May 7, 2009

Dear Neighbors:

As you know, our Nation is in the midst of the most severe and protracted economic downturn since the "Great Depression". This is a very difficult time for the broader economy and the real estate industry more specifically.

Unfortunately, El Rancho San Benito (ERSB) has been particularly impacted by an extraordinary confluence of economic factors. Among several other project specific issues, the State's budget woes are anticipated to significantly reduce state and county transportation improvement resources that are essential for ERSB to move forward.

These unprecedented economic times have caused the ERSB team to reassess the possibilities and business strategy for the property. At this time, we have decided to withdraw our existing project application from San Benito County and will be entering a period of reevaluation of the plan for the property. In the coming weeks, we will be thoughtfully managing our operations in Hollister as we prepare for decreased activity related to our project. In the meantime, the land will continue to operate in its current agricultural capacities.

For nearly four years the El Rancho San Benito team has been seeking input from the community through community meetings, open houses, topical forums and public workshops to ensure that the plan for ERSB reflected the needs of San Benito County residents. That makes today's reality extraordinarily difficult.

We are extremely disappointed to inform you that we will not be proceeding with the project plan at this time. We would like to take this opportunity to express our gratitude to the hundreds of you who gave of your time to participate in our outreach and community planning process. We sincerely thank you for your invaluable input and support, and regret that the plan you helped to develop has been impacted by these adverse market conditions. We look forward to a time when economic conditions recover to a point where we can again consider a project on the property.

We understand that many of you will have questions, and we encourage you to contact our team in the Hollister office at 831-635-5900.

Sincerely,
Mike Roberts