Dear Barrier Island Station Owners:

Happy New Year! We hope everyone had a wonderful holiday. It’s hard to believe another year is behind us! Regardless of what time of the year it is, your Board of Directors and management team are always working on ways to improve your vacation experience. BIS Duck is very special to us all and we value your ownership at this resort.

Exterior Building Renovations Our buildings now have new exteriors and we have completed this phase of the project. In 2017, we will be replacing the walkways that were removed behind Buildings 700 and 800 during the renovations. A big thank you to our owners for your patience, understanding and timely payment of the special assessment that made this happen. We have received many favorable comments from our owners and guests on the changes.

New Fiber Optic Wi-Fi Network Our dream has now become a reality. In October 2016, we completed the installation of our very own fiber optic network. The ser-vice is complete with network monitoring, help desk support and multiple nodes and access points throughout the entire resort. We have posted a Network Topology and Wi-Fi density chart on our Owners’ website. The system is up and running smoothly. It is no surprise that we have received rave reviews from our owners and guests.

Storm Challenges We exited 2016 with a bang! There were two named storms that hit the Outer Banks in September and October, Tropical Storm Hermine and Hurricane Matthew. Both storms caused extensive flooding and roof damage to some of the buildings. The tennis court fence and the fence surrounding the southern border were blown down. The storm also caused delays to the building construction. Fortunately, the flood waters have receded and operations are back to normal. We would like to give a special thanks to our Regional Director of Operations, Rick Spore and the SPM team for keeping the resort running smoothly during this difficult time. Rick is currently working with the insurance adjusters to complete the necessary repairs.

Financial Challenges The Board of Directors met with SPM Resorts in September to approve the 2017 Budget. During the exterior renovation project, we encountered structural damage that went beyond the scope of the initial project. Overage from the renovation project and a 2.4% decline in maintenance fee collections left us with a forecasted $400,000 year-end deficit. Faced with a difficult decision, the Board was challenged to either increase maintenance fees or special assess owners in order to address this short fall. Rather than increase maintenance fees, the Board opted for a $200 special assessment since it is highly unlikely that any decrease in maintenance fees would occur once they are raised.

Open House The morning prior to the 2016 Annual Homeowners’ Meeting, an Open House was held at the resort from 9:00 a.m. to noon. The purpose of the Open House was to allow owners the opportunity to meet the Board of Directors and SPM Property Management Staff. Dennis diBattista of General Packet attended the Open House to address owners’ questions regarding the Wi-Fi network design, installation and implementation. He also showed owners the network monitoring tools and walked the property to point out the equipment and access points. Owners were also asked to complete a short survey identifying “hot button” issues and “Top 3 Wishes” they had for their unit or resort. The top priorities identified were: Interior Renovations, Wi-Fi, new mattresses, unit inventory and priority check-in. We have already met the goal of a new Wi-Fi. The other four items have been identified as part of our 2017 goals. Our owners found the Open House to be a great success and a good use of their time.

Annual Homeowners’ Meeting The 2016 Annual Homeowners’ Meeting was held on October 22nd at the Kitty Hawk Elementary School in Kitty Hawk, NC. A quorum was achieved which allowed the Association to conduct official business. Board President Robert Allen chaired the meeting. Carmen DiGiovanni, Treasurer, addressed the owners regarding the Association’s current financial status. He presented a comparison of our maintenance fees to the national average, noting that the Association’s maintenance fees ranged from 9% to 36% below the national average during the past 21 years. He explained that the results of this shortfall were the reserve fund was never built up; unit refurbishment did not occur and the exterior structures suffered from deferred maintenance issues. He noted that the current collection percentage had been reduced to 78% and the Association was currently relying on next year’s maintenance fees to pay current year’s expenses.

Lanse McColl, V.P. of Operations for SPM Resorts, gave a report on the current year’s operating and expense budgets. He reviewed the 2017 budget which was approved by the Board. Rick Spore, General Manager, informed the owners of the recent projects that have been completed and activities held at the resort this year. Owners were given the opportunity to ask questions. (continued on page 2)

BARRIER ISLAND STATION NEWSLETTER

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BARRIER ISLAND STATION NEWSLETTER

On behalf of the Board of Directors and the

management staff of Barrier Island Station

Resort, we would like to thank David

“Shane” Stauffer for his 18 years of dedication

and service to the Barrier Island

Station Interval Ownership Association.

Thank you Shane and best of luck in your future endeavors!

2017 MAINTENANCE FEES

Your 2017 Maintenance Fees and the first installment of the $200 special assessment were due on January 1, 2017. Remember you can pay online on the SPM Resorts Website at www.spmresorts.com and log in to the

Owners’ Portal or call the resort at (252) 261-8101.

An Election of Directors was held. Mr. Allen announced that David Stauffer, Director, was resigning from the Board after 18 years of service. Incumbent Carmen DiGiovanni was reelected to serve a two-year term and candidate Mike Holy was elected to the Board. Meeting materials from the Open House and the Annual Meeting can be found on the SPM Resorts Owners’ website: www.spmresorts.com.

2017 Goals Our number one priority is listening to our owners and making your vacation experiences at Duck, NC the best ever. Our goals for 2017 will be what we have heard are your top priorities: 1. Interior Renovations: We will develop a plan and roadmap for upgrading the units this year based on the

Owner Survey input. 2. Unit Inventory: A complete review of all unit inventory is currently in progress. All units will be stocked with the proper in-

ventory. Inventory Sheets will be placed in the BIS resort book found in your unit. 3. Priority Check-in: We are currently investigating the feasibility of priority check-in for owners and offering beach towel

service. 4. Newsletter Publishing: At your request, we are providing three newsletters this year and advising you of the schedule. The

newsletters will be published in January, May and August.

We would like to wish our owners a very Happy New Year!

Barrier Island Station Board of Directors

GENERAL MANAGER’S REPORT

Hello Barrier Island Station Owners:

This past summer proved to be very busy. Revenue from sales at the Snack Shack was at an all time high and the weekly cook-out was a big hit! Crabbing was also a very popular activity. We were glad to see our owners take advantage of these additional amenities.

The staff continues the cleanup efforts following the two named storms which hit the Outer Banks this fall. Please bear with us while we work to get the resort back to normal.

Owners please remember to take the online survey. Tablets are available at the front desk or you can download the application to your cell phone. When you take time to do the survey, it helps us to help you have a more enjoyable stay!

On behalf of the staff at Barrier Island Station, Happy New Year!

Rick Spore, Regional Director of Operations

OWNER SURVEY INTERIOR RENOVATIONS/WE WANT TO HEAR FROM YOU!

Our number one priority is listening to our owners and making your vacation experiences at Duck, NC the best ever. As we have stated many times, owner feedback is one of the most valuable tools used when making decisions about our resort. We have created a BIS Duck Interior Renovation Survey which we hope you will complete and provide your input on the best way to fund and implement the interior improvement project. The survey will take only a few minutes of your time. Click on the following link to complete the Owner Survey https://www.surveymonkey.com/r/G8H6HTB If you are receiving this newsletter in hard copy form, simply log on to the internet and type the link into your internet address. If you are unable to access the internet, please complete and mail the survey included with this newsletter. All responses must be returned by March 1, 2017.

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BARRIER ISLAND STATION NEWSLETTER

If, for any reason, you are unable to travel to the Outer Banks this year, we encourage you to place your week(s) for rent via the Resort’s Rental Program. Please contact the resort at (252) 261obtain a Rental Agreement form.

If you are a Barrier Island Station owner and in need of assistance in purchasing or selling a week or enhancing your ownership through Club Interval Gold, please contact Joe Takacs directly at:

The MVP Service, LLC Office: (407) 366-1573 Cell: (407) 257-6812

Email: joetakacs@themvpservice.com

Website: www.themvpservice.com

ATTENTION OWNERS-ACTION REQUIRED-TIMESHARE TERMINATION BALLOT

The campaign to amend the Association’s condo documents continues with the majority of owners responding favorably for the amendment. A second mailing was sent in August to those owners who had not returned their ballot. Although the second mailing yielded additional ballots, the goals have not been reached. It is very important that every owner gets involved with the Association’s affairs and submits a ballot to vote “For” or “Against” amending the Master Deed and By-laws to remove the timeshare termination clause. Please remember that the ballots are dependent on the building that you own. The termination dates vary on the buildings’ condo documents. Buildings 100, 300 and 400 have individual building documents which differ from Buildings 500, 600, 700 and 800, which are all included under a single condo document. If you visit the SPM Resorts website www.spmresorts.com and log on to the Owners’ Portal, a FAQ sheet is posted to help answer questions or concerns that owners may have. Once again, if you have not received the timeshare termination ballot or are in need of one, please contact the resort at (252) 261-8101.

We would like to take this opportuni-

ty to welcome Mike Holy to the

Barrier Island Station IOA Board of

Directors. Mike will serve as Board Secretary.

Welcome Mike! We are pleased to have you on board!

DIALOGUE WITH DENISE

Keeping our owners informed and providing open lines of communication is a top priority for the Board. A question we get asked often is: How can we be kept up to date on what’s happening at the resort? Answer: There are several avenues available for you to gather information:

1. The SPM Owners Website: Log on to the SPM Resorts website www.spmresorts.com using your Owner ID (located on your maintenance fee statement) and your passcode (your five digit zip code). Select “For Our Owners”, then log in. Select “Resort Information.” You will be able to find information on the Renovation Progress and other important information about the resort, i.e., the Special Assessment, Newsletters, Forms, Termination Provision, Rentals, Resales, SPM Owner Rewards and Travel Discounts. You can update your contact information and view your account balance and pay your Maintenance and Assessment fees online. Please contact the resort at (252) 261-8101 if you need help finding your Owner ID.

2. Barrier Island Station Duck Newsletter: Now published three times a year in January, May and August. 3. The official BIS Duck Facebook Page: https://www.facebook.com/BISDuckActivities BIS hosts an official Facebook page at “Barrier Is-

land Station Duck Resort.” This page allows owners to comment and/or ask questions of SPM Management and the Board of Directors. It is monitored by resort management and all inquiries by owners will be addressed. This is your opportunity to stay in touch on a regular basis.

4. Send us an email: You will find our email and mailing addresses on the last page of this newsletter. Occasionally we will send email blasts and special mailings to alert you to important information.

5. Meet the Manager: Weekly Owner update meetings hosted by Rick Spore, Regional Director of Operations are held on Tuesdays at 9:00 AM at the Resort.

Barrier Island Station Interval Ownership Association

1245 Duck Road PO Box 8279

Duck, NC 27949 Phone: (252) 261-8101 Fax: (252) 261-5045

BARRIER ISLAND STATION BOARD OF DIRECTORS

Denise Truesdale, President denisetruesdale@aol.com

Linda Gray, Vice President vlba731@verizon.net

Mike Holy, Secretary mikeholyrn@gmail.com

Carmen DiGiovanni, Treasurer digicarmen@aol.com

Robert Allen, Director satlaw@comcast.net

You may also write to your Board of Directors at:

BIS IOA Board of Directors c/o Barrier Island Station

P.O. Box 8279 Duck, North Carolina 27949

PROFESSIONALLY MANAGED BY:

1 7-Jan 1-Jan

2 14-Jan 8-Jan

3 21-Jan 15-Jan

4 28-Jan 22-Jan

5 4-Feb 29-Jan

6 11-Feb 5-Feb

7 18-Feb 12-Feb

8 25-Feb 19-Feb

9 4-Mar 26-Feb

10 11-Mar 5-Mar

11 18-Mar 12-Mar

12 25-Mar 19-Mar

13 1-Apr 26-Mar

14 8-Apr 2-Apr

15 15-Apr 9-Apr

16 22-Apr 16-Apr

17 29-Apr 23-Apr

18 6-May 30-Apr

19 13-May 7-May

20 20-May 14-May

21 27-May 21-May

22 3-Jun 28-May

23 10-Jun 4-Jun

24 17-Jun 11-Jun

25 24-Jun 18-Jun

26 1-Jul 25-Jun

27 8-Jul 2-Jul

28 15-Jul 9-Jul

29 22-Jul 16-Jul

30 29-Jul 23-Jul

31 5-Aug 30-Jul

32 12-Aug 6-Aug

33 19-Aug 13-Aug

34 26-Aug 20-Aug

35 2-Sep 27-Aug

36 9-Sep 3-Sep

37 16-Sep 10-Sep

38 23-Sep 17-Sep

39 30-Sep 24-Sep

40 7-Oct 1-Oct

41 14-Oct 8-Oct

42 21-Oct 15-Oct

43 28-Oct 22-Oct

44 4-Nov 29-Oct

45 11-Nov 5-Nov

46 18-Nov 12-Nov

47 25-Nov 19-Nov

48 2-Dec 26-Nov

49 9-Dec 3-Dec

50 16-Dec 10-Dec

51 23-Dec 17-Dec

52 30-Dec 24-Dec

53 31-Dec

WEEK

No.

SATURDAY

Check-In

SUNDAY

Check-In

WEEK

No.

SATURDAY

Check-In

SUNDAY

Check-In

2017 RESORT CHECK IN CALENDAR

Owners please remember, if you have moved, changed your mailing address, email address, phone number or all of the above, please be sure to update your information to ensure you receive all communication from Barrier Island Station IOA. You can contact the resort at (252) 261-8101 or fax to (252) 261-5045 or log in to the Owners Por-tal on the SPM website at ww.spmresorts.com

BARRIER ISLAND STATION NEWSLETTER

Barrier Island Station

Interior Upgrade Owners Survey

1. Now that we have successfully completed the exterior renovation project and the installation of a new Fiber Wi-Fi Network, are you ready to have the interiors upgraded? Please select one.

a. Yes b. No ___ (If you answer No, please go to Item 5 and give us your reason.)

2. We have compiled preliminary cost estimates, and the amounts which would be required from each interval owner. Please refer to the table below and then advise if you would like a total renovation or the renovation done in phases.

Please assign a priority to each Phase, with 1 being the highest priority and 4 being the lowest: a. Total interior renovation ___ b. Living, dining, and bedrooms: ___ c. Kitchen d. Bathrooms

3. As upgrading the interiors will require us to raise funds, which do you prefer? Please select one. a. Increase maintenance fees b. Levy a special assessment c. combination of both

4. The exterior renovation project spanned three years. We propose commencing the interior upgrades in 2018. Over how many years do you want the interior project to span until completion? Your answer may influence how we raise the necessary funds. Please select one.

a. 2 years b. 3 years c. 4 years d. 5 years

5. Reason why I do not want any interior upgrades: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Owner Information:

Name:

Mailing Address:

Telephone Number:

Email Address:

Unit(s) and Week(s) Owned:

Please enter the following link to complete the survey online https://www.surveymonkey.com/r/G8H6HTB or please mail completed survey to Barrier Island Station Resort, Attention: Diane Forbes, PO Box 8279, Duck, NC 27949 or fax to (252) 261-5045 or email: dforbes@spmresorts.com.

Renovation Phases Approximate Cost (Million)

Approximate Cost per Owner Week

Total Interior Renovation $4.8 $1,040

Living Room, Dining Room, Bedroom(s) in-cludes new Furniture, Flooring, TV, Window and Wall Treatment.

$2.7 $580

Kitchen $1.0 $220

Bathroom $1.1 $240