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., Hays County Developers, Ltd. /' 2110 BOCA RATON DRIVE, SUITE 208 AUSTIN. TEXAS 78747 I Phone 512.280..5353 Fex 512-280-38n November 28, 2003 Mr. Billy Nicholas 102 Whitetail Drive, Suite 200 San Marcos, Texas 78888 I Dear Billy: I appreciate your taking the time to visit last week regarding our new development adjoining the Lowman Ranch. Hunter Hollow will consist of 180 acres and will be developed primarily as single family detached homes. The project will be serviced with City of San Marcos water and wastewater. We estimate that the homes will range In price from $185,000-$225,000 and we are working with two quality home builders who will purohase the Initial 95 phase one lots. Our original plan was to bring wastewater to Hunter Hollow by connecting to the City of San Marcos line just East of the railroad tracts on Centerpolnt Road, and bringing the line west down Centerpolnt to Hunter Road, then South on Hunter Road to our new entrance. This route would provide wastewater access to a significant portion of your seventy acre tract; however use of the wastewater line would likely require that you construct a 11ft station prior to development of your property. The proposed altemate route shown on the enclosed plat shows a wastewater line route through your seventy acre tract. This route predominately lies within the boundary of the flOOdplain and dissects your property just East of our entrance and continues East to the railroad track, then follows the railroad tract North to Centerpolnt Road. We will Intersect with our original line at that point. The major advantage to you In.allowlng this route would be that the majority of your property would gravity flow to the new wastewater line. A secondary advantage would be that this wastewater line location would more easily accessible to your property on both sides of the creek bed. As the proposed route lies predominately within the floodplain, your granting the easement will not decrease your useable development property. Our proposal for your consideration Is that you grant a wastewater line easement In the approximate location as shown on the attached site plan. We will need to finalize the exact size and location with the City of San Marcos engineering staff, but I believe It will need to be 15.20 feet wide. All costs associated with the design, surveying and construction of the wastewater line extension wtJl be paid by us. We will ensure that the City of San Marcos will consent to your reasonable access to the new line for future development of your property. The City of San Marcos will require that the wastewater easement be annexed Into the city limits. They are willing to limit their annexation to the easement Itself, however there are advantages to having your entire tract annexed that you might want to consider. I would be happy to discuss this option with you If you like. I certainly recognize that the property owners have enjoyad a less than Ideal relationship. however hope that In the future all parties will be able to work toward making sound business decisions that mutually benefit the properties owned by all parties. We Intend to develop Hunter Hollow In a manner that will benefit all surrounding property owners, and will bring Infrastructure to the area that will benefit your property at the time you wish to consider development opportunities. The master plan and final subdivision plat I gave you last week have been submitted to the City of San Marcos for final approvals. We hope to be In position to commence construction In the first quarter of 2004. If our proposal Is acceptable to your family, we will need to have the easement surveyed and granted within the next thirty days so we can finalize our construction plans of which the wastewater line extension Is a part. I Page 3 of 6 of EXHIBIT B-4