Peninsula Place

Prepared For Peninsula Place | Traverse City

Budget Breakdown August 7, 2020 Tom McIntyre McIntyre Development Group P.O. Box 990 Traverse City, MI 49685 RE: Peninsula Place Dear Mr. McIntyre, We are pleased to provide you with the following breakout costs for the above referenced project. Description Costs 1. General Conditions & OH&P $1,771,385.00 2. Permits & Hook-up Fees 3. Geotechnical/Soil Borings $254,500.00 4. Surveying & Staking $6,900.00 5. Testing $5,000.00 6. Site Demolition 7. Excavating $45,000.00 8. Asphalt $46,000.00 9. Landscaping & Pavers $362,340.00 10. Irrigation 11. Temporary Fencing $8,700.00 12. Concrete $595,423.00 13. Precast Planks Not Included 14. Masonry 15. Structural & Misc. Steel $7,872.00 16. Rough Carpentry $835,238.00 17. Finish Carpentry $1,437,568.00 18. Roofing $241,242.00 19. Siding & Soffit $1,517,164.00 20. Caulking & Fireproofing $1,752,217.00 21. Aluminum Storefronts & Railings $810,106.00 22. Doors & Windows $155,214.00 23. Drywall, Ceilings & Insulation $2,322,000.00 24. Painting 25. Flooring $89,200.00 26. Specialties $623,550.00 27. Appliances $646,800.00 28. Elevators $986,790.00 29. Fire Protection $387,398.00 30. Plumbing $1,184,330.00 31. HVAC 32. Electrical $87,780.00 $216,300.00 $310,000.00 $303,195.00 $722,325.00 $791,228.00 $1,127,235.00

Peninsula Place $19,650,000.00 August 7, 2020 $500,000.00 Page 2 $20,150,000.00 Subtotal: Contingency: Total Budget Costs… Thank you for the opportunity to pursue your project. By effectively coordinating the efforts of qualified professionals throughout the process, our VeneBuilt Services method of delivery generally results in significant savings of time, money and provides you with a single source of contact and accountability for project planning. Our process is timely, cost-efficient, and goal oriented. During every phase of the project, we continually seek opportunities for cost reduction, schedule improvement, and innovative design solutions. We look forward to working with you on this project. Sincerely, a.j. Veneklasen, Inc. a.j. Veneklasen, Inc. Rob Miller, Bill Lee, Senior Estimator Vice President of Business Development

ABOUT US a.j. Veneklasen, Inc. (AJV) is well known for quality results and guaranteed satisfaction throughout Michigan since 1976. Most of our clients are business professionals who need specialized industrial buildings, factories, warehouses, restaurants, grocery stores, office buildings, multi-family housing, and retail spaces. As a result, we have learned to do whatever it takes to help you achieve your building objectives. In addition to our design and construction services, we can assist with feasibility studies, site selection, land acquisition and leasebacks. Even speculative development projects are within our scope. At AJV, we employ our own steel erectors and carpenters, and many of our employees have been with the company for well over a decade. With this in mind, you can rest assured the core components of your project are always under control, and in the hands of a highly experienced team. It’s our experience that helps us ensure quality construction, even on tight schedules, every time. OFFICER: Chris Veneklasen, President STAFF COUNT: 55 CORE VALUES • RESPECT FOR PEOPLE • INTEGRITY • SUPERIOR SERVICE • PASSION Respect for People. Integrity. Superior Service. Passion.

AJV STEEL AJV Steel Crew has been named a Top Metal Builder by Metal Construction News for several years running. The team consists of over 30 hard-working individuals dedicated to the success of each project, and on average, their safety performance ranks 50% better than the industry’s national average. Oftentimes, other General Contractors and Construction Management firms will contract AJV Steel for projects due to their long-standing reputation. The AJV Steel Crew has undoubtedly been an industry leader for over 40 years. VP Building’s manufacturing methods can satisfy a wide range of structural and aesthetic design requirements. With advanced construction methods, we can incorporate glass, brick, stone, or pre-cast concrete for special pur- poses or distinctive appeal. Have a tight deadline? No problem. If you’ve already purchased your pre-en- gineered steel building, we can con- struct it on-time and within budget. Respect for People. Integrity. Superior Service. Passion.

AJV CARPENTRY Collectively, the management of AJV Carpentry Services brings over 100 years of experience in the construction industry. With decades of extensive carpentry experience, we understand the importance of a comprehensive team. We believe positive results require a passion for creating fine woodwork and are dedicated to quality craftsmanship, personal services and attention to detail. In addition to working on new construc- tion projects, our carpentry services cover demolition, restoration and re- models. Good results require a passion for cre- ating fine woodwork. Our finish carpen- ters are true artisans known for their exceptional attention to detail. Respect for People. Integrity. Superior Service. Passion.

SERVICES PRE-CONSTRUCTION PHASES & SERVICES PROGRAMMING SCHEMATIC DESIGN DESIGN DEVELOPMENT • LOI / Notice to • Environmental reports • Design development proceed from owner complete plans and specifications • Definition of team • Geological/Soils/ completed players Survey reports completed • Upload plans and • Partnering plan specifications to Pro- initiated • Owner advises project core funding status • Responsibility check- • Design integration list started • Design integration review program established • Project objectives • Design development defined • Schematic plans cost estimate (drawings) and completed • Programming specifications • Project budget completed • Level of building finish established established • Utilize Procore for • Project cost model document sharing and • Value engineering pre-liminary design continues complete reviews • Preconstruction • Owner review and • Schematic cost accept design schedule established estimate completed development cost • Proposed build- estimate • Review and ac- ing systems tested cept schematic • Review/Update pre- against budget cost estimate construction schedule • Owner operation schedule established • Establish value • Milestone construction • Reporting/Accounting/ engineering program schedule established Decision tracking sys- tem in place • Review/Update pre- • Constructibility review • Risk management in- construction schedule and team input struments put in place • Customized monthly • Field staff assigned • Submit preliminary communications begin • Team partnering plan and • Customized formal specification to agen- cies for approval communication continues • Team partnering con- tinues • Customized formal monthly communica- tion continues Respect for People. Integrity. Superior Service. Passion.

DOCUMENTATION BID AWARD COMMENCEMENT • Construction doc- • Establish bid date(s) • Owner approves and uments (plans and schedule accepts contractor’s specifications) com- recommendation on pleted • Issue bid package and alternates invitations through • Design integration Procore • Owner makes finalized decision on alternates • Advertisement and • Cost estimate com- solicitation of bids • Trade contracts and pleted letters of intent written • Issue bid documents in Procore • Propose and price bid • Pre-bid job site meet- alternatives with team • Job cost schedule set ing up • Owner review and • Issue bid addenda accept construction • Receive and analyze • Prepare schedule of document cost esti- values mate trade contractor bids • Pre-award trade • Prepare trade • Review/Update contractor contact list preconstruction contractor schedule conferences • Distribute required • Confirm trade plans to trade • Milestone schedule contractor qualification contractors through further refined and evaluation Procore • Prepare bid vs. • Construction detail estimate comparison • Notify accounting schedule established • Make contractor of bond/insurance recommendations to requirements • Final constructibility owner review of plans and • Recommendation to • Safety, quality clean- specifications re- owner on up plans established viewed and corrected alternates and and in place with trade voluntary alternates partners • Safety, quality clean- • Construction schedule up plans established further defined • Preconstruction meet- • Agencies approve ing with trade partners • Develop bid plans and packaging strategy specifications • Site mobilization/ • Team partnering con- utilization plan • Pre-qualify and tinues established evaluate potential bid list • Establish bid package in Procore

SERVICES CONSTRUCTION PHASES & SERVICES COORDINATION QUALITY COSTS • Bid and award • Assume full • Actively pursue contracts as needed responsibility for opportunities for quality control and cost savings while • Coordinate team inspection of project maintaining all meetings with trade specified program contractors throughout • Assure strict elements and quality the project adherence to the standards specifications • Select, retain • Provide continuous and coordinate • Motivate trade updates and cash flow professional services partners to maintain projections (i.e.; surveyors, test- an attitude of quality ing, engineering, etc.) • Monitor project cost • Communicate with control methods • Communicate daily owner representa- relative to the project with contractors tives to ensure quality construction budget expectations are met through Procore • Continue regular and are exceeded communication with • Develop and owner(s) • Internal quali- implement procedures ty inspections and for reviewing and • Schedule, facilitate documentation processing applica- and document weekly through Procore tions by contractors coordination meetings for progress and final with all stakeholders payments • Determine process to minimize change orders and develop contingency plan re- sponsive to the project • Maintain as-built drawings • Daily updates through Procore Respect for People. Integrity. Superior Service. Passion.

SAFETY SCHEDULING CLEAN-UP • Enforce OSHA and • Develop • Follow project clean- MIOSHA safety stan- detailed construction up guidelines to dards schedules with trade provide a clean and partners safe site and building • Provide safety training for on-site trades • Monitor and update • Ensure commitment through an outside schedules weekly from all trade partners safety consultant and through Procore on clean-up guidelines by inviting audit in- spection of MIOSHA • Communicate • Use site dumpsters progress and changes effectively • Award outstanding to trade partners and safety practices owner(s) in a report • Provide opportunities and graphical form for recycling materials • Require all team to be environmentally members to sign • Identify key equipment friendly and to reduce and acknowledge an and materials early to cost understanding of the expedite procurement AJV safety manual and ensure timely delivery • Conduct document- ed weekly safety • Develop meetings and assure contingencies for training is pertinent to unknowns which may work then underway delay progress • Award incentives for • Respond to job-site reaching safety mile- changes with multiple stones what if analysis to test critical path of each • Internal safety in- change with owner spections through move-in requirements Procore • Schedule turnover with owners staff well before substantial completion

THE WEST BLUFFS Size: Nine (9) Units Architect: Integrated Architecture Year Completed: 2020 ABOUT THE PROJECT The Bluffs is a small, yet upscale condo option in Cascade, Michigan. Styled after a modern farm house with walkout basements and attached garages, this development features an open concept living area, including ample natural light. Respect for People. Integrity. Superior Service. Passion.

SOUTH HAVEN CENTER Size: Eighteen (18) Units Architect: r2 Design Group Year Completed: 2020 ABOUT THE PROJECT South Haven Center offers one-bedroom apartments from 630 to 775 square feet and two- bedroom apartments from 870 to 975 square feet. The development also offers 2,400 square feet of available retail space, ideal for any type of retailer or restaurant. Respect for People. Integrity. Superior Service. Passion.

LOFTS ON MONROE Size: 160,000 SF Architect: Innovative Design Year Completed: 2017 ABOUT THE PROJECT Upon completion, Lofts on Monroe now feature 40,000 square feet of first-floor retail, 95 market-rate apartments, as well as rooftop deck overlooking the Grand River. Respect for People. Integrity. Superior Service. Passion.

CASCADE EAST Size: Eighteen (18) Units Architect: Integrated Architecture Year Completed: 2019 ABOUT THE PROJECT The designs feature a layout that includes stainless steel appliances, granite counter tops, in-unit laundry, and attached garages. The development’s on-site parking will provide ample access for tenants traveling to-and-from Grand Rapids, Lansing and the Lakeshore. Respect for People. Integrity. Superior Service. Passion.

CARDINAL POINT Size: Fourteen (14) Units Architect: r2 Design Group Year Completed: 2019 ABOUT THE PROJECT The former church, located one block from the corner of Plainfield Ave., has five units available, consisting of 5 one- and two-bedroom apartments, ranging from 1,000 square-feet to 1,400 square- feet. Each apartment is different, reflecting the opportunities and unique challenges imposed by the 90-year old structure. Respect for People. Integrity. Superior Service. Passion.

PROPOSED MIDDLEVILLE DEVELOPMENT 1middleville mixed-use study 8 may, 2019 middleville, michigan GR190506 616.3 www Respect for People. Integrity. Superior Service. Passion.

PROPOSED HASTINGS DEVELOPMENT 3hastings mixed-use concept study 21 august, 2019 hastings, michigan GR190813 2hastings mixed-use concept study 2211 aauugguusstt,, 22001199 hastings, michigan GGRR119900881133 661166..330011..11221100 wwwwww..rr22ddeessiiggnnggrroouupp..ccoomm Respect for People. Integrity. Superior Service. Passion.

2 1. Lofts on Monroe 1 2. Cardinal Point 3. Shady Oaks 4 4. The Vickery 5. West Bluffs 37 6. The Bluffs 6 7. Cascade East 5 8. Pokagon 9. South Haven Center 10. Middleville Development | Upcoming Projects 11. Hastings Development | Upcoming Projects 9 10 11 8 Respect for People. Integrity. Superior Service. Passion.

CONTACT US: AJV | 616.957.3731 www.ajvinc.com 5000 Kendrick St SE Grand Rapids, Michigan 49512 The projections contained herein are believed to be accurate but cannot be guaranteed. Any potential investor should conduct their own property and financial due diligence including, but not limited to, consultation from an attorney and certified public accountant.