REVISIONS OF RESORT STRATEGIC PLAN

RESORT TASK FORCE REPORT
January, 2006

Following the Board review of the Initial Resort Task Force Report in October, 2006, consensus seems to be that POATRI should continue operating the resort facility but should not attempt full scale marketing efforts.

A combination of Option #1 and Option #4 seems to be most acceptable at the current time. Therefore it is proposed that the consensus plan would entail:

• Preserve owner investment through judicious improvements
• Control types of visitation to minimize impact to owners and control growth
• Reinforce TR Maintenance Association agreement which does not limit assessments to roads
• Current 30% assessment support is acceptable
• Self-sufficiency is doubtful
• Reduce expenses rather than increase revenues
• Maintain as a service to property owners and guests

Working under the assumption that the above statements are acceptable, management will move forward as follows:

• Reduce hours of the restaurant and resort office effective February 1, 2006, and continue to reduce operational expenses wherever possible
• Increase room rental rates by 7% effective April 1, 2006
• Continue improvement plans to physical structure such as replacing cabin porches, kitchen equipment, etc. only as needed
• Pursue environmentally friendly visitors through judicious marketing with a small increase in marketing budget
• Market the resort to owners as an asset of the corporation and a special place for them to visit by improving discount programs for owners in good standing who use the facility
• Limit use of assessment support to no more than 30% of collected annual assessments

I am sure that you will all have questions and perhaps require more specific information. I present this simply as a starting point for discussion to be sure that we are all in agreement as to the direction we must take as regards the resort operation. I have revised the Resort Vision, Objectives and Goals of the Strategic Plan based on these assumptions as stated above. I have also revised the 2006 budget projection based on these same assumptions.

ALIDA LORIO

GENERAL MANAGER

January 19, 2006

<<SP Reports Index

<<SP Steering Committee Reports

<<Back to Board News