Reagan,

I sent you an email last week stating that I would be in San Marcos on
Friday, April 13th. However, my closing has been postponed. As I mentioned
I am going to have Cary Kipp draw the plans for the residence and I will get
back in touch with you once he is finished.

Regarding the multifamily project, I am going to work with a project manager
from San Antonio. For my first development project, I feel more comfortable
with their experience obtaining FHA financing. We are working with Kipp
Flores to finalize the floor plans and begin construction drawings. Your bid
for the construction is competive with other construction estimates. I am
still attracted to your firm as the possible builder due to your strong local
relationships. I will get back in touch with you once we have made the final
determination on unit mix and site plan.

Phillip Allen