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"Dear Board Members and Supporters,

"The Timber Heritage Association got a miracle for the holidays. On Friday
12/22/06, I signed an agreement with the Harbor District to lease the
roundhouse and boiler shop buildings for 1 year with a potential for a longer

term renewal after some studies are completed. A month ago I believed
that this was impossible, because of complicated ongoing negotiations

regarding this site.



"On a suggestion from Connie Stewert at Patty Berg's office, I
had lunch with Brain Morrisey from Security National and asked him about
the site. He said all of their plans were on hold, so "go ahead." The deal
we put together with the District is to pay the $40,000 annual rent with
volunteers re-roofing the buildings. The repair work is estimated at
$120,000. We have the opportunity to put together a fantastic community
volunteer project. I invite you to come to the Harbor District board
meeting, this Thursday night, 12/28/06 at 7pm, Woodley Island, next to
Cafe Marina. You could enjoy dinner with a view at the cafe before the
meeting. The Harbor District board will vote on this short-term lease

at the meeting and should sign it.

"The plan is to move the steam locomotives to their historic home, the
roundhouse, and allow the public access to them for the first time in 30
years. We must bring in a special lowboy truck trailer from Stockton to
accomplish this move. We must raise $30,000 ASAP to do this. Please help
get out the word on this. We also need help getting auction items for our
Fundraising Dinner and Auction, on 2/3/07.

"Thankfully, we have a hand shake agreement with the property owner at Glendale.
As long as we keep moving forward with removing our collection from the
site, the deadline has been extended until at least next spring. Things
have taken a turn for the better. Out of crisis has come opportunity."



Marcus Brown

President

Timber Heritage Association