LOI STATUS

On July 22nd, the non binding letter of intent (LOI) to buy the Hillsborough Pines golf course has officially been terminated by CVEMM and will not be converted to a Sales Agreement between the two parties. The LOI was conditional on several conditions being met before CVEMM proceeded with the Purchase and Sale Agreement, among which was a Phase II Environmental Site Assessment which requires testing the property for environmental compliance for its intended use as open space.

After a Phase 1 Environmental Site Assessment, CVEMM ordered limited Phase 2 tests involving sample soil testing for arsenic, commonly applied as an herbicide on golf courses in the past. Test results showed some sites exceeded the permitted limits for our intended uses. CVEMM’s environmental attorney recommended that a more extensive Phase II Site Assessment be conducted to determine the scope and location of any contamination, and to allow us to determine the procedure and to estimate the cost of required remediation.

After CVEMM notified both the owner and the Florida Department of Environmental Protection about the initial test results, CVEMM asked the owner for a 60-day extension of the LOI to conduct the Phase II testing and evaluation, and requested that he assume the costs. Mr. Bast refused both requests. As a result, on July 22nd, CVEMM exercised the clause in the contract and withdrew its LOI, and requested that the escrowed deposit be refunded in full. CVEMM offered to continue negotiations on appropriate terms, but will be pursuing all options to make the current owner and any prospective buyer responsible for ensuring the environmental compliance of this property, as required by Florida law.

While CVEMM is deeply disappointed that we are unable to purchase the course as planned, we nevertheless are thankful that our due diligence as prospective purchasers has permitted us to investigate and learn more about the risks and requirements of its environmental situation.

We sincerely appreciate the overwhelming support of the CVE community for this project. We will continue to remain vigilant to whatever threats and opportunities the property may present to CVE and take whatever action is required to preserve our village.

Master Management Communications Committee