Desert Mountain Club Turnover to Members

Desert Mountain members successfully purchased all of the club assets from the developer, on December 30, 2010. Desert Mountain Club became an entirely member-owned equity club. The asset purchase totaled $73.5 Million and included the Club's six golf courses, six clubhouses, all related facilities and almost 500 acres of adjacent land. Each golf member was charged a one-time $16,500 assessment to help finance the purchase. This amount was much lower amount than expected. No other contribution will be required of members. The remaining amount was financed by the Club. The members were overwhelming supportive of the turnover with 99.3% of votes approving of the purchase of the club. This positive response is a testimony to the excitement at Desert Mountain.

Potential home buyers are assured that Desert Mountain Golf Club will remain the premiere golf community in Arizona. The management team is the same and the Club will continue to be run to the highest standards. One of the top priorities of the Club is to not only maintain but increase the exclusivity of the Club for members.

Many members are especially excited about the acquisition of surrounding land. Many members consider the land to be an insurance policy against future changes to the club and its surrounding community. The members did not want the developer to keep the adjacent land and sell or develop the land. Desert Mountain is now completely in control of any adjacent development to protect the natural beauty and exclusivity of the area. The Club may use the land to expand amenities and facilities for member use. Possible development on that land includes grocery stores and restaurants to benefit the lifestyle of members.

The new membership price was announced shortly after the turnover. On January 1, 2011 the Desert Mountain golf membership for property owners was reduced from $325,000 to $140,000. Social memberships were reduced from $100,000 to $40,000. There was no change to the membership transfer fee of $65,000. The new membership prices are a positive change. It will attract a lot of new members to the club. The club is focused on the future and how they plan to enhance the club to benefit both existing and prospective members.