ARTHUR YOUNG & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
737 FLORIDA NATIONAL BANK BUILDING
JACKSONVILLE, FLORIDA 32202
February 19, 1974
As Of January 17, 1974



Mr. John Bailey
8 Cathedral Place
St. Augustine, Florida

Dear Mr. Bailey:

On January 16, 1974 I talked with Mrs. C. D. Towers re-
garding the Montgomery Sisters property in St. Augustine. Based
upon this discussion, I understand that her intentions are as
follows:

(1) St. Augustine Restoration, Inc. will develop plans for the
restoration of the Montgomery Sisters property, with such
plans to be acceptable in all respects to Mrs. Towers, before
work commences.

(2) The entire property, including the lot to the East upon which
a structure has been started, will be deeded to Restoration,
Inc., subject to the following:

(a) The deed will provide that title will revert to Trebil,
Inc. if the restoration is not completed at the expense
of Restoration, Inc., according to the approved plans.

(b) Mrs. Towers will retain a life estate, with the further
condition that after her death the restored house (and
the adjacent lot) will be available to her family for a
period or periods of their choosing, not to exceed a
total of four weeks in each year. This privilege will
terminate upon the death of the last of Mrs. Towers'
present three living children. During her life
Mrs. Towers would expect to maintain the property; how-
ever, she would expect Restoration, Inc. to insure the
property and to pay any real estate taxes assessed
against it. In all probability the property would be
exempt from ad valorem taxes since it would be owned
by a non-profit entity.

(c) The house will be designated as the "Elizabeth M. Towers
House" following her death. As you may know, this is
consistent with the original intent of her sons -
William B. Towers and Charles D. Towers, Jr.






9
February 19, 1974
Mr. John Bailey As Of January 17, 1974
St. Augustine, Florida
2 -


(3) Upon acceptance of this arrangement by Restoration, Inc.,
the Villa Longa Apartment on St. George Street (which I
understand will be completed in approximately one month)
is to be made available for her occupancy, without charge
to her. Mrs. Towers agrees that she is to pay her tele-
phone and utility charges. I assume that the property will
be insured against casualty losses. Her occupancy of this
apartment would end when the Montgomery Sisters house is
made available to her after its restoration, as provided
for in (2) above.

Yours very truly


George L. Milligan




I hereby approve the above proposal.




Elizabeth M. Towers

Date:


cc: Mr. C. D. Towers, Jr.