Golf Course Improvement Plan

PGA WEST


Thursday, July 12, 2007

Dear Members:

We are very excited to announce that our Golf Course Improvement Plan has been approved. Beginning immediately and with completion prior to your return for the season, Morgan Stanley will spend approximately $6 million to renovate our courses. The following is an outline of improvements to be made.

Nicklaus Private Course
Bunker renovations.
Cart path repairs.
New landscaping around the 14th tee.
Lake bank repair on holes #8, #13, and #14.
Irrigation controller and head upgrades.
Asphalt overlay on the path from the driving range to the 10th tee.

Arnold Palmer Course
Bunker renovations.
Cart path repairs.
Tee leveling on holes #15 and #17.
Lake bank repair on hole #18.
Irrigation controller and head upgrades.

Tom Weiskopf Course
Bunker renovations.
Cart path repairs.
Irrigation upgrades.
Rebuild dry well.

Greg Norman Course
Improved cart parking area by the driving range tee.
Bunker renovations.
Thinning out of plant material.

Nicklaus Tournament Course
Bunker renovations.
Cart path repairs.
Irrigation controller and head upgrades.
Pump station replacement.
Stadium Course
Bunker renovations.
Cart path repairs.
New landscaping plan with Dye Designs.
Irrigation controller and head upgrades.
Removal of more acacia plant material.
Asphalt overlay of driving range parking area.
Citrus Course
Bunker renovations.
Cart path repairs.
New tee box on the #16 hole.
New sump below the 18th tee box.
New Irrigation controller system.

Dunes Course
Bunker renovation.
Cart path repairs.
Leveling of tee boxes.
Railroad tie repairs.
New controllers that operate off a central computer.
Distance markers on the irrigation heads.
Well pump improvements.

Mountain Course
Bunker renovations.
Cart path repairs.
Tee leveling.
Railroad tie repairs.
Drainage repairs.
Distance markers on the irrigation heads.
Central computer programming.

As you can see, we have a full schedule of improvements ahead of us. These improvements were long awaited and we are glad that the work is finally getting done. We will keep you updated as things are progressing. In the meantime, please contact us with any questions.

Regards,




Roger Swadish Mark W. Neneman
Vice President Managing Director of Golf Operations
La Quinta Resort and PGA WEST La Quinta Resort and PGA WEST
Arizona Biltmore Resort & Spa
Waldorf =Astoria Collection
Hilton Hotels Corporation

Indian Land Lease

The Primary difference between buying land and leasing it is obvious: leased land reduces the cost of a home by 20 to 30%. Once a structure is built, the land beneath it can be of no other use to the homeowner. So, by owing on leased land, the homeowner gets the use of the land without the capital outlay- and can afford a far more luxurious home for less money. Furthermore, since no one actually owns a home until the loan is paid off, most so-called "land owners" don't really own their property for 30 years.

The simple logic has been sufficient to satisfy thousands of home and business owners in Palm Springs. But, for those who like to explore all ramifications, here aer some more facts to ponder, posed in the 4 of most FAQ about Indian- Leased Land:

Won't the value of my real estate climb faster if I own the land?
While resale values are determined by many things, all available figures indicate that resales of homes on leased land (such as those at Cathedral Canyon Country Club, Canyon Estates, Mission Hills, and Seven Lakes) have climbed in the exact proportion as other homes in the area. The condition in which you keep your home has far more influence on its resale value than the fact it is (or is not)
on leased land.

What about my children and grandchildren? Will I be able to pass a lease hold estate on to them?
Of course. You can give or sell your home on leased land just as easily as on fee land. However, if you are concerned about your heirs 65 years from, there are 4 realistic questions you should ask yourself:
1. Will they really want a 65 year old home when the average life of most CA residencies is estimated at less than 50 years?
2. Considering that most residences change ownership about every 5 years (which would be more than 10 turns of ownership during the life of your lease) is this home really likely to stay in your family 65 years?
3.If you have a savings of $206 per month ($2472 per year) be leasing land vs. purchasing, over the life of a 65 year lease, your savings would total $160,680 even if it earned no interest. If you kept this in a monthly savings in an account paying 10% annual interest, your savings would exceed $1,250,000 over 65 years (and even more if interest were compounded monthly.) Wouldn't that be a better way to take care of your great-grandchildren?
4. What happens at the end of the lease? Since there is no legal restriction prohibiting the Indians from selling their land, you and your heirs may have the option to purchase if you wish to do so. However, most probably, you would be offered a new lease based on conditions existing at that time. There would be no financial advantage to taking the land back and, as the tribe long ago observed "One can't eat dirt."

Why do some people compare a home on leased land to a variable annuity life insurance policy?
Probably because it's easier to understand! Just as a variable annuity gives you the possibility of gaining from both fixed interest rates and asset appreciation, a home purchased on lease land gives you a monthly savings along with the possibility of home appreciation.

It can be an investment hedge whether home prices are rising or falling. During an "up" period, your home will increase in price. In a "down"period, the dollars you did not spend on land, but invested in a fixed interest savings, will continue to increase.

Today, building on leased land is no longer an advantage reserved for business and investment buyers. Now, in Palm Springs, CA, it is something any home buying family can enjoy, thanks to the honesty, intelligence and perseverance of those original desert dwellers who were sincere when they said
"Welcome, brother, my home is your home".

Desert Sun Article on Legacy Villas

The Desert Sun
June 20, 2007
A group of investors who've poured their money into the upscale Legacy Villas at La Quinta development are suing Centex Homes alleging securities violations and fraud.
The homeowners are asking for a cancellation of their purchase agreements to recoup $20 million to $25 million.
The lawsuit was filed June 14 at Riverside County Superior Court in Indio by Orange-based law firm Wildish & Nialis on behalf of about 44 investors who purchased townhomes and villas over the past few years.
The suit alleges Centex marketed homes with promises that investors would reap profits under a rental agreement managed by La Quinta Resort & Club.
But because of construction delays and a long list of other "misrepresentations" and problems, investors claim they were stuck with charming Spanish-style villas that they weren't able to rent out.
Eric Bruner, a spokesman for Dallas-based Centex Corp., said "we are not going to discuss any matter under litigation."
Centex was founded in 1950 and is among the nation's top homebuilders, with operations in 25 states. Through its Centex Destination Properties division, it offers similar villas in places such as Beach Villas at Ko Olina in Hawaii and in Nevada, New Hampshire, North Carolina and Texas.
The Legacy Villas at La Quinta is a gated, guarded, private community - with some 280 luxury villas, 19 cascading fountains, nine community pools, saltwater spas and winding trails - that is being built next to the 81-year-old La Quinta Resort & Club, now part of the Waldorf-Astoria Collection of Hilton Hotels.
Investors allege that Centex marketed the villas from about January 2004 through May 2006 as rental properties that would create income for them through a rental and management agreement set up through La Quinta Resort.
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But completion of a 11,000-square-foot clubhouse with high-end grille, fitness facilities, spa, pool, gardens and other amenities was delayed until February 2007, leaving investors with properties they couldn't rent to vacationers, according to a 17-page complaint alleging a wide range of problems.
Neither the La Quinta Resort & Club nor KSL, the company that managed the resort at the time of the villas' sale, is named as a defendant in the lawsuit.
"Centex closed the sales on the investors' units knowing that the clubhouse was not complete and would not be completed for an extended period of time," the lawsuit alleges.
Investors who were relying on rental income to cover all or part of their mortgage expenses and debt service were left holding the bag, the lawsuit contends.
Other problems laid out in the lawsuit included construction delays due to excessive mud and dust, "incomplete, unsafe and unsightly" common areas and incomplete interior work.
The lawsuit alleges homeowners had to pay mortgages, property taxes, utilities and rising homeowners association dues despite the fact that they couldn't rent the vacation villas until construction was done.
Some investors paid $15,000 for furniture upgrades, but the lawsuit alleges the furniture "is not of the quality consistent with a five-star resort as represented by the seller."
Investors allege Centex gave false completion dates for the clubhouse and common areas, telling prospective buyers portions of the development would be finished in May 2005 or summer and fall 2006, when the bonded completion date was July 2009.
Investors claim there were a number of misrepresentations or omissions regarding contracts, such as being told long-term rental opportunities would generate consistent income when rentals more than 30 days were prohibited, the lawsuit alleges.
Investors allege Centex was out to maximize its revenue and profit by closing on sales of the villas even as the company knew clubhouse and common area construction faced delays.
Hilton Hotels has a contract to manage La Quinta Resort & Club as one of its "Waldorf-Astoria Collection" of properties.
Investors also said they weren't told the villas would not be rented until the hotel was fully booked, nor that a 50 percent fee would be assessed to rent units, considerably more than 15 to 30 percent charged by most other rental programs.
Some three-bedroom, four-bath, 2,200-square-foot luxury villas originally sold for more than $940,000, while others have sold for $800,000 to more than $1 million. To the chagrin of investors, however, prices have since plummeted despite guarantees from Centex that such price-slashing wouldn't occur, the lawsuit alleges.
Some investors who purchased in the first phases claim they can't refinance now because property values have plummeted. Villas that once sold for $775,000 have recently been selling for about $555,000.
Hundreds of prospective buyers have been showing up in recent months to check out the discounted villa prices, and many have sold.

PGA West Fairways Association

As you may know, the PGA WEST Fairways Association's Covenants, Conditions, and Restrictions ("CC&Rs") authorize the Declarant to annex additional property into the Association as the Declarant deems appropriate. Currently, CNL Desert Resort, LP is the Declarant for PGA WEST Fairways Association.

Recently, a new development called Bonterra has been proposed adjacent to the Norman Course community, consisting of very high-end homes ranging between 3,950 and 6,900 square feet, in harmony with the sizes of homes surrounding the Norman Course. Although no homes will face onto the golf course property, some of the proposed 39 new homes will include a new concept of featuring wine cellar basements. The Bonterra project sits immediately north of the Turnberry SBA.
Norman Course Residents

The Bonterra development will provide significant benefits to the existing residents of the Norman Course. The developer, Desert Golf Homes Development, working through the PGA WEST Master Association, will pay for the activation of the card gate at the Monroe Street entrance allowing the residents in Bonterra, as well as all residents on Brown Deer Park, Turnberry Way, Tiburon Drive and other residents at the eastern end of the Norman Course convenient ingress and egress from Monroe Street rather than from the Madison Street main gate. This may significantly reduce the traffic flow at the Madison gate, along Kingston Heath, and Royal St. George.

Additionally, the Bonterra residents will become members of the Master Association contributing the assessment amount established by the Master Association for the Norman Course residents toward security, the maintenance of the perimeter walls, landscaping and privacy gates into the Norman Course.

More importantly, the Bonterra project will act as a buffer to the adjacent equestrian communities tempering the negative factors related to an equestrian environment. Without a doubt, this will be an advantage to all residents at the Norman Course.

Concurrently with the opening of the entrance into the Bonterra project directly across from the #6 tee, the existing interior perimeter landscaping and irrigation along Brown Deer Park and Turnberry streets will be renovated to enhance the eastern boundary of the Norman Course community. Enhancements to the front and rear yards of the Turnberry SBA have been in the planning stages for some time. Ultimately the completion of these planned improvements, and the landscape median on Kingston Heath, will conclude long-awaited enhancements to the community and provide a harmony throughout the Norman community.

Entrance to Bonterra

The developer plans to construct a distinctive entrance on the north side of Brown Deer Park into the non-gated Bonterra project directly across from the #6 tee. The approximate 60 foot wide boulevard entry will include median landscaping, a cascading water feature designed to be consistent with the architecture of the new community and will introduce a distinctive entrance for the Bonterra project. The perimeter entry walls along the boulevard entrance will as well contain water features. Maintenance of the Bonterra entry features and common area streets will be the sole responsibility of the Bonterra SBA or sub-association. We believe that this entrance will be architecturally pleasing and will establish the Bonterra project as a quality addition to the Norman Course community.
Overall Benefits

Furthermore, the residents of PGA WEST and, particularly, the Norman Course community should know that the development of the Bonterra project will proceed under an enhancement protocol consistent with the PGA WEST and Fairway's community standards of excellence.

During the construction of the Bonterra project, all construction traffic will be restricted to an access gate off of Monroe directly into the project. Both the Association and the City of La Quinta are adamant that no construction vehicles will be allowed access through the existing Norman residential streets.

The Board believes that the Bonterra project represents a worthy addition to the PGA WEST Fairways organization, and will further enhance a world class community.
We want your feedback!

Thank you for your cooperation!

Board of DirectorsPGA WEST Fairways Association

The Palms Golf Club

Fred Couples and Brian Curley designed The Palms Golf Club located in La Quinta right down the street from PGA West. The course opened for play in December of 1999 and quickly became known as a one of the best golfing experiences in the desert. Members enjoy a low initiation of $40,000 with with dues of $5,700 a year. Dues include all member green fees, cart, locker, range, pro shop buying plan, and bag storage. The Palms has a "no tee time required" policy.

Why Imperial Irrigation District Rates Are So Low???

Coachella Valley has two choices for power companies IID which stands for Imperial Irrigation District and Edison. People often ask why IID's rate are so much lower.
Why IID Energy's Rates are so low:
-no shareholders so they focus on lower rates not profits

-majority of energy self generated so they do not rely on market prices

-acces to low cost federal hydro power provided by their affilation with the Western Area Power Administration

-tax exempt making the borrowing processes easier

-customer owned and community elected Board of Directors partake in the rate process

CNL Hotel & Resorts Acquired by Morgan Stanley Real Estate

Pyramid Advisors and Partners, Morgan Stanley Real Estate
Complete Acquisition of CNL Hotels & Resorts, Inc., for $6.6 Billion

Spins off $2.4 Billion in Hotels to Ashford Hospitality, Retains Eight Luxury Resorts


BOSTON, Mass., April 16, 2007 – Pyramid Advisors LLC and Morgan Stanley Real Estate announced the completion of the previously announced acquisition of CNL Hotels and Resorts, Inc. (CHR) for $6.6 billion. Immediately prior to and in connection with the acquisition, Ashford Hospitality Trust (NYSE:AHT) acquired for $2.4 billion 51 of CHR’s full- and select-service hotels aggregating 15,105 rooms. Pyramid and Morgan Stanley Real Estate acquired CHR’s eight luxury resort properties in Arizona, California, Florida and Hawaii aggregating 5,506 rooms.
“We are delighted to participate in this transaction with our partners at Morgan Stanley Real Estate, which significantly expands our on-going relationship with them,” said Richard Kelleher, chief executive officer, Pyramid Advisors. “The resort properties represent some of the industry’s most significant and irreplaceable hospitality real estate.”
The acquired resorts include:
The 950-room JW Marriott Desert Ridge Resort & Spa, Phoenix, Ariz.
The 279-room Claremont Resort & Spa, Berkeley, Calif.
- more -
Acquires CNL Portfolio
Page 2
The 584-room Ritz-Carlton Orlando Grande Lakes and the 998-room JW Marriott Orlando, Grande Lakes, both in Orlando, Fla.
Three hotels in Hilton’s Waldorf=Astoria Collection, the 738-room Arizona Biltmore Resort & Spa, Phoenix, Ariz., the 796-room La Quinta Resort & Club in Palm Springs, Calif., and the 780-room Grand Wailea Resort Hotel & Spa in Maui, Hawaii.
Pyramid Advisors LLC and Morgan Stanley Real Estate will own and asset manage the portfolio. Both firms currently also participate in and co-manage investment funds with approximately $2.5 billion of hospitality real estate throughout the United States.
Pyramid Advisors is a full-service, privately-owned hotel company based in Boston. Pyramid is a hospitality property manager, asset manager and project manager with approximately 50 properties under ownership, property management or asset management, totaling more than $7 billion in asset value. For more information about Pyramid Advisors, please visit www.pyramidadvisors.com.