Marina Updates

I. Renovations under way ! (see Construction Updates tab) - posted 6/06/05 II. Marina Updates and Closing Info- posted 2/25/05 III. AMH, LLC Closes on Ashley Marina-posted 4/4/05 IV. Important Information (previously sent out in an email to all those with Reservations) - posted 3/3/05 V. Renovation Plans Update- posted 2/21/05 I. Renovations under way ! (see Construction Updates tab)

II. Marina Updates (Includes New Closing Info)
• We recommend that you refer your lending instituion to the following party who is familiar with the slip closing process.
• Appraiser: Hammond Bamberg, Atlantic Appraisal 843-884-1266
• Atlantic Marina Holdings has selected Smith Cox & Associates to represent the seller in the sale of slips and they are available to represent the buyer as well. Please contact Dawn Nettles to schedule your closing. Her contact info is 843-853-5577, ext 106.

III. Wet Slip Condominium Conversion Underway

Charleston, SC – April 1, 2005 -- Atlantic Marina Holdings, LLC (AMH) is pleased to announce the acquisition of Ashley Marina in downtown Charleston, SC. The marina will now be known as The Harborage at Ashley Marina. AMH is in the process of converting the 223 slips to dockominiums. Renovation of the facilities has begun and individual slip closings will begin in May. Strong sales continue and all but 20% of the slips remain unreserved. The transient dock will not be sold and will continue to be run to accommodate transients and fuel sales. You may visit their website (www.charlestonwetslip.com) for a description of the planned renovations and pricing information.

IV. Important Information

Thank you for your interest in The Harborage at Ashley Marina. Many folks with Reservations have asked questions about various issues and we are trying to post as much information as possible on the website to keep everyone informed. Below are a few issues that we would like to address immediately for everyone's benefit.

1. Construction Budget, Timing and Expenses:

Atlantic Marina Holdings ("AMH") is a locally owned company and has recently been involved in the redevelopment of Shem Creek Marina and the renovation of the drystack portion of Ripley Light Marina. RBC Centura is AMH’s lender on the Ashley Marina acquisition and redevelopment. The acquisition and development loan is fully approved. RBC Centura has earmarked $1.6 million of the loan proceeds as funding for physical improvements. These funds will be retained by the bank and the developer will draw against the funds by submitting draw requests, as with a normal construction loan situation. THE REGIME (OR INDIVIDUAL PURCHASERS) WILL NOT BE PARTICIPATING IN ANY EXPENSE RELATED TO THE INITIAL RECONSTRUCTION OF THE DOCKS AND COMMON AREAS. We will post construction updates weekly on the website and will try to keep everyone informed of the logistics of redevelopment process. There will obviously be some temporary inconvenience associated with the renovation, but we will try to limit this inconvenience and the end result should be well worth it.

2. Regime; Regime Fees:

AMH, as developer, controls the regime until such time as 95% of the slips are sold or it relinquishes such control. It is our intent to relinquish control of the regime as soon as the dock marina renovations are complete (should be no more than 6 months). Prior to such time, while we are in control of the regime, we will have a fiduciary duty to place the interests of the regime and its members ahead of the interests of AMH.

An example of the estimated regime budget was sent with the Purchase Agreements. This is not in final form and is a good faith estimate. The regime fee budget did not take into account slip size and basically divided the total number of slips by the total budget. A more detailed breakdown on each slip's pro-rata share of the regime expense is on the Regime Fees tab of this website. The regime budget is open book and reflects a straight pass-through of the actual expenses associated with operation of the marina. The regime budget will be set by the regime through its board of directors. The regime will have full authority to make decisions concerning services, expenses, maintenance, improvements (after the initial redevelopment), etc.

Just as with a residential regime, the regime itself may be self-managed by the members through its board of directors or it may choose to hire an outside 3rd party regime manager. This choice is up to the members. We have assumed the latter scenario for purposes of the budget.

A separate issue from the regime management is the actual physical management of the marina. The regime can choose to have a full service marina much like Ashley and the City Marina are operated now, or it can choose to forego this luxury and self-manage the marina. We have assumed that the regime will want to run the marina as a class "A" facility and have therefore budgeted for the hiring of a 3rd party management company. Typical marina management contracts are for approximately 6% of gross revenues. The regime can hire any company it desires to manage the marina. The marina management company would oversee operations and supply and pay the dock manager(s), dockhands, and any necessary office staff. Payroll and other operational expenses are absorbed in the marina management fee noted in the regime budget.

AMH will own the commercial building, the slips on the outside of the current transient dock, and the fuel facilities. AMH will be part of the Regime and will pay regime fees accordingly. AMH will employ its own staff to operate the fuel facilities and transient dock if its management company, AMH Management, LLC, is not hired to manage the marina. For purposes of the budget we have assumed that AMH Management would indeed be hired as marina manager and would use certain of its employees to handle both the marina management and the transient/fuel responsibilities. The marina management portion of work would include dock maintenance, trash services, loading and unloading gear and provisions, handling dock lines, monitoring docks and boats, assisting with pump-out, upkeep of all common areas, monitoring of vhf, monitoring telephone calls and regime member inquiries, driving parking shuttle van, coordinating boat service calls and helping with access to boats, coordinating maintenance subcontractors, monitoring of bilge alarms and routinely checking lines, helping to secure boats during storms, general security, policing of parking areas and servicing of regime members’ needs. Based on the assumption that AMH Management would be retained, only 50% of the projected payroll for common employees was placed in the management fee reflected in the Regime budget, with AMH absorbing the remainder for its separate operations. AMH intends to do its part to make The Harborage at Ashley Marina a class “A” facility, and as such, plans to keep and upgrade the service center, yacht brokerage and ship's store as amenities for the marina and its occupants and owners.

The total insurance cost reflected in the regime budget is significantly less than the amount currently paid by the existing owner of Ashley Marina. So as not to create confusion, we did want to point out that a marina owner must carry both general liability and marina operators legal liability insurance. Note also that the commercial building would be insured separately by AMH.

3. Purchase Agreement Deadlines:

Demand for slips has been high and in order to maintain order and honor reservations and reserved prices, we have allowed each purchaser approximately 7 days to put signed Purchase Agreements back in the mail to us (along with the required earnest money check). If we do not receive the Agreements back within the allotted amount of time, we reserve the right to put your slip back on the market at current prices and/or sell it to someone on the waiting list.

4. Meetings:

We are glad to meet in person with anyone who wants to come by our office and get to know our team and see our operation. Our office is in downtown Charleston off Morrison Drive and on Town Creek under the Cooper River Bridge. Please call in advance so we can make sure we will be there. We sincerely look forward to getting to know everyone associated with the Marina. We plan to start closing on slips during early to mid May. This will allow us to better organize the logistics and have people onsite for a few weeks.

5. Leasing:

Many of you are interested in purchasing your slip to lease to 3rd parties rather than to occupy yourself. Obviously, as an owner you will always have the right to independently lease your slip. To assist you, however, a management company will be available to handle the monthly and/or annual leasing of your slip should you so desire. We will provide standard lease forms so that there is consistency within the marina and so that the rules and regulations are the same for each slip.

6. Parking

As we have expressed in the Q & A section on the website, we believe the parking at Ashley Marina can be much better managed and policed and we intend to do just that. In addition, we are under contract for 28 slips with the developers of the adjacent vacant property. Their plans are to build townhomes and/or condos. Parking for the residential units would be self-contained on the adjacent site and these slip owners would therefore not need to park at the marina.

7. Master Deed

There are a few minor errors in the Master Deed attached to the Purchase Agreements including the locker box numbers and some slip size discrepancies. The information contained in the Purchase Agreement is correct and will be consistent with the amended Master Deed. Please understand that this is just a draft and a final corrected version will be recorded after AMH closes n the marina. A final corrected version will also be placed on the web site at this time.

We sincerely hope this clears up any questions on these topics. Thanks again for your interest and please call with any questions or comments.

Dunston Powell
Dexter Rumsey
Deas Manning
SLIP SALES - AMH

V. Renovation Plans Update

- As described below in the recent email, funds have been earmarked by our lender, RBC Centura, for the planned renovation of the marina.

- We have received contractor bids for almost all of the renovation work planned for the marina over the past couple weeks. We hope to start the following renovations shortly after closing on the marina:mp service to most of the wet slips, replacing the power pedestals with not only new units but twice as many so now one pedestal will serve only two slips, with this upgrade, new power substations will be placed throughout the marina to distribute the increased power supply,

we will be housing any plumbing or other additions to the marina mechanicals over the years that are now hanging on the outside of the floats to the interior of the dock structure, this should not only clean up the looks but also protect these services from damage,

the decking throughout the entire marina will be replaced with new ipe wood (south american hardwood similar to teak),

the cleats will be replaced with new 12" aluminum S cleats,

the rubrail will also be replaced throughout the entire marina,

we plan to install finger pier stabilizers where needed, corner brackets, thru-bolts, stringer and other structural members will be examined and replaced as necessary,

finally, and subject to permitting, we plan to completely renovate the ship's store, restroom and shower, laundry facilities and fuel dock structures.

Atlantic Marina Holdings, LLC is excited about the investments it plans to make to upgrade Ashley Marina and hopes to complete the upgrades as quickly as possible, while causing minimal inconvenience to tenants and owners. However, the logistics of completing this scope of work will require boats to be moved throughout the marina during construction and we anticipate periods of time when power will not be available to areas of the marina. We do plan to make every effort to keep access available during construction and pledge to stay in contact with each boat owner throughout the construction period. We anticipate construction to be completed within a period of four to six months and apologize in advance for any inconvenience created during this transition.