Camana Bay Strategic Development Vision

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S T R AT E G I C

D E VE LO PM E N T

V I S I O N

S T R AT E G I C

D E VE LO PM E N T

VI S I O N

// presented by University of St. Thomas Masters of Science in Real Estate Science Graduate Class of 2012 // prepared exclusively for Dart Realty (Cayman) Ltd. //

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ABOUT THE AUTHORS Annalisa Cariveau // Developer & Branding Consultant - annalisa@alphatheoryRE.com Dan Jackson // University of St. Thomas MBA Graduate - jack5236@stthomas.edu Tim Lawrence // Retail Real Estate Advisor - lawrence@terrager.com Roger Zopfi // Real Estate Analyst & Consultant - rwzopfi@gmail.com

1.0 INTRODUCTION

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2.0 KEY MARKET INFLUENCES & DRIVERS

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3.0 OTHER DEVELOPMENT INFLUENCES

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4.0 DEVELOPMENT PHILOSOPHY

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5.0 PHASING STRATEGY + MASTER PLAN

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Medical Tourism World Economy Cuba Non-Service Job-Growth

Housing Supply Office Market The Camana Bay Customer Retail Strategy The Mobility & Flow of People Lifestyle Component

New Urbanism Market Demand & Critical Mass The Catalyst Effect

CONTENT

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1 . 0 I NTRODU CTI ON This report is the thoughtful evaluation and shared perspectives of a group of graduating Masters of Science in Real Estate Students of a sustainable multigenerational development underway in the Cayman Islands. The concluding strategic development vision for Camana Bay is the result of applying our discipline and knowledge combined with the incredible opportunity to experience this community and work with the team that has helped create it first hand.

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2 . 0 K EY M A R K ET I N FL UN C ES + DRI V ERS

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PRIMA RY M A R KE T I N FLUEN C E S + D R IV E R S In order to arrive at the optimal development phasing strategy, we felt it was critical to take observation of immediate influences to the market.

Here, we have summarized what we feel to be the most critical external market drivers taking place outside of Camana Bay that will directly shape the development phasing strategy going forward.

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MEDICAL TOURISM The popularity and necessity of medical tourism will continue to grow over the next twenty years, as both Governments and insurance companies grapple with providing high quality services to an exploding demographic. Grand Cayman is positioning itself as a frontrunner in this emerging trend with the development of a new cardiac hospital on the east side of the island. As doctors, nurses, administrators and other health care professionals immigrate to the island to staff and support the facility; the need for long-term housing at all price points will need to be met quickly.

Retiree‘s from North America and Europe looking to expatriate in their golden years want to be assured that they can quickly access world class healthcare. Adding hospitals and clinics that specialize in cardiology, cancer treatment, orthopedics and senior care; will bring a whole new demographic to the island.

WORLD ECONOMY The short term outlook on the world economy continues to be bleak. Governments the world over are battling high unemployment, reduced revenues and increased demands for health and human services. The Cayman Islands have positioned themselves well to weather these global storms. By restricting residency to individuals or companies making substantial financial investments in the country, they have insured that the cost of social programs is far lower than in most countries. In uncertain times as these, many have flocked to the purchase of physical gold. However, the Cayman Islands and Camana Bay in particular, are in a great position to leverage the lack of real estate taxes on property owned in the Caymans. With far less fluctuation than a commodity like gold or silver, property can be purchased and held with virtually no holding or carrying costs (save the costs of liability or hazard insurance).

CUBA The probability of the United States lifting the embargo on Cuba grows larger every year. Given the age of the Castro brothers and the last of the hardliners, the next President of the United States might find himself lifting the trade and travel restrictions on Cuba in the next five years. Once lifted, investment and development in Cuba will explode. As capital begins to flow to this Caribbean country, there will be both risk and opportunity for the Cayman Islands.

RISKS • Tourism and tourist dollars currently enjoyed by Grand Cayman might be greatly reduced as North Americans visit the new kid in the neighborhood • Development of hotels and resorts on Grand Cayman will come to a standstill, as new resorts and casinos spring-up on Cuba • Large drops in tourism will lead to higher unemployment in the service sector on Grand Cayman, which in turn, will impact rental housing and the overall economy.

OPPORTUNITIES • The cruise-ship industry adds additional cruises to the Cayman islands (as the second stop after Cuba rather than the last stop of a five island tour), as part of a shorter more frequent three to four day Cuban/Caribbean getaway • Construction companies, architects, engineers, lawyers, accountants and finance professionals involved in the development of Cuba will want to set-up shop and live close to Cuba but in a stable, tax friendly environment like Grand Cayman • While development in the hospitality and agricultural sectors of Cuba will be exponential, residential development will be highly restricted or forbidden for foreign nationals. Grand Cayman can leverage the growth of long-term expatriate residents with their proximity to Cuba, as well as the ability to acquire fee owned property in a tax friendly country with a stable government.

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NON-SERVICE JOB GROWTH Grand Cayman has the potential for seeing large increases in their non-service job growth over the next two decades. Continued focus on the banking and insurance industries will bring more professional and technical positions to the island. Medical tourism and the ancillary businesses surrounding it (specialty clinics, pharmaceutical companies, insurance underwriters etc.), will bring new waves of high paying jobs to the Caymans. If Grand Cayman can become a long-term strategic partner with Cuba, the island will be able to leverage its location, financial expertise and educated work force to maximize job growth in the non-service sector.

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3 . 0 O T H ER D EVEL O P M EN T INFLU ENCES HOUSING SUPPLY OFFICE MARKET THE CAMANA BAY CUSTOMER RETAIL STRATEGY THE MOBILITY & FLOW OF PEOPLE LIFESTYLE COMPONENT

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Hous i ng S u ppl y Housing supply should be created in a way the promotes density within the area. There are social, convenience, economic, and environmental benefits of living in places of higher density if they are designed to be mixed-use, walkable, and pedestrian scale. Higher density is essential for creating lively places with lots of amenities.

It allows for beautiful public spaces, for lots of people walking, low car use, and makes life convenient and enjoyable by providing many amenities within close proximity of each other. This concept comes from the development principle of New Urbanism, which is explored in section 4.0.

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Of fi ce M ark e t CAYMAN ISLANDS The office market throughout the Cayman Islands not only has high construction costs associated with safety and hurricane design standards, but also have very high tenant improvement build out costs (as high as $190/SF) associated with new developments. The office supply in general has a lot

of Class B & C space available, however because of these higher new development costs there is currently limited Class A supply. The island has been known for being a global financial services center (5th largest worldwide), and also has a history of attracting captive insurance business (2nd largest worldwide to Bermuda).

A growing trend of Accounting and Law firms are also chosing to locate their offices in the Cayman Islands. Because of its small size and remoteness, the Cayman government policy has created an environment that provides particular motivations and incentives for these types of industries to locate in this jurisdiction. While traditionally there has been a concentration of office tenants located in central Georgetown, the recent trend has been that of several larger corporate tenants moving outside the core of Georgetown.

CAMANA BAY Given the context of the local office market, Camana Bay stands to benefit from development of new Class A office spce into the future. While the immediate strategy may be to attract tenants who are already located on the island, there is also an environment in place favorable to attracting a pool of new office tenants (especially if there is a cooperative effort in maintaining and improving the government policies that so greatly influence the business environment on the islands). While office space will not appeal to users seeking to be located near the courthouse and government center of Georgetown, it is a very attractive destination for many other office space users, especially in the financial industry. At Camana

Bay users will also be attracted by the waterfront space available at premium they are willing to pay, along with the growing density of people that will be living in and around Camana Bay. Because of other development influences and trends, we also feel that medical office tenants will become another key component of the overall office mix throughout the community. In effort to becoming a truly sustainable community concept, at Camana Bay the idea is you can live where you work, and work where you play.

Camana Bay currently consists of more than 55% office space. As a percentage, this will drop significantly as the market improves for retail and residential real estate in the Cayman Islands, and a greater share of Camana Bay employees begin to reside within the master-planned development.

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The Ca man a B ay C us t om e r While the long-term plan for Camana Bay is to create a self-sustained community, the project is focused on being the destination of choice for certain type of customer.

Real estate products seeking to serve the needs of long-term visitors and high income office workers will allow Camana Bay to serve a neglected segment of the market while helping to make the Cayman Islands a more attractive destination.

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Camana Bay does not seek to be a destination for short-term tourists, or an entertainment district specifically focused on children or families, as is common with regional malls.

Other parts of the Cayman Islands serve these customers adequately, and will continue to do so.

Camana Bay seeks to serve a more mature client that has developed a greater familiarity with island.

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Reta i l S t rat e gy RETAIL AS AN AMENITY In consideration of the type of customer Camana Bay seeks to accommodate, the retail strategy is a critical component to the success of the overall community. With the expectation that the Retail component of the development from a financial perspective may never be a major profit source, it is

better to consider all retail decisions as a question of amenities. The experience, afterall, is what will utimately attract and retain lifelong residents and tenants of Camana Bay Community. We propose thinking of your retail strategy in this context so that every decision is made with the ultimate end user in mind, and is a fair way to evaluate the cost-

benefit analysis of future potential retail concepts and tenants at Camana Bay. ATTRACTING DESTINATION RETAIL Cayman Island governing laws require that businesses conducting retail trade, or operating restaurants or hotels, be at least 60% owned by a Cayman Islands resident.

There are other destination retail concepts that would set Camana Bay apart. However, some of the strongest concepts in the world do not offer franchise agreements or do not license their retail brand. Further, some concepts would be unable to find a suitable ownership partner residing in the Cayman Islands. As a result, many retail uses that would help facilitate Camana Bay’s mission of making the Cayman Island a more attractive global destination will inevitably require a special exemption from the current Cayman laws pertaining to ownership of businesses conducting retail trade.

Indeed, Camana Bay offers the Cayman Islands a unique opportunity to help attract more visitors and part-time residents. As a result, a very strong retail component at Camana Bay will ultimately be beneficial to all Camana Bay residents, including

Caymanian entrepreneurs operating outside of Camana Bay. It is, therefore, reasonable to pursue exemption from the Trade and Business Licensing Board where it can be established that such a business is highly complementary to the continued development of the Cayman Islands as a global financial center.

NEIGHBORHOOD / DESTINATION RETAIL BALANCE Camana Bay currently features a number of businesses that create a vibrant, attractive urban village, including a coffee shop, cinema, bookstore and three waterfront restaurants with outdoor seating. These uses complement a number of specialty and apparel retail and foodservice outlets, many of which are very unique on the island to Camana Bay. While the current uses offer a solid foundation for attracting shoppers to the community, there remains many opportunities to increase the frequency of trips and attract a larger share of sales from both residents and visitors. By capturing these opportunities, Camana Bay closer approaches the ultimate goal of a sustainable development.

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Camana Bay, and the Cayman Islands in general, are lacking certain retail components that are frequently found in other developments seeking to attract shopping visits from both far and wide. By incorporating retail and restaurant concepts that weave unique and entertaining experiences in with shopping, Camana Bay can maximize its target customer’s attraction to the site.

While Camana Bay could potentially attract a few strong destination retail/restaurant concepts among hundreds of potential concepts, we have outlined our vision for two such specific retail/restaurant concepts that would greatly help fulfill Camana Bay’s mission as it becomes fully-realized. These include a Swim & Dive Store, and Activity-based Bar/Restaurant.

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SWIM & DIVE STORE The Cayman Islands is among the top scuba diving destinations in the world. We propose a large athletic, recreation, swimming and diving retail destination in the Cayman Islands. The store would feature: - Large, but manageable size of approximately 10,000 sqft retail space.

- On-site certification courses for scuba diving.

- Dive tank/ pool for certification and viewing by patrons.

- Aquarium, or aquariums displaying typical Cayman area sea life that might commonly be seen on dives.

- Experienced, knowledgeable, helpful staff able to guide visitors through the scuba-diving certification process.

This destination retail concept would shoppers an excellent selection of equipment, but it would serve to entertain. Such a store would help Cayman Island’s appeal to divers interest in the activity.

not only offer scuba diving educate and enhance the and increase

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ACTIVITY-BASED DINING There are already several restaurants in Camana Bay. As the development grows, and there is an opportunity to add another establishment, we propose a concept that incorporates adultoriented recreation. Specifically, we believe a restaurant and bar with a hedged lawn-bowling green would be of great interest to Camana Bay’s target customer. This restaurant concept would be consistent with the Cayman Island’s traditional British heritage, and would create yet another aesthetically pleasing feature in Camana Bay. Further, such a game is offers a spectacle for people to enjoy without creating a disturbance that is likely to annoy. Patrons may even form leagues and frequent the restaurant more often.

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Reta i l S t rat e gy COMMUNITY GROCERY STORE The grocery store at Camana Bay is vital to the process of creating a walkable, self-sustainable urban community over the long-term. A retail outlet of this kind will complement the other stores at Camana Bay and drive frequent trips to the community from residents and visitors outside of

Camana Bay. Grocery retail also offers a significant opportunity to offer a level of service that is not available anywhere else on the island.

The Grocery store would feature consistent architecture with existing retail, adjacency to Camana Bay’s existing retail (see 5.0 Phasing Strategy for proposed location details). There would be a focus on natural lighting, and modern, inviting build-out . Fresh produce, fresh meat and fish, brands and products unavailable elsewhere on the island, and prepared meals for take-out or consumption on site would all be available to patrons at Camana Bay Grocery.

Additionally, part in effort to promote the availability of fresh foods, there could be a collaboration with the existing Farmer‘s Market at Camana Bay, encouraging weekly trips to Camana Bay.

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The Mo bi l i ty & F l o w of P e op le Mobility and flow is a critical component of the development philosophy of Camana Bay. Being able to walk to a diverse mix of shops, restaurants, newsstands, coffeehouses and open-air markets within a car-free neighborhood and work center delivers the ultimate quality of life, and adds great variety and vitality to an area. This is the highest

quality environment possible for living because it includes a full range of services within a 5-10 minute walk of every residence. A full range of entertainment and cultural activities are also only steps away within the community.

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For Camana Bay it is important to be thoughtful about optimizing the mobility and flow of people.

In particular, this means ensuring that entrances & exits to the community are optimally located, and creating natural paths that thoughtfully move residents and visitors around within Camana Bay. Currently, there is opportunity encourage more

flow into the community by simply making the existing entrance more pedestrian-friendly from the ocean side of West Bay Road. The phasing strategy for future development at Camana Bay carefully considered the impacts and relationship of the phasing to the mobility and flow of people.

(See section 5.0 for details).

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The lifestyle brand of Camana Bay is surely Forsignificant a Camana Bay factor it is and important influence to be for thoughtful future about odwithin development.

It will Camana be especially Bay. important Currently, tothere stay is opportunity true to the authentic encourage brand that more hasflow beeninto created the community future throughout by simply phases, making so there the existing remainsentrance a strong more pedestrian-friendly sense of place felt by residents from the and ocean visitors. sideThe of West Bay lifestyle component Road. The of phasing this community strategy is for onefuture of its development strongest distinguishing at Camanacharacteristics.

Bay carefully considered It sets the tone, look and feel, and speaks to a specific target

market. Keeping the brand a critical source of the impacts influence for and whatrelationship lies ahead of forthe Camana phasing Bay, to the will mobility make it very and clear flow of which people. development (See section details 5.0and for details). are a strong fit and will further promote strategies the community story. The brand itself when successfully delivered in every component of the community, has the power to ultimately become the story its residents share with the outside world, attracting the next generation of residents.

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LIFESTYLE COMPONENT

D E V E LO PM E N T PH I LOSOPHY new m a r & c the

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urbanism values k e t d e m a n d r i t i c a l m a s s catalyst effect

The guiding philosophy that underlies each layer of this strategic development plan for Camana Bay involves the following fundamental development principles.

UNDERSTANDING NEW URBANISM VALUES New urbanism promotes the creation and restoration of diverse, walkable, compact, vibrant, mixed-use communities composed of the same components as conventional development, but assembled in a more integrated fashion, in the form of complete communities. These contain housing, work places, shops, entertainment, schools, parks, and civic facilities essential to the daily lives of the residents, all within easy walking distance of each other. New Urbanism promotes the increased use of trains and light rail, instead of more highways and roads. Urban living is rapidly becoming the new hip and modern way to live for people of all ages.

Elements of the new urbanism concept are alive and well within the Camana Bay development.

The concept is also evident in the motto for the area, which has been defined as live, work, stay and play. Camana Bay is a place for families.

Many retail shops can be found in the heart of the development, the Town Center, also known as

the Paseo. The Paseo is designed to be a major attraction point for the residents who choose to live and/or work in the area. Residential units as well as office buildings surround the heart of the development, and the Cayman International School can be found directly adjacent to the development.

This not only provides an opportunity for parents to have their children attend a school close to home, it also provides an opportunity for parents to work and still in close communication with faculty, staff and their children at the school. Employment opportunities within Camana Bay are with large accounting or banking firms such as Ernst and Young and Willis Capital Management and are in close proximity to other attractions and amenities within the area.

The thoughtfulness of place-making and the combination of the various types of developments make Camana Bay an exciting place to view new urbanism principles in action, but this is only the beginning. We agree with the vision for Camana Bay “to establish and grow a thoughtfully designed town that is a vibrant and enduring community in the heart of Grand Cayman�. Camana Bay has succeeded in these initial phases of the new urbanist concept and remain a driving principle of the future development.

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IDENTIFY MARKET DEMAND & CREATE CRITICAL MASS We believe that every phasing decision must give consideration of how to capture the most immediate market opportunity, thereby creating the ability to stimulate the most immediate critical mass for that particular phase.

THE “CATALYST EFFECT�

We believe Camana Bay can be developed in such a way so as to stimulate a so-called catalyst effect with each phase. In doing so, it creates increased demand on the peripheral parcels, better positining that land for a more attractive future phase of development.

Using these development principles as the guiding light, we believe we have identifyied a thoughtful and logical progression of development phases for Camana Bay that will optimize the value of this development from an investment and resident perspective for generations to come. (Please refer to section 5.0 for the detailed strategic development vision).

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P H A S I N G S T R A T E G Y &

M A S T E R

P L A N

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short term & immediate phase TIMING next 3-6 months COMPONENTS Walkability & access enhancements // events & marketing Short term and immediate phase recommendations for Camana Bay focus on enhancing the overall image of the development via increased marketing efforts towards local residents and tourists.

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Recommendations include: (1) improving circulation and walkability for the existing development (see chart to the right on page 43), (2) erecting a second monument sign that welcomes people to Camana Bay,

(3) enhancing event programming within the Town Center and (4) creating excitement in the market by having residents and workers within the development, tell/share their story, their experience.

In addition to these recommendations, concentrating on the key market drivers of density, i.e. - housing supply and the flow of people, will ensure that a critical mass is brought with each phase of development.

IMMEDIATE ACCESSIBILITY OPPORTUNITIES

STRATEGIC BENEFIT

Footbridge over main road connecting 7 mile beach to project entrance

Improves visual cue to encourage more travelers staying on 7 mile beach to notice something lies beyond the entrance to discover. Possibly increase immediate traffic to retail. Improves walkability of community (currently challenging to cross traffic by foot)

Implement full time golf cart/smart car shuttle service

Improves community circulation, flow, and traffic. Provides unique mode of transport to discover and experience Camana Bay. Brings in guests who may otherwise be deterred by intimidating, long and vague entrance off main road.

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near term phases part I TIMING 0-5 years COMPONENTS Grocery & Drug Store // Buffer Residential // Marine Resort

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This phase should begin with the development of the Grocery & Drug store area identified on the site plan as the most logical support location based on existing residential, retail and office uses. This will be an immediate benefit to the sustainability function of Camana Bay and serve to retain customers on a more frequent basis.

Phase 1B we have characterized as a Buffer Residential development mix of 30-50 garden style efficient living units to target the corporate admins and staff. We recommend these consist of market rate apartments on the

west side of Block B and fee owned condo units on the NW 1/2 of Block A. This will ramp up density and the number of people living on-site almost immediately. It also provides buffer for future single family homes and takes advantage of current linkages to the office and retail improvements.

The Catalyst Effect during this phase will be sparked by the simutaneous development of the Camana Bay Marina & Beach Resort (1C). More details about this specific development opportunity follow in more detail on page 46.

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CAMANA BAY MARINE RESORT The opportunity for this incredible coastal component of Camana Bay to be created has never been greater.

Given the current medical tourism trend, now is the time for development of this phase to get underway in order to capture a first time opportunity to cater exclusively to the incoming population of worldly and wealthy doctors and surgeons in immediate need of residence on the island with the current development on the East Island medical facility. Heli-charter service available for residents to East Island Medical.

This will become the most exclusive and luxurious piece of the community, developed along the bay, and will be the catalyst for development of land to the west. With this exciting luxury neighborhood underway, we can expect demand to increase for fringe single family homes in the near future.

MARINE RESORT

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An elegant and relaxed paradise awaits at the Camana Bay Marine Resort: • Exclusive helicoptor-charter service for residents.

The doctor residents especially will appreciate the ability to get to the East Island Medical facility in a flash in the luxury community helicoptor reserved just for them.

• Mix of single family homes, multifamily homes, and condominium units provide a variety of living options for the luxury market (i.e. doctors and longterm stay patients of the newly developed medical facility on the island) • First class environmentally friendly marina with 50 boat slips, 30-65’ in a well-protected and deep water marine harbor. Premium gasoline dock, ship store, dry storage facility and travel lift. Scuba operations also operational out of the marina.

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• Exclusive Camana Bay-inspired island community gathering deck features beautifully landscaped pool deck and ocean promenade features a large oceanfront heated infinity pool and hot tub with waterfall.

• Camana Bay Tropical Café – Relax at this restaurant with indoor and outdoor dining serving breakfast lunch dinner. A sumptuous and inspired

menu awaits, with delectable entrees, snacks and cocktails. Room service and catering of banquets available.

• Camana Bay Tiki Bar - Bungalow style hut down at the docks hovers over the calm marina waters, with a great view of the entire Marine Resort. It is the perfect place to sit and unwind during happy hour with a cocktail while enjoying the sounds of a live steal-drum band.

• Camana Bay neighborhood store – take an island getaway to this retail store that’s a treasure chest of home décor and exquisite men’s and women’s fashions infused with the spirit of all things tropical, and crafted from luxurious and sensual fabrics.

• Exclusive full-service day Spa – forget your cares and indulge in the pampering treatments of a world-class European spa featuring massage services, and salon treatments.

• On demand concierge for residents provides peace of mind and adds to the enhanced living experience that awaits.

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MARINE RESORT

near term phases part II TIMING 0-5 years COMPONENTS Boutique Hotel/Conference // Beach Club // Medical Office // Retail

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To promote a healthy and diverse mix of development growth, the amenity phase of development is recommended to follow the previous phases providing a boutique hotel with conference centers, beach club enhancement, medical office and destination retail development.

The boutique hotel is completely surrounded by water, accessible by golf cart or foot, with enough breathing room surrounding it that its use won‘t conflict with nearby residential home sites. At the center of Camana Bay, this is intended to function as the magnet of

the development attracting residents, visitors, and guests alike on a regular basis for various reasons (lodging, entertainment, dining, business). More details follow on page 52.

The beach club we believe should be developed to serve as a nice community amenity that spreads the flow of people all the way to the ocean.

This phase also includes the development of medical office (opportunity for clinic development) and destination retail concepts we highlighted earlier.

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CAMANA BAY BOUTIQUE HOTEL Exclusive Camana Bay-inspired island hotel features 80 spacious Hotel suites- 550 square feet with kitchenette, living room with sleeper sofa, and private balcony for a breathtaking panoramic view across the Keys. Complimentary high-speed wireless Internet access is provided. Beautifully landscaped pool deck and ocean promenade features a large oceanfront heated infinity pool and hot tub with waterfall. Guests enjoy complimentary golf cart access to visit the rest of Camana Bay.

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intermediate phases TIMING 5-10 years COMPONENTS Waterfront Island + Mixed Residential // Mixed Use Office/Retail

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Canal front single family homes (3A) will be in demand after the critical mass generated by the previous phase 2 development components are complete. These single family homes on the water will be for those priced out of the Marina sites and Island Residential Sites.

The Island Residential phase (3B). consists of single family homes on the water for those priced out othe Marina sites, but still can afford the premium for island living. By this time, the Marine Resort phase should be near capacity, alive and thriving thus driving demand

up for this contiguous land that may be considered second place luxury, with slightly higher values than 3A will command.

A mix of single family and townhome units will follow (4A) between the International School and Canal to the east.

As the pace of development ramps up, we anticipate demand will too. We forsee mixed use office and retail with high density residential (4B) coming into play along the northern edge of the community, near the retail corridor.

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long term phases part I TIMING 10+ years COMPONENTS Island Residential // Luxury Single + Multi Family // Market Rate Rental // Office, Retail + Industrial Buffer

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The final phase areas of development that have been reserved for longer term initiatives here were strategically selected based on infrastructure costs and distance from the core urban community. We do not recommend developing these areas too soon, because if left alone for 10+ years, they will serve to be future highly valued pieces of property to expand upon the already vibrant Camana Bay residential community.

Also, the idea was to reserve the land available for a variety of uses, to allow for flexibility in any unforseen market

changes, market demand trends, or future opportunities that may arise.

The most outward areas of Camana Bay should be reserved for Island Residential (after all previous residential has been fully consumed), luxury single & multi family, market rate rental, office, retail and a possible industrial buffer.

It will be important throughout the short term phases, to constantly update this long term phase and dial in specifics as the timing nears.

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long term phases part II TIMING 10+ years COMPONENTS Mixed use Office, Retail + Residential The very final sections of Camana Bay that are carved out for part ii long term development are shown here. They include reserved uses for mixed use office, retail & residential along select perimeter areas.

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While we cannot predict with great accuracy what the next 10 years may bring for the development and the market, we can assume with great certainty that the fundamental idea of a new urbanism community will still be the driving force. Because of this, we have made sure to find a sustainable balance of development-- during

every phase. This final phase being no exception, it is important to include a complimentary mix of development types (retail / residential / hospitality /office / amenity) that will attract a balanced mix of residents and users in order to continue the progression of a sustainable community. The thoughtful phasing that has already gone into this incredible community has certainly set the stage for a beautiful development to grow.

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We are truly thankful for the opportunity you have shared with us to study the innerworkings of such an incredible development at Camana Bay. We hope that you will find our observations, insight and recommendations as a useful guide in your future development plans and wish the best for what lies ahead in this community. The perspectives we have shared may be an opportunity for you to consider alternative approaches when you evaluate your strategic phasing plan.

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