SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended 09/30/2002
Commission file number 333-41636
COR DEVELOPMENT, LLC
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(Exact name of small business issuer as specified in its charter)
Kansas 48-1229527
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(State or other jurisdiction (IRS Employer Identification
of incorporation or Number)
organization)
13720 Roe
Leawood, Kansas 66224
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(Address of principal executive offices)
913-897-0120
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(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
past 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
As of September 30, 2002, the issuer had outstanding 254,850 common
units and 601,416 preferred units.
INDEX
PART I FINANCIAL INFORMATION ..........................................2
Item 1. Condensed Financial Statements (Unaudited) ................2
Condensed Balance Sheets .......................2
Condensed Statements of Operations (Unaudited) ............3
Condensed Statements of Cash Flows (Unaudited) ............3
Notes to Condensed Financial Statements (Unaudited) .......5
Item 2. Management's Discussion and Analysis or Plan
of Operation .............5
Item 3. Controls and Procedures ...................................7
PART II OTHER INFORMATION .............................................8
Item 1 Legal Proceedings .......................................8
Item 2 Changes in Securities and Use of Proceeds ................8
Item 3 Defaults Upon Senior Securities ..........................9
Item 4 Submission of Matters to a Vote of Security Holders ......9
Item 5 Other Information .......................................10
Item 6 Exhibits and Reports on Form 8-K ........................10
CERTIFICATIONS .......................................................11
CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-QSB and the information incorporated by
reference may include "forward-looking statements" within the meaning of
Section 27A of the Securities Act, as amended, and Section 21E of the
Exchange Act, as amended. In particular, your attention is directed to Part I,
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operation. We intend the disclosure in these sections and throughout
the Quarterly Report on Form 10-QSB to be covered by the safe harbor provisions
for forward-looking statements. All statements regarding our expected financial
position and operating results, business strategy, financing plans and the
outcome of any contingencies are forward-looking statements. These statements
can sometimes be identified by our use of forward-looking words such as "may",
"believe", "plan", "will", "anticipate", "estimate", "expect", "intend" and
other phrases of similar meaning. Known and unknown risks, uncertainties and
other factors could cause the actual results to differ materially from those
contemplated by the statements. The forward-looking information is based on
various factors and assumptions.
Although we believe that our expectations that are expressed in these
forward-looking statements are reasonable, there can be no assurance that our
expectations will turn out to be correct. Our actual results could be materially
different from our expectations, including the following:
general economic and business conditions, both nationally and in the
regions in which we operate;
demographic changes;
existing governmental regulations and changes in, or the failure to
comply with, governmental regulations;
our ability to manage the contemplated construction and to find tenants
to occupy the proposed constructed space;
liability and other claims asserted against us;
competition in the commercial property lease marketplace;
our ability to attract and retain qualified personnel;
changes in generally accepted accounting principles; and
the availability and terms of capital to fund the contemplated
construction of the buildings.
This list is intended to identify some of the principal factors that could
cause actual results to differ materially from those described in the
forward-looking statements included elsewhere in this report. These factors
are not intended to represent a complete list of all risks and uncertainties
inherent in our business, and should be read in conjunction with the more
detailed cautionary statements included in our other SEC filings.
ANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-QSB REFLECT
MANAGEMENT'S BEST JUDGMENT BASED ON FACTORS CURRENTLY KNOWN AND INVOLVE
RISKS AND UNCERTAINTIES. ACTUAL RESULTS MAY VARY MATERIALLY.
Page 1
ITEM 1. CONDENSED FINANCIAL STATEMENTS
COR DEVELOPMENT, LLC
(A Development Stage Company)
CONDENSED BALANCE SHEETS
(Unaudited)
September 30, 2002 December 31, 2001
Assets
Land $ 12,999,679 $ 12,440,854
Cash and cash equivalents 30,816 ---
Property and equipment, at cost 5,024 5,024
Accumulated depreciation (1,255) (502)
Unamortized financing costs 14,950 18,400
Total assets $ 13,049,214 $ 12,463,776
Liabilities
Accounts payable $ 26,011 $ 81,951
Accrued interest 78,769 280,113
Other loans and advances 88,905 88,905
Note payable to bank 4,391,995 3,543,000
Total liabilities 4,585,680 3,993,969
Commitments and contingencies ---
Members' Equity
Capital Contributed 8,513,765 8,513,765
Deficit accumulated during the
development stage (50,231) (43,958)
Total members' equity 8,463,534 8,469,807
Total liabilities and members'
equity $ 13,049,214 $ 12,463,776
NOTE: The balance sheet at December 31, 2001 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See notes to condensed financial statements.
Page 2
COR DEVELOPMENT, LLC
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
March 24, March 24,
Nine 2000 Nine 2000
months (inception) months (inception)
Ended through Ended through
September September September September
30, 2002 30, 2002 30, 2001 30, 2001
INCOME
Investment income $ 475 $ 30,477 $ 17,237 $ 29,652
EXPENSES
General and administrative 2,545 71,404 42 211
Depreciation and amortization 4,203 9,305 --- ---
Total expenses 6,748 80,709 42 211
Net income (loss) $ (6,273) $ (50,232) $ 17,195 $ 29,441
Income(Loss) per unit $ (0.005)
Page 3
COR DEVELOPMENT, LLC
(A Development Stage Company)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
March 24, March 24,
Nine 2000 Nine 2000
months (inception) months (inception)
Ended through Ended through
September September September September
30, 2002 30, 2002 30, 2001 30, 2001
Operating activities:
Net income (loss) $ (6,273) $ (50,232) $ 17,195 $ 29,441
Adjustment to reconcile net
income(loss) to net cash flows
from operating activities
Depreciation and amortization 4,203 9,305 --- ---
Increase (decrease) in operating
liabilities Accounts Payable (55,940) (55,940)
NET CASH FLOWS FROM
OPERATING ACTIVITIES (58,010) (96,,867) 17,195 29,441
Investing activities:
Purchase of land --- (11,256,808) (11,256,808) (11,256,808)
Costs of land development (760,169) (1,761,744) (627,840) (673,511)
Purchase of property and equipment --- (5,024) --- ---
NET CASH FLOWS FROM
INVESTING ACTIVITIES (760,169) (13,023,576) (11,884,648) (11,930,319)
Financing activities
Equity contributions from units
issued in public offering --- 8,563,660 8,563,660 8,563,660
Other loans and advances for the
purchase of units --- 88,905 (6,243,518) 88,905
Net --- 8,652,565 2,320,142 8,652,565
Proceeds from note payable to bank 848,995 6,520,995 5,500,000 5,500,000
Repayment of note payable to bank --- (1,957,000) (2,100,000) (2,100,000)
Offering costs --- (49,895) (49,895) (49,895)
Cost of bank financing --- (23,000) (8,000) (23,000)
Overdraft --- 7,419 --- ---
NET CASH FLOWS FROM
FINANCING ACTIVITIES 848,995 13,151,259 5,662,247 11,979,670
NET (DECREASE) INCREASE IN
CASH AND CASH EQUIVALENTS 30,816 30,816 (6,205,206) 78,792
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD --- --- 6,283,998 ---
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 30,816 $ 30,816 $ 78,792 $ 78,792
Cash paid:
Interest $ (424,825) $ (424,825) $ --- $ ---
Page 4
Non-cash transactions related to
investing activities:
Change in accrued interest on
bank loan allocated to land $ (201,344) $ 78,769 $ 225,026 $ 225,026
Change in accrued other costs
of Development allocated to $ --- $ --- $ --- $ ---
land
COR DEVELOPMENT, LLC
(A Development Stage Company)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
September 30, 2002
Basis of presentation
The accompanying unaudited condensed financial statements of COR Development,
LLC (the Company) have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation have been included.
Operating results for the nine months ended September 30, 2002 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 2002. For further information, refer to the financial statements
and footnotes included in the COR Development, LLC annual report on Form 10-KSB
for the year ended December 31, 2001.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
COR Development, LLC ("COR") has not had any operating revenues during
the past two (2) years.
For the next twelve (12) months, COR will be actively involved in the
development of 47 acres located at the intersection of 137th and Nall
in Leawood, Kansas.
We expect COR'S primary sources of revenue to be:
1) the sale of six undeveloped pad sites over the next three years;
2) the leasing of space in the commercial buildings; and
3) the sale of the commercial buildings after a period of
operation and at the time that holders of a majority of the units shall
approve the sale, which is currently contemplated to be by the end of
2015.
Page 5
We propose to accomplish four purposes with the real estate. First, we
will develop and sell six pad sites over the next three years. Second,
we plan to develop and build commercial office and retail space and will
engage a management company to lease this space. Based upon the current
site plans, there will be approximately 360,000 square feet of retail and
office space, consisting of 220,000 square feet of retail space, 53,000
square feet of pad space (which is expected to include a bank and three
restaurants), and 90,000 square feet of office space. These facilities will
be located on 34 acres. The site may include a hotel, depending on our
ability to attract an appropriate hotel operator at a price, and within a
timeframe, that we deem acceptable.
Third, we plan to donate a total of approximately 15 acres to the Church
of the Resurrection for use in the development of its worship and
educational facilities. Fourth, we plan to develop the commercial
buildings in a manner that provides parking fields that can be utilized
by the Church of the Resurrection for its Sunday services and other
programs and activities.
Johnson County, Kansas has experienced a significant expansion of commercial
office space over the past ten years. Since 2000, the vacancy rate for
commercial property in Johnson County has increased substantially while
average rental rates for commercial property have stabilized and even declined
slightly. These market conditions may make it difficult or infeasible
to reach our projected vacancy and rent targets.
We anticipate that construction on the facilities will commence in autumn,
2002 and should be completed by 2005. In late October, 2001, we finalized
and filed with the City of Leawood, Kansas, our original site plans for the
building of the facilities for the office and retail space. In conjunction
with the filing of the site plans, we requested the zoning necessary for the
proposed development. Because of subsequent and significant changes to the
site plan, it was necessary to re-submit plans to the City. A revised site
plan and accompanying documentation was submitted to the City of Leawood on
May 31, 2002. Plan approval with the City of Leawood is a three-step process
in which the City's Planning Commission must give preliminary approval of the
development plan, the City Council must give its preliminary approval of the
plan, and finally the Planning Commission must give its final approval of the
plan. City officials may ask for revisions to the plan at various points in
this process. We held an informal work session with the Planning Commission
on October 8 to discuss the preliminary plan and received Planning Commission
feedback, and on October 28 we secured preliminary plan approval by the
Planning Commission. We are currently scheduled to appear before the City
Council on November 18, 2002. If the City Council approves our plan at that
hearing, we would expect to go before the Planning Commission for final
approval as early as January.
The time frames indicated above are preliminary, and subject to change.
Further, we cannot assure you that the City of Leawood will approve the site
plans, grant the necessary zoning or issue any or all of the necessary permits
required for us to develop the real estate as proposed. If the City of
Leawood fails to approve the site plans in substantially their current form or
fails to grant the requested zoning, or if the City of Leawood or other local
governments or regulatory authorities fail to issue one or more necessary
permits, we anticipate that we will not be able to conduct the development
without significant revision to our current plan of operation.
Page 6
We will employ a construction management company to take responsibility for
the overall management of the construction, including preparing the pad sites
for sale and developing and constructing the commercial buildings. We have
selected Walton Construction Co., Inc. to act as the general contractor for
the building of the facilities. We also plan to employ a real estate
development management company to assist with securing the approval of the
site plans, to provide leasing services including obtaining tenants for the
facilities, and to manage maintenance of the buildings. We have selected Red
Development Services, L.L.C. to serve as development manager. COR's managers
will provide oversight of the construction management company and the leasing
management company.
At this time, we have sufficient capital to carry the land for the next twelve
(12) months. Assuming the City of Leawood approves our site plans and provides
the requested zoning, and assuming that all necessary permits are issued, we
have sufficient capital to construct at least some of the pad sites during the
next twelve (12) months. However, without a construction loan we do not have
sufficient capital to otherwise develop the real estate. We anticipate that we
will use such capital only as necessary until we obtain an initial construction
loan in 2002. We currently anticipate that the principal amount of this
initial construction loan will be approximately $3,000,000 to $5,000,000, which
we plan to use toward construction of development infrastructure. This
infrastructure construction is expected to involve selective demolition,
earthwork, construction of underground duct and utility structures,
construction of sanitary sewerage and storm drainage, and installation of
pavement.
We will need to obtain further construction loans to complete development as
planned. The development will continue for an extended time - we currently
anticipate that construction of all of the proposed facilities should be
completed in 2005. We also anticipate that we will need to obtain a total of
approximately $39,000,000 in construction loans to complete development. We may
not be able to obtain all necessary loans. We are currently attempting to
obtain a non-recourse loan and we can provide no assurance that such a loan
will be available at all or on terms that are suitable to COR. If we do not
obtain approximately $39,000,000 in total construction loans, we expect that
we will not be able to complete the construction of all the facilities as
proposed.
Further, factors such as cost overruns, unanticipated expenses and other
factors may require us to seek more loans than we currently estimate to be
necessary. We cannot project the impact that shortfalls in financing, cost
overruns or unanticipated expenses might have on our plan of operations, but
any of these factors or other factors could defeat our ability to complete
the development as proposed.
ITEM 3. CONTROLS AND PROCEDURES
In response to recent legislation and additional requirements, we reviewed our
internal control structure and our disclosure controls and procedures. As a
result of such review we implemented changes primarily to formalize and
document the procedures. We have designed our disclosure controls and
procedures to ensure that material information related to COR is made known to
the manager serving as our principal executive officer and the manager serving
as our principal financial officer on a regular basis, in particular during
the period in which the quarterly reports are being prepared. As required, we
will evaluate the effectiveness of these disclosure controls and procedures on
a quarterly basis, and did so on October 30, 2002, a date within 90 days
prior to the filing of this quarterly report. We believe as of that date,
such controls and procedures are operating effectively as designed.
Page 7
Based on our most recent evaluation, COR's management concluded that COR's
disclosure controls and procedures are adequate to ensure the clarity and
material completeness of COR's disclosure in its periodic reports required to
be filed with the SEC and there are no significant deficiencies or material
weaknesses in the design or operation of internal controls which could
significantly affect our ability to record, process, summarize and report
financial data.
There were no significant changes in COR's internal controls or in other
factors that could significantly affect these controls subsequent to the
date of their evaluation.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
The Registrant is not currently involved in any legal proceedings other than
seeking approval of site plans and zoning as described above in Item 2,
"Management's Discussion and Analysis or Plan of Operation."
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
There have been no changes in the terms of, or the rights evidenced by, the
registered securities. There have been no sales of unregistered securities.
The following use of proceeds information is being disclosed in connection
with COR's registration statement filed on Form SB-2 with an effective date
of November 3, 2000, SEC File Number 333-41636. The offering was commenced
on November 6, 2000 but no sales of securities were made until January 2001.
The offering terminated on May 7, 2001.
The offering included two classes of securities, Common Units and Preferred
Units. The offering terminated before all of the registered Common Units and
Preferred Units were sold. A total of 1,600,000 units were registered that
consisted of a collective 1,600,000 of common units and preferred units.
From January 2001 to the date of the termination of the offering on May 7,
2001, 252,350 Common Units and 596,803 Preferred Units were sold, which
provided proceeds of $8,491,530. The offering price was $10.00 per unit for
either a Common Unit or a Preferred Unit. No underwriter was engaged or
employed for this offering. The amount registered of each class of security,
the aggregate price of the offering amount registered, the amount sold of
each security and the aggregate offering price of the amount sold are as
follows:
TITLE OF EACH AGGREGATE
REGISTERED AMOUNT AGGREGATE AMOUNT OFFERING
SECURITY REGISTERED OFFERING PRICE SOLD PRICE SOLD
Common Units 1,600,000 $16,000,000 252,350 $2,523,500
Preferred Units 1,600,000 $16,000,000 596,803 $5,968,030
Page 8
As of September 30, 2002, the issuer had outstanding 254,850 common
units and 601,416 preferred units, for a total of 856,266 units, all of which
are voting units.
There has been no market for these units and we currently contemplate that
there will be no public market for the units. No underwriter was involved
in the above sales. No underwriting discounts were extended and no
commissions were paid in connection with the above sales. COR has not
declared any dividends on either the Common Units or Preferred Units during
the last two fiscal years or in any subsequent period. We do not anticipate
that COR will issue any dividends on either the Common Units or Preferred Units
for the foreseeable future.
From the effective date of the registration statement to December 31, 2001,
the amount of the expenses incurred with respect to the issuance and
distribution of the securities was $49,894.60 for legal fees, accounting
fees and the costs of the printing of prospectuses and unit certificates.
As disclosed in the registration statement, Arthur E. Fillmore, II, one of
the managers of COR and is a member of Craft Fridkin & Rhyne, L.L.C., a law
firm that provided legal counsel to COR during the registration of its
securities.
The net offering proceeds available from the sales of COR Common Units and
Preferred Units after taking into account the expenses discussed above, was
$8,441,635.40. The total purchase price of the real estatewas $11,256,808,
including closing costs of $29,558. To pay the purchase price, COR used
$5,756,808 from equity contributions by CORmembers and $5,500,000 in
proceeds from a bank loan. COR subsequently used members' equity contributions
to repay a total of $2,150,000 of the bank loan and invested 280,021.75 in an
interest bearing account.
The use of the proceeds set forth above does not constitute a material change
in the use of proceeds set forth in the prospectus of the Registrant.
COR has made the following sales of unregistered securities within the past
three (3) years:
Total
Price Offering
Date # Units per Unit Price Buyer
3/31/00 1 $10.00 $10.00 CORnerstone
Development, LLC
No underwriter was involved in the above sale. No underwriting discounts were
extended and no commissions were paid in connection with the above sale. The
net offering proceeds from the sale were $10.00 and were used toward COR's
working capital needs.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
There have been no defaults on any indebtedness of Registrant.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No matters were submitted to a vote of the holders of the registered
securities during the period covered by this report.
Page 9
ITEM 5. OTHER INFORMATION.
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits - None. All exhibits have either been previously filed or are
not applicable to the Registrant.
(b) Reports on Form 8-K - None.
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934,
the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COR DEVELOPMENT, LLC
(Registrant)
Date: November 14, 2002 By:/s/ Robert M. Adams
---------------------------
Robert M. Adams, Manager of
COR Development, LLC
SIGNATURE TITLE
Page 10
CERTIFICATIONS
Chief Executive Officer
I, Robert M. Adams, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of COR Development,
LLC;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date
of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for
the registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November 14, 2002 /s/ Robert M. Adams
---------------------------
Robert M. Adams, Manager
COR Development, LLC
Page 11
Chief Financial Officer
I, Arthur E. Fillmore, II, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of COR Development,
LLC;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date
of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for
the registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November 14, 2002 /s/ Arthur E. Fillmore, II
---------------------------
Arthur E. Fillmore, II, Manager
COR Development, LLC
Page 12
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of COR Development, LLC (the
"Company") on Form 10-QSB for the quarterly period ended September 30, 2002,as
filed with the Securities and Exchange Commission on the date hereof(the
"Report"), the undersigned, in the capacities and dates indicated below,
hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully
complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and (2) The information contained in the Report fairly
presents, in all material respects, the financial condition and results of
operations of the Company.
Date: November 14, 2002 /s/ Robert M. Adams
---------------------------
Robert M. Adams, Manager
COR Development, LLC
Date: November 14, 2002 /s/ Arthur E. Fillmore, II
---------------------------
Arthur E. Fillmore, II, Manager
COR Development, LLC
Page 13