EX10-22 Topsail Reef HOA

ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
BRAXTON DAVIS
Director
March 3, 2022
Topsail Reef HOA
2174-2264 New River Inlet Road
North Topsail Beach, NC 28445
NORTH CAROLINA
Environmental Quality
Exemption Number — EX 10-22
RE: EXEMPTED PROJECT (Statutory Exclusion) - MAINTENANCE AND REPAIR OF EXISTING
STRUCTURES - [G.S. 113.103(5)(B)(5) and [15A NCAC 7K.0103(a)] Renewed Former Exemption 18.21
PROJECT ADDRESS - 2174.2264 New River Inlet Road
AREA OF ENVIRONMENTAL CONCERN — Ocean Hazard AEC
Dear HOA Resident:
I have reviewed the information submitted to this office in your inquiry concerning the necessary filing of an
application for a minor development permit under the Coastal Area Management Act. After making a site inspection
on January 31, 2022, 1 have determined that the activity you propose is exempt from needing a minor development
permit as long as it remains consistent with your site drawing and materials list submitted on June 28, 2021, and
meets the conditions specified below. If your plans should change and your project will no longer meet these
conditions, please contact me before proceeding.
MAINTENANCE AND REPAIR — [G.S.113.103(5)(B)(5) and 15A NCAC 7K.0103(a)] - Maintenance and repairs
(excluding replacement) necessary to repair damage to structures caused by the elements are specifically excluded
from the definition of development under the conditions and in the circumstances set out in G.S. 11 3A-1 03(5)(b)(5).
Individuals required to take such measures within an AEC shall contact the local CAMA representative for
consultation and advice before beginning work.
Structures may be repaired in a similar manner, size and location as the original structure. No expansions or
additions are permissible. The repairs are limited to 50% of the market value of the existing structure and the
following specific conditions.
1. The project consists of the repair of The Oceanward Decks, as shown on the attached drawing and
materials list.
2. The proposed repairs shall be consistent with all other applicable local ordinances and North Carolina
Building Code standards.
3. No expansions or enlargements of any kind are authorized by this permit. All work must occur in the original
footprint.
4. No other work is authorized by this exemption letter.
This exemption to CAMA permit requirements does not alleviate the necessity of your obtaining any other State,
Federal or Local authorization and N.C. Building Permits. This exemption expires 90 days from the date of the letter.
Sincerely,
Curt Weychert
NC Division of Coastal Management
400 Commerce Ave.,
Morehead City, NC 28557
North Carolina Department of Environmental Quality I Division of Coastal Management
Morehead City Offlce 1 400 Commerce Avenue I Moorehead City, North Carolina 28557
ACIHiH CN07JN4
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ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
BRAXTON DAVIS
Director
March 3, 2022
Topsail Reef HOA
2174-2264 New River Inlet Road
North Topsail Beach, NC 28445
NORTH CAROLINA
EnvironmentarQuaitty
Exemption Number— EX 10-22
RE: EXEMPTED PROJECT (Statutory Exclusion) - MAINTENANCE AND REPAIR OF EXISTING
STRUCTURES - [G.S.113.103(5)(B)(5) and [15A NCAC 7K.0103(a)] Renewed Former Exemption 18.21
PROJECT ADDRESS - 2174.2264 New River Inlet Road
AREA OF ENVIRONMENTAL CONCERN — Ocean Hazard AEC
Dear HOA Resident:
I have reviewed the information submitted to this office in your inquiry concerning the necessary filing of an
application for a minor development permit under the Coastal Area Management Act. After making a site inspection
on January 31, 2022,1 have determined that the activity you propose is exempt from needing a minor development
permit as long as it remains consistent with your site drawing and materials list submitted on June 28, 2021, and
meets the conditions specified below. If your plans should change and your project will no longer meet these
conditions, please contact me before proceeding.
MAINTENANCE AND REPAIR — [G.S. 11 3.103(5)(B)(5) and 15A NCAC 7K.0103(a)] - Maintenance and repairs
(excluding replacement) necessary to repair damage to structures caused by the elements are specifically excluded
from the definition of development under the conditions and in the circumstances set out in G.S. 11 3A-1 03(5)(b)(5).
Individuals required to take such measures within an AEC shall contact the local CAMA representative for
consultation and advice before beginning work.
Structures may be repaired in a similar manner, size and location as the original structure. No expansions or
additions are permissible. The repairs are limited to 50% of the market value of the existing structure and the
following specific conditions.
1. The project consists of the repair of The Oceanward Decks, as shown on the attached drawing and
materials list.
2. The proposed repairs shall be consistent with all other applicable local ordinances and North Carolina
Building Code standards.
3. No expansions or enlargements of any kind are authorized by this permit. All work must occur in the original
footprint.
4. No other work is authorized by this exemption letter.
This exemption to CAMA permit requirements does not alleviate the necessity of your obtaining any other State,
Federal or Local authorization and N.C. Building Permits. This exemption expires 90 days from the date of the letter.
Sincerely,
Curt Weychert
NC Division of Coastal Management
400 Commerce Ave.,
Morehead City, NC 28557
North Carolina Department of Environmental Quality I Division of Coastal Management
J/ Morehead City Office 1 400 Commerce Avenue I Moorehead City, North Carolina 28557
rvoran c=nairve /v
252.808.2808

148-20
A REPLACEMENT COST ESTIMATE
19
TOPSAIL REEF
2174-2264 NEW RIVER INLET ROAD
NORTH TOPSAIL BEACH, NC 28445
PREPARED FOR:
TOPSAIL REEF HOA
UNIT 131, BUILDING 4
2224 NEW RIVER INLET DRIVE
NORTH TOPSAIL BEACH, NC 28445
R. EARL JONES, MAI, SRA
REALTY SERVICES OF EASTERN CAROLINA, INC.
2313 GRACE AVENUE
POST OFFICE BOX 15069
NEW BERN, NC 28561-5069
RECEIVED
JUN 10 2021
DCM-MHD CITY

REALTY SERVICES OF EASTERN CAROLINA, INC. R. Earl Jones, MAI, SRA
Appraisers, Consultants and Brokers [e-mail]
wwwr alto ervi c com
Post Office Box 15069 (28561-5069)
2313 Grace Avenue
New Bern, NC 28562
Topsail Reef HOA
Unit 131, Building 4
2224 New River Inlet Drive
North Topsail Beach, INC 28445
RE: Replacement Cost Estimate
Specific Improvements of Topsail Reef
Dear Client:
[phone], Ext. 226
Cell [phone]
June 8, 2020
In accordance with your request for professional valuation services, I have prepared the
attached report for the above -referenced property. This report is for the exclusive use of
the addressee. The consultant is not responsible for unauthorized use of this report.
This purpose of this report is to estimate the insurable replacement cost of the
improvements present on the subject property as of the effective date of value, June 3,
2020. The depth of discussions contained in this report is specific to the needs of the
client and the intended use. The consultant is not responsible for unauthorized use of
this report. It is noted that the estimated replacement costs presented in this report are
not a market value opinion of a specific parcel of real estate nor should the values be
construed as the contributing market value of the specific improvement. The costs of the
individual improvements are an estimate of replacement cost only. No other value opinion
has been provided.
This information is provided for insurance purposes only. No borrower or owner of the
property should rely on this estimate for loan purposes. Further, the consultant accepts
no liability to any borrower or owner. Such parties are advised to consult insurance or
construction professionals. This general estimate for the owner is as of the effective date;
the consultant cannot predict changing costs of labor and materials or the effect of
changed building codes and governmental regulations, or otherwise guarantee the
estimate or figures in this form.
As you are aware, the subject property consists of specific improvements located on the
Topsail Reef Homeowners Association common area. The improvements are used by
the residents of Topsail Reef. These improvements vary in size, age, construction
materials and location. The attached report bases the replacement cost new on a
nationally recognized cost reporting service. The assumptions and limitations of the cost
estimates are outlined on page 5 of this report.

Queens Grant Recreation Association
June 8, 2020
Page 2
I trust the attached report meets the intended use of this assignment. Thank you for your
business.
CONSULTANT:
R. Earl Jonek
RECEIVE
JUN 10 ivi
L)CM-MHD CITY

INTRODUCTION: The subject property is identified as the eight three-story residential
condominium buildings identified as Topsail Reef located at 2174-2264 New River Inlet
Road in North Topsail Beach, North Carolina. The subject property also includes two
laundry/restroom buildings and one garage/storage maintenance shop.
SCOPE OF WORK: This Consulting Report will show the subject's insurable value. This
is not market value of a specific parcel of real estate and as such, this report is not
intended to comply with the reporting requirements set forth under the Uniform Standards
of Professional Appraisal Practice (USPAP). Cost is an estimate of fact, not an opinion;
therefore, an appraisal of the subject has not been performed. The report includes
discussions of the reasoning and analyses used in the insurable value estimation process
used to develop the consultant's opinion of replacement cost.
This consulting assignment concerns itself with the replacement cost new of the
improvements only, as of the date of inspection. This involves the following steps:
Identification of the subject property;
Understanding the intended use of the consulting report;
Interior and exterior inspection of the subject improvements
including measuring and documentation;
Applying the appropriate methodology — in this case a replacement
cost new analysis; and
• Preparation of a report identifying the subject and showing the
valuation methodology.
Supporting documentation concerning the data, reasoning, and analyses is retained in
the consultant's file. The depth of discussion contained in this report is specific to the
needs of the client and for the intended use stated below.
CLIENT:
CONSULTANT:
Topsail Reef HOA
R. Earl Jones
SUBJECT: Eight 30-unit Condominium Buildings — Topsail Reef
Two Laundry/Restroom Buildings (452 SF Each)
One Garage/Storage Maintenance Building (732 SF)
OWNER OF RECORD: Various individuals of each condo RECEIVED
JUN 10 2021
4 OCM-MHD CITY

The following considerations were also given in this analysis: The replacement cost
presented represents the total cost of building the structures in the same design, square
footage, general materials, and location as are currently present.
All values were derived from the Marshall and Swift Valuation Service ("MVS"). While the
MVS manual is considered a very reliable source, construction costs can vary greatly
based on the quality of construction and construction materials used. When possible, the
MVS manual is crossed referenced with local sources to aid in the determination of the
reliability of the cost figures provided.
DEFINITION OF INSURABLE VALUE: The following two definitions of insurable value
are considered:
Insurable Value is a type of value for insurance purposes.
The estimated replacement cost, at current prices as of the effective
date of valuation, of a substitute for the building being valued, using
modern materials and current standards, design, and layout for
insurance coverage purposes guaranteeing that damaged property
is replaced with new property (i.e., depreciation is not deducted).
Land value is not included in the insurable value and items such as
underground piping and below -grade foundations are typically
excluded as well.
Comment - Traditionally, the value of an asset or assets covered by an
insurance policy has been known as the insurable value, even though the
amount is more accurately an indication of cost. The maximum
reimbursement for direct physical damage or loss of property is limited to
the amount shown on the contract. This value is often controlled by state
law and varies from state -to -state. The objective of an insurance policy is
to return the insured party to the same position occupied prior to the loss.
Insurable value may be based on the replacement or reproduction cost of
physical items that are subject to loss from hazards. Land value is not
included in the insurable value and items such as underground piping and
below -grade foundations are typically excluded as well. When asked to
provide insurable value, a consultant must identify and report the definition
used and ensure that the analysis and conclusions are consistent with that
definition.

Consultants provide this value to clients needing to know the replacement cost of the
combustible portions of the subject property. Essentially, this is everything above -grade
level that might be destroyed in a "total loss" event. Typically, real property consultants
provide the replacement cost new of the building, but not site improvements and make
an adjustment for those portions of the subject that might not have to be replaced such
as utility connections/laterals. Depending on the age of the improvements and the type
of foundation/flooring, this may or may not include the slab and footings. Consideration
has not been made for demolition in the event of a total loss nor has any consideration
been given to a provision for increased cost of compliance. Both items were discussed
with the client and it is understood that these considerations are factored into the
insurance policy. Also included are entitlement and re -design costs, particularly in the
event that substantial time has passed since the subject was built. The consultant also
considers other soft costs associated with the building process.
CLIENT AND "INTENDED USER": The "Intended User" of this report is the client,
Topsail Reef Homeowners Association. The client's insurance agency is also considered
an intended user and this report may also be relied upon by their insurance agent to
determine the proper amount of insurance coverage for the subject property.
No other intended user or intended use has been identified as of the effective date of
value.
EFFECTIVE DATE: June 3 ,2020, which is also the date of inspection.
IDENTIFICATION OF THE PROPERTY: The subject property is identified as eight 30-
unit residential condominium buildings (22,080 SF per building), two laundry/restroom
buildings (452 SF each) and one frame garage/maintenance shop building (732 SF).
Reference is here made to a copy of the tax aerial sketch, site plan sketch, flor plan
sketch, and building sketch included on the following five pages.
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JUN 10 2021
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SUN 10 2021
DCM-MHD CITY

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RECEIVED
JJN 10 20
DCM,MHC- CITY

Topsail Reef Condominium Buildings: The Topsail Reef Condominiums consist of
eight, three-story frame condominium buildings containing 30 units each. Each building
is composed of 24 one -bedroom units containing approximately 616 square feet and 8
two -bedroom condominium units containing 912 square feet, for a gross living area of
22,080 square feet. Each building also has common areas including decks and stairwells.
The basic physical construction of the condominium buildings is summarized as follows:
Identification Topsail Reef Condominiums
2174-2264 New River Inlet Road
North Topsail Beach, NC
Foundation Driven pilings
Floor Wood floor joists
Frame Wood stud frame
Exterior Wall Finish Vinyl shingles
Entry Doors Flush wood doors; glass/vinyl storm doors
Sliding glass vinyl clad doors
Windows Double hung, vinyl clad wood
Roof (style, construction, cover) Flat roof; wood rafters/truss;
rubber membrane roof
Floor Cover Vinyl; some carpet
Interior Wall Finish Drywall; sprayed ceiling
Interior Doors Wood panel — core doors
Plumbing 1 BR Units — 1 Bath
2 BR Units — 2 Baths
HVAC Central HVAC
Electrical/Lighting Thru-wall air conditioning unit;
electric baseboard strip heat
Appliances ROH; Refrigerator
12 I)C=ref v; .

The laundry room/restroom buildings are located between Buildings 2 and 3 and Buildings
6 and 7. Each building contains 452 square feet composed of approximately 252 square
feet containing two 3-fixture restrooms and 200 square feet designed, constructed and
utilized for washers and dryers.
The garage/storage maintenance shop measures 24' x 305, containing 732 square feet.
The basic physical construction of this improvement consists of a reinforced concrete slab
floor, wood stud frame walls covered with wood siding, and composition shingles on the
roof.
ESTIMATE OF THE REPLACEMENT COST -IN -PLACE OF THE IMPROVEMENTS:
The insurable value or replacement cost estimate is essentially everything above grade
level that might be destroyed in a "total loss" event. Typically, consultants provide the
replacement cost new of the building but not the site improvements, and make an
adjustment for those portions of the subject that might not have to be replaced such as
utility connections/laterals. Depending on the age of the improvements and the type of
foundation/flooring, this may or may not include the columns, slab and footings.
Consideration is also made for demolition in the event of a total loss. Also included are
entitlement and re -design costs, particularly in the event that substantial time has passed
since the subject was built. The consultant also considers other soft costs associated
with the building process.
This valuation method derives a value by estimating the current cost to construct a
replacement cost for the existing structure as if it were brand new.' Consideration for
depreciation (Physical, Functional, and External) is not warranted in this analysis.
I have researched the Marshall & Swift Valuation Service Cost manual.
DIRECT AND INDIRECT COSTS: Direct costs include material and labor costs,
contractor's overhead and profit for the general contractor and sub -contractors. In
addition, indirect costs include architectural fees and entitlement costs up to the point of
obtaining a new building permit.
DIRECT COSTS: In order to gain a proper understanding and knowledge of the cost new
of the improvements, the Marshall Valuation Service (' MVS") published by Marshall and
Swift, Inc. of Los Angeles, California, has been used. Generally, this information
substantiates the information obtained from the contractors and builders, which is
retained in our database.
I Reproduction is an exact replica of the subject, while a replacement is a building of similar utility, but not necessarily identical.
I have chosen the latter because of the wind codes and because a reproduction cost would require a quantity survey, Ivlsl)
beyond the scope or need for this assignment.
13 UN 10 2021
DCM-MHD CITY

The base calculator cost applicable to the subject property is taken from the cost manual
and adjusted for local and area factors to arrive at the adjusted cost per square foot.
Please note that base calculator cost as per the MVS is an average of final costs including
architect's fees and contractor's overhead and profit, sales taxes, permit fees and
insurance during construction. Interest on interim construction financing is also included,
but not financing costs, real estate taxes, or broker's commissions.
BASE COSTS — MARSHALL VALUATION SERVICE: The MVS reference and
improvement quality is referenced in the individual cost estimates of the improvements.
Add -on items such as built in office space, attached carports or additional features are
considered on a price -per -square -foot -basis. Lump sum additions are made when
necessary.
INDIRECT COSTS: Indirect Costs associated with this property include contractor
overhead (general and administrative costs), property taxes, legal and insurance costs,
local development fees and contingencies, and miscellaneous costs. Research into these
costs reflects an average allowance of 5-to-15% of the total direct costs. Given the lack
of data from the market to extract this figure, I have estimated this based on my
experience in the surrounding eastern North Carolina markets. For this project, I have
estimated that this line item should be 15% of direct costs. This variance is based on the
scope of the replacement of the improvement. (Larger jobs tend to benefit from
economies of scale, whereas the opposite is true for smaller jobs.)
ENTREPRENEURIAL PROFIT: Entrepreneurial profit is not realized in an insurable
value estimate.
DEPRECIATION: There are three sources of depreciation that may or may not be
curable: both curable and incurable physical depreciation, curable and incurable
functional depreciation, and external obsolescence. In this case, because the insurable
value for the subject is being estimated, no depreciation is charged.
RECONCILIATION OF COSTS: The following table summarizes the calculations based
on the preceding assumptions for the subject's market value using the Replacement Cost
Approach.

Topsail Reef
Section
12
Page
16
Class
D
Quality
Good
Typical Life
50
Actual Age
NIA
Effective Age
N/A
REL
N/A
Topsail Reef 3.0 Story
2174-2264 New River Inlet Road Wood Frame
North Topsail Beach, NC Res Multifamily/Condo Units
Base Square Foot Cost $76.50
Square Foot Refinements
Heating And Cooling
0.00
Elevator Deduction
0.00
Miscellaneous (Pilings)
5.00
Total
$81.50
Height And Size Refinements
Number Of Stories Multiplier
1.000
Height Per Story Multiplier
1.000
Floor Area/Perimeter Multiplier
1.032
Combined Height and Size Multiplier
1.032
Final Calculations
Refined Square Foot Cost
$84.11
Current Cost Multiplier
1.03
Local Multiplier
0.92
Final Square Foot Cost
$79.70
Area (Sq Ft) GLA
22,080
Area X Final Square Foot Cost
$1,759,792
Lump Sums: Decks/Stairs/Common Area
$100,000
Appliances
$72,000
Replacement Cost New
$1,931,792
Add: Indirect/Soft Cost (15%)
$289,769
Total Replacement Cost
RECEIVED $2.221,561
ROUND TO:
$2,222.000
JUN 10 2021
Number of Buildings
8
Total Building Replacement Cost DCM-MHG CITY! $17,776.000
15

Topsail Reef
2174-2264 New River Inlet Road
North Topsail Beach, NC
Base Square Foot Cost
Square Foot Refinements
Section
13
12
Page
25
35
Class
D
D
Quality
Average
Average
Typical Life
50
50
Actual Age
N/A
WA
Effective Age
N/A
N/A
REL
N/A
WA
1.0 Story 1.0 Story
Wood Frame Wood Frame
Laundry/Restrooms Garage/Storage
$82.00 $29,25
Heating And Cooling
0.00
0.00
Elevator Deduction
0.00
0.00
Miscellaneous
0.00
0.00
Total
$82.00
$29.25
Height And Size Refinements
Number Of Stories Multiplier
1.000
1.000
Height Per Story Multiplier
1.000
1.000
Floor Area/Perimeter Multiplier
1.566
1.150
Combined Height and Size Multiplier
1.566
1.150
Final Calculations
Refined Square Foot Cost
$128.41
$33.64
Current Cost Multiplier
1.01
1.03
Local Multiplier
0.92
0.92
Final Square Foot Cost
$119.32
$31.87
Area (Sq Ft) GLA
452
732
Area X Final Square Foot Cost
$53,933
$23,332
Lump Sums: None
$0
$0
Replacement Cost New
$53,933.
$23,332
Add: IndirectlSoft Cost (15%)
$8,090
$3,500
Total Replacement Cost
$62,023
$26.832
ROUND TO:
$62.000
$27,000
Number of Buildings
2
1
Total Building Replacement Cost
$124,000
$27,00 �ECEIVED
16 JUN 10 2021
CCM-MHD CITY

ASSUMPTIONS AND LIMITING CONDITIONS
This Consulting may not include full discussions of the data, reasoning, and analysis that
were used in the process to develop the consultant's opinion of value. Supporting
documentation concerning the data, reasoning and analyses is retained in the
consultant's file. The information contained in this report is specific to the needs of the
client and for the intended use stated in this report. The consultant is not responsible for
unauthorized use of this report.
• No responsibility is assumed for the legal description provided or for
matters pertaining to legal or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated.
• Responsible ownership and competent property management are
assumed.
• The information furnished by others is believed to be reliable, but no
warranty is given for its accuracy.
• All engineering studies are assumed to be correct. The plot plans and
illustrative material in this report are included only to help the reader
visualize the property.
• It is assumed that there are no hidden or unapparent conditions of the
property, subsoil, or structures that render it more or less valuable. No
responsibility is assumed for such conditions or for obtaining the
engineering studies that may be required to discover them.
• It is assumed that the property is in full compliance with all applicable
federal, state, and local environmental regulations and laws unless the lack
of compliance is stated, described, and considered in the report.
• It is assumed that the property conforms to all applicable zoning and use
regulations and restrictions unless a non -conformity has been identified,
described, and considered in the report.
• It is assumed that all required licenses, certificates of occupancy, consents,
and other legislative or administrative authority from any local, state, or
national government or private entity or organization have been or can be
obtained or renewed for any use on which the opinion contained in this
report is based.
RECEIVED
JUN 10 2021
17 DCM-MHC- CITY

Unless otherwise stated in this report, the existence of hazardous
materials, which may or may not be present on the property, was not
observed by the consultant. The consultant has no knowledge of the
existence of such materials on or in the property. The consultant, however,
is not qualified to detect such substances. The presence of substances
such as asbestos, urea -formaldehyde foam insulation, and other potentially
hazardous materials may affect the replacement cost of the property. The
cost estimated is predicated on the assumption that there is no such
material on or in the property that would cause a loss in value. No
responsibility is assumed for such conditions or for any expertise or
engineering knowledge required to discover them. The intended user is
urged to retain an expert in this field, if desired.
• Possession of this report, or a copy thereof, does not carry with it the right
of publication.
• The consultant is not required to give further consultation or testimony or
to be in attendance in court with reference to the property in question
unless arrangements have been previously made.
• Neither all nor any part of the contents of this report (especially any
conclusions as to value, the identity of the consultant, or the firm with which
the consultant is connected) shall be disseminated to the public through
advertising, public relations, news, sales, or other media without the prior
written consent and approval of the consultant.
• Any proposed improvements are assumed to have been completed unless
otherwise stipulated so any construction is assumed to conform with
building plans reference in the report.
When no legal description or survey was furnished, the consultant used the
county tax plat to ascertain the physical dimensions and acreage of the
property. Should a survey prove this information to be inaccurate, it may
be necessary for the value to be adjusted.
• Any opinions of value provided in the report apply to the entire property,
and any proration or division of the total into fractional interest will invalidate
the opinion of value, unless such proration or division of interest has been
set forth in the report.
RECEIVED
JUN 10 2021
18 DCM-MMG CITY

ARC2020
The Americans with Disabilities Act (ADA) became effective January 26,
1992. The consultant has not made a specific compliance survey or
analysis of the property to determine whether or not it is in conformity with
the various detailed requirements of ADA. It is possible that a compliance
survey of the property and a detailed analysis of the requirements of the
ADA would reveal that the property is not in compliance with one or more
of the requirements of the act. If so, this fact could have a negative impact
upon the value of the property.
R. EarLJok
RECEIVE?
JUN 10 i;_I
19
ACM-MHD CIP"

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
INTERIOR- UNIT 159, BUILDING 5 (1 BR UNIT)
UNIT 159, BUILDING 5
RECEIVED
SUN 10 20%1
DCM-MAID CITY

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
INTERIOR - UNIT 159, BUILDING 5
INTERIOR - UNIT 160, BUILDING 5 (2 BR UNIT) RECEIVE
,SUN 10 2-1vi

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
UNIT 160, BUILDING 5
RECENE0
UNIT 160, BUILDING 5 i1UN 10 2,
1DCM-MHD CITY

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
UNIT 160, BUILDING 5
UNIT 160, BUILDING 5

EXHIBIT A
PHOTOGRAPHS oSUBJECT PROPERTY
INTERIOR - LA UNDO
�
EE
y
zj a
k
INTERIOR - RE pRO oM RECSVEo
Oct MHD CI

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
EXTERIOR - LAUNDRYIRESTROOM
GARAGE/STORAGE MAINTENANCE BUILDING RECEIVED
0CM-MHG CIT"

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
BUILDING 1 - 2264 NEW RIVER INLET ROAD
'RE7CE1VED
BUILDING 2 - 2250 NEW RIVER INLET ROAD
JuN 10 2021
DAM-MHD 0; TV

EXHIBIT A
PHOTOGRAPHS OF A&Ec PROPERTY
. �.©.
a y«
BUILDING 3 - 2240 NEW RIVER INLET ROAD
BUILDING 4-224 NEW RIVER INLET ROAD RECEIVED
d§Ia2a
OCR MHD CITY

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
BUILDING 5 - 2210 NEW RIVER INLET ROAD
BUILDING 6 - NEW RIVER INLET ROAD 'EcEIV D
i2
DCM-MHI) C,TY

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
LAUNDRY/RESTROOM BUILDING
BUILDING 7 - 2182 NEW RIVER INLET ROAD RECEIVED
DCA4A4HD CITY

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
BUILDING 8 - 2174 NEW RIVER INLET ROAD
OCEANFRONT VIEW
DcliA-MHD C iry

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
OCEANFRONT VIEW - BUILDING 1
OCEANFRONT VIEWcl�, "
J!liN 10 ? I?I
DDM-MHD CITY

EXHIBIT A
PHOTOGRAPHS OF SUBJECT PROPERTY
OCEANFRONT VIEW - BUILDING 1
RECEIVED
JUN 10
DCM-MHD CITY

QUALIFICATIONS OF APPRAISER
R. Earl Jones, MAI, SRA
Realty Services of Eastern Carolina, Inc.
2313 Grace Avenue
New Bern, NC 28562
252 633-6484, Ext. 226
[e-mail]
Experience
EXHIBIT B
• Joined Realty Services of Eastern Carolina, Inc. in 1983
• Employed with Jones Appraisal Service in New Bern, NC from 1977-1983
• Primary Areas of Practice: Commercial, Income -Producing, and Development
Properties
Recent Real Estate Training
• USPAP Update Course 2020-2021, Brightpath Education Services, 2020
• Condemnation Appraising: Principles & Applications, Appraisal Institute, 2018
• Online Business Practices and Ethics, Appraisal Institute, 2018
• NC Department of Transportation Appraisal Principles and Procedures, NCDOT, 2017
• The Complexities of Appraising Rural Properties, NCDOT, 2017
• "Can you Support that Adjustment?', 2016
• Fundamentals —Real Property/Personal Property & Intangible Assets, Appraisal Institute, 2012
• 2012 Real Estate Valuation Conference: Retrench/Recovery?, Appraisal Institute, 2012
• Appraisal Review, 2006
• Subdivision Valuation, 2006
• Real Estate Finance, Value and Investment Performance, 2005
• Yellow Book — Uniform Appraisal Standards for Federal Land Acquisition, 2006
• Investment Analysis Course VI, University of North Carolina, 1985
Education
• East Carolina University, Greenville, North Carolina, 1977
Bachelor of Science in Business Administration, Concentration in Real Estate
Licensure
• NC Certified General Real Estate Appraiser, A246
• NC Real Estate Broker
Professional Affiliations
Appraisal Institute Member, MAI, 1986
Appraisal Institute Residential Member, SRA, 1982
Former President, NC Chapter of the Appraisal Institute, 1999
RECE)VEC
JUN 10 ?DZ:
')CM-MHD CITY

REC,E ED
J'JiN 10 20,21
DCM-MHD CITY

rC1 Kyle Contracting, Inc.
A personal hands on approach is our specialty!
211 W. Main St. Beulaville, NC 28518 www.kylecontracting.com DATE June 28, 2021
Phone [phone] email: kylecontracting@gmaikcom Quote # 3223
Job Quote For:
Topsail Reef
Comments or special instructions:
Deck Kenovation
Quote valid until: July 3, 2021
Prepared by: Brian Jones
Description I AMOUNT
Demo and Rebuild Decks, and replace structural support as per engineered plans. 240 Decks I $ 1,912,315.00
TOTAL I $ 1,912,315.00
I Add -On Items I AMOUNT
Any questions with this quote, please contact by above information.
THANK YOU
TOTAL I$
RECEIVED
JOIN 28 Mi

]KC1/ Kyle Contracting, Inc.
A personal hands on approach is our specialtyl
211 W. Main St. Beulaville, NC 28518 DATE March 25, 2020
Phone[phone] Fsa252-568-3980 Quote# 199
email: [e-mail] 'Aww.kvlecontractino cam Customer ED
Job Quote For: Phone:
Topsail Reef Quote valid until: May 9, 2020
Prepared by: Hugh
2196 New River Inlet Rd
North Topsail Beach, NC 28460
Comments or special instructions:
Price quote includes all materials and labor, clean up and haul away debris.
deck removal and replacment according to provided plans.
* Building Permits are not included in this quote.
TOTAL I S
If you have any questions concerning this quote, please contact by above information.
THANK YOU FOR YOUR BUSINESSI
1,587,483.00
1,587,483.00

NY
rHF ,' COMP INC.
ENGINEERING AND DESIGN
708 Abner Phillips Road
Warsaw, NC 28398
Phone [phone]
Fax [phone]
January 13, 2020
Mr. Clay Thomas
Topsail Reef Board of Directors
2224 New River Inlet Road
North Topsail Beach, NC 28460
Subject: Engineering Services
Review of Ocean Decks
Topsail Reef Facilities
Mr. Thomas:
RECEIVED
JUN 07 2021
DCM-MHD CITY
On January 9, 20201 met with Topsail Reef staff Will Longest for the purpose of
evaluating the ocean side decks. Josh Outlaw from my office was also present to assist with this
review. Our scope of work for the day was to review each of the decks to determine which decks
could be repaired and which decks could be replaced. The intent was to review each deck
individually and make a separate determination on each deck.
As we began this process to review every deck it became clear that all decks needed
repairing in some manner. Every deck needs new hardware including bolts, nails, screws,
hangers, etc. Many of the posts on the decks lack adequate connections to tie them to the
adjoining decks. Many of the decks lack adequately sized girders and/or joists.
Reference is made to our previous review and report dated July 26, 2018 which included
a review of the decks. In this report under Recommendations, we state "Based upon the existing
conditions, it would appear the most appropriate action would be to replace these decks
completely. They are un-level, railings are unsafe, flashing is in poor condition, framing is non-
typical, fasteners are corroded, bolts are corroded, missing or insufficient, and .support posts are
not adequately bolted together. "
Unfortunately, our conclusions today are the same. We understand that the Board would
like to provide repairs to the decks when possible rather than replace the entire deck. In order to
accomplish this, all of the deficiencies would need to be corrected. We feel this would be very
labor intensive and would require major construction management. On May 13, 2019 we
provided a detailed review and design of how these decks should be rebuilt. If the HOA would
like to repair the decks, then this design should be your guide. New fasteners for all connections
would be required, code compliant joists size and spacing would be required, the girders should
be sized as shown on the plans and all pilings/posts should be lined up and provide a continuous
line of connection from the ground to the roof. If a posts is replaced it should be in accordance
with the plan. If the deck can be repaired, then the existing 6x6 posts may be left in place.
Every deck we reviewed needs various repairs. Based on the total amount of work required and
WIMn M InORKWy Do mcnsklMkEnglnced,XTonil RWl kEvaluation doc

the construction management needed, we believe that in the best interest of public safety, all
decks should be replaced.
If you have any questions related to this review and recommendations, please do not
hesitate to contact me. Our goal as well as yours is to insure the safety of the public as related to
these decks.
Sincerely,
/d.
M. Floyd ams, P:6.
Engineer
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Ashley Ford
From: Alicia Dipzinski <[e-mail]>
Sent: Monday, August 10, 2020 3:02 PM
To: Topsail Reef HOA
Subject: Re: FW:
Alicia,
Rebuilding the following stacks only
Building Number of Stacks
1
2
3
4
5
6
7
8
For a total of 20 stacks. This would Cost
To rebuild all of the Beach Side decks
$408,000
This is based upon current pricing of the lumber.
Brian Jones
Kyle Contracting Inc.
8
2
3
1
4
0
2
0
$1,305,600
IJUN a'7
252-521-1585 1 Dcm-w' -

Kyle Contracting, Inc.
A personal hands on approach is our specialty!
211 W. Main St. Beulaville, NC 28518 www.kylecontracting.com DATE June 28, 2021
Phone[phone] email: [e-mail] Quote# 3223
Job Quote For:
Topsail Reef
Comments or special instructions:
Quote valid until July 3, 2021
Prepared by: Brian Jones
Deck tcenovanon rroJect
Description AMOUNT
Demo and Rebuild Decks, and replace structural support as per engineered plans. 240 Decks
$ 1,912,315.00 I
TOTAL I $ 1,912,315.00
I Add -On Items I AMOUNT
Any questions with this quote, please contact by above information. TOTAL I $ _
THANK YOU RECEIVED
JUN 10 ?n
DCM-MHtj CITY

Weychert Curtis R
From: Susan Meyer <[e-mail]>
Sent: Monday, June 28, 2021 8:04 AM
To: Weychert, Curtis R
Subject: [External] Fw: Decks at Topsail Reef
CAUTION: External email. Do not click links or open attachments unless you verify. Send all suspicious email as an attachment to
Mr. Weychert,
'More information about decks at Topsail Reef from the builder.
Thank you,
Susan Meyer
Sent from Yahoo Mail on Android
---- Forwarded Message ----
From: "Brian Jones" <[e-mail]>
To: "Susan Meyer" <[e-mail]>
Sent: Fri, Jun 25, 2021 at 9:42 AM
Subject: Re: Decks at Topsail Reef
Good Morning,
At current Prices 24 Stacks would run $565,200. If there are more or less just add or subtract $23550 per stack. The
Equipment we would like to be able to run on the beach is a Rubber tire Extendable Boom Forklift. I have included a
photo of one. We would have other equipment at the sides of the buildings such as Boom lifts and possibly a crain.
If you need any more information please don't hesitate to ask. Below is my personal phone number.
Sincerely,
Brian Jones
Kyle Contracting Inc.
252-521-1585
DECEIVED
On Thu, Jun 24, 2021 at 3:18 PM Susan Meyer <[e-mail]> wrote:
J 'I � 2021
Hi
DCM-MHD CITY