Go Zone Now Real Estate Investment Guide Bayside Park

REAL ESTATE INVESTMENT RESEARCH REPORT

America’s Hottest
Housing Market
Get Positive Cash Flow with
Massive Tax Advantages!
Bayside Park – Waveland, Mississippi
Equity, Cash-Flow and Appreciation

(866) 343-7187
www.GOZONENOW.com
email us at info@gozonenow.com

INTRODUCTION

THE MISSISSIPPI GULF COAST
Our intensive research has shown that this area is America’s new hot housing market.

Here’s why:

Hurricane Katrina devastated the Expanding Military Installations of
entire Mississippi Gulf Coast, Keesler Air Force Base, Stennis
destroying over 64,000 homes and Space Center, and Atlantic Fleet
Seabee base mean huge demand
tens of thousands of rental
properties. This has created a for home rentals and purchases.
critical need for new affordable
home construction. We’re building the new Bayside Park.

Booming Casino Industry is driving Our latest residential development,
incredible growth across the entire Bayside Park, is located in Hancock
region. In Biloxi, 11 casinos are up County, Mississippi.
and running... several more are
planned, including Jimmy Buffett’s This area, almost completely wiped
Margaritaville resort and casino... a off the map by Hurricane Katrina
$750 million project! has perhaps the most urgent need
for affordable new homes.
We Create Value by rebuilding the
area and upgrading neighborhoods. Be a part of it.
Government Financial Incentives To invest in real estate, you need a
and tax breaks encourage growth careful plan: a comprehensive
and create an attractive investment strategy to maximize your goals.
environment. In fact, you may be Our investment strategies, such as
able to deduct 50% of the cost of the the Bayside Park development,
building from your tax liability in the have served hundreds of clients.
first year. We are here to help you invest in a
convenient, well-researched, wealth
building investment.

Real Estate Investing Made Easy.

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INVESTMENT HIGHLIGHTS
THE CURRENT OPPORTUNITY
Katrina was our nation’s worst natural disaster – referred to as the “100 Year Storm”.
Hurricane Katrina destroyed 64,000 homes and 47,000 rental properties.
30,000 families still live in FEMA trailers. 40,000 families are living with friends & family.
Changes in gaming laws have created a casino boom.

EXECUTIVE SUMMARY
As of the fall of 2006, a total of 100,000 families were still displaced.
The true rebuilding of single family homes in the area has only recently commenced.
Demand for affordable housing has created significant growth in the housing market.
The real estate boom has only started and may run for the next 3 to 5 years.
The Mississippi Gulf Coast is one of the best real estate markets in the country.

BENEFITS OF THE “GO ZONE”
Get a 50% bonus depression in your first year (per property).
Claim the bonus depression against the taxes you’ve paid over the last 5 years.
Claim the bonus depression against any taxes paid over the next 10 years.

GULF COAST REAL ESTATE MARKET
100,000 homes needed right NOW.
300,000 more homes needed over the next 5 years.
95% of displaced persons have returned home and only 7,000 homes have been rebuilt.

TARGET MARKET
The Mississippi Gulf Coast Counties were experiencing tremendous growth pre-Katrina.
Hancock County is the target market offering the greatest opportunity for investors.
The average household size was 2.52 and the average family size was 2.99.
Racial makeup was 90.2% White, 6.8% Black/African American, 1.8% Hispanic/Latino.

POPULATION & DEMOGRAPHICS
Hancock County had a 46.6% population growth from 1990 to 2005.
The population has greatly rebounded from the decline suffered directly after Katrina.
Projections by the State of Mississippi show the population will continue to increase.
Increase in baby-boomers moving to the area as well as additional demand for workers
in the Casino, and Aerospace & Defense industry are positive factors supporting growth.

MISSISSIPPI ECONOMY AT A GLANCE
Per capita income has increased at twice the national average.
Retail sales have increased 61%.
Average price of homes currently available in the market are too high: $200,000 and up!
Gaming revenues and gaming employment are now at record levels.
The Post Katrina construction boom should spark an acceleration of economic growth.

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MISSISSIPPI COAST EMPLOYMENT
Current casinos employ over 18,000 people.
11 more casinos in 2008 will employ 22,000 more people.
Stennis Space Center, Ingalls Shipbuilders and Keesler AFB employ over 35,200 people
Almost every industry has experienced wage increases from construction to fast food.
Employment opportunities in the area are strong and growing.

MISSISSIPPI COAST CASINO NEWS
Each casino employs 1,600 to 2,000 locals.
Employees drive up to 2 hours each way to work.
Casinos are housing employees at a cost of $250+ per night.
11 new casinos are planed resulting in 22,000 more employees with nowhere to live.
Local casinos currently generate over $235,000,000 in revenue per month.
The Gulf Coast is now America’s second largest gaming destination.

BAYSIDE PARK
Located in Waveland, Mississippi.
Bayside Park is a perfect “bedroom community”.
5,000 buildable lots. We control 1,500 of those lots.
Lot prices appreciated from $1,500 to $15,000 during the last 6 months.

A PROPERTY MANAGERS VIEW
High demand for rental housing – now.
Phone will not stop ringing once housing becomes available.
There has been quite a bit of expansion already and more is expected.
The construction industry alone will drive the rental market in Hancock County for
several years to come.

MODEL & FLOOR PLAN
3 Bedrooms, 2 Bath.
$115,500 complete with lot.
Leases for approx. $1,200 per month.

INVESTMENT HIGHLIGHTS
Strong Positive Cash-Flow!
High appreciation potential.
Strong need for affordable rental homes.
Excellent jobs market.
Government incentives.
Accelerated 50% depreciation (potentially a $18,450 tax refund)*
Growing vacation destination.
Second largest gaming destination in the USA (Las Vegas is first).
* The estimated GO Zone net cash benefit in Year 1 (50% special accelerated depreciation) assuming $123,000 home value, $61,500 in depreciation, and a 30%
tax bracket is $18,450!!! To better understand all the special benefits available (and important restrictions that may apply) in this unique opportunity, we strongly
suggest you consult with your professional tax or financial advisor.

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CASH FLOW and EQUITY ACCUMULATION 20% Down Payment Model
Bayside Park - Violet Model

CASH-FLOW
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 10 YEAR 10 YEAR 15 YEAR 20
Gross Rental Income $14,400 $14,760 $15,129 $15,507 $15,895 $17,984 $17,984 $20,347 $23,021
Initial Vacancy Rental Impact $0 - - - - - - - -
Vacancy Allowance ($720) ($738) ($756) ($775) ($795) ($899) ($899) ($1,017) ($1,151)
Total Operating Income $13,680 $14,022 $14,373 $14,732 $15,100 $17,084 $17,084 $19,329 $21,870

Property Taxes $960 $970 $979 $989 $999 $1,050 $1,050 $1,103 $1,160
Insurance $2,160 $2,182 $2,203 $2,225 $2,248 $2,362 $2,362 $2,483 $2,610
Property Management $1,231 $1,262 $1,294 $1,326 $1,359 $1,538 $1,538 $1,740 $1,968
Other: Lawn Care $0 $0 $0 $0 $0 $0 $0 $0 $0
Other: PMI $0 $0 $0 $0 $0 $0 $0 $0 $0
Other: Water/Sewer/Trash $0 $0 $0 $0 $0 $0 $0 $0 $0
Other: HOA Dues $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expense ($4,351) ($4,413) ($4,476) ($4,540) ($4,606) ($4,950) ($4,950) ($5,326) ($5,738)
$0
Loan Payments (529) ($5,823) ($6,353) ($6,353) ($6,353) ($6,353) ($6,353) ($6,353) ($6,353) ($6,353)
CASH FLOW (Before Tax) $3,506 $3,256 $3,544 $3,839 $4,142 $5,782 $5,782 $7,651 $9,779
Value of negative operating cash flows - 0 0 0 0 0 - 0 0 0
Depreciation $3,360 $3,360 $3,360 $3,360 $3,360 $3,360 $3,360 $3,360 $3,360
Loan Interest $5,823 $6,353 $6,353 $6,353 $6,353 $6,353 $6,353 $6,353 $6,353
Subtotal $9,183 $9,713 $9,713 $9,713 $9,713 $9,713 $9,713 $9,713 $9,713
Taxable Income $146 ($104) $184 $479 $782 $2,422 $2,422 $4,291 $6,419
Tax Bracket Savings $0 $37 $0 $0 $0 $0 $0 $0 $0
36%
CASH FLOW (After Tax) $3,506 $3,294 $3,544 $3,839 $4,142 $5,782 $5,782 $7,651 $9,779

EQUITY ACCUMULATION
Property Value $137,025 $143,876 $151,070 $158,624 $166,555 $212,571 $212,571 $271,300 $346,255
minus Loan Amount $92,400 $92,400 $92,400 $92,400 $92,400 $92,400 $92,400 $92,400 $92,400
plus Reserve Account Balance $0 $0 $0 $0 $0 $0 $0 $0 $0
EQUITY PROFIT (WEALTH) $44,625 $51,476 $58,670 $66,224 $74,155 $120,171 $120,171 $178,900 $253,855

Capitalization (Cap) Rate 8.1% 8.3% 8.6% 8.8% 9.1% 10.5% 10.5% 12.1% 14.0%
Internal Rate of Return (IRR) 509% 160% 96% 71% 57% 33% 33% 33% 33%
Return on Investment (ROI) 193% 223% 254% 287% 322% 521% 521% 776% 1,101%

* See detailed Purchase Parameters and Assumptions on next page. v 4.0

CASH FLOW and EQUITY ACCUMULATION 20% Down Payment Model
Bayside Park - Violet Model

INTERNAL RATE OF RETURN (IRR) TOTAL RETURN ON INVESTMENT (ROI)
(10 Year) (10 Year)
600%
180%
160% 521%
160%
477%
500%
435%
140%
396%
400%
120%
358%
322%
96%
100%
287%
300%
254%
80% 71% 223%
193%
57% 200%
60%
48%
43% 39% 36% 33%
40%
100%
20%

0%
0%
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

CASH-FLOW (AFTER TAX) TOTAL EQUITY
(10 Year) (10 Year)
$7,000 $140,000

$120,171
$5,782
$6,000 $120,000
$110,048
$5,437
$5,100 $100,408
$4,772
$5,000 $100,000
$91,227
$4,453
$4,142 $82,482
$3,839
$74,155
$4,000 $80,000
$3,544
$3,506
$3,294 $66,224
$58,670
$3,000 $60,000
$51,476
$44,625
$2,000 $40,000

$1,000 $20,000

$0 $0
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

Summary Acquisition Information Purchase Parameters and Assumptions Annual Increases (%)
Current Market Value: $130,500 Current Market Value: $130,500 Gross Monthly Rent: $1,200 Appreciation: 5.0%
Purchase Price: $115,500 Purchase Price: $115,500 Vacancy Allowance: 5.0% Rent Increase: 2.5%
Total Loan Amount: $92,400 Down Payment: 20.0% Initial Vacancy (months): 0
First Loan: $92,400 Monthly Property Tax: $80 Property Tax: 1.0%
Down Payment: $23,100 Loan Interest Rate: 6.875% Monthly Insurance: $180 Insurance: 1.0%
Closing Costs (est.): $3,465 Second Loan: $0 Monthly HOA: $0 HOA: 2.0%
Reserve Account: $0 Loan Interest Rate (2nd): 0.000% Monthly Lawn Care: $0 Lawn Care: 2.0%
Buyer Credits: $3,500 Closing Costs: 3.0% Monthly Water/Sewer/Trash: $0 Water/Sewer: 2.0%
PMI Mortgage Insurance: - Property Management: 9% Depreciation: 27.5
Total Investment: $23,065

DISCLAIMER: The information in this quot;Cash Flow and Equity Accumulationquot; worksheet is for estimation purposes only. All information should be independently verified. Consult a licensed tax advisor and/or attorney before making any
purchase or sale decision. All figures are projections unless otherwise indicated. No guarantee is made as to its accuracy or reflection of performance.

THE CURRENT OPPORTUNITY
HIGHLIGHTS
Katrina was our nation’s worst natural disaster – referred to as the “100 Year Storm”.
Hurricane Katrina destroyed 64,000 homes and 47,000 rental properties.
Changes in gaming laws have created a casino boom.

Norada Real Estate in collaboration with
its partner builders has acquired 1500
platted and R-1 zoned lots in Bayside
Park Mississippi. Bayside Park is located
in Western Mississippi just south of I-10
and US-90 and is a 30-45 minute drive
from the booming Gulfport / Biloxi
Casino area and a 30-45 minute drive
from New Orleans.

Our development is located inside the
Gulf Opportunity Zone (The GO Zone)
which offers investors incentives for
building and operating rental properties.
The Governor of Mississippi recently
announced there is an immediate need for 100,000 new affordable homes to be built within
the next 12 months. There are currently 101,000 people living in FEMA trailers due to the
devastation of hurricane Katrina. Many of the people have been in the trailers since 2005 due
to the severe housing shortage and many are still living in tents. There are other factors
contributing to the demand as well, including the booming Casino/entertainment industry,
Kessler AFB, the Stennis Space Center expansion, the growing aerospace corridor,
shipbuilding, growing international trade zones, and general business climate.

Norada Real Estate is offering homes at wholesale prices starting in the mid $120s, including
the lot, exclusively to our investors to meet the housing needs of the hard working families in
this area. The lender's appraiser valued our current 3-bedroom, 2-bath offering at over
$140,000. Our investor’s wholesale pricing is only $115,500. Lot's that were $1,500 only 6
months ago are now selling at $13,000.

As with all investment opportunities timing is everything. We feel this is a great investment
opportunity for those that get involved at this early stage. Prices are going to be raised in
the near future so we encourage those interested to lock in at today’s pricing to gain maximum
benefit from their investment.

Norada Real Estate is offering a turn-key investor package that includes financing, construction,
property management, lawn service and on site liquidation service.

(866) 343-7187

EXECUTIVE SUMMARY
HIGHLIGHTS
As of the fall of 2006, a total of 100,000 families were still displaced.
The true rebuilding of single family homes in the area has only recently commenced.
Demand for affordable housing has created significant growth in the housing market.
The real estate boom has only started and may run for the next 3 to 5 years.
The Mississippi Gulf Coast is one of the best real estate markets in the country.

Prior to hurricane Katrina, the Mississippi
Gulf Coast real estate market was
showing significant strength due to the
expanding Casino market, expanding
defense industry and baby-boomers
looking for more affordable Gulf Coast
living. In many respects it offered people
a more affordable life style than Florida,
at substantially lower costs. When
Katrina struck the Gulf Coast, growth
came to an abrupt halt, as Casinos were
destroyed, businesses were damaged,
and residents were made homeless. In
the first year after the hurricane, the
housing market was surprisingly slow to recover. During this period there were only 1,463 new
single family housing permits and 28 new multifamily housing permits that were drawn. As
perplexing as this may seem, there are several plausible reasons why this occurred.

Following Katrina, many construction firms
concentrated on the immediate clean up and
repair work in the local area. Second, many
of the builders were given lucrative
construction contracts to repair and rebuild
Casinos. Contractors were hired to work
around the clock to meet tight deadlines on
getting the casinos up and running. Just after
Katrina, Mississippi changed its gaming
laws and now the Casinos are able to
build 800 feet onshore. See Casino News
elsewhere in this guide. Builders obviously
went with the large lucrative contracts, and
paid little attention to the housing needs of
the community. Because of these factors, the true rebuilding of single family homes in the
area has only recently commenced. Keep in mind that as late as the fall of 2006, 5,000 to
10,000 people were still living in tents, another 30,000 to 40,000 families where in FEMA trailers
and a total of 100,000 families were still displaced.

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Recent economic studies show that the Gulf Coast area is recovering. Statewide, gross state
product and employment have surpassed pre-Katrina levels and a reconstruction boom is
anticipated for the next five years. Post Katrina employment growth in the state more than
offset jobs that were lost due to Katrina. Retail sales in the twelve months after Katrina are 19%
above pre-storm levels, indicating further strengthening in the economy.

Because of the recovering economy in the coastal counties and the desire for residents to return
to the area, affordable housing has become the major issue effecting sustainable growth in the
area. The recent demand for affordable housing has created significant growth in the
local housing market. In October of 2006 MSNBC reported that the effects of Katrina may
spout a Real Estate boom in Mississippi. Now it is late 2007 and many builders and developers
are beginning to enter the market for what looks to be a significant growth market. Many of the
developers are focusing on buying up whole blocks of destroyed homes South of I-10 to make
room for Casinos, condos and entertainment complexes.

Other developers are focusing on land north of I-10 that has higher elevation than most coastal
areas and has no lingering effects from the hurricane. The Mississippi Real Estate Commission
Vice Chairman was recently quoted as saying that the Mississippi Gulf Coast is one of the
best real estate markets in the country. Investors believe that Katrina is only one of the
factors that should lead to an excellent real estate opportunity in the years to come. Other
factors are the continuing expansion of the Casinos, jobs created by the expanding defense
industry and the migration of baby boomers to warm weather spots near the Gulf. Most experts
agree that the real estate boom has only started and may run for the next 3 to 5 years.

As an added inducement to investors, the State of Mississippi is offering significant tax
incentives to invest in the area that were hardest hit by hurricanes. The combination of a high
growth area, with the opportunity for appreciation and added tax incentives, make investing in
Mississippi a very attractive alternative for real estate investors.

(866) 343-7187

BENEFITS OF THE “GO ZONE”
HIGHLIGHTS
Get a 50% bonus depression in your first year (per property).
Claim the bonus depression against the taxes you’ve paid over the last 5 years.
Claim the bonus depression against any taxes paid over the next 10 years.

WHAT IS THE “GO ZONE”

The Gulf Opportunity Zone Act of 2005, signed into law by President Bush on December 21,
2005, contains significant economic incentives to rebuild the Gulf Coast, as well as to attract
new investments to the affected areas. Modeled after the Liberty Zone incentives created after
the 9-11 disaster, these incentives are intended to stimulate private investment within the Gulf
Opportunity Zone (GO Zone) within the window of time provided.

These economic incentives are so significant that any person considering an investment in
the GO Zone should consider how to employ these incentives to the fullest extent possible.

The most significant incentives in the GO Zone Act include:

50% Bonus Depreciation
5-Year Net Operating Loss (NOL) Carryback
Tax-exempt financing
GO Zone incentives coupled with state incentives
100% First-Year Equipment Expense Deduction for Small Businesses
Special Incentives for Employers
Expensing of Demolition and Cleanup Charges

The benefit of the GO Zone for real estate investors is the first year 50% Bonus Depreciation.
The following examples are not to be considered tax or legal advice. Please consult your tax
professional as your personal circumstances will vary. (IRS Publication 4492)

50% BONUS DEPRECIATION EXAMPLE

This special deduction equals 50% of the qualified property's depreciable basis in the first year.

$115,500 (Approximate new home purchase price in the GO Zone)
- $ 10,000 (Approximate land value, not depreciable)
$104,500 (Total improvement for depreciable basis)
$ 52,250 (1st year 50% Bonus Depreciation per property)

NOTE: Please consult your tax professional for advice related to your specific tax situation.

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GULF COAST REAL ESTATE MARKET
HIGHLIGHTS
100,000 homes needed right NOW.
300,000 more homes needed over the next 5 years.
95% of displaced persons have returned home and only 7,000 homes have been rebuilt.
30,000 families still living in FEMA trailers.
40,000 families are living with friends and family.

Prior to Katrina, the Mississippi Gulf Coast real estate market was showing significant strength
due to the expanding Casino market, expanding defense industry and baby-boomers looking for
more affordable Gulf Coast living. In many respects it offered people a more affordable life style
than Florida, at substantially lower costs. When Katrina struck the Gulf Coast, growth came to
an abrupt halt, as Casinos were destroyed, businesses were damaged, and residents were
made homeless. In the first year after the hurricane, the housing market was surprisingly slow
to recover. During this period there were only 1,463 new single family housing permits and 28
new multi-family housing permits that were drawn. As perplexing as this may seem, there are
several plausible reasons why this occurred.

Following Katrina, many construction firms concentrated on the immediate clean up and repair
work in the local area. Second, many of the builders were given lucrative construction contracts
to repair and rebuild Casinos. Contractors were hired to work around the clock to meet tight
deadlines on getting the casinos up and running. Builders obviously went with the large
lucrative contracts, and paid little attention to the housing needs of the community. Because of
these factors, the true rebuilding of single family homes in the area has only recently
commenced. Keep in mind that as late as the fall of 2006, 5,000 to 10,000 people were still
living in tents, another 30,000 to 40,000 in trailers and a total of 100,000 families were still
displaced.

Because of the recovering economy in the coastal counties and the desire for residents to return
to the area, affordable housing has become the major issue effecting sustainable growth in the
area. The recent demand for affordable housing has created significant growth in the local
housing market. In October of 2006 MSNBC reported that the effects of Katrina may spout
a Real Estate boom in Mississippi. Many builders and developers are beginning to enter the
market for what looks to be a significant growth market. Many of the developers are focusing on
buying up whole blocks of destroyed homes South of I-10 to make room for Casinos, condos
and entertainment complexes. Other developers are focusing on land north of I-10 that typically
has higher elevation and has no lingering effects from the hurricane. Mark Cumbest – the
Mississippi Real Estate Commission Vice Chairman was recently quoted as saying that
the Mississippi Gulf Coast is one of the best real estate markets in the country.

Investors believe that Katrina is only one of the factors that should lead to an excellent real
estate opportunity in the years to come. Other factors are the continuing expansion of the
Casinos, jobs created by the expanding Aerospace & Defense industry and the migration of
baby boomers to lower cost warm weather spots near the Gulf. Most experts agree that the real
estate boom has only started and may run for the next 3 to 5 years. As an added incentive to
investors, the State of Mississippi is offering significant tax incentives to invest in the area that
were hardest hit by hurricanes. The combination of a high growth area, with the opportunity for

(866) 343-7187

appreciation and added tax incentives, make investing in Mississippi an attractive alternative for
real estate investors.

According to the OFHEO.gov House Price Index report of Quarter 1, 2007, Biloxi-Gulfport was
the sixth greatest appreciating market in the country for year over year appreciation,
appreciating 15.16%. Last quarter alone, Biloxi-Gulfport appreciated 4.77%.

BAYSIDE PARK

One area of high ground that is south of 1-10 is now getting much attention from developers.
Our builder has acquired 1,500 platted and zoned lots in Bayside Park. This area is
experiencing double digit appreciation and offers the investor a great opportunity for ROI.
Lot's in Bayside Park that were $1,500 only 6 months ago are now listed at $15,000.

Where others have been building homes in the $250,000 plus range north of I-10, we are
offering investors homes starting in the mid $120,000 to meet the overwhelming demand for
affordable workforce housing.

Timing is everything with all investment opportunities. The same is true here. We feel this is
a great investment opportunity for those that get involved at this stage. To gain maximum
benefit from this investment opportunity we encourage those interested to lock in today.

Don’t overlook the fact that Income Property owners can qualify for the ”GO Zone Incentives”
including the 50% accelerated depreciation incentive that translates into a substantial tax
windfall. This investor incentive can be carried back 5 years and forward 10 years.

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TARGET AREA
HIGHLIGHTS
The Mississippi Gulf Coast Counties were experiencing tremendous growth pre-Katrina.
Hancock County is the target market offering the greatest opportunity for investors.
The average household size was 2.52 and the average family size was 2.99.
Racial makeup was 90.2% White, 6.8% Black/African American, 1.8% Hispanic/Latino.

The target market we have identified for investors are the Mississippi Gulf Coast Counties of
Hancock, Harrison and Jackson. These counties were some of the hardest hit by hurricane
Katrina and offer the greatest opportunity for investing in the recovery process. In addition
these counties, pre-Katrina, were experiencing tremendous growth associated with the
expansion of Casinos and defense industries. The Gulf Coast counties encompass a 1,795
square mile area, more than 40 miles of beaches, about 360,000 people and 11 unincorporated
cities. Listed below is a short description of our target county:

Hancock County, Mississippi

Hancock County is the southernmost county of the U.S. state of Mississippi, situated along the
Gulf of Mexico and the state line with Louisiana. As of 2000, the population was 42,967. Its
county seat is Bay St. Louis. The area is also home to the John C. Stennis Space Center,
NASA’s largest rocket engine test facility.

The county was severely damaged from Hurricane Katrina on August 28-29, 2005 causing
catastrophic effects.

Geography

According to the U.S. Census Bureau, the county has a total area of 1,431 km² (553 mi²). 1,235
km² (477 mi²) of it is land and 196 km² (76 mi²) of it (13.69%) is water.

Major Highways

Interstate 10
•
U.S. Highway 90
•
Mississippi Highway 43
•
Mississippi Highway 53
•

Adjacent Counties

Pearl River County (north)
•
Harrison county (east)
•
St. Tammany Parish, Louisiana (west)
•

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Demographics

As of the census of 2000, there were 42,967 people, 16,897 households, and 11,827 families
residing in the county. The population density was 35/km² (90/mi²). There were 21,072 housing
units at an average density of 17/km² (44/mi²). The racial makeup of the county was 90.19%
White, 6.83% Black or African American, 0.60% Native American, 0.88% Asian, 0.04% Pacific
Islander, 0.33% from other races, and 1.14% from two or more races. 1.80% of the population
was Hispanic or Latino of any race.

There were 16,897 households out of which 31.50% had children under the age of 18 living with
them, 53.90% were married couples living together, 11.30% had a female householder with no
husband present, and 30.00% were non-families. 24.70% of all households were made up of
individuals and 9.20% had someone living alone who was 6 years of age or older. The average
household size was 2.52 and the average family size was 2.99.

In the county the population was spread out with 25.10% under the age of 18, 7.30% from 18 to
24, 28.00% from 25 to 44, 25.60% from 45 to 64, and 14.00% who where 65 years of age or
older. The median age was 38 years. For every 100 females there were 98.30 males. For
every 100 females age 18 and over, there were 95.50 males.

The median income for a household in the county was $35,202, and the median income for a
family was $40,307. Males had a median income of $32,229 versus $22,066 for females. The
per capita income for the county was $17,748. About 11.20% of families and 14.40% of the
population were below the poverty line, including 17.90% of those under age 18 and 10.30% of
those ages 65 or over.

Cities and Towns

Bay St. Louis
•
Waveland
•
Diamondhead
•
Kiln
•
Pearlington
•
Shoreline Park
•
Clermont Harbor
•
Lakeshore
•
Bayou Caddy
•

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POPULATION PROJECTED BY COUNTY

Population projections furnished by the state of Mississippi show the Gulf Coast area population
will continue to increase. The increase in baby-boomers moving to the area as well as the
additional demand for workers in the Casino and Aerospace & defense industry are all positive
factors supporting growth.

CURRENT 2010 2015 2020
Hancock 46,711 49,548 51,805 54,294
Harrison 193,810 197,103 200,028 204,914
Jackson 135,940 140,832 145,132 148,645

Despite the devastating impacts of Katrina, the Mississippi Gulf population has greatly
rebounded from the population decline suffered directly after the hurricane. Some of the
population had shifted to northern counties as rebuilding was taking place in the Gulf Counties.
As more affordable housing is created, residents will return to the Gulf Communities which are
closer to the employment base and the Gulf beaches.

GULF COAST DEMOGRAPHICS 2005

Considerable ethnic diversity exists within the Gulf Region, particularly given its geography and
population density. While Caucasians amount for 77% of the area’s population, other racial and
ethnic groups are growing quickly. The African American community is the second largest racial
group and amount for 19% of the population, and the Asian community now account for 2% of
the population. Similar to the track with the rest of the nation, the Hispanic community is one of
the fastest growing ethnic groups and account for 2% of the local population.

Asian, 2%
Other, 3%
(4%)
African
(8%)
American,
19%
(12%)

Hispanic
2%
(15%)

Caucasian
77%
(61%)
Racial and Ethnic Demographics in the Gulf Region
(U.S. % in Parenthesis)

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MISSISSIPPI ECONOMY AT A GLANCE
HIGHLIGHTS
Per capita income has increased at twice the national average.
Retail sales have increased 61%.
Average price of homes currently available in the market are too high: $200,000 and up!
Revenues and gaming employment are now at record levels.
The Post Katrina construction boom should spark an acceleration of economic growth.

After the devastating impact of Katrina
that struck the Gulf Coast on August 29th,
2005, the economy in the area has
continued to recover at an increasing
pace. Statewide, gross product and
employment have surpassed pre-Katrina
levels and a reconstruction boom is
anticipated for the next five years.
Post Katrina employment growth in the
state more than offset the approximately
22,000 jobs that were lost due to Katrina.
Retail sales in the twelve months after
Katrina are 19% above pre-storm levels,
indicating further economic strengthening.

Much of the economic base in the three Gulf Coast counties (Hancock, Harrison, and Jackson)
is tied to the Casino and Aerospace & Defense industries. Casinos on the coast that were
destroyed by Katrina have staged a remarkable comeback. Just after Katrina, Mississippi
changed their gaming laws that allowed the Casinos to be built 800 feet inland from open water.
Revenues and gaming employment are now at record levels. Additional Casinos are under
construction and many other casinos are in the planning stage thus making the Casino
industry a large and dependable employer for years to come. For updated gaming
information visit http://www.mgc.state.ms.us.

The Post Katrina construction boom should spark an acceleration of economic growth in
the state over the next three to five years as the numbers in Economic Forecast below show.
Gross state product is expected to grow 2.9% in real terms in 2006, with a slightly higher growth
rate forecast for 2007 as reconstruction effects push the growth rate higher. While activity levels
will remain high in 2008, the growth rate is expected to slow somewhat at 2.8%. Employment
growth which has been under 1.0% in 2006, will increase to 1.3% in 2007 and 1.2% in 2008 as
the number of persons employed on the coast reaches and exceed pre-Katrina levels.

The current and future economic outlook for the area looks promising but there are some major
challenges that need to be overcome. The overwhelming majority believe that the key factor
that will impact future rebuilding efforts will be affordable housing.

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ECONOMIC FORECAST (2006 – 2008)
Percent Change
Mississippi 2006 2007 2008
Gross State Product 5.8 5.2 4.6
Real Gross State Product 2.9 3.1 2.8
Price Level 2.8 2.1 1.7
Establishment Employment 0.8 1.3 1.2
Unemployment Rate 7.7 6.6 6.3
Personal Income 7.1 6.0 5.4
Consumer Price Level-South 3.3 2.1 2.1

United States
Gross Domestic Product 6.3 4.6 5.1
Real Gross Domestic Product 3.3 2.4 3.1
Price Level 2.9 2.2 1.9
Establishment Employment 1.4 1.1 1.3
Unemployment Rate 4.6 4.8 4.9
Personal Income 7.2 5.4 5.3
Consumer Price Level-South 3.3 2.1 1.9

SOURCE: Center for Policy Research and Planning, Mississippi Institutions of Higher Learning, November, 2006.
Global Insight November, 2006.

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MISSISSIPPI COAST EMPLOYMENT
HIGHLIGHTS
Current casinos employ over 18,000 people.
11 more casinos in 2008 will employ 22,000 more people.
Stennis Space Center, Ingalls Shipbuilders and Keesler AFB employ over 35,200 people
Almost every industry has experienced wage increases from construction to fast food.
Employment opportunities in the area are strong and growing.

The Mississippi Gulf Coast has a wide
array of large employers representing
industries from tourism to manufacturing.
These employers are industry leaders
such as Northrup Grumman, Chevron,
Dupont, Triton Systems, GE Plastics, the
Southern Company, Hatter Marine, Fried
Goldman, Oreck, and the Coast’s casinos.
Since 1941, a strong military presence on
the Mississippi Gulf Coast has also
contributed significantly to the economy.
More recently, legalized dock side
gambling has fueled growth, not only in
the tourism industry, but all segments of
the economy. The Casino industry is one of the largest employers on the Gulf Coast.

The Mississippi Gulf Coast “Go Zone” story has been dominated by the massive influx of the
Gaming and Hospitality industry. But that is only part of the story. South Mississippi's Aerospace
& Defense industry includes federal and university research units that focus on propulsion,
remote sensing, visualization and scientific computing. It also has aerospace parks, military
aviation bases, technology transfer offices and test ranges.

Let’s take a look at the short list of companies in the “Go Zone” that populate the Mississippi
Gulf Coast Aerospace Corridor; BAE Systems, Pratt & Whitney Rocketdyne Rocket Engine
Assembly Facility, Applied Technologies, General Dynamics, ITT Industries Inc.,
Lockheed Martin, Northrop Grumman, Rolls-Royce Naval Marine Inc.

South Mississippi has leading-edge research and practical experience with composites that go
into aircraft; it has the plants that use composites to make fixed-wing and rotary unmanned
aircraft; it builds the next generation of warships that will launch robot aircraft; it has a weapons
maker working with lasers; it has the satellite makers whose high-flying craft and remote
sensors are key to command and control as well as surveillance; it has the companies that build
the engines that power aircraft and spacecraft; it has the engine testing facilities.

As a result of fewer available employees for hire, labor rates in the area have increased
significantly. Almost every industry throughout the region has experienced wage
increases from construction outfits to fast food restaurants. While most of the wage
increases can be attributed to lack of housing and labor shortages, some of the pay increases
have resulted from the need to compete with the hourly rates required by government contracts.

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High paying federally funded jobs related to the
recovery effort are driving up the pay scale on
other jobs. As a result, businesses have had to
pay higher wages to keep (and attract) employees.

In summary, although many businesses in the
area have seen some shortage of employees,
employees are moving back to the area. The
employment opportunities in the area are
strong and opportunities for employment are
growing. A significant number of employees will
be needed for the expanding Casino industry and
support employees for the vast number of baby
boomers flocking to the Gulf beaches.

EMPLOYMENT BOTTOM LINE

Although the Casino industry is adding tens of thousands of good paying jobs to the area,
it is not the only industry that is thriving along the Gulf Coast of Mississippi. We have not even
touched on the infrastructure business and general service industry that is booming.

We can tell you from being actively involved in this market that it is about to explode. From
single family homes in Waveland being lovingly rebuilt by church volunteers, to north county
subdivisions where dozens of houses will soon rise, to Bayside Park. “People are really starting
to pick up the pace,” says Mickey Lagasse, the county’s chief building official. “I think we’re
going to see a huge boom in construction in the next few years.”

Two years after Katrina there is still a major workforce affordable-housing shortage.

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MISSISSIPPI COAST CASINO NEWS
HIGHLIGHTS
Each casino employs 1,600 to 2,000 locals.
Employees drive up to 2 hours each way to work.
Casinos are housing employees at a cost of $250+ per night.
11 new casinos are planed resulting in 22,000 more employees with nowhere to live.
Local casinos currently generate over $235,000,000 in revenue per month.
The Gulf Coast is now America’s second largest gaming destination.

Biloxi Officials Report Gaming Revenues at Record Levels
Biloxi’s casino industry reported all-time record business last month, with casinos generating $97.3 million in gross
gaming revenue. In all, nine of the past 11 months have set records in one fashion or another in Biloxi.

“This is certainly great news,” Mayor A.J. Holloway said, “but at the same time it’s a double-edged sword. We
don’t want the rest of the country getting the idea that we’re back in business and all is well here in Biloxi and along
the Mississippi Gulf Coast.”

Holloway pointed out thousands of residents are still living in temporary quarters along the Gulf Coast, and Biloxi
still has a long way to go in rebuilding the dozens of municipal facilities either destroyed or heavily damaged by the
storm. (More Here)

Construction on Bacaran Bay and Margaritaville Casinos Underway
Work has begun on two new Biloxi casinos, Bacaran Bay, located just northeast of the IP Casino and Resort, and the
new Margaritaville Casino on the beach on the former Grand Casino property. Both properties are scheduled to open
in 2010 after construction is completed. The projects represent over $1.3 billion in additional casino investment in
Biloxi with more to come.

Hard Rock Casino in Biloxi Opens Ahead of Schedule
6/26/07 – Officials with Biloxi's Hard Rock Casino opened
Saturday, May 30th, a week ahead of their announced Grand
Opening set for July 7th. For months the Hard Rock has said
they would be opening on July 7th, capitalizing on the 7/7/7
date, but officials say they are ready to get started.

The soft opening also benefits the casino in getting services
and employees up to speed for what will surely be a huge
crowd on the Grand Opening.

Escatawpa's 3 Doors Down will open the 1,400-seat Hard
Rock Live July 5, with Kid Rock playing on July 7.

The Hard Rock Casino includes The Rock Spa, Merge Salon

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with three Coast stylists, a fitness center, beach pool with underwater music, shops and five restaurants, including
Hard Rock Cafe.

Hard Rock's original opening was delayed when hurricane Katrina slammed into the Coast August 29, 2005, just
days from the planned original opening of the property, located just next door to the towering Beau Rivage. More
information is available by visiting Hard Rock's website at www.hardrockbiloxi.com.

Treasure Bay Opens New Casino and Hotel
Treasure Bay Casino in Biloxi opened its new hotel and
casino Monday, July 2, marking the return of almost all of
Biloxi's casinos that were damaged or destroyed by
Hurricane Katrina. Treasure Bay, whose former pirate ship
barge became a Katrina devastation poster child, has
finished a complete rebuild and remodel of their hotel site
north of the highway. The casino has an entirely new
theme, no longer the pirate ship look.

Casinos that are not returning are the President and Casino
Magic. The President's location at the former Broadwater
Resort has new owners and Casino Magic was purchased
by Harrah's and will become part of a huge casino complex
near the new Margaritaville Casino that is planned to begin
construction soon.

Harrah's, Buffett Unveil Plans for $700M Margaritaville Casino &
Resort in Biloxi
Harrah’s Entertainment and world-renowned singer-
songwriter Jimmy Buffett joined Mayor A.J. Holloway and
Gov. Haley Barbour May 15 to unveil plans for
Margaritaville Casino & Resort, a $700-million-plus
investment that will be on Casino Row in Biloxi and
represents the single largest investment in Mississippi since
Hurricane Katrina. The company expects this to be the first
phase of a development that may cost more than $1 billion.

Construction of Margaritaville is expected to begin this
summer with a target completion date of Spring 2010. The
project is to be constructed on the former Grand Biloxi and
Casino Magic property south of U.S. 90 on the Biloxi
Beach. (More Here)

Biloxi Mayor Details Casino Industry Status at 2007 Gaming Summit
Casinos Expanding Footprint in City

Casino resorts in Biloxi have acquired more than 175 acres in Biloxi in the 20 months since Hurricane Katrina.
Biloxi Mayor A.J. Holloway told a Southern Gaming Summit audience meeting in Biloxi early in May that the city
will continue to see extraordinary growth without compromising quality of life… (Much More Here)

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LOCATION MAPS

Bayside Park is centrally located Between Biloxi/Gulfport and New Orleans.

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BAYSIDE PARK
HIGHLIGHTS
Located in Waveland, Mississippi.
Bayside Park is a perfect “bedroom community”.
5,000 buildable lots. We control 1,500 of those lots.
Lot prices appreciated from $1,500 to $15,000 during the last 6 months.

Bayside Park is a ready-for-development area meeting all our carefully researched standards
for growth and creation of value.

30-minute drive from the main casino area of Biloxi, and near four of the new or
proposed casinos.
45-minute drive from rapidly-rebuilding New Orleans.
Perfect area for service personnel working in the tourist/casino industry... Interstate I-10
creates an easy commute.
Excellent housing opportunities for families who don’t want to live in the center of the
casino activity.
River Walk project approved in nearby Bay St. Louis – 1,650 riverfront residential units
and commercial shopping area... investor confidence is high.
Casinos and nearby military base form a strong economic base for growth and
expansion.
Keesler Air Force Base provides over $1.2 billion in economic impact per year in our
area:
o 9,000 military retirees live within 50 miles
o 7,900 military and civilian personnel live off the base
o 86,000 military/civilian employees and families live in the surrounding areas

In the works: a casino, hotel, and marina complex on the west side of St. Louis Bay, a
short distance from Bayside Park.
Government-approved architectural patterns available for the construction of affordable
new homes in the area.

“Officials have approved ambitious plans for a live-work
complex along the Jourdan River, signaling continued
recovery from Hurricane Katrina and the largest
multistory residential development in city history.”

Bay St. Louis Sun Herald, April 10, 2007

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BAYSIDE PARK

Streetscape of Bayside Park

All lots are platted and recorded. All roads, services and utilities are in.

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MODEL ELEVATION
HIGHLIGHTS
3 Bedrooms, 2 Bath.
$115,500 complete with lot.
Leases for approx. $1,200 per month.
Positive cash-flow.

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FLOOR PLAN
HIGHLIGHTS
3 Bedrooms, 2 Bath.
945 total sq ft under roof.

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HOME FEATURES
General Construction Electrical Items
♦ Permitting and Impact Fees* ♦ 200 AMP service at meter
♦ Monolithic slab on grade** ♦ Electric as per code
♦ Builder’s Risk insurance ♦ Pre-wired for 2 phone jacks and 2 cable outlets per
plan
Surveys and Lot Preparation ♦ Smoke detectors by code
♦ Boundary stakes ♦ Exterior receptacles per plan
♦ Foundation and final ♦ Bathroom exhaust fans vented to outside
♦ All recessed can fixtures as per plan
Structural and Construction Features and Materials ♦ Ceiling fan pre-wire per plan
♦ Concrete footings ♦ Light fixtures by Builder
♦ Steel reinforcement for footings as per engineering
♦ Site Clear, Hauling, and Fill Allowance up to $5,000*** Plumbing
♦ Termite soil pre-treatment ♦ Schedule 40 PVC drain, waste & vents
♦ Wood framing ♦ 40 gallon quick recovery water heater
♦ Tie-down straps (wind load) per engineered drawings ♦ Exterior hose bib(s) per plan
♦ Pre-engineered roof trusses ♦ Elongated water closets in all bathrooms (white) by
♦ 30 year mildew resistant dimensional roof shingles Builder
♦ Ridge vent for roof ♦ Fiberglass tub and/or shower units per plan by Builder
♦ Oversized galvanized metal flashing ♦ Moen Chateau fixtures in chrome throughout by Builder
♦ Framing lumber culled and crowned for straightness ♦ 50/50 kitchen sink with Moen faucet
♦ 13 Seer air conditioning unit
Bathroom Features
♦ R-30 batts or blown insulation in ceiling
♦ Decorator type vanities with full sized mirrors
♦ R-13 insulation on exterior framed walls
♦ Wood grain cabinets with post form laminate
♦ R-19 insulation in knee walls
countertops
♦ ½” drywall on all ceilings and walls (screwed)
♦ Mirrored medicine cabinets
♦ All ceilings and walls knock down drywall finish
♦ Vinyl, stucco, and/or cement fiber board exterior walls with
Additional Features of Your Home
decorative shutters (combination determined by builder)
♦ Metal Insulated Entry doors
♦ Vented white aluminum or vinyl soffit and fascia
♦ Deadbolt locks on all exterior doors
♦ Culvert pipe and installation as required
♦ White single hung aluminum or vinyl windows
♦ Up to 450 sq. ft. allowance for concrete driveway and
throughout
walk***
2 ¼” colonial casing and 3 ¼” colonial base, mitered
♦
cut base trim
Water System
♦ 6 panel 6’8” interior doors
♦ Complete well water system and connection to sewer
♦ High grade paint in flat finish, high grade 35 year
silicone caulk, interior trim in semi-gloss enamel
Kitchen Components and Cabinetry
♦ 4,000 sq. ft. of sod with initial fertilization***
♦ All appliances are manufactured by General Electric and
♦ Landscaping package by Builder
are Energy Star rated
♦ Attic access
♦ 21 cubic ft. refrigerator with icemaker, range, dishwasher,
garbage disposal, and range hood ♦ Front porch under truss with concrete floor
♦ Wood grain kitchen cabinets with post form laminate ♦ Ventilated closet shelving by Builder
countertops from Builder supplied choices ♦ Window coverings by Builder
Mailbox and house numbers by Builder
Floor Coverings
♦ All living areas to be tiled from choices supplied by Builder
♦ Bedrooms and closets to be carpeted from choices
Pricing based on a 5,000 sq. ft. standard lot in Bayside Park.
supplied by Builder

The builder reserves the right to substitute materials of
similar value. Features are subject to change without notice.

* Permit and Impact Fees are calculated at rates provided as of 8/1/07. If any increase in fees occurs after this date, or if any new fees are
put in place, Buyer will be responsible for any difference in additional fees.
** Increases in costs related to changes in specified construction materials or procedures, which are due to new codes and/or
City/County/FEMA requirements, will be the responsibility of the Buyer.
*** Amounts over any allowance will be the responsibility of the Buyer.

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PHOTOS

One of our models nearing completion. Interior framing stage.

Ceiling and duct work.

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new homes and mobile homes a month, but Lagasse expects recent subdivision applications to make
that number shoot up.

And two giant multi-housing projects also could soon be under way, one bringing more than 1,000 new
apartment units to the Lakeshore area and 1,200 condominiums to Bayou Caddy. The condos, to be built
near the new Silver Slipper Casino, remain on hold while opponents appeal an adverse ruling on their
lawsuit.

Another big player in the new housing game will be Habitat for Humanity, which plans to help up to 1,000
families in the hurricane zone build homes with its sweat-equity, interest-free-loan program.

The Christian-based nonprofit is just getting started in building homes on the more than 50 lots it has
acquired in Waveland and Bay St. Louis and hopes to buy a large parcel that could support up to 100
homes in Bay St. Louis, according to local Habitat director Wendy MacDonald.

Expedited zoning process urged

MacDonald, itching to get Habitat clients out of FEMA trailers and into new homes as soon as possible, is
hoping the planning and construction process can be speeded up in Bay St. Louis through more frequent
meetings of the city’s zoning board, an idea she says the city council agreed to explore last week. The
current single monthly meeting means builders, including Habitat, have to plot some of their moves five to
seven weeks in advance of picking up a shovel.

Across the storm area, builders say the biggest challenge to moving more quickly is not government red
tape. “Our problems are labor and materials,” says Don Halle, secretary-treasurer of the Home Builders
Association of the Gulf Coast. “We’re looking at it right now like we’re not really into the full rebuild yet.”

Halle, an owner of Gulf Construction Co. and a member of the state board of contractors, says work has
really picked up for his firm in the last month or two, as owners of demolished homes have received their
insurance settlements, signed up for grant money and pulled the trigger on rebuilding. Still, many people
“are still taking a wait-and-see attitude, especially along the beach. They’re real unsure about what
they’re going to do,” he says.

Despite that, Halle’s firm, which typically builds 50 homes a year but is “quite capable of doubling that in
the coming year,” is getting booked up like most other builders. “If it gets any worse from here, it’s going
to take a long time to get a house built,” he says, from an average of five to six months to eight or nine.

Watching over the push to rebuild in Bay St. Louis is Rhode Island architect Bill Dennis, who led the
planning process there as part of Gov. Haley Barbour’s Commission on Recovery, Rebuilding and
Renewal.

'Some areas could be better than ... before'

With prodding from a “core group” of residents, land owners and builders to preserve the town’s pre-
Katrina charm and character, Dennis said after a recent trip to town, “some of the areas could be better
than they were before.”

As to quickening the pace, Dennis has helped interested builders in the hurricane areas explore
possibilities for manufactured housing. And he too points to issues with insurance, codes and shortages
as hobbling efforts so far. He also expects many folks to wait through another storm season, which starts
June 1, before fully committing to rebuilding.

“You will see a lot of thing start in October, November. I would expect by next spring, you will see a lot
more,” Dennis says. “I think right now people are planting bulbs and in the spring we’ll see flowers.”

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KATRINA DRIED UP RENTAL MARKET
Wednesday, May 2 by Mike Stuckey

WATCH VIDEO: http://risingfromruin.msnbc.com/2007/05/rentals.html (click on link)

WAVELAND, Miss. -- The
golden years were looking good
for Theresa James, 82, mother
of three, grandmother of five,
great-grandmother of four,
widow, last surviving child of
nine and lifelong resident of the
Gulf Coast.

Her big house in Clermont
Harbor sold, leaving her with a
tidy but sufficient monthly
income rolling in. She was
happily at home in a $585-a-
month apartment on Third
Street south of downtown Bay
St. Louis.

There were a few ups and
VIDEO: Reilly Morse, of the Mississippi Center for Justice, discusses the lack of rental
downs with her health and such, housing available for Hurricane Katrina survivors on the Mississippi coast.
but she was at the peak of an
artistic career, painting colorful oils of jazz funerals, shrimp boats and cotton fields. Then came Katrina.
The hurricane took all of her belongings and landed her in a 150-square-foot FEMA trailer on a friend’s
newly vacant lot in Waveland.

Now this Toyota-driving, white-haired grand dame of the Hancock County Senior Center, sharp as a tack
and sunny as an August afternoon in her native Galveston, is among tens of thousands of renters in the
hurricane zone who lost their homes to the storm and whose prospects of finding new ones are generally
far worse than residents who owned their homes.

That’s because while billions in federal dollars are being handed out to directly help rebuild single-family
homes, almost none has been made available so far to replenish rental housing in the hurricane zone. In
Hancock County 20 months after the storm, not a single nail has yet been pounded to replace any of the
hundreds of multi-family subsidized and market-rate rental units that were lost to the hurricane.

As a result, thousands of renters remain in FEMA trailers or other temporary housing as they do
elsewhere in Mississippi and Louisiana. To add insult to injury, rents are skyrocketing on the few units
that have been renovated. Others, like Theresa James’ apartment, are being turned into condominiums
that their former tenants have no hopes of buying.

'THE MOST POWERLESS GROUP'

“Rental Katrina victims are essentially the most powerless group of all in trying to fashion a recovery,”
says Reilly Morse, an attorney with Mississippi Center for Justice, which advocates for racial and
economic justice along the coast. “They have to depend entirely on landowners and land developers to
make something happen.”

The loss was staggering. In a state where nearly 30 percent of the residents are renters, 72,116 renter-
occupied units were damaged or destroyed by Katrina, according to Gov. Haley Barbour’s office.

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In Hancock County, where the pre-Katrina number of renters ranged from 20 percent in the county as a
whole to more than 35 percent in Bay St. Louis, there are no precise figures on how much rental housing
was lost. All 176 public housing units in Waveland and Bay St. Louis were destroyed or damaged beyond
repair. Hundreds of other apartment units were knocked out of commission either permanently or
temporarily. An untold number of additional rental units were among the thousands of single-family
homes that were destroyed.

Of the $5.5 billion in federal Community Development Block Grants that the state is handing out to spur
post-Katrina rebuilding, a huge share has so far gone to homeowners. According to the state’s latest
figures, $869 million was distributed to 12,413 families in a first round of grants. Another 10,000
homeowners will receive funds in a second round that will also distribute hundreds of millions.

When it comes to rentals, however, just $100 million has so far been allocated from the grant pool. It is
going to five public housing authorities along the Gulf Coast, including the agencies in Waveland and Bay
St. Louis that have been combined since the storm.

But that money, less than 2 percent of the $5.5 billion in federal grants, falls short of the $111 million in
losses suffered by the housing authorities. And it will likely be many months or years before construction
on replacement public housing units actually gets under way. Precise timetables were unavailable from
officials with the new Waveland-Bay St. Louis Housing Authority, who said they were too busy
consolidating offices to meet with reporters.

PLAN TO BOLSTER RENTAL HOUSING UNVEILED

In late April, Gov. Barbour announced a new plan to bolster rental housing in the hurricane zone. Some
$263 million in forgivable loans would be offered to owners of rental properties with four units or less. At
$30,000 a unit, the state expects 5,000 rental housing units could be built or repaired under the program,
and rented to tenants who meet certain income limits. But the program has yet to win final approval and it
remains unclear if and when it could start.

So far, private developers have not shown much interest in building new apartment complexes. Buz
Olsen, who currently oversees the Bay St. Louis building department, says no permits have yet been
issued in his city, although there have been some applications filed for tax-credit programs that could
eventually see about 450 units built. Again, that could be years away.

In Waveland, one developer has begun site preparations for four units on Nicholson Avenue and another
has gotten the green light to start work on a 100-unit complex at Waveland Avenue and Highway 90, said
building official Otis Sharpe. Other than that, he has merely had “a lot of inquiries” about restoring a
number of heavily damaged complexes along Waveland Avenue.

No permits have been issued in unincorporated areas. “It’s all still on drawing table,” said Hancock
County building official Anthony Cuevas.

DEMAND FAR OUTSTRIPS SUPPLY

The situation has created a rental market that’s tighter than a Waffle House lobby on Sunday morning.
Thousands of renters like Theresa James – who is on a waiting list for a Catholic-operated senior
apartment and a Habitat for Humanity home -- are still waiting it out in FEMA trailers, according to Olsen.

Others, like welder Nathan Cranmer, 27, who grew up in Kiln and lost his $900-a-month rental home on
St. Charles Street in Bay St. Louis in Katrina, bunked in shelters, trailers and with relatives while looking
for affordable new digs to rent. A year after the storm, he found one place, but moved out in disgust after
five months of living under a leaky roof. Just recently, he was delighted to find “a little bitty apartment” in
Waveland for $700 a month.

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The shortage “concerns everyone here” Olsen said. “We are a blue-collar community as well as an
upscale community. We don’t have that affordable side.”

The lack of urgency and government support to restore rental housing does not surprise Morse of the
Mississippi Center for Justice. “There’s an inappropriate moral attitude about renters in some circles that
isn’t justified,” he said. In Gulfport and Biloxi in neighboring Harrison County, he pointed out, even when
new complexes have been approved through tax-credit financing schemes, they have been blocked by
not-in-my-backyard neighbors who fear that “affordable housing” will bring social problems that slash
property values.

“I do know that that’s a problem,” said Donna Sanford, disaster recovery director of the Mississippi
Development Authority. She said the state has formed a team to work with local governments on some of
the NIMBY issues. “I think we are doing a lot of things,” she said, touting grant money spent on
infrastructure that could also help foster construction of new rental housing.

In the meantime, Theresa James waits it out in her trailer, happy to have a roof over her head and her
independence. FEMA recently extended the time period that Katrina victims can use the trailers rent-free
and nobody expects tenants to be forced out of them any time soon.

James does her painting at the senior center in Bay St. Louis, so studio space is not an issue. But she’s
afraid to use the propane stove and there are some things that she has no room for in the trailer.

“I certainly do miss my recliner,” she says.

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KATRINA: WHERE THINGS STAND
Hurricane Katrina Continues to Affect Mississippi's Gulf Coast
Aug. 29, 2007

It's been exactly two years since
Hurricane Katrina hit the Gulf
Coast, and there are many ways
to measure progress -- from
cold, hard stats to the anecdotal
stories you hear on the ground.
But there are several hopeful
signs for the people who still call
this area home.

This year, 446,000 people live in
the six lower coastal Mississippi
counties worst hit by Katrina.
That's just 12,000 less than
before Katrina. But the signs of
struggle are just as clear.

The devastation is easier to see
when viewing the 80 miles of
coastline in ruin from the air.

quot;We're like the hand of God that Hurricane Katrina destroyed 80 miles of Mississippi's Gulf coast. (Newscom)
wiped the Earth clean,quot;
observed Biloxi Sun Herald publisher Ricky Matthews from the perspective of a helicopter.

Katrina destroyed 70,000 homes, just 10 percent of which have been rebuilt. Seventeen thousand
temporary trailers, half the number originally provided by FEMA, are still in use.

Smaller towns are banding together, still needing help, but really pulling themselves up.

Despite the obstacles, workers are returning. Eleven of Mississippi's 13 casinos are back, employing
18,000 people -- 1,000 more than they did pre-Katrina. And the population on the Gulf Coast is up to 98
percent of what it was two years ago.

Many of the smaller, hardest hit communities still rely on volunteers to get by, and they need more
doctors and nurses. In Pass Christian, Miss., hometown of quot;Good Morning America'squot; Robin Roberts,
even the police and fire department still work out of temporary buildings, a reminder of how much needs
to be done.

But among these special Gulf Coast residents the rebuilding spirit is still here.

quot;The most important thing we learned from Katrina was that buildings don't make a community, people
do. Once you understand that, leaving was never a choice,quot; Matthews said.

(866) 343-7187

ADDITIONAL INFORMATION
WEBSITES

www.elocinnire.com
www.mississippi.org
www.gulfcoastnews.com
www.sunherald.com
www.mississippirenewal.com
www.southmississippi.biz
www.governorbarbour.com
http://www.iht.com/articles/2007/01/24/business/insure.php
www.governorscommission.com
www.mscoast.org
www.mswestcoast.org
www.hancockcountyms.org
www.hancockcountyms.gov
www.hancockchamber.org
www.mississippicasinos.com

APPRAISAL

Available upon request.

GOOD FAITH ESTIMATE


MISSISSIPPI SMALL RENTAL ASSISTANCE PROGRAM


MISSISSIPPI SMALL RENTAL ASSISTANCE APPLICATION


(866) 343-7187

CONCLUSION
Hurricane Katrina had a devastating impact on the state of Mississippi and specifically the
Coastal Counties. Over 60,000 homes were destroyed and almost half of the rental units that
existed in this area before the hurricane were completely destroyed and are now uninhabitable.
Because of this, the single largest issue facing the state of Mississippi and the agencies
responsible for the recovery effort is affordable workforce housing. Without affordable housing
close to the major center of employment, economic growth in the area will never reach its
projected potential.

This point was recently raised by Brian Sanderson, president of the Gulf Coast Business
Counsel to the US House of Representatives and more recently has been addressed by Laura
Davis, President to the newly formed Mississippi Renaissance Corporation. The demand for
skilled workers has never been greater, and their short supply is most often due to the lack of
affordable housing within reasonable distance of work. Many of the over 10,000 workers who
build the most advanced ships for our Navy and Coast Guard in the area have limited or no
housing options in the wake of Hurricane Katrina. As late as the fall of 2006, 5,000 to 10,000
people were still living in tents, another 30,000 to 40,000 families in FEMA trailers and a total of
100,000 families were still displaced.

Despite these events, revitalization is underway, homes are being built, insurance checks are
beginning to flow to homeowners and as of January 2007, officials in Mississippi wrote 11,827
federal assistance checks to homeowners totaling $665 million dollars. The recovery which was
slow to start is moving forward bringing with it economic opportunities for those who want to
take advantage of a potentially significant growth cycle.

Go Zone Now in conjunction with its builder partners have investigated various
opportunities in select areas of the Go Zone. We seek to develop value by building projects on
inexpensive land in the path of growth. Since we start our construction “ahead of the curve,” the
intention is to create value and equity by developing new housing in select areas.

For information on how to invest in the area contact Go Zone Now toll free: (866) 343-7187.

Timing is everything with all investment opportunities. The same is true here. We feel this is
a great investment opportunity for those that get involved at this stage. To gain maximum
benefit from this investment opportunity we encourage those interested to lock in today.

Don’t overlook the fact that Income Property owners can qualify for the ”GO Zone Incentives”
including the 50% accelerated depreciation incentive that translates into a substantial tax
windfall. This investor incentive can be carried back 5 years and forward 10 years.

(866) 343-7187

Go Zone Now Real Estate Investment Guide Bayside Park

Go Zone Now Real Estate Investment Guide Bayside Park

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