He said he would check with Abbie to be sure the date doesn’t conflict with any events planned by Leatherwood Rentals.

Other Business – Diane Ertel asked the Board for suggestions for a member-at-large to work with her on a committee formed with Leatherwood Rentals to look at the future needs of Leatherwood behind the gate once Laurelmor takes over the facilities outside the gate. She said that Abbie Hanchey wanted to have the first meeting in November. Roy Amler was asked if he would want to serve as representing the membership as a whole and he agreed. This new committee will consist initially of two POA members (Diane Ertel and Roy Amler) and two Leatherwood Rental representatives ( to be announced). The committee will add others if needed in the future.

The meeting was adjourned at 12:15 pm.

Respectfully submitted,

Diane Ertel, Secretary