!

April 22, 2014 Dear Neighbors, After many months of thoughtful consideration and planning, Transwestern will officially file a zoning case soon with the City of Dallas. We have appreciated your interest and involvement in helping to shape our proposal. Like you, we value this very special property that serves as the gateway to Preston Hollow. Transwestern began meeting with neighborhood representatives in late November 2013. We intentionally reached out to surrounding stakeholders well in advance of preparing and filing our zoning case because we have a sincere desire to work closely with the neighborhood. We view this as a collaborative effort and your perspective is important to us. During the past five months we have met with more than 500 homeowners and hosted many opportunities for public debate and dialogue. As a result of your feedback, the following improvements have been made to our zoning application: DENSITY REDUCTION- Initial plans included 296 luxury rental units. After our dialogue with you, we reduced this target and will be filing our official zoning application for 220 units. It is important to note that the current zoning on this property allows for approximately 120 apartments. The city cannot dictate that a development offers rental or for sale residences. HEIGHT REDUCTION- Original plans included a height of up to 8 stories for only one part of the development. Our official zoning application consists of a majority 3, 4 and 5- story heights with 6 story elements only in limited areas. The specific language in the zoning application reads: structures ranging in height from three stories on the north and four stories facing Preston Road, gradually increasing to six stories transitioning to the south and east closer to Northwest Highway facing Averill Way, away from lower density residential uses.

BALCONIES- We have agreed to eliminate functioning balconies along the alley on the east side of the property. Our development may include Juliette balconies that are architectural features adding interest to the building facades, but provide no outdoor space. Specific language from the zoning application reads: No functional balconies will be constructed facing the east side of the Property. PLANNED DEVELOPMENT- Transwestern is requesting a Planned Development for this site. This is a strict zoning category that requires the developer to detail exactly what the future project will look like. Our zoning application includes many elements that are more restrictive than what the code requires. Examples include: o Sidewalks- Our application includes expansive sidewalks around the entire Transwestern property. We are committing to 6ft. sidewalks, while the code only requires 4ft. sidewalks. o Green Space- Our detailed landscape plan included in the zoning application incorporates extensive landscaping beyond what is required by code. Additionally, we will be creating a park on the north end of the property that will be open and available for the enjoyment of the entire neighborhood. o Public Art- We have commissioned an internationally respected local artist to create signature outdoor sculpture that will be visible from Preston Road. o Unit Size- The average unit size will be 1,000 square feet. No efficiency dwelling units (units without at least one separate bedroom) will be constructed on the Property. o A detailed development plan will be included as part of the Planned Development. Development of the property will be required to strictly comply with this plan. PARKING- All parking is underground and will meet the code requirement of one space per bedroom. Specific language from our application reads: o For multifamily uses one (1) space per bedroom is required. o Surface parking for multifamily uses is not permitted on the Property. o We are agreeable to support No Parking on Averill Way.

TRAFFIC STUDY- In a traffic study dated April 11, 2014, KimleyHorn concludes: o The proposed development at Preston Road can be successfully incorporated into the surrounding roadway network. o Planned improvements by TxDOT to provide eastbound and westbound dual left turn lanes will improve the intersection by adding capacity. Based on the findings of the traffic study, Transwestern will volunteer the following contributions, provided the city deems them beneficial: 1. Future Right-Turn Lane at NW Highway Transwestern will reserve part of the property at the northeast corner of Northwest Highway and Preston to be used by TxDOT. This right of way would potentially be used for a right-turn lane. This contribution makes it possible for TxDOT and the City to construct an improvement in the future that otherwise would not have been feasible. 2. Left-Turn Lane on Preston @ Averill Way Transwestern is agreeable to fund the construction of a left turn lane from southbound Preston Road to eastbound Averill Way. This improves throughput capacity on south bound Preston Road and the turning movement onto Averill Way, which are benefits to the entire neighborhood.

We look forward to continuing to work with you as the official zoning process begins and progresses. Sincerely, Mark Culwell, Transwestern

Bill Dahlstrom, Jackson Walker, LLP

Sarah Dodd, Dodd Communications