Dear Timber Lakes Property Owners:

It is with regret that my first posting to you as your new President involves a dispute with an adjacent property owner. An allegation has just been made that your right to use Spring Creek Drive and Blue Spruce from the end of Lake Pines Drive near the beaver pond to access common area and lots on the upper mountain is in question. The Association considers this claim to be spurious, but is not lightly reacting to the allegation.

In summary, the owner of that property has demanded immediate payment in the amount of $250,000, or a trade of some of our common area and a 99-year lease on other property owned by Timber Lakes. This common area addition would enable him to develop an 18-acre parcel bordering Timber Lakes, which he already owns. He has indicated this would be a commercial development. Should we agree to these demands, only then would he acknowledge the rights of TLPOA and its members to those roads.

I have asked our outside counsel to handle this issue. I plan to devote most, if not all, of the September monthly meeting in Heber City to this situation. I have no intention of making any decisions regarding this matter behind closed doors without owner involvement and support. You will be kept informed. That said, I would ask that you try to attend the next meeting, on September 8, 2010 at 7:00 p.m. As you know, our By-laws require a 2/3 vote of the membership to trade title on common area. I am also not going to write a check for $250,000, or any amount for that matter, without a clear mandate from the membership.

There is one other part of the claim of which you should be aware. This individual has also postulated that years of grading and plowing Blue Spruce has caused silts to alter the size of the beaver pond that he owns. He has asked us to restore that area. I have asked the Association’s General Liability Insurer to investigate and defend that specific claim. I do not want our membership bearing the costs for others’ actions. Anyway, I felt it important that you be informed. We should have a better understanding of all positions and facts by the time we meet in September.

If you have any information or facts that your Association should be made aware of, please provide it to us as soon as possible.

Best Regards,

Craig Allen – President, Timber Lakes Property Owners Association