Bear Lake Communication Update - as of December 22nd

Docks
Representatives from Centex and Terramesa recently met with representatives from Duke Power to discuss the dock permitting situation at Bear Creek Lake. Based on the information discussed at that meeting, Duke is reviewing its position internally. We do not anticipate having any further information on the matter until after the New Year.


The Community Advisory Panel
The Community Advisory Panel (CAP) had its first meeting on Dec 17th. The formative meeting set out to introduce each of the members, to set a meeting schedule over the year, and to identify an issue list and work plan for the year. The CAP is made up of nine owners that represent the different neighborhoods within Bear Lake Reserve. The chair of the CAP is Chuck Louisell, who will be representing Golden Farm/Mill Pond, as well.

The breakdown of locations and representation is as follows:

Chuck Louisell Golden Farm/Mill Pond
Bill Clarke Boulder Creek
Diane McGreevy Hedgewood, Juneberry, Whispering Falls
Fred Gray Bear Creek
Jeff Brown Phase I Mountain View Home sites
Dick Beaver Phase I Lakefront Home sites
Dan Brock Phase II Mountain View Home sites
Kurt Hartman Phase II Lakefront Home sites
Dave Schmidt Mountain Lodges

The group will work as a committee supporting the newly appointed owner member of the POA Board, Don McAliley. The group will meet four times over the year. The first meeting will be on January 10th at 11:00 AM following the Town Hall Meeting. The remaining meetings are linked to social events so that the group can meet and greet neighbors as part of the representation process.

Bear Lake Communication Update - as of December 18th

Hospitality News
Christmas Dinner Cancellation
The Christmas Eve Dinner has been cancelled due to lack of reservations. However, the restaurant will be open on Christmas Eve between 11a.m. and 3p.m. The Lake Club will close at 5p.m. and will reopen on December 26th at 8a.m. Thank you for your cooperation.


Construction/Maintenance
-Over the last two weeks we have experienced a considerable amount of inclement weather, which has limited development construction to erosion control repair and site cleanup.

-W.G. Lapsley and Associates will begin to submit applications to the NC Department of Environment and Natural Resources during the first full week of January, 2009. This will serve as part of the verification process leading to installed water distribution lines and appurtenances within Phase 2. Additional water distribution construction cannot begin until the permit applications are approved.

Bear Lake Communication Update - as of December 16th

BEAR LAKE RESERVE SALES OFFICE TO OPEN ON PROPERTY
Staff Moves from Sylva Sales Office

TUCKASEGEE, North Carolina (December 10, 2008) The sales office of Bear Lake Reserve, a Terramesa Resorts community, will move from its Main Street location in Sylva to the property itself on December 12. “This will make our entire team immediately accessible to owners, guests and prospective purchasers,” said Mickey Luker, VP of Hospitality & Development of Bear Lake Reserve.

The vacation-home community of Bear Lake Reserve spreads over 2100 forested mountain acres and is designed for active families. With 13 ½ miles of shoreline, activities include swimming, boating, fishing, kayaking and water skiing. The community’s Lake Club has a fine-dining restaurant, a tavern, a theater room, a kids’ activity center, a fitness center and massage-treatment rooms. Outside, near the lakeshore, are a swimming pool and two hot tubs. In addition to a 9-hole Jack Nicklaus golf course, residents have access to over 23 miles of hiking trails, an outdoor amphitheater, a stocked trout pond and a park with tent platforms, teepees and other family-friendly features.

At the new on-property sales office, the sales team headed by Shannon Murray will be selling mountain lodges, cottages and custom home sites, at prices ranging from $200,000 to $800,000+. At full build out, it is expected that Bear Lake Reserve will have 800 residences. A rental program makes units available to guests on a nightly, weekly or monthly basis.

“We will miss our friends in Sylva, but we’ll still be a part of the community,” said Luker. “Our new location overlooking Bear Creek Lake gives folks a feel for why a home at Bear Lake is a vacation dream come true.”

The Bear Lake Reserve Sales Office will be open daily. For information and to arrange a property tour, call 828-293-0770 or 828-293-0880. Bear Lake Sales Office - 65 Southshore Drive/PO Box 96, Tuckasegee, NC 28783. www.bearlakereservevacations.com

ABOUT TERRAMESA
Terramesa Resorts is a privately held resort development and management firm specializing in exclusive active vacation destination communities. Its communities are easily accessible from major urban centers, and they offer real-estate options at a variety of price points. At each community the focus is on outdoor activities- from boating and biking to skiing and hiking- that lead to long-lasting memories for every member of the family. A wholly owned subsidiary of Macfarlan Capital Partners, in Dallas, Texas, Terramesa owns and operates resort communities in Texas, North Carolina, New Hampshire and Nevada. www.terramesaresorts.com, 214 932-3113. "Our Family Creating Memories for Your Family"

Bear Lake Communication Update - as of December 15th

Property-Wide Developments

New Sales Office
The Bear Lake sales team has a new home! The new sales office is located within the South Shore Mountain Lodges in unit B1-1. As of Monday, December 15th, the old office in downtown Sylva with be closed and all business will be conducted through the on-site office.

Contact Information, as of 12/15/08, for the Bear Lake Sales Office:

(828)293-0770 - office
(828)293-0880 - fax

Hospitality News

Christmas Dinner
It is not too late to make reservations for Christmas Dinner on December 24th. Please call 828.293.3906 to reserve your table at the Lake Club.
Please note: You must RSVP by December 17th, 2008. If there is not enough response to the dinner, Bear Lake Reserve will be forced to cancel the event and you will be notified promptly.

Bear Lake Communication Update - as of December 5th

Construction/Maintenance

o Installation of electrical, telephone, and cable TV conduit was completed along Pepperbush Lane and Parkside Drive.

o W.G. Lapsley and Associates, in conjunction with Fallon Utilities, have verified water utility installation placement in compliance with state requirements along South Shore Drive and Parkside Drive.

o Water booster stations and wells have been inspected. Unofficially, the utilities installed meet requirements for depth and required separations from other utilities.

Bear Lake Communication Update - as of December 4th

Construction/Maintenance Updates

Letter from Todd Newman regarding Duke Energy

Todd Newman
Vice President, Finance

Centex
Centex Corporation
P.O. Box 199000
Dallas, Texas 75219-9000

November 14, 2008

Re: Bear Lake, North Carolina


Dear ____________________,


You may have heard that Duke Energy, the owner of Bear Lake, has raised some questions regarding the location of docks that have been installed along the shores of Bear Lake. I am contacting you to give you some background on the issue and to give you an update on efforts being made to ensure that the docks will remain on the lake as you, and we, both expected.

Bear Lake Reserve was developed by a Centex affiliate, Centex Destination Properties (CDP). The CDP team did a great job of planning, designing, and developing a beautiful community on a challenging site. We believe that the CDP team obtained the required development rights related to the project, including rights related to dock construction.

So we were surprised when Duke Energy contacted Terramesa recently to claim that docks on Bear Lake did not comply with Duke Energy’s dock policy and permitting process. We strongly disagree with Duke Energy’s position on this matter. We believe that Duke is attempting to change the rules after the docks were approved and installed. Because of this, we are working aggressively to resolve the issue as quickly as possible. We are in the midst of discussions with representatives from Duke Energy to support our position on the docks. Representatives from Terramesa are also involved since the resolution will effect phases that CDP developed and sold and phases to be developed or sold in the future.

We believe that we have made significant progress on this matter over the past month or so. When we reach a final resolution on the issue, we will share the details with you. John T. Benjamin, an attorney in Raleigh, is leading our discussions with Duke Energy. If you have additional questions, you may contact me, or Mr. Benjamin (919.755.0060, or Benjamin@lawjb.com).

Respectively,




Todd Newman
Vice President, Finance
Centex


Property-wide Developments

Addition to the Sales Team
The Sales Department is pleased to announce a new member, Geoff Wright, to our team. Geoff has an extensive background in real estate development sales and additionally has had a successful career working in sales and marketing with four and five star resorts such as the Homestead in the Allegany mountains of Virginia. Geoff and his wife Vivi along with their two boys, Tristin and Justin, are excited to move to Western North Carolina and we too are excited to have them join us at Bear Lake Reserve. Please welcome Geoff Wright to Bear Lake Reserve.

Hospitality News

Thank You!
Thanksgiving Dinner was a success. Thank you to all who attended and participated in the holiday fun.

Christmas Eve Dinner
Wednesday, December 24th, 1p.m. and 3:30p.m.
Ring in the holidays, Bear Lake Style! Make your dining reservation for 1p.m. or 3:30p.m. and treat your family to a taste of home away from home, this Christmas season. Our chefs have prepared a delicious holiday menu with all the ‘jingle’ bells and whistles! Enjoy live music from Steve Wohlrab, local jazz artist.

Reservations are required; please call 828.293.3849. Please note: No regular F&B service will be available on December 24th, only the Christmas Eve dinner at 1 & 3:30p.m.

New Year’s Eve Dinner & Celebration
Dinner, seating begins at 6p.m.
Join us for an elegant, fine dining experience in the Lure Restaurant and Bear Lake Reserve. Enjoy live jazz and a special fine dining menu. The dress code will be strictly enforced. Seating begins at 6p.m. Reservations are required. No walk-ins will be taken. Please call 828.293.3849.

Celebration, 9p.m. – 1a.m.
Local band Rafe Hollister will keep the party rocking right into the New Year! Munch on finger foods and hors d’oeuvres and we will keep the bar open until the party stops! RSVP by calling 828.293.7414, or email blractivities@terramesaresorts.com.

Bear Lake Communication Update - as of November 21st

Construction/Maintenance Updates


Signage

Signs have been installed for the following roads and locations:

Parkside Drive
Spicebush Drive
Crossvine Drive
Harbor Ridge Drive
High Point Cottages
Directional sign for “Lake Club/Golf Course”
Purpletop Drive
Shoreline Drive
Nannyberry Lane

Phases I and II
This past week concluded a major review of the progress on infrastructure projects by the Terramesa team. We reviewed each of the line items that have been identifies as discrepancies with a specific focus on the water distribution to Phase I lots and correction of hillside stability.
In addition to the hillside stability issues, our Land Development and Resident Civil Engineer reviewed the progress on extension of the water system to several points within Phase I and Phase II that require additional pumping and piping. These plans are in preliminary review and are the basis for the project execution plan which Centex will review.

Lakeshore Condos and Juneberry Cottages
Engineering plans for slide correction at the Lakeshore Condos and the Juneberry Cottages were reviewed and forwarded to Centex. Centex is working through the approval process which will include on-site inspections. Once approved these projects will get underway and will be completed.

Lilywood Court and Purpletop Drive
Final grading and utility installation was completed on Lilywood Drive. Purple Top paving has been completed and the erosion control and storm water management components have been put in place.

The next step will be a review of each additional site for preparedness. We want to ensure that we accomplish the infrastructure tie-ins in the most efficient manner requiring some preliminary research and confirmation of the current status.

Southshore Mountain Lodges
Centex made a return visit last week to do a site review of the geotechnical repair proposal for the slide at Southshore mountain lodges. We are currently waiting for approval to begin repairs.

Docks
The Lake Club boat docks have been completely refurbished. Centex, Terramesa and Duke Power continue to work together to make the lake enjoyable and accessible for everyone.

Winterization and Winter Guard Services
With the winter months upon us, it is important to remember that home maintenance is a must. Put your mind at ease this winter; Bear Lake Reserve wants to you to take full advantage of our home winterization and winter-guard services. For more information, please call Matt Dellinger at 828.293.3763.



Property-wide Developments


Community Advisory Panel

This week we formed the Community Advisory Panel that was introduced at the September annual meeting. The panel will consist of 8 owners who represent the various neighborhoods within the community and will meet quarterly in a two part session (one on-site meeting and one teleconference).

The panel will develop an annual agenda and will address issues of concern identified by owners. They will provide a report and recommendation to the Community Board Member, who will be added to the board in January 2009. The panel will meet briefly in December, via teleconference, to establish the 2009 meeting schedule and identify the necessary volume of communication, as well as how to 'get the word out' to the greater homeowners association. This, coupled with the inclusion of an owner on the Board, represents our continued efforts towards greater owner involvement in the community governance.

Emergency Response Time

On Wednesday, November 19, 2008, one of the home construction workers on-site fell from scaffolding while working on one of the custom homes. The worker suffered significant injuries, and he was immediately transported to Mission Hospital in Asheville, via MAMA, the emergency “Flight for Life” helicopter.

In this case, winds prevented landing at the Lake Club so the MAMA pilot elected to land at the Golf Course, taking only seven minutes to arrive on the scene. Paramedics transported the individual to the landing site and the helicopter took off for the eleven minute flight to Asheville.

Fortunately, the worker is in stable condition and our hopes and prayers are with him for recovery.

CPR/First Aid Certifications

All full-time Bear Lake employees received training and certification for CPR and first aid through the American Heart Association, a course taught by local paramedics.


Hospitality News

Thanksgiving Day Buffet
1p.m. & 4:30p.m.

It is not too late to make a reservation for the Thanksgiving feast at Bear Lake Reserve! Join us for a delicious Thanksgiving Buffet at the Lake Club. Select from two seating times, 1p.m. and 4:30p.m. Reservations are required, please call 828.293.3849.

Christmas Tree Cutting
November 28 and 29

Meet at the Greeter’s Cottage on Friday, November 28th and Saturday, November 29th at 10a.m., when we will caravan to a local Christmas Tree Farm! Select and cut your holiday tree to take home with you!