Pulte Meeting with LaCresta
July 23, 2009

Scott Campbell, Division President for the Florida region for Pulte Homes opened the meeting at 7:00 p.m. Mr. Campbell stated that the conference room is available until 8:30 p.m. A Court Reporter was present and the transcript, upon completion, will be available to anyone.

Mr. Campbell stated that Pulte is frustrated with the situation at LaCresta and they are working hard to find a resolution. He reviewed the status of the situation from May 2009, when the last meeting was held with LaCresta property owners, till today, as follows:

A Letter of Intent was sent to JL Land on June 8, 2009;
Several conversations were initiated by Pulte to JL Land, no agreement was reached;
JL Land demanded that Pulte board members resign from the HOA Board;
Pulte recently sent new Letter of Intent to JL Land and Pulte has not received a response from JL Land. The LOI was sent on Tuesday 7/21

The following questions were asked from various LaCresta residents:

· Why did you decide to pull out of the community? JL Land breached the contract with Pulte. No progress was being made witn negotiations.
· Why didn’t Pulte notify LaCresta that Pulte was moving out of community, closing sales office and LifeStyle House? JL Land has been very difficult to deal with. Pulte apologizes for its decision to close the LifeStyle House. Perhaps it was a bad business decision, but the LifeStyle House is now available to LaCresta.
· Is Pulte going to maintain model homes and spec houses? Pulte will maintain its property.
· Mr. Campbell advised that JL Land now controls the HOA.
· Will Pulte buy back our homes? Pulte is resolving thru a legal process and it is premature to discuss this until court proceedings are over.
· JL Land has stated that Pulte did not pay its share of monies to Ridgewood Lakes Association. Is this true? Pulte paid approximately $200,000 in 2008 to Ridgewood Lakes Association. When the contract was terminated by JL Land, Pulte had no obligation to Ridgewood Lakes Master Association.
· Why did Pulte not buy land prior to building amenity center, etc.? It is not unusual for a developer to buy land required to build a community in phases.
· What was JL Land’s breach of contract with Pulte? Pulte was to buy land when the land met certain criteria.
· Why did Pulte continue to sell homes while not disclosing the law suit to buyers? Legal question, cannot answer.
· Pulte is currently trying to get its deposit back from JL Land. If Pulte wins law suit and gets its deposit back, will you return or just walk away? Legal question, cannot answer.
· What was breach of contract? Anyone can go to courts and obtain a copy of legal documents. They are public records.
· Mr. Campbell advised that JL Land now controls the HOA.
· If you win the case, what are you going to do? Will not speculate as to what will happen in either situation.
· Are you going to build an amenity center for 99 existing homes? Cannot answer that.

The availability of memberships at Bella Trae was a temporary arrangement and will end August 2009. Pulte is now providing, at no cost to LaCresta residents, a membership at Celebration. Jennifer Hoffman will be getting an e-mail out to all LaCresta residents about the program at Celebration. Jen advised that she will need a certain number of residents to participate in order to set the program up. The information will be forwarded next week.

Jerry Melton stated on behalf of the residents of LaCresta: We are grateful we are getting something back. However, he is stating for the record that any amenities Pulte makes available at this time, they are not, in any way, a substitute for what was promised to all of us.

Jerry Melton confirmed with Scott Campbell that Scott advised in March 2009, that all major concepts with JL Land had been agreed upon. Mr. Campbell stated that it was held up due to due diligence not being complied with.

The following questions were asked:

· A number of developed lots have dead scrubs, trees and grass that were to be replaced by Land Arc. What is the status of that? JL Land is now responsible for lawn contractor. Since these complaints and concerns took place prior to Pulte leaving the development, Mr. Campbell will look into the situation and will communicate his findings to Jerry Melton.
· Can the court date in March be changed? There is a court date in March 2010. There will be mediation prior to court.
· What is status on partially finished house? Pulte will “dry” the house and close it up to be finished later.
· What is the status of amenity center? The amenity center is part of litigation, therefore Mr. Campbell cannot comment. It is JL Land responsibility to take care of amenity center now.

Mr. Campbell stated that JL Land has been willing to talk about the litigation case. JL Land is communicating facts which are not true. Pulte is committed to finding a resolution

If JL Land responds favorably to the last Letter of Intent will Pulte start building again? Mr. Campbell stated that there is a process that needs to be followed, prior to building starting. The process is as follows:

§ A contract draft needs to be prepared – 30/45 days;
§ Due diligence must take place – 90 days;
§ Contract is signed and closing takes place. Total time approximately 5/6 months.


The following questions were asked:

· Can JL Land hire another building contractor and proceed with amenity center? I do not know.
· If Letter of Intent is accepted by JL Land, will Pulte return to HOA? Pulte expects to take over HOA
· If you do pull out will you auction models and spec homes? Cannot answer.
· Can you let LaCresta know if you receive a response from JL Land regarding the Letter of Intent? All communication is through attorneys.


Mr. Campbell stated that the only difference for LaCresta between today and May 2009 is:

1. Sales office is closed
2. HOA is now run by JL Land.

The residents made it clear that “It has not changed for you but it has changed for us.”

The meeting was adjourned.

Respectfully submitted,

Carol Melchior

Please note that it is my understanding that the Court Reporter’s transcript of the entire meeting will be available to anyone upon request.