Snowbasin Cost Benefit Analysis Application for Destination & Resort Zone, Weber County May 5, 2010

Prepared for: Snowbasin Resort Company

Prepared by: RRC Associates, Inc. 4940 Pearl East Circle, Ste 103 Boulder, CO 80301 303/449‐6558 www.rrcassoc.com

Snowbasin Cost Benefit Analysis May 5, 2010

TABLE OF CONTENTS

INTRODUCTION ...... 1

SUMMARY OF KEY FINDINGS ...... 2

PROJECT OVERVIEW ...... 5

RESORT MARKET FEASIBILITY DISCUSSION ...... 7 Overview: U.S. and Rocky Mountain Skier Visitation Trends ...... 7 Future Prospects for Growth of Skiing in Utah ...... 8 Potential Growth Opportunities for Snowbasin and the Ogden Valley ...... 9

DEVELOPMENT PROGRAM AND RELATED BUILDING AND OCCUPANCY MEASURES ...... 11 Development Program by Area and Phase ...... 11 Assumptions Regarding Use and Value of Residential Units ...... 11 Projected Occupancy Patterns ...... 13 Projected Property Values ...... 16

ECONOMIC IMPACT ANALYSIS ...... 18 Methodology ...... 18 Summary of Impacts ...... 19 Direct Output Calculations ...... 21 Total Output ...... 27 Direct and Total Employment ...... 28 Direct and Total Labor Income ...... 31

FISCAL IMPACT ANALYSIS ...... 33 Summary of Impacts ...... 33 Methodology ...... 34 Calculation of Property Tax Revenues ...... 37 Calculation of Sales Tax Revenues ...... 38 Revenue and Cost Projections: General Fund ...... 43 Revenue and Cost Projections: Library Fund ...... 46 Revenue and Cost Projections: Consolidated Health Fund ...... 47 Revenue and Cost Projections: Municipal Services Fund ...... 48 Revenue and Cost Projections: Paramedic Fund...... 50 Revenue and Cost Projections: Debt Service Fund and Capital Projects Fund ...... 51 Revenue and Cost Projections: Tourism Fund ...... 53 Revenue and Cost Projections: Transportation Development Fund...... 54 Revenue and Cost Projections: Impact Fees Fund ...... 55 Revenue and Cost Projections: RAMP Tax Fund ...... 56

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Snowbasin Cost Benefit Analysis May 5, 2010

Introduction

This report provides a Cost Benefit Analysis of the proposed development program of Snowbasin Resort in Weber County, in support of Snowbasin’s application for Destination and Recreation Resort Zone. Applicants for Destination and Recreation Resort Zone are required to submit a “Cost Benefit Analysis” (Chapter 35‐4 – Application Criteria, of the Uniform Land Use Ordinance of Weber County). A “Cost Benefit Analysis” is defined as follows:

Cost Benefit Analysis (CBA): A formal discipline used to help appraise, assess, or evaluate the desirability of a project or proposal. The CBA shall itemize, quantify, consider and weigh the total expected (tangible and intangible) costs against the total expected (tangible and intangible) benefits of one or more actions in order to demonstrate the viability, efficiency and compatibility of a particular proposal.

Additionally, Chapter 35‐3 of the Weber County Land Use Ordinance states that the approval criteria for a Destination and Resort Zone include:

“A professional and empirical study has provided substantial evidence determining that the proposed Resort is viable and contributes to the surrounding community’s economic well being.”

This report is intended to address the study requirements outlined above. It includes the following primary components:

1. Resort market feasibility discussion: This report contains a general discussion of market feasibility, specifically whether there is evidence of market demand sufficient to support the project. Because the project is anticipated to have a very long (65+/‐ year) buildout horizon, any discussion of market feasibility must necessarily be relatively generalized. As such, this section of the report speaks broadly to the market context for the mountain resort industry in the upcoming decades, in the mountain west generally and in the Wasatch Front more specifically, as well as attributes of the Snowbasin proposal and context, in order to assess market feasibility.

2. Economic impact analysis: This element of the study addresses direct and secondary economic impacts of the project to Weber County. The analysis addresses impacts in terms of economic output, jobs, and aggregate labor income. The analysis utilizes a variety of assumptions regarding the economic performance of various elements of the project (e.g. unit occupancy patterns, lodging occupancy and pricing, visitor spending patterns, construction values, etc.), and also utilizes economic data and factors from the IMPLAN economic impact modeling system.

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3. Fiscal impact on the Weber County Government: This analysis examines the fiscal impact of the proposed Snowbasin project on the Weber County government, by examining the revenues and expenses attributable to Snowbasin which would accrue to Weber County’s several budgetary funds.

Note that the CBA criteria state that “intangible” costs and benefits are also of interest as part of the application documentation. These intangible costs and benefits are addressed in other elements of the application.

Methodological details for each study element are discussed in the respective study sections.

Summary of Key Findings

Among the key findings of the Cost Benefit Analysis are the following:

• Market feasibility: From a skiing and mountain resort industry standpoint, the Rocky Mountain region in general, Utah specifically, and Snowbasin in particular are extremely well positioned for future growth. Utah skier visits have roughly doubled over the past 30 years (from approximately 2 million to 4 million visits), and the state (and particularly the Wasatch Front resorts) possess superlative competitive advantages with respect to air access, convenient local accessibility, and consistently high‐quality, abundant snowfall. Utah also enjoys significant competitive advantages on a national and international scale with respect to additional factors that are traditional catalysts for skier retention and long‐term growth: scenic beauty, relatively inexpensive and high‐ quality lodging, less crowded experiences on the mountain slopes and in villages and towns, and perceived high value of experience relative to price.

At Snowbasin Resort, skier visits have experienced a rate of growth which is greater than that for the state of Utah—particularly since 2000, spurred by base area and on‐ mountain improvements and the hosting of the Winter Olympic Games (including the prestigious downhill event). In the last 10 years, Snowbasin skier visitation has grown by almost 3.5 times (exceeding 275,000 in its peak year) and is now reaching a critical mass where the creation of a long‐range land use/master development plan has become realistic to consider. Within the context of the relatively high growth potential of skiing, and particularly destination ski visitation, it is reasonable to anticipate rates of growth in both total visits and destination visits at Snowbasin in excess of statewide averages.

In light of the multi‐faceted summer and winter recreation and tourism offerings in the Snowbasin/Ogden Valley area, many of which are already well developed, a long‐range projection of consistent growth in year‐round tourism/destination visitation in the area is both reasonable and compatible with existing planning vision in the 2005 Ogden Valley General Plan. The Ogden Valley will continue to attract seekers of a recreation‐

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oriented active lifestyle year round, which will reinforce and create a year‐round resident demand component for the Snowbasin development. The close proximity of the area to the Salt Lake City airport will further create ongoing interest in viable second‐home investment opportunities from already established national markets. Additionally, the competitive advantages of the Ogden Valley will become more recognized by a greater audience as resort infrastructure improvements are implemented and the planned resort community is initiated.

• Economic impact: The economic impacts of the Snowbasin development have been analyzed from the standpoint of output, employment, and labor income. For each of these measures, both “direct” and “secondary” economic impacts have been analyzed. For clarity, these terms have the following meanings:

o “Output” is the value of goods and services produced and sold to final users during a calendar year. “Employment “is defined as jobs (with full‐time and part‐ time jobs counted equally), while “labor income” is defined as employee compensation plus proprietor income.

o “Direct” impacts represent the output, employment, and labor income associated with economic activity directly generated by the project (such as construction activity and visitor purchases). Most of the direct impacts are expected to occur onsite within the Snowbasin development.

o “Secondary” (or “multiplier”) impacts refer to additional rounds of economic activity indirectly stimulated by the project as a result of supply‐chain activity and the spending of employee income earned directly or indirectly as a result of the project. Secondary impacts are anticipated to primarily occur offsite of the Snowbasin development (insofar as most supplier businesses would likely be located offsite, and employee purchases of household goods and services would be likely to occur offsite as well).

o “Total” impacts represent the sum of direct and secondary impacts.

Direct and total economic impacts of the Snowbasin project are anticipated to increase as the project builds out and the economic activity of visitors, second homeowners, and local resident occupants of the project correspondingly grows. Upon project stabilization after buildout, ongoing annual economic impacts are projected as follows:

o Output: Direct output attributable to the project upon stabilization after buildout is projected at $132 million annually. Secondary output, anticipated to primarily occur offsite of the development, is projected at $113 million annually. Total output is projected at $246 million annually.

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o Employment: Direct jobs created by the development upon stabilization after buildout are projected at 1,960 jobs. As is typical for resort settings and the hospitality and service industries, many of these jobs are likely to be part‐time in nature, and many employees will likely hold more than one job. As such, the number of individual persons employed in the development will likely be less than the number of jobs generated by the development.

Jobs associated with secondary economic activity, which are anticipated to primarily occur offsite from the development, are projected at 1,169 jobs. Total jobs are projected at 3,130.

o Labor income: Direct labor income is projected at $41 million annually, secondary labor income is projected at $33 million, and total labor income is projected at $74 million.

As one means of placing these economic measures in context, the economic impact of Snowbasin can be compared to the size of the overall Weber County economy in 2008. Upon project stabilization, Snowbasin would directly or indirectly generate economic activity equivalent to 1.6 percent of the existing (2008) output of the Weber County economy; 2.6 percent of the employment (jobs); and 1.5 percent of the labor income.

For further perspective, it should also be noted that Weber County as a whole is projected to experience significant future growth. The Governor's Office of Planning and Budget 2008 Baseline Projections envision Weber County employment rising from 124,762 in 2008 to 273,362 in 2060, an increase of 119 percent. In this context, upon project stabilization after buildout, Snowbasin would directly or indirectly generate employment equivalent to 1.1 percent of the projected total employment in Weber County in 2060.

• Fiscal impact: The Snowbasin project is projected to have a positive fiscal impact on all growth‐sensitive funds in the Weber County budget. Upon project stabilization after buildout, Snowbasin is projected to generate $3.7 million in annual revenue for the General Fund, while generating $1.15 million in annual expenses, resulting in an annual net surplus of approximately $2.6 million. This very positive budgetary impact is due to anticipated high property values, the assessment of most residential units at full market value, and the significant visitor / second homeowner orientation of the project (resulting in high per capita spending and resulting sales tax revenues, plus a moderate cost of service profile). Other growth‐sensitive Weber County funds are also projected to experience positive fund balances throughout the construction period of the project and upon project stabilization after buildout.

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Project Overview

The Snowbasin Resort Company owns extensive lands in the area, including much of the property along Trappers Loop Road and Snowbasin Road, in both Weber and Morgan counties. The Snowbasin Resort Master Plan proposes planned development of these lands, as a part of a vision for transforming Snowbasin Resort from a day‐skier area to a year‐round destination resort.

The overall development vision includes mixed‐use villages (with lodging, retail, restaurants and skier support services) at the existing base area in Weber County and at a proposed new base area in the Strawberry Park area of Morgan County. Residential neighborhoods with a mix of townhomes, condominiums and single family homes would be built around both base areas, as well as on the east side of Trappers Loop Road opposite the ski area. A residential and commercial development would also be developed at the north end of Trappers Loop Road near the SR‐39 intersection that would provide additional shopping opportunities and residences for resort guests and the Huntsville community.

Together, this general development plan has been divided into six development areas, labeled A thru G for design and planning consideration, as shown in Figure 1 to follow.

This report analyzes only those development areas located in the Weber County portion of the proposed Snowbasin development which are included in the application for rezoning, specifically Areas A, B, part of F, and G. 1 Combined, these development areas are proposed to encompass 2,051 residential units, a 150 room hotel, and 215,938 square feet of commercial space.

1 Note that a smaller development area on the northwest side of Pineview Reservoir, referred to as “Area H” in some planning documents, is excluded from the rezoning application and from this analysis.

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Figure 1 Project Site Note: CBA Study Analyzes Impacts Associated with Weber County Development Only (i.e. Areas A, B, F [Weber County Portion], and G)

Note: Although both the Weber and Morgan County portions of the proposed Snowbasin development are illustrated in Figure 1, only the Weber County portion of the Snowbasin development is analyzed in this report.

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Resort Market Feasibility Discussion

The purpose of this discussion is to identify current and longer‐term trends and patterns which are relevant to assessing the market feasibility the proposed Snowbasin development plan.

Overview: U.S. and Rocky Mountain Skier Visitation Trends

The Rocky Mountain region in general, and Utah specifically, are extremely well positioned to continue to lead U.S. growth in alpine skiing and snowboarding. The Rocky Mountain region has been the most consistent and fastest‐growing skiing destination within the U.S., accounting for an average of over 20 million skier visits annually over the past five seasons. While only about 4.2 percent of the U.S. population lives in six Rocky Mountain states (UT, CO, NM, ID, WY, MT), this area records about 35 percent of total U.S. resort skier visits, attracting customers from all regions of the United States as well as a diverse international base. Colorado and Utah, together representing about 16 million skier visits and about 80 percent of the Rocky Mountain totals, are clearly the strongest states within the region.

Not only are Colorado and Utah leaders in total skier visitation, but both states are also leaders in drawing overnight destination visits, especially from outside of their respective areas. The Rocky Mountain region, over the past five seasons, typically generates between 55 and 60 percent of its skier/boarder visits from overnight guests (including 7 percent from foreign countries), setting national standards for the highest proportion of destination visits of any U.S. region.

Utah is clearly well positioned to continue its leadership status in generating destination visitation on both a national and international scale. The Salt Lake City airport has continued to expand its role as a major U.S. hub, with affordable service from all regions of the country and excellent service internationally. The airport served over 22 million passengers in 2007, making it the 17th largest connecting hub in the U.S. Of significant competitive advantage, not only does Salt Lake City airport provide convenient air service to its destination visitors, but the major ski resorts are all located within a convenient distance. Typically ground transportation from the airport to a resort can be completed in an hour’s drive. In comparison, this is half or less the amount of drive time experienced from Denver to Colorado’s major ski resorts.

In addition to Utah’s superlative competitive advantages with respect to air access and convenient local accessibility, the state also possesses a key competitive advantage in terms of consistently high‐quality, abundant snowfall. Utah snow is not only plentiful, but also of low moisture content and therefore desirable for skiing and snowboarding. Further, the high elevations of its base areas and mountain peaks offer the long‐term likelihood that even under scenarios of future erratic weather and temperatures related to global climate change, Utah will be one of the states which will continue to experience positive winter conditions and

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relatively abundant snowfall. Many existing ski resorts outside of the Rocky Mountains are located at lower elevations and will be more susceptible to inconsistent precipitation and weather conditions.

Utah also enjoys significant competitive advantages on a national and international scale with respect to additional factors that are traditional catalysts for skier retention and long‐term growth: scenic beauty, relatively inexpensive and high‐quality lodging, less crowded experiences on the mountain slopes and in villages and towns, and perceived high value of experience relative to price.

A few additional statistics will be helpful in illustrating the long‐range growth trend for winter destination visitation and related potential for resort real estate development. In the 1979/80 season, Utah recorded approximately 2.06 million skier visits; by 1989/90, the total had grown to 2.50 million and in 1999/00, had increased to 2.96 million visits. By 2007/08, the total had reached 4.25 million visits. Over that 29‐year period, Utah skier visits more than doubled in volume. In comparison, since 1979/80, U.S. total skier visits have grown from approximately 48.2 million to 60.5 million at their peak reached in 2007/08. This represents a national growth in visits of about 26 percent.

Over the past 29 years, therefore, Utah skier visits have grown by 107 percent, or about four times the national growth about 26 percent. Furthermore, the volume of overnight (destination) visits within Utah have also grown significantly. In 1979/80, based on data from the Governor’s Office of Planning and Budget, Utah’s overnight visits represented 47.8 percent of total skier visits, or approximately 1.0 million visits. Overnight visits are estimated to have increased to approximately 1.8 million as of 2005/06 (the most recent data published by OPB), an increase of 80 percent.2

Future Prospects for Growth of Skiing in Utah

In light of the historical rate of growth in the Utah ski industry over the past 30 years, among both its local residents and overnight/destination visitors, it is reasonable to assume a continued pattern of growth in winter visitation over at least the next several decades. The growth can be projected to exceed that of the overall U.S. average and even that of the greater Rocky Mountain region. A linear projection of Utah’s growth over the past 30 years (when visits increased from roughly 2 million to 4 million) would suggest an additional 2 million visits in 30 years and 4 million visits in 60 years. Simple linear projections of destination visits would suggest roughly an additional 800,000 overnight visits in 30 years and 1.6 million additional visits in 60 years.

2 “Utah Ski Database,” Governor’s Office of Planning and Budget – Demographic and Economic Analysis Section, December 2006.

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Potential Growth Opportunities for Snowbasin and the Ogden Valley

At Snowbasin Resort, skier visits have experienced a rate of growth which is greater than that for the State of Utah—particularly since 2000. Total visits in Snowbasin in the 1979/80 season were approximately 94,000. Visits remained relatively steady, though variable, from year to year through 1999/00 when visits were at about 79,600. Beginning in 2000/01, however, annual visits grew significantly, spurred by base area and on‐mountain improvements and the hosting of the Winter Olympic Games (including the prestigious downhill event). Visits exceeded 200,000 for the first time in 2004/05 and topped 275,000 in 2007/08. In the last 10 years, Snowbasin skier visitation has grown by a factor of almost 3.5 and is now reaching a critical mass where the creation of a long‐range land use/master development plan has become realistic to consider.

Within the context of the relatively high growth potential of skiing, including destination ski visitation, it is reasonable to anticipate rates of growth in both total visits and destination visits at Snowbasin in excess of statewide averages, given the resort’s comparatively undeveloped state and future potential (in comparison to more mature destination resorts elsewhere in the state and region).

Also of note, the 2005 Ogden Valley General Plan recognizes significant development potential in the Ogden Valley generally and at Snowbasin in particular in each of four alternative future development scenarios explored by the Plan. The Plan anticipates growth in both year‐round and second‐home residential development within the Valley over the next 30 years, driven primarily by the area’s natural and recreation amenities.

In light of the multi‐faceted summer and winter recreation and tourism amenities in the Ogden Valley area, many of which are already well developed (downhill skiing, river and lake fishing, boating, hiking, snowmobiling, rock climbing, horseback riding, hunting, camping, biking, scenic driving, wildlife viewing, cross‐country skiing, golf, etc.), a long‐range projection of consistent growth in year‐round tourism/destination visitation is both reasonable and compatible with planning vision.

Population growth within the state as whole and the Ogden Valley region in particular is projected to exceed 50 percent over the next 20 years. At that same rate, growth would likely exceed 75 percent over 30 years. This rate of growth in the resident population is generally consistent with the growth rates anticipated for future winter visitation. Clearly, the increases in residential development that have been anticipated from various sources, both permanent residences and second homes, will reinforce demand for winter sports and other recreational activities.

Under these circumstances, and given the carrying capacity of the mountain and the significant infrastructure expansion that is planned for Snowbasin Resort, it is reasonable to estimate annual skier visitation increasing significantly over the next 30+ years. The current available

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bed base is underdeveloped, especially in comparison to the established potential of the area and the mountain to support significant long‐term growth. Consequently, there is great potential for the area to attract and absorb substantial planned development over the next 30+ years. This is particularly true in comparison to other resort areas such as the Cottonwood Canyons or Park City/Deer Valley, where considerable development has already occurred.

Looking at sources of future demand, the Ogden Valley will continue to attract seekers of a recreation‐oriented active lifestyle year round, which will reinforce and create local demand for real estate in the development. In addition, the close proximity of the area to the Salt Lake City airport will further create ongoing interest in viable second‐home investment opportunities from already established national markets. Additionally, the competitive advantages of the Ogden Valley will become more recognized by a greater audience as resort infrastructure improvements are implemented and the planned resort community is initiated.

Additionally, in assessing potential future demand, it should be recognized that the demand for planned mountain communities has continued to grow and diversify over the past several years. Access to world‐class skiing and dramatic scenic beauty has and will represent a primary catalyst for attracting buyers. Recent experience has shown, however, that many other factors contribute to the decision to invest and participate in such communities. Increasingly, summer and fall have proven important in the decision to purchase a home in a mountain resort. In fact, in most alpine communities such as that proposed in Snowbasin, second‐home purchasers spend more weeks in residence during summer and fall than winter. Families and empty‐ nesters, in particular, find the lifestyle benefits of summer and fall climate conditions and recreational activities to be of increased importance to their overall enjoyment of their vacation properties. Often, purchasers are also motivated by the potential of part‐time use of the property in the initial phases of ownership, with the longer‐term intention of year‐round occupancy later on, either in retirement or when greater schedule flexibility is in place.

Also contributing positively to the appeal of high‐quality lifestyle communities as a place to live is the increased flexibility brought about by the Internet and sophisticated communications. Households are less required to reside in traditional urban locations than ever before. Locations such as the Ogden Valley, with convenient major airport access, have become realistic alternatives for a broad spectrum of professionals who are able to be more selective in where they choose to live.

Finally, Snowbasin also offers considerable potential for households that are part of the larger Salt Lake City/Ogden area to choose to live in a resort environment, and at the same time maintain their employment in and usage of the metropolitan area. Each of these factors contributes positively to the long‐term potential for success of the proposed Snowbasin development.

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Development Program and Related Building and Occupancy Measures

Development Program by Area and Phase

As illustrated in Table 1 below, the proposed study area development program in Weber County encompasses a total of 2,051 residential units (256 single family units, 1,265 townhomes, and 530 condominiums), a 150 room hotel, and 215,938 square feet of commercial space. Development is projected to occur over 13 phases, each lasting an assumed five years each, for a potential overall development time horizon of 65 +/‐years. Actual timing would likely be contingent on market conditions.

Table 1 Study Area Development Program

Development Per Phase (5 years per phase) Area Unit Type 1 2 3 456 7 8 910111213TOTAL Area A Townhome 100 -- -- 150 98 91 ------439 Condominium ------100 70 ------170 Village - townhomes ------25 72 72 72 72 47 ------360 Village - condominiums ------25 72 72 72 72 47 ------360 Hotel Rooms ------150 ------150 Commercial (sqft) ------10,000 15,188 15,188 15,188 15,188 5,188 ------75,938 Area B Single Family ------27 27 27 27 27 136 Townhome ------76 76 76 76 76 382 Area F - Weber only Single Family ------11 11 ------22 Area G Single Family -- 25 10 10 10 10 10 10 14 ------98 Townhome -- -- 8888 8 8 8888--84 Commercial (sqft) -- 70,000 20,000 20,000 30,000 ------140,000 Weber Total Single Family -- 25 10 21 21 10 10 10 41 27 27 27 27 256 (excl. Area H) Townhome 100 -- 8 158 106 99 8 8 85 85 85 85 76 905 Condominium ------100 70 ------170 Village - townhomes ------25 72 72 72 72 47 ------360 Village - condominiums ------25 72 72 72 72 47 ------360 Hotel Rooms ------150 ------150 Commercial (sqft) -- 70,000 20,000 30,000 45,188 15,188 15,188 15,188 5,188 ------215,938 Source: Design Workshop, Inc. Note: Columns may not sum to totals due to rounding.

Assumptions Regarding Use and Value of Residential Units

In order to estimate potential economic and fiscal impacts of the proposed development, it is necessary to develop a variety of assumptions regarding the use and value of residential units. While these assumptions are believed to reflect a realistic functional scenario for the project

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(based on experiences at comparable developments at other mountain resorts), it should be recognized that actual patterns could vary from those assumed here.

Table 2 below illustrates the assumed usage patterns of residential and hotel units. Units have been assigned to the categories of short‐term lodging rentals, second homes, and local resident occupied units. Assumptions are based loosely on general patterns observed at other mountain resorts, in RRC’s and the consultant team’s experience and research. As shown, use of residential units as short‐term rentals is anticipated to be most prevalent close the ski area base (e.g. Area A “village”), and decrease down the mountain. Usage patterns are also projected to vary by unit type, with condominiums generally expected to have the highest levels of short‐term rental use, decreasing progressively for townhomes and single family homes.

Table 2 Assumed Usage Patterns of Residential and Hotel Units, by Unit Type and Area

Area A Area B Area F (Weber only) Area G % short-term % second % local % short-term % second % local % short-term % second % local % short-term % second % local rental home resident rental home resident rental home resident rental home resident Single Family ------20% 55% 25% 20% 55% 25% 10% 20% 70% Townhome 40% 45% 15% 40% 45% 15% ------10% 30% 60% Condominium 45% 40% 15% ------Village - townhomes 50% 45% 5% ------Village - condominiums 75% 20% 5% ------Hotel Rooms 100% 0% 0% ------Source: RRC Associates.

Table 3 to follow illustrates the assumed occupancy patterns of residential and hotel units. Short‐term rental units are specified in terms of the average annual percentage of days they are assumed to be occupied by short‐term renters, by owners / owner guests, or vacant. Similarly, second homeowner units are assigned occupancy / vacancy ratios, while local resident units are assumed to be 100% occupied. The table also outlines the assumed average number of persons per unit when the unit is occupied by varying types of users. Finally, for units used as short‐ term rentals, the assumed average daily rental rate is shown.

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Table 3 Assumed Occupancy Patterns of Residential and Hotel Units, by Unit Type and Area

Use of Short-Term Rental Units Use of 2nd Homes Local Res. Persons per Unit by Occupancy Type (All Areas) (all areas) Occup. (All Areas) ADR (rentals) % used as When used as short-term % used by % used by % used by short-term When used by When used by Avg Daily rental owner/ guest % vacant owner/ guest % vacant resident rental owner/ guest resident Room Rate Single Family 25% 15% 60% 25% 75% 100% 3.0 3.0 3.2 $325 Townhome 30% 10% 60% 25% 75% 100% 2.7 2.7 2.7 $250 Condominium 30% 10% 60% 25% 75% 100% 2.7 2.7 2.7 $225 Village - townhomes 35% 10% 55% 25% 75% 100% 2.7 2.7 2.7 $275 Village - condominiums 40% 10% 50% 25% 75% 100% 2.7 2.7 2.7 $275 Hotel Rooms 65% 0% 35% 0% 0% -- 1.7 0.0 0.0 $275 Source: RRC Associates.

Table 4 below illustrates the assumed market values (prices as sold) of residential units in the respective areas, for purposes of calculating a variety of economic and fiscal impacts later in the analysis. Also shown is the assumed average square footage of residential units, averaged across all areas, for purposes of later economic impact calculations.

Table 4 Assumed Market Value and Square Footage of Residential Units, by Unit Type and/or Area

Sqft/unit (project average Area A Area B Area F (Weber only) Area G across all areas) Single Family -- $1,400,000 $1,400,000 $900,000 3,000 Townhome $750,000 $750,000 -- $600,000 1,600 Condominium $500,000 ------1,200 Village - townhomes $750,000 ------1,600 Village - condominiums $500,000 ------1,200 Source: RRC Associates. Market values are expressed in current (2010) dollars.

Projected Occupancy Patterns

Applying the assumptions outlined above to the proposed development program yields a variety of aggregate occupancy projections for the development.

As illustrated in Table 5 to follow, upon buildout at the completion of Phase 13, 1,055 residential/hotel units are projected to be used as short‐term rentals (48 percent of the 2,201 total residential/hotel units), 803 units (36 percent) are projected to be used as second homes, and 343 units (16 percent) are projected to be used by local residents.

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As illustrated in Table 6 to follow, upon buildout, an annual daily average of 403 residential/hotel units (18 percent) are projected to be occupied by short‐term renters, 293 units (13 percent) are projected to be occupied by second homeowners or their guests, 343 units (16 percent) are projected to be occupied by local residents, and 1,162 units (53 percent) are projected to be vacant (not occupied).

As illustrated in Table 7 to follow, upon buildout, the project is anticipated to have an average daily population of 2,610 persons, of which 993 are projected to be short‐term renters (38 percent), 802 are projected to be second homeowners (31 percent), and 981 (38 percent) are projected to be local residents.

Table 5 Projected Number of Residential/Hotel Units by Type of Use

CUMULATIVE UNITS BY END OF PHASE Unit Type 1 2 3 4 5 6 7 8 9 10 11 12 13 Cumulative Number of Units Used for Short-Term Rentals Single Family -- 3 3 7 10 11 12 13 20 25 31 36 41 Townhome 40 40 41 102 142 179 180 181 212 243 275 306 337 Condominium ------45 77 77 77 77 77 77 77 77 Village - townhomes ------13 49 85 121 157 180 180 180 180 180 Village - condominiums ------19 73 127 181 235 270 270 270 270 270 Hotel Rooms ------150 150 150 150 150 150 150 150 TOTAL 40 43 44 140 318 628 719 811 908 945 982 1,019 1,055 Cumulative Number of Units Used as Second Homes Single Family -- 5 7 15 23 25 27 29 47 62 77 92 107 Townhome 45 45 48 118 164 208 210 213 250 286 323 360 395 Condominium ------40 68 68 68 68 68 68 68 68 Village - townhomes ------11 44 76 108 141 162 162 162 162 162 Village - condominiums ------5 19 34 48 63 72 72 72 72 72 Hotel Rooms ------TOTAL 45 50 54 149 290 410 462 513 598 650 702 754 803 Cumulative Number of Units Used by Local Residents Single Family -- 18 24 34 44 50 57 64 81 88 95 101 108 Townhome 15 15 20 48 67 86 91 96 113 129 146 162 174 Condominium ------15 26 26 26 26 26 26 26 26 Village - townhomes ------1 5 8 12 16 18 18 18 18 18 Village - condominiums ------1 5 8 12 16 18 18 18 18 18 Hotel Rooms ------TOTAL 15 33 44 84 136 179 198 217 255 278 302 325 343 TOTAL RESIDENTIAL & HOTEL UNITS 100 125 143 372 744 1,217 1,379 1,541 1,761 1,873 1,985 2,097 2,201

Source: RRC Associates. Note: Columns may not sum to totals due to rounding.

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Table 6 Projected Number of Residential / Hotel Units Occupied by Day (Annual Average), by Type of Use

CUMULATIVE UNITS BY END OF PHASE Unit Type 1 2 3 4 5 6 7 8 9 10 11 12 13 Average Number of Units Occupied by SHORT-TERM RENTERS - Annual Daily Average Single Family -- 1 1 2 2 3 3 3 5 6 8 9 10 Townhome 12 12 12 31 43 54 54 54 64 73 82 92 101 Condominium ------14 23 23 23 23 23 23 23 23 Village - townhomes ------4 17 30 42 55 63 63 63 63 63 Village - condominiums ------8 29 51 72 94 108 108 108 108 108 Hotel Rooms ------98 98 98 98 98 98 98 98 TOTAL 12 13 13 44 105 257 292 327 360 371 382 392 403 Average Number of Units Occupied by SECOND HOMEOWNERS - Annual Daily Average Single Family -- 2 2 5 7 8 8 9 15 19 24 28 33 Townhome 15 15 16 40 55 70 71 71 84 96 108 121 132 Condominium ------15 25 25 25 25 25 25 25 25 Village - townhomes ------4 16 27 39 51 59 59 59 59 59 Village - condominiums ------3 12 21 30 39 45 45 45 45 45 Hotel Rooms ------TOTAL 15 17 18 51 105 151 173 195 226 243 260 277 293 Average Number of Units Occupied by LOCAL RESIDENTS - Annual Daily Average Single Family -- 18 24 34 44 50 57 64 81 88 95 101 108 Townhome 15 15 20 48 67 86 91 96 113 129 146 162 174 Condominium ------15 26 26 26 26 26 26 26 26 Village - townhomes ------1 5 8 12 16 18 18 18 18 18 Village - condominiums ------1 5 8 12 16 18 18 18 18 18 Hotel Rooms ------TOTAL 15 33 44 84 136 179 198 217 255 278 302 325 343 Average Number of VACANT Units - Annual Daily Average Single Family -- 5 7 15 23 25 27 29 47 61 76 90 105 Townhome 58 58 60 149 208 263 265 268 314 361 407 454 498 Condominium ------57 97 97 97 97 97 97 97 97 Village - townhomes ------15 59 104 148 192 221 221 221 221 221 Village - condominiums ------13 51 89 127 164 189 189 189 189 189 Hotel Rooms ------53 53 53 53 53 53 53 53 TOTAL 58 63 67 193 399 630 716 803 920 981 1,042 1,103 1,162 TOTAL RESIDENTIAL & HOTEL UNITS 100 125 143 372 744 1,217 1,379 1,541 1,761 1,873 1,985 2,097 2,201

Source: RRC Associates. Note: Columns may not sum to totals due to rounding.

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Table 7 Projected Average Daily Population by Population Type

AVERAGE DAILY POPULATION BY END OF PHASE Population Type 1 2 3 4 5 6 7 8 9 10 11 12 13 Short-term rental population (annual daily average) 32 34 36 119 283 598 691 785 876 905 935 964 993 Second home population (annual daily average) 41 46 50 140 285 410 470 529 616 663 710 757 802 Local resident population (annual daily average) 41 97 132 244 388 508 563 618 729 795 862 928 981 Total population (annual daily average) 114 177 218 504 956 1,350 1,558 1,767 2,055 2,197 2,340 2,483 2,610

Source: RRC Associates. Note: Columns may not sum to totals due to rounding.

Projected Property Values

Based on the assumptions outlined previously, the total market value of the development at buildout is projected to be approximately $1.60 billion. The value of the residential portion of the development at buildout is projected to be approximately $1.51 billion. The hotel and commercial portions of the development are projected to have a value of approximately $90 million, using assumptions regarding the income and profitability of these operations. Total taxable value for property tax purposes is projected at a slight lower $1.48 billion (after adjusting for primary residences taxed at 55 percent of value).

Table 8 Projected Property Value: Primary Residences and Non-Primary Residences

CUMULATIVE VALUE BY END OF PHASE Unit Type Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Cumulative RESIDENTIAL Property Value - UNITS OCCUPIED AS PRIMARY RESIDENCE Single Family -- $15,750,000 $21,924,000 $31,948,000 $41,972,000 $48,146,000 $54,320,000 $60,494,000 $78,960,000 $88,480,000 $98,000,000 $107,520,000 $117,040,000 Townhome $11,250,000 $11,250,000 $14,274,000 $34,173,000 $48,222,000 $61,483,500 $64,507,500 $67,531,500 $79,150,500 $90,769,500 $102,388,500 $114,007,500 $122,602,500 Condominium ------$7,500,000 $12,750,000 $12,750,000 $12,750,000 $12,750,000 $12,750,000 $12,750,000 $12,750,000 $12,750,000 Village - townhomes ------$937,500 $3,637,500 $6,337,500 $9,037,500 $11,737,500 $13,500,000 $13,500,000 $13,500,000 $13,500,000 $13,500,000 Village - condominiums ------$625,000 $2,425,000 $4,225,000 $6,025,000 $7,825,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 TOTAL $11,250,000 $27,000,000 $36,198,000 $67,683,500 $103,756,500 $132,942,000 $146,640,000 $160,338,000 $193,360,500 $214,499,500 $235,638,500 $256,777,500 $274,892,500 Cumulative RESIDENTIAL Property Value - UNITS NOT OCCUPIED AS PRIMARY RESIDENCE Single Family -- $6,750,000 $9,396,000 $23,592,000 $37,788,000 $40,434,000 $43,080,000 $45,726,000 $78,120,000 $106,680,000 $135,240,000 $163,800,000 $192,360,000 Townhome $63,750,000 $63,750,000 $65,766,000 $163,407,000 $227,898,000 $287,926,500 $289,942,500 $291,958,500 $342,679,500 $393,400,500 $444,121,500 $494,842,500 $543,547,500 Condominium ------$42,500,000 $72,250,000 $72,250,000 $72,250,000 $72,250,000 $72,250,000 $72,250,000 $72,250,000 $72,250,000 Village - townhomes ------$17,812,500 $69,112,500 $120,412,500 $171,712,500 $223,012,500 $256,500,000 $256,500,000 $256,500,000 $256,500,000 $256,500,000 Village - condominiums ------$11,875,000 $46,075,000 $80,275,000 $114,475,000 $148,675,000 $171,000,000 $171,000,000 $171,000,000 $171,000,000 $171,000,000 TOTAL $63,750,000 $70,500,000 $75,162,000 $216,686,500 $423,373,500 $601,298,000 $691,460,000 $781,622,000 $920,549,500 $999,830,500 $1,079,111,500 $1,158,392,500 $1,235,657,500 Cumulative RESIDENTIAL Property Value - TOTAL Single Family -- $22,500,000 $31,320,000 $55,540,000 $79,760,000 $88,580,000 $97,400,000 $106,220,000 $157,080,000 $195,160,000 $233,240,000 $271,320,000 $309,400,000 Townhome $75,000,000 $75,000,000 $80,040,000 $197,580,000 $276,120,000 $349,410,000 $354,450,000 $359,490,000 $421,830,000 $484,170,000 $546,510,000 $608,850,000 $666,150,000 Condominium ------$50,000,000 $85,000,000 $85,000,000 $85,000,000 $85,000,000 $85,000,000 $85,000,000 $85,000,000 $85,000,000 Village - townhomes ------$18,750,000 $72,750,000 $126,750,000 $180,750,000 $234,750,000 $270,000,000 $270,000,000 $270,000,000 $270,000,000 $270,000,000 Village - condominiums ------$12,500,000 $48,500,000 $84,500,000 $120,500,000 $156,500,000 $180,000,000 $180,000,000 $180,000,000 $180,000,000 $180,000,000 TOTAL $75,000,000 $97,500,000 $111,360,000 $284,370,000 $527,130,000 $734,240,000 $838,100,000 $941,960,000 $1,113,910,000 $1,214,330,000 $1,314,750,000 $1,415,170,000 $1,510,550,000

Source: RRC Associates.

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Table 9 Projected Property Value: Hotel and Commercial

CUMULATIVE VALUE BY END OF PHASE Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Hotel - Area A (1) Hotel rooms ------150 150 150 150 150 150 150 150 Average annual occupancy ------65% 65% 65% 65% 65% 65% 65% 65% Average daily rate ------$250 $250 $250 $250 $250 $250 $250 $250 Room revenue ------$8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 Room revenue share of total revenue ------61% 61% 61% 61% 61% 61% 61% 61% Total revenue ------$14,585,041 $14,585,041 $14,585,041 $14,585,041 $14,585,041 $14,585,041 $14,585,041 $14,585,041 Net operating margin ------20% 20% 20% 20% 20% 20% 20% 20% Net operating income ------$2,917,008 $2,917,008 $2,917,008 $2,917,008 $2,917,008 $2,917,008 $2,917,008 $2,917,008 Capitalization rate ------8% 8% 8% 8% 8% 8% 8% 8% Hotel property value ------$36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 Commercial - Area A (2) Commercial (sqft) 10,000 25,188 40,375 55,563 70,750 75,938 75,938 75,938 75,938 75,938 Annual rent per sqft ------$40 $40 $40 $40 $40 $40 $40 $40 $40 $40 Annual rent ------$400,000 $1,007,504 $1,615,008 $2,222,512 $2,830,016 $3,037,520 $3,037,520 $3,037,520 $3,037,520 $3,037,520 Operating income as a % of rent ------65% 65% 65% 65% 65% 65% 65% 65% 65% 65% Operating income ------$260,000 $654,878 $1,049,755 $1,444,633 $1,839,510 $1,974,388 $1,974,388 $1,974,388 $1,974,388 $1,974,388 Capitalization rate ------8% 8% 8% 8% 8% 8% 8% 8% 8% 8% Property value ------$3,250,000 $8,185,970 $13,121,940 $18,057,910 $22,993,880 $24,679,850 $24,679,850 $24,679,850 $24,679,850 $24,679,850 Commercial - Area G (2) Commercial (sqft) -- 70,000 90,000 110,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 Annual rent per sqft -- $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 Annual rent -- $1,750,000 $2,250,000 $2,750,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 Operating income as a % of rent -- 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% Operating income -- $1,137,500 $1,462,500 $1,787,500 $2,275,000 $2,275,000 $2,275,000 $2,275,000 $2,275,000 $2,275,000 $2,275,000 $2,275,000 $2,275,000 Capitalization rate -- 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% Property value -- $14,218,750 $18,281,250 $22,343,750 $28,437,500 $28,437,500 $28,437,500 $28,437,500 $28,437,500 $28,437,500 $28,437,500 $28,437,500 $28,437,500 TOTAL VALUE Hotel ------$36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 Commercial -- $14,218,750 $18,281,250 $25,593,750 $36,623,470 $41,559,440 $46,495,410 $51,431,380 $53,117,350 $53,117,350 $53,117,350 $53,117,350 $53,117,350

Source: RRC Associates. (1) STR 2008 HOST Report is source for selected hotel operating assumptions [i.e. room revenue equivalent to 61% of total revenue (luxury hotel average) and 20% operating margin]. (2) Commercial space operating income equal to 65% of rent is derived from “2004 Dollars and Cents of Shopping Centers” (neighborhood shopping center average).

Table 10 Projected Total Market Value and Taxable Value

CUMULATIVE VALUE BY END OF PHASE Property type Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Residential - primary residences $11,250,000 $27,000,000 $36,198,000 $67,683,500 $103,756,500 $132,942,000 $146,640,000 $160,338,000 $193,360,500 $214,499,500 $235,638,500 $256,777,500 $274,892,500 Residential - other $63,750,000 $70,500,000 $75,162,000 $216,686,500 $423,373,500 $601,298,000 $691,460,000 $781,622,000 $920,549,500 $999,830,500 $1,079,111,500 $1,158,392,500 $1,235,657,500 Hotel ------$36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 $36,462,602 Commercial -- $14,218,750 $18,281,250 $25,593,750 $36,623,470 $41,559,440 $46,495,410 $51,431,380 $53,117,350 $53,117,350 $53,117,350 $53,117,350 $53,117,350 Total market value $75,000,000 $111,718,750 $129,641,250 $309,963,750 $563,753,470 $812,262,042 $921,058,012 $1,029,853,982 $1,203,489,952 $1,303,909,952 $1,404,329,952 $1,504,749,952 $1,600,129,952 Total taxable value (1) $69,937,500 $99,568,750 $113,352,150 $279,506,175 $517,063,045 $752,438,142 $855,070,012 $957,701,882 $1,116,477,727 $1,207,385,177 $1,298,292,627 $1,389,200,077 $1,476,428,327

Source: RRC Associates. (1) For primary residential, taxable value is equal to 55 percent of market value.

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Economic Impact Analysis

This element of the study addresses the direct and secondary economic impacts of the Snowbasin project to Weber County. The analysis addresses impacts in terms of economic output, jobs, and aggregate labor income. The analysis utilizes a variety of assumptions regarding the economic performance of various elements of the project which are believed to be realistic, but which may differ from actual operating performance of the development. The analysis also relies heavily on economic data and factors for Weber County as of 2008 from the IMPLAN economic impact modeling system.3

The economic impacts discussed in this report are economic impacts which are projected to occur in Weber County as a result of the project. Economic impacts which might occur outside of Weber County are excluded. All dollar values are expressed in current (2010) dollars, without discount or inflation factors.

Methodology

This economic analysis addresses both the direct and secondary (indirect plus induced) economic impacts of the Snowbasin development, as measured by output, employment, and labor income. For clarity, these terms are defined below. • “Output” is the value of goods and services produced and sold to final users during a calendar year. “Direct output” represents the output associated with the first‐order round of economic activity generated by the project. Direct employment (i.e. jobs) and direct labor income (i.e. employee compensation and proprietor income) are associated with production of direct output. Most of the direct impacts of the Snowbasin development are expected to occur onsite within the Snowbasin project area. • “Secondary” (or “multiplier”) impacts represent the sum of “indirect” and “induced” impacts, as defined below: o “Indirect” impacts represent the output, employment, and labor income associated with backwards‐linked industries that supply goods and services to businesses directly serving final users, along with subsequent related follow‐on rounds of economic activity in the local economy. o “Induced” impacts represent the output/employment/income resulting from the spending of employee income earned directly or indirectly as a result of the project, along with subsequent related follow‐on rounds of economic activity in the local economy.

3 IMPLAN is an economic modeling software tool with accompanying local data that is produced by the Minnesota IMPLAN Group. IMPLAN (“IMpacts for PLANning”) is widely used for economic impact analysis.

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o Secondary impacts are anticipated to primarily occur offsite of the development. • “Total” impacts represent the sum of direct, indirect, and induced impacts. • The ratio of total economic activity (direct, indirect, and induced) to direct economic activity is referred to as a “multiplier.” For a given industry, separate multipliers exist for output, employment, and labor income.

The approach of the economic impact analysis is to first estimate direct output associated with the project, focusing on specified categories of economic activity which are projected to occur. Then, total output estimates are developed by multiplying direct output by applicable IMPLAN multipliers for Weber County as of 2008. Additionally, direct employment and direct labor income impacts are derived from output:employment and output:labor income ratios for Weber County as provided by IMPLAN. Finally, total employment and total labor income impacts are estimated based on multipliers supplied by IMPLAN. Each of these steps is summarized in the following sections of the report.

Underlying the use of 2008 Weber County employment:output and labor income:output ratios for economic projections is the assumption that Snowbasin will have similar economic interrelationships between these measures as the same sectors currently in Weber County. While this assumption is reasonable for purposes of baseline economic projections, it should be noted that Snowbasin’s economic activity in applicable sectors may differ, due to unique aspects of its product profile, location, and scope.

It should also be noted that while much of the projected direct economic activity will by definition or expectation take place within the project area, a significant amount will almost certainly take place offsite, particularly much of the economic activity associated with secondary impacts.

It should also be noted that employment impacts should be understood as “job” impacts, and that a full‐time job and part‐time job are each counted as one job. In many tourism‐oriented industry sectors, a significant share of jobs are part‐time in nature, and many employees hold multiple jobs. As such, the number of individual persons employed in the development will likely be less than the number of jobs created by the development.

Summary of Impacts

Total economic impacts of the project are anticipated to increase as the project builds out and the economic activity of visitors, second homeowners, and local resident occupants of the project correspondingly grows. As illustrated in Table 11 to follow, upon project stabilization after construction buildout, ongoing economic impacts are projected as follows:

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o Output: Direct annual output attributable to the project upon stabilization after buildout is projected at $132 million. Secondary output, anticipated to primarily occur offsite of the development, is projected at $113 million. Total annual output is projected at $246 million.

o Employment: Direct jobs created by the development upon stabilization after buildout are projected at 1,960 jobs. As is typical for resort settings and the hospitality and service industries, many of these jobs are anticipated to be part‐ time in nature, and many employees will likely hold more than one job. As such, the number of individual persons employed in the development will likely be less than the number of jobs.

Secondary or “multiplier” jobs, which are anticipated to primarily occur offsite of the development, are projected at 1,169 jobs. Total jobs are projected at 3,130.

o Labor income: Direct labor income is projected at $41 million annually, secondary labor income is projected at $33 million, and total labor income is projected at $74 million.

Table 11 Summary of Economic Impacts Per Year at End of Phase & at Buildout

IMPACT BY YEAR AT END OF PHASE Stabilized Measure Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout Direct output $10,369,745 $9,442,585 $7,917,078 $30,559,137 $57,896,346 $93,310,872 $95,643,037 $107,010,921 $123,554,489 $123,653,302 $128,897,749 $134,142,196 $138,879,487 $132,425,777 Total output $18,157,410 $18,388,669 $17,074,346 $57,347,755 $106,359,192 $167,346,492 $172,868,675 $192,982,802 $223,234,358 $225,565,937 $236,231,587 $246,897,283 $256,247,754 $245,828,989

Direct employment 126 116 105 387 763 1,285 1,370 1,537 1,762 1,792 1,870 1,949 2,021 1,960 Total employment 206 213 207 671 1,269 2,044 2,159 2,415 2,782 2,838 2,974 3,110 3,232 3,130

Direct labor income $3,449,404 $3,200,952 $2,580,126 $10,025,744 $18,704,037 $29,746,761 $29,946,280 $33,447,423 $38,709,735 $38,454,100 $40,049,964 $41,645,829 $43,063,271 $40,748,645 Total labor income $5,789,537 $5,991,721 $5,463,113 $18,204,460 $33,206,859 $51,483,595 $52,444,853 $58,437,147 $67,781,425 $68,176,018 $71,407,463 $74,638,909 $77,423,009 $73,869,060

Source: RRC Associates.

As one means of placing these economic measures in context, the economic impact of Snowbasin can be compared to the size of the overall Weber County economy in 2008. As illustrated in Table 12 to follow, upon project stabilization, Snowbasin would directly or indirectly generate economic activity equivalent to 1.6 percent of the existing (2008) output of the Weber County economy; 2.6 percent of the employment (jobs); and 1.5 percent of the labor income.

For further perspective, it should also be noted that Weber County as a whole is projected to experience significant future growth. The Governor's Office of Planning and Budget 2008 Baseline Projections envision Weber County employment rising from 124,762 in 2008 to 273,362 in 2060, an increase of 119 percent. In this context, in the final year of buildout of the

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Snowbasin project, Snowbasin would directly or indirectly generate employment equivalent to 1.1 percent of the projected total employment in Weber County in 2060.

Table 12 Economic Impacts of Snowbasin at Project Stabilization (Upon Buildout) in Comparison to the Overall Size of the Weber County Economy in 2008 and 2060

Snowbasin Project: Weber County Ratio of Snowbasin to Weber County Ratio of Snowbasin to Measure Stabilization After Buildout Overall 2008 2008 Weber Co. Economy Projected 2060 2060 Weber Co. Economy Total output $245,828,989 $15,057,484,213 1.6% Total employment 3,130 120,686 2.6% 273,362 1.1% Total labor income $73,869,060 $4,855,817,937 1.5% Source: RRC Associates; IMPLAN 2008 (2008 Weber County data); Governor's Office of Planning and Budget 2008 Baseline Projections (2060 employment projection).

Direct Output Calculations

For purposes of this analysis, total direct output is estimated as the sum of four sub‐categories of direct output which are analyzed separately:

1. Impacts associated with initial project construction (one‐time, non‐recurring impacts). 2. Trip‐related impacts associated with the spending of visitors and second homeowners coming to Snowbasin (recurring, ongoing impacts). 3. Impacts associated with purchases of home furnishings, the maintenance of second homes, and sales transaction services for residential units (other than units owned by local residents, which are analyzed separately) (recurring, ongoing impacts). 4. Impacts associated with the household spending of local resident occupants of units at Snowbasin. This analysis assumes that these local resident households would not live in Weber County and not make consumption purchases in Weber County unless the Snowbasin project was built.4

Note that in addition to the impacts above, there are likely to be ongoing construction impacts associated with periodic remodeling / additions / redevelopment. While not explicitly estimated in this analysis, these impacts are partially included, specifically as part of the secondary impacts associated with short‐term rental units, the hotel, and the retail development.

Direct impacts have been estimated for each of the four categories of impact described above via specific case studies for each, as summarized below:

4 Insofar as the objective of this analysis is to document new, incremental economic activity occurring in Weber County as a result of the Snowbasin project, local resident occupant impacts are only relevant to the extent that local residents choose to live in the County as a direct result of the project.

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1. Initial construction impacts: The value of construction‐related activities was estimated based on the development assumptions outlined above, as well as additional RRC assumptions as needed. Construction related activities were disaggregated into soft costs (architecture, engineering, etc.) and hard costs (building materials and construction services). Adjustments were made to exclude assumed purchases of goods and services from outside Weber County. Additionally, to properly account for incremental economic activity associated with purchases of construction materials, retail and wholesale margins were applied to gross purchases to exclude the cost of goods sold.

As summarized in Table 13 to follow, gross construction costs for the entirety of the development are projected at approximately $1.02 billion. Total direct output in Weber County associated with this construction is projected at $455 million. On an average annual basis, assuming a 65 year buildout, annual construction costs are $15.7 million, while average annual direct output in Weber County is $7.0 million.

2. Trip‐related visitor and second homeowner spending impacts: Utilizing assumptions regarding typical visitor spending patterns, estimates were developed for spending in Weber County by visitors and second homeowners staying at Snowbasin on the following items: lodging/short term rentals, eating and drinking services, recreation, and other retail / services. Direct output is equivalent to sales in the case of each item except retail, where direct output is equivalent to retail gross margins (i.e. sales minus cost of goods sold), as estimated by IMPLAN as of 2008.

As summarized in Table 14 to follow, direct output associated with trip‐related spending by visitors and second homeowners staying at Snowbasin is projected to total approximately $122 million upon project stabilization after buildout. Approximately $38 million of this output is associated with lodging, while $84 million is associated with purchases of other goods and services.

3. Impacts associated with furnishings purchases, maintenance of second homes, and sales transaction services for residential units (local resident units excluded): Residential furnishing impacts were estimated for initial sales and resales, using assumptions regarding sales frequency, value of furnishings, and other factors.5 Maintenance of second homes was estimated using estimates of employment associated with second home maintenance based on RRC research in other mountain resort communities, as converted into output estimates by reference to a direct output:employment ratio estimated by IMPLAN. Sales transaction services, encompassing real estate

5 Maintenance expenditures associated with units in the short term rental pool are accounted for as part of the secondary impact associated with the rental of short‐term units. Maintenance expenditures associated with local resident occupied units are accounted for as part of the local resident spending impact analysis.

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commissions and other transaction services (appraisal, legal, etc.), were estimated using assumptions regarding sales frequency, sales value, commission levels, and other factors. All data exclude local resident units, whose impacts are addressed separately (point 4 below).

As summarized in Table 15 to follow, direct output associated with these purchases and services is projected to total approximately $10.1 million annually upon project stabilization after buildout. Approximately $5.6 million of this output is associated with sales transaction services, $3.9 million is associated with second home maintenance, and $0.6 million is associated with furnishing purchases.

4. Impacts associated with the ongoing spending of local resident occupants of units in Snowbasin (excluding initial home construction): Local residents were assumed to have an average annual household income of $150,000. The economic impacts associated with increased household spending are counted in the IMPLAN system as induced effects. Thus, direct impact of local resident household spending is $0, and all the economic impacts are accounted for as secondary impacts (discussed later). Impacts associated with initial home construction are excluded to avoid double‐counting impacts.

Total direct output in Weber County, based on the sum of the above four sub‐categories of impacts, is summarized in Table 16 to follow. Total direct output is estimated at approximately $132 million upon project stabilization after buildout. The dominant share of impacts is attributable to trip‐related spending ($122 million), followed by maintenance, furnishing, and sales transaction services ($10 million).

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Table 13 Direct Output Per Phase and In Total: Construction

OUTPUT BY PHASE Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 TOTAL A. Aggregate construction costs $46,307,692 $42,557,692 $22,017,692 $110,267,692 $156,164,592 $153,614,592 $71,214,592 $71,214,592 $105,474,592 $60,627,692 $60,627,692 $60,627,692 $57,267,692 $1,017,984,500 Assumptions: Building square footage per development assumptions; $250 construction cost/sqft; $82 million utilities and site infrastructure costs pro-rated over all phases ($4m/mile roads & utilities*15.5 mi of roads + $15m other costs).

B. Apportionment of costs by type of cost Soft costs (assume 25%) $11,576,923 $10,639,423 $5,504,423 $27,566,923 $39,041,148 $38,403,648 $17,803,648 $17,803,648 $26,368,648 $15,156,923 $15,156,923 $15,156,923 $14,316,923 $254,496,125 Building materials (assume 35%) $16,207,692 $14,895,192 $7,706,192 $38,593,692 $54,657,607 $53,765,107 $24,925,107 $24,925,107 $36,916,107 $21,219,692 $21,219,692 $21,219,692 $20,043,692 $356,294,575 Construction services (assume 40%) $18,523,077 $17,023,077 $8,807,077 $44,107,077 $62,465,837 $61,445,837 $28,485,837 $28,485,837 $42,189,837 $24,251,077 $24,251,077 $24,251,077 $22,907,077 $407,193,800 Total construction costs $46,307,692 $42,557,692 $22,017,692 $110,267,692 $156,164,592 $153,614,592 $71,214,592 $71,214,592 $105,474,592 $60,627,692 $60,627,692 $60,627,692 $57,267,692 $1,017,984,500

C. Direct output - soft costs (architecture, engineering, etc.) Aggregate soft costs $11,576,923 $10,639,423 $5,504,423 $27,566,923 $39,041,148 $38,403,648 $17,803,648 $17,803,648 $26,368,648 $15,156,923 $15,156,923 $15,156,923 $14,316,923 $254,496,125 Share of soft cost svcs purchased in Weber Co (est.) 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% Direct local output: soft costs $4,399,231 $4,042,981 $2,091,681 $10,475,431 $14,835,636 $14,593,386 $6,765,386 $6,765,386 $10,020,086 $5,759,631 $5,759,631 $5,759,631 $5,440,431 $96,708,528 Assumptions: Weber accounted for 5.6% of arch/eng emps in Weber/Davis/Salt Lake Counties in 2008 (QCEW), vs. 14.6% of pop'n=38% ratio. Assume similar ratio for Snowbasin.

D. Direct output - building materials Aggregate cost of construction materials $16,207,692 $14,895,192 $7,706,192 $38,593,692 $54,657,607 $53,765,107 $24,925,107 $24,925,107 $36,916,107 $21,219,692 $21,219,692 $21,219,692 $20,043,692 $356,294,575 % of materials purchased in Weber (est.) 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% Gross local purchases: construction materials $12,966,154 $11,916,154 $6,164,954 $30,874,954 $43,726,086 $43,012,086 $19,940,086 $19,940,086 $29,532,886 $16,975,754 $16,975,754 $16,975,754 $16,034,954 $285,035,660 Margin on purchases 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% 25.8% Direct local output: building materials $3,338,785 $3,068,410 $1,587,476 $7,950,301 $11,259,467 $11,075,612 $5,134,572 $5,134,572 $7,604,718 $4,371,257 $4,371,257 $4,371,257 $4,129,001 $73,396,682 Assume building materials sourced from a blend of wholesale trade establishments & retail blg materials establishments. Margin estimates from IMPLAN - 2008 Weber. Local purchase quotient estimation: Weber accounted for 9.4% of bldg/constr wholesale emps & 16.4% of retail bldg mat/garden supply emps in Weber/Davis/Salt Lake co's in 2008 (QCEW), vs. 14.6% of pop'n: blended ratio 88%. Assume somewhat lower share for Snowbasin given size & location.

E. Direct output - construction services Aggregate cost of construction services $18,523,077 $17,023,077 $8,807,077 $44,107,077 $62,465,837 $61,445,837 $28,485,837 $28,485,837 $42,189,837 $24,251,077 $24,251,077 $24,251,077 $22,907,077 $407,193,800 Share of construction employees from Weber County 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% Direct output - construction services $12,966,154 $11,916,154 $6,164,954 $30,874,954 $43,726,086 $43,012,086 $19,940,086 $19,940,086 $29,532,886 $16,975,754 $16,975,754 $16,975,754 $16,034,954 $285,035,660 Employee location quotient: Weber accounted for 11.3% of constr emps in Weber/Davis/Morgan/Salt Lake co's in 2008-QCEW, vs. 14.6% of pop'n=77% ratio. Assume slightly lower ratio for Snowbasin given location.)

F. Total construction-related output $20,704,169 $19,027,544 $9,844,110 $49,300,685 $69,821,189 $68,681,084 $31,840,044 $31,840,044 $47,157,690 $27,106,641 $27,106,641 $27,106,641 $25,604,385 $455,140,870 Source: RRC Associates.

Table 14 Direct Output Per Year at End of Phase and at Buildout: Visitor & Second Homeowner Trip-Related Spending

OUTPUT BY YEAR AT END OF PHASE Stabilized Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout A. Room rental spending (hotel & short-term rentals) $1,095,000 $1,169,141 $1,221,199 $4,172,954 $9,904,868 $24,059,158 $27,544,041 $31,028,924 $34,332,813 $35,353,718 $36,374,623 $37,395,528 $38,393,438 $38,393,438 Estimates based on occupancy rates and ADRs outlined in development assumptions.

B. Trip-related retail and services spending (excluding lodging) B.1 - Aggregate spending estimate Visitors & second homeowners - average daily population 74 80 86 260 568 1,007 1,161 1,314 1,491 1,568 1,645 1,721 1,795 1,795 Visitors & second homeowners - annual person days 26,855 29,319 31,236 94,842 207,396 367,670 423,692 479,713 544,378 572,325 600,272 628,219 655,214 655,214 Average per capita daily retail expenditure in Weber Co $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 Annual, incremental retail sales $4,028,231 $4,397,794 $4,685,461 $14,226,358 $31,109,352 $55,150,485 $63,553,745 $71,957,005 $81,656,666 $85,848,736 $90,040,807 $94,232,878 $98,282,149 $98,282,149 $150/day estimate is RRC assumption. Compare to Park City out of state visitor: $340/day winter, $264/day summer; summer overnight in-state $185 (figures include lodging). (PC Chamber)

B.2 - Output estimates by sector (eating/drinking, recreation, other retail/services) In analysis below, spending derived immediately above is apportioned in equal thirds to eating/drinking, recreation, and other retail/services (roughly per Dean Runyan Assoc - Economic Analysis of Blaine Co - 2001, p. 46 - short-term visitor spending)

Share of non-lodging spending Direct output: Eating and drinking places 33% $1,342,744 $1,465,931 $1,561,820 $4,742,119 $10,369,784 $18,383,495 $21,184,582 $23,985,668 $27,218,889 $28,616,245 $30,013,602 $31,410,959 $32,760,716 $32,760,716 Direct output: Recreation 33% $1,342,744 $1,465,931 $1,561,820 $4,742,119 $10,369,784 $18,383,495 $21,184,582 $23,985,668 $27,218,889 $28,616,245 $30,013,602 $31,410,959 $32,760,716 $32,760,716 Direct output: Other Services 11% $447,581 $488,644 $520,607 $1,580,706 $3,456,595 $6,127,832 $7,061,527 $7,995,223 $9,072,963 $9,538,748 $10,004,534 $10,470,320 $10,920,239 $10,920,239 Direct expenditures: Other Retail 22% Other retail: gross sales $895,163 $977,288 $1,041,214 $3,161,413 $6,913,189 $12,255,663 $14,123,055 $15,990,446 $18,145,926 $19,077,497 $20,009,068 $20,940,639 $21,840,478 $21,840,478 Other retail: margin IMPLAN 2008 - Weber Co 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% 34.1% Direct output: Other Retail $305,250 $333,255 $355,054 $1,078,042 $2,357,398 $4,179,181 $4,815,962 $5,452,742 $6,187,761 $6,505,426 $6,823,092 $7,140,758 $7,447,603 $7,447,603

Assume "retail" portion is an equally weighted mix of food & beverage stores, sporting goods / hobby / book / music stores, clothing & clothing accessory stores, gasoline stations, general merchandise stores, and miscellaneous retail stores.

C. Total trip-related impacts Summed from above $4,533,319 $4,922,902 $5,220,500 $16,315,940 $36,458,429 $71,133,161 $81,790,693 $92,448,225 $104,031,313 $108,630,383 $113,229,454 $117,828,524 $122,282,712 $122,282,712 Source: RRC Associates.

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Snowbasin Cost Benefit Analysis May 5, 2010

Table 15 Direct Output Per Year at End of Phase and at Buildout: Maintenance Services, Furnishing Purchases, and Sales Transaction Services (Local Residents Excluded)

OUTPUT BY YEAR AT END OF PHASE Stabilized Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout A. Maintenance of second homes which are not in the rental pool Number used as second homes 45 50 54 149 290 410 513 598 650 702 754 803 803 Employees per unit (services provided for the home) 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Employees 5 5 5 15 29 41 51 60 65 70 75 80 80 Output per employee: svcs to bldgs and dwellings $49,129 $49,129 $49,129 $49,129 $49,129 $49,129 $49,129 $49,129 $49,129 $49,129 $49,129 $49,129 $49,129 Direct output: svcs to bldgs and dwellings $221,080 $245,645 $267,654 $730,842 $1,425,672 $2,016,350 $2,520,216 $2,939,040 $3,193,823 $3,448,605 $3,703,388 $3,945,790 $3,945,790 Employees/unit: RRC assumption based on second homeowner survey research. Output/employee: IMPLAN Weber 2008.

B. Residential furnishing purchases (movable, non-fixed items) - excl. local residents B.1 - Furnishings upon initial sale New res. units built per phase - excl. local res. occupied 85 8 6 190 320 280 143 182 89 89 89 85 0 New residential units built per year (I.e. per phase/5) 17 2 1 38 64 56 29 36 18 18 18 17 0 Avg cost of furnishing per unit (incl. interior design svcs) $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Total cost of initial furnishings - per year $850,000 $75,000 $63,000 $1,895,500 $3,196,500 $2,799,500 $1,431,000 $1,822,600 $887,000 $887,000 $887,000 $853,400 $0

B.2 - Refurnishing upon resale Total residential units - excl. local resident occupied 85 93 99 288 608 888 1,174 1,356 1,445 1,534 1,623 1,708 1,708 Share of residential units selling per year 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Number of units selling per year 6672043628295101107114120120 Share of resold units which are refurnished 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Average cost of furnishing per unit $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Total cost of refurnishing upon resale - per year $74,375 $80,938 $86,450 $252,306 $532,000 $776,956 $1,027,381 $1,186,859 $1,264,471 $1,342,084 $1,419,696 $1,494,369 $1,494,369

B.3 - Aggregate output associated with furnishing and refurnishing Total gross cost of furnishing and refurnishing res. units $924,375 $155,938 $149,450 $2,147,806 $3,728,500 $3,576,456 $2,458,381 $3,009,459 $2,151,471 $2,229,084 $2,306,696 $2,347,769 $1,494,369 Share of furnishing purchases made in Weber County 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% Gross cost of furnishings purchased locally $739,500 $124,750 $119,560 $1,718,245 $2,982,800 $2,861,165 $1,966,705 $2,407,567 $1,721,177 $1,783,267 $1,845,357 $1,878,215 $1,195,495 Retail Stores - home furnishings - margin (IMPLAN) 48.1% 48.1% 48.1% 48.1% 48.1% 48.1% 48.1% 48.1% 48.1% 48.1% 48.1% 48.1% 48.1% Direct output: Retail stores - furniture and home furnishing $355,700 $60,005 $57,508 $826,476 $1,434,727 $1,376,220 $945,985 $1,158,040 $827,886 $857,751 $887,617 $903,421 $575,033 Rationale for 80% purchase in Weber: In 2008, Weber accounted for 13.3% of Weber/Davis/Morgan/Salt Lake furnishings sales, and 14.6% of pop'n (91% ratio). Assume slightly lower share made locally from Snowbasin given location.

C. Residential sales transaction services B.1 - Real estate services upon initial sale New residential value completed - per year $12,750,000 $1,350,000 $932,400 $28,304,900 $41,337,400 $35,584,900 $18,032,400 $27,785,500 $15,856,200 $15,856,200 $15,856,200 $15,453,000 $0 Real estate sales commissions as a % of value 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Real estate sales commissions - per year $765,000 $81,000 $55,944 $1,698,294 $2,480,244 $2,135,094 $1,081,944 $1,667,130 $951,372 $951,372 $951,372 $927,180 $0

B.2 - Real estate services upon resale Cum. Resid. value completed - excl. local res. occupied $63,750,000 $70,500,000 $75,162,000 $216,686,500 $423,373,500 $601,298,000 $781,622,000 $920,549,500 $999,830,500 $1,079,111,500 $1,158,392,500 $1,235,657,500 $1,235,657,500 Share of units selling per year 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Value of resale unit purchases $4,462,500 $4,935,000 $5,261,340 $15,168,055 $29,636,145 $42,090,860 $54,713,540 $64,438,465 $69,988,135 $75,537,805 $81,087,475 $86,496,025 $86,496,025 Real estate sales commissions as a % of value 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Real estate sales commissions - per year $267,750 $296,100 $315,680 $910,083 $1,778,169 $2,525,452 $3,282,812 $3,866,308 $4,199,288 $4,532,268 $4,865,249 $5,189,762 $5,189,762

B.3 - Total real estate services Direct output: Real estate establishments $1,032,750 $377,100 $371,624 $2,608,377 $4,258,413 $4,660,546 $4,364,756 $5,533,438 $5,150,660 $5,483,640 $5,816,621 $6,116,942 $5,189,762

B.4 - Other sales transaction services (appraisal, legal, title insurance, etc.) Value of initial sale and resale units, nonlocal residents $17,212,500 $6,285,000 $6,193,740 $43,472,955 $70,973,545 $77,675,760 $72,745,940 $92,223,965 $85,844,335 $91,394,005 $96,943,675 $101,949,025 $86,496,025 Cost of other sales transaction services 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Direct output: other sales transaction services $86,063 $31,425 $30,969 $217,365 $354,868 $388,379 $363,730 $461,120 $429,222 $456,970 $484,718 $509,745 $432,480

B.5 - Aggregate output associated with sales transaction services Direct output $1,118,813 $408,525 $402,593 $2,825,742 $4,613,280 $5,048,924 $4,728,486 $5,994,558 $5,579,882 $5,940,610 $6,301,339 $6,626,687 $5,622,242

D. Grand total -- maintenance of second homes, residential furnishing purchases, and sales transaction services (excl. resident-occupied units) Direct output $1,695,592 $714,174 $727,756 $4,383,060 $7,473,680 $8,441,494 $8,194,687 $10,091,638 $9,601,591 $10,246,967 $10,892,344 $11,475,898 $10,143,065 Source: RRC Associates. Note: Phase 7 is not shown for space and readability reasons.

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Snowbasin Cost Benefit Analysis May 5, 2010

Table 16 Total Direct Output Per Year at End of Phase and at Buildout

OUTPUT BY YEAR AT END OF PHASE Stabilized Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout Construction-related output: Architectural, engineering, and related services $879,846 $808,596 $418,336 $2,095,086 $2,967,127 $2,918,677 $1,353,077 $1,353,077 $2,004,017 $1,151,926 $1,151,926 $1,151,926 $1,088,086 $0 Wholesale trade (margin) $333,878 $306,841 $158,748 $795,030 $1,125,947 $1,107,561 $513,457 $513,457 $760,472 $437,126 $437,126 $437,126 $412,900 $0 Retail building materials (margin) $333,878 $306,841 $158,748 $795,030 $1,125,947 $1,107,561 $513,457 $513,457 $760,472 $437,126 $437,126 $437,126 $412,900 $0 Construction - new residential $2,593,231 $1,232,706 $840,569 $5,729,508 $8,085,963 $6,920,738 $3,754,728 $3,754,728 $5,829,331 $3,395,151 $3,395,151 $3,395,151 $3,206,991 $0 Construction - new nonresidential $0 $1,150,525 $392,422 $445,483 $659,255 $1,681,679 $233,290 $233,290 $77,246 $0 $0 $0 $0 $0 SUBTOTAL - Direct output $4,140,834 $3,805,509 $1,968,822 $9,860,137 $13,964,238 $13,736,217 $6,368,009 $6,368,009 $9,431,538 $5,421,328 $5,421,328 $5,421,328 $5,120,877 $0

Trip-related visitor / second homeowner output: Hotel room rentals $0 $0 $0 $0 $0 $8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 $8,896,875 Rental pool rentals $1,095,000 $1,169,141 $1,221,199 $4,172,954 $9,904,868 $15,162,283 $18,647,166 $22,132,049 $25,435,938 $26,456,843 $27,477,748 $28,498,653 $29,496,563 $29,496,563 Food services and drinking places $1,342,744 $1,465,931 $1,561,820 $4,742,119 $10,369,784 $18,383,495 $21,184,582 $23,985,668 $27,218,889 $28,616,245 $30,013,602 $31,410,959 $32,760,716 $32,760,716 Recreation $1,342,744 $1,465,931 $1,561,820 $4,742,119 $10,369,784 $18,383,495 $21,184,582 $23,985,668 $27,218,889 $28,616,245 $30,013,602 $31,410,959 $32,760,716 $32,760,716 Other retail (margin) $305,250 $333,255 $355,054 $1,078,042 $2,357,398 $4,179,181 $4,815,962 $5,452,742 $6,187,761 $6,505,426 $6,823,092 $7,140,758 $7,447,603 $7,447,603 Other services $447,581 $488,644 $520,607 $1,580,706 $3,456,595 $6,127,832 $7,061,527 $7,995,223 $9,072,963 $9,538,748 $10,004,534 $10,470,320 $10,920,239 $10,920,239 SUBTOTAL - Direct output $4,533,319 $4,922,902 $5,220,500 $16,315,940 $36,458,429 $71,133,161 $81,790,693 $92,448,225 $104,031,313 $108,630,383 $113,229,454 $117,828,524 $122,282,712 $122,282,712

Maintenance services, furnishing purchases, and sales transaction services output (local residents excluded): Maintenance of second homes not in rental pool $221,080 $245,645 $267,654 $730,842 $1,425,672 $2,016,350 $2,268,283 $2,520,216 $2,939,040 $3,193,823 $3,448,605 $3,703,388 $3,945,790 $3,945,790 Retail store furnishings purchases (margin) $355,700 $60,005 $57,508 $826,476 $1,434,727 $1,376,220 $897,803 $945,985 $1,158,040 $827,886 $857,751 $887,617 $903,421 $575,033 Real estate sales services (rl est establishments) $1,032,750 $377,100 $371,624 $2,608,377 $4,258,413 $4,660,546 $3,986,076 $4,364,756 $5,533,438 $5,150,660 $5,483,640 $5,816,621 $6,116,942 $5,189,762 Real estate sales services (legal / insurance) $86,063 $31,425 $30,969 $217,365 $354,868 $388,379 $332,173 $363,730 $461,120 $429,222 $456,970 $484,718 $509,745 $432,480 SUBTOTAL - Direct output $1,695,592 $714,174 $727,756 $4,383,060 $7,473,680 $8,441,494 $7,484,335 $8,194,687 $10,091,638 $9,601,591 $10,246,967 $10,892,344 $11,475,898 $10,143,065

Local resident households: SUBTOTAL - Direct output $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

GRAND TOTAL - DIRECT OUTPUT $10,369,745 $9,442,585 $7,917,078 $30,559,137 $57,896,346 $93,310,872 $95,643,037 $107,010,921 $123,554,489 $123,653,302 $128,897,749 $134,142,196 $138,879,487 $132,425,777 Source: RRC Associates.

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Snowbasin Cost Benefit Analysis May 5, 2010

Total Output

Total output in Weber County is estimated by applying industry‐specific total output multipliers to the direct output measures summarized in Table 16 previously, and also factoring in local resident induced impacts. The results, illustrated in Table 17 below, indicate that total output in Weber County is estimated at $246 million upon project stabilization after buildout. Of the $246 million in total output, $132 million is projected to be directly attributable to the project, while $113 million is projected to be indirectly attributable to the project.

Table 17 Total Output Per Year at End of Phase and at Buildout

TOTAL OUTPUT BY YEAR AT END OF PHASE Stabilized Source of Direct Output Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout Output multiplier (IMPLAN 2008 - Weber Co) Construction-related output: Architectural, engineering, and related services 1.72730 $1,519,761 $1,396,691 $722,593 $3,618,849 $5,125,129 $5,041,441 $2,337,175 $2,337,175 $3,461,546 $1,989,726 $1,989,726 $1,989,726 $1,879,455 $0 Wholesale trade 1.55635 $519,633 $477,553 $247,067 $1,237,347 $1,752,370 $1,723,756 $799,121 $799,121 $1,183,562 $680,322 $680,322 $680,322 $642,618 $0 Retail building materials (margin) 1.57189 $524,821 $482,321 $249,534 $1,249,701 $1,769,866 $1,740,966 $807,099 $807,099 $1,195,379 $687,114 $687,114 $687,114 $649,034 $0 Construction - new residential permanent site single- 1.64158 $4,256,993 $2,023,584 $1,379,860 $9,405,440 $13,273,747 $11,360,938 $6,163,682 $6,163,682 $9,569,308 $5,573,408 $5,573,408 $5,573,408 $5,264,529 $0 Construction - new nonresidential commercial and he 1.57993 $0 $1,817,751 $620,000 $703,833 $1,041,577 $2,656,939 $368,582 $368,582 $122,043 $0 $0 $0 $0 $0 SUBTOTAL - Total output $6,821,208 $6,197,899 $3,219,055 $16,215,170 $22,962,689 $22,524,040 $10,475,658 $10,475,658 $15,531,838 $8,930,570 $8,930,570 $8,930,570 $8,435,636 $0

Trip-related visitor / second homeowner output: Hotel room rentals 1.56614 $0 $0 $0 $0 $0 $13,933,751 $13,933,751 $13,933,751 $13,933,751 $13,933,751 $13,933,751 $13,933,751 $13,933,751 $13,933,751 Rental pool rentals (assume similar to hotel) 1.56614 $1,714,923 $1,831,038 $1,912,568 $6,535,430 $15,512,410 $23,746,256 $29,204,071 $34,661,885 $39,836,238 $41,435,118 $43,033,998 $44,632,878 $46,195,745 $46,195,745 Food services and drinking places 1.56599 $2,102,728 $2,295,639 $2,445,801 $7,426,129 $16,239,016 $28,788,437 $33,174,921 $37,561,405 $42,624,607 $44,812,859 $47,001,111 $49,189,363 $51,303,074 $51,303,074 Recreation (other amusement and recreation industr 1.60476 $2,154,781 $2,352,468 $2,506,347 $7,609,963 $16,641,014 $29,501,096 $33,996,168 $38,491,240 $43,679,782 $45,922,204 $48,164,626 $50,407,049 $52,573,085 $52,573,085 Other retail (margin) - blend of f&b, gas, clothing, spo 2.15202 $656,905 $717,171 $764,083 $2,319,966 $5,073,164 $8,993,677 $10,364,041 $11,734,404 $13,316,179 $13,999,801 $14,683,424 $15,367,047 $16,027,383 $16,027,383 Other services (blend - persl svcs, auto repair, muse 1.63286 $730,838 $797,887 $850,078 $2,581,072 $5,644,135 $10,005,891 $11,530,485 $13,055,080 $14,814,878 $15,575,441 $16,336,004 $17,096,566 $17,831,221 $17,831,221 SUBTOTAL - Total output $7,360,175 $7,994,203 $8,478,876 $26,472,560 $59,109,740 $114,969,109 $132,203,437 $149,437,765 $168,205,434 $175,679,174 $183,152,914 $190,626,654 $197,864,259 $197,864,259

Maintenance services, furnishing purchases, and sales transaction services output (local residents excluded): Maintenance of second homes not in rental pool (ser 1.48895 $329,177 $365,752 $398,524 $1,088,187 $2,122,754 $3,002,242 $3,377,358 $3,752,474 $4,376,082 $4,755,440 $5,134,799 $5,514,157 $5,875,082 $5,875,082 Retail store furnishings purchases (margin) 1.92479 $684,647 $115,497 $110,692 $1,590,792 $2,761,548 $2,648,935 $1,728,083 $1,820,823 $2,228,983 $1,593,507 $1,650,991 $1,708,476 $1,738,897 $1,106,818 Real estate sales services (real estate establishment 1.31511 $1,358,176 $495,926 $488,725 $3,430,293 $5,600,264 $6,129,112 $5,242,113 $5,740,117 $7,277,058 $6,773,664 $7,211,568 $7,649,473 $8,044,427 $6,825,087 Real estate sales services (legal / insurance) 1.65136 $142,120 $51,894 $51,141 $358,948 $586,015 $641,354 $548,538 $600,649 $761,475 $708,800 $754,622 $800,445 $841,773 $714,181 SUBTOTAL - Total output $2,514,120 $1,029,069 $1,049,081 $6,468,220 $11,070,581 $12,421,643 $10,896,091 $11,914,063 $14,643,598 $13,831,411 $14,751,981 $15,672,551 $16,500,178 $14,521,167

Local resident household output: Number of units occupied by local residents 15 33 44 84 136 179 198 217 255 278 302 325 343 Average household income $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 Induced output per $150K HH - less imputed rent $97,460 $97,461 $97,462 $97,463 $97,464 $97,465 $97,466 $97,467 $97,468 $97,469 $97,470 $97,471 $97,472 SUBTOTAL - Total output $1,461,907 $3,167,498 $4,327,334 $8,191,805 $13,216,183 $17,431,701 $19,293,489 $21,155,316 $24,853,487 $27,124,781 $29,396,121 $31,667,508 $33,447,681 $33,443,563

GRAND TOTAL - Total output (direct, indirect, induced) $18,157,410 $18,388,669 $17,074,346 $57,347,755 $106,359,192 $167,346,492 $172,868,675 $192,982,802 $223,234,358 $225,565,937 $236,231,587 $246,897,283 $256,247,754 $245,828,989 Source: RRC Associates; IMPLAN 2008. Note: Total output in the table above is shown by the sector responsible for direct output. Stated another way, the total output shown above includes direct output occurring in the sectors shown, plus secondary output stimulated by direct output occurring in those respective sectors.

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Direct and Total Employment

Direct employment in Weber County which is attributable to the proposed development is estimated by applying industry‐specific direct employment:direct output ratios to the direct output projections summarized in Table 16 previously. The results, illustrated in Table 18 to follow, indicate that direct employment in Weber County is projected to be approximately 1,960 jobs upon project stabilization at buildout. The dominant share of employment is attributable to trip‐related spending (1,800 jobs), followed by maintenance, furnishing, and sales transaction services (161 jobs). The maximum number of jobs during the life of the development is projected be slightly higher (2,021 jobs) and occur at the end of Phase 13, due to the inclusion of jobs associated with the final stages of construction. Note that many direct jobs are anticipated to be part‐time in nature, and many employees will likely hold more than one job. As such, the number of individual persons employed in the development will likely be less than the number of jobs.

Total employment in Weber County which is attributable to the proposed development is estimated by applying industry‐specific total employment:direct output ratios to the direct output projections summarized in Table 16 previously. The results, illustrated in Table 19 to follow, indicate that total employment in Weber County directly or indirectly attributable to the project is projected to be approximately 3,130 jobs upon project stabilization after buildout. Of these jobs, 1,960 jobs are projected to be directly attributable to the project, and most of these jobs are anticipated to be located on site within the project (either by definition or expectation), as noted previously. The remaining 1,170 jobs are projected to be indirectly attributable to the project, and most of these jobs are likely to be located off site from the project (insofar as supplier businesses would tend to be located offsite, and employee purchases of household goods and services would tend to occur offsite as well).

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Table 18 Direct Employment Per Year at End of Phase and at Buildout

DIRECT EMPLOYMENT BY YEAR AT END OF PHASE Stabilized Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout

A. Direct employment, by sector, in Weber County - average per year Direct employment per $1 million output (IMPLAN 2008 - Weber Co) Construction-related employment: Architectural, engineering, and related svcs 8.90732 8 7 4 19 26 26 12 12 18 10 10 10 10 0 Wholesale trade (margin) 8.134763216994464443 0 Retail building materials (margin)11.14440432913126685555 0 Construction - new residential permanent site single- and multi-family structures 8.2735321107476757313148282828270 Construction - new nonresidential commercial and health care structures 7.73710 0 9 3 3 5 13 2 2 1 0 0 0 0 0 SUBTOTAL - Direct employment 36 32 17 85 120 118 55 55 81 47 47 47 44 0

Trip-related visitor / second homeowner employment: Hotel room rentals 14.06972 0 0 0 0 0 125 125 125 125 125 125 125 125 125 Rental pool rentals (assume similar to hotel) 14.06972 15 16 17 59 139 213 262 311 358 372 387 401 415 415 Food services and drinking places 20.35514 27 30 32 97 211 374 431 488 554 582 611 639 667 667 Recreation (other amusement and recreation) 8.19772 11 12 13 39 85 151 174 197 223 235 246 257 269 269 Other retail (margin) - blend of f&b, gas, clothing, sport/hobby, gen merch, & misc 19.03697 6 6 7 21 45 80 92 104 118 124 130 136 142 142 Other services (blend - persl svcs, auto repair, museums/parks, perf arts) 16.70430 7 8 9 26 58 102 118 134 152 159 167 175 182 182 SUBTOTAL - Direct employment 67 73 77 241 538 1,045 1,202 1,359 1,530 1,598 1,666 1,734 1,800 1,800

Maintenance services, furnishing purchases, and sales transaction services employment (local residents excluded): Maintenance of second homes not in rental pool (services to buildings and dwellings) 20.35460 4 5 5 15 29 41 46 51 60 65 70 75 80 80 Retail store furnishings purchases (margin) 10.77675 4 1 1 9 15 15 10 10 12 9 9 10 10 6 Real estate sales services (rl estate estabs) 13.62047 14 5 5 36 58 63 54 59 75 70 75 79 83 71 Real estate sales services (legal / insurance) 7.84293 1 0 0 2 3 3 3 3 4 3 4 4 4 3 SUBTOTAL - Direct employment 23 11 11 61 105 122 113 124 151 147 158 168 177 161

Local resident household employment: SUBTOTAL - Direct employment 0000000000000 0

GRAND TOTAL - DIRECT employment 126 116 105 387 763 1,285 1,370 1,537 1,762 1,792 1,870 1,949 2,021 1,960 Source: RRC Associates; IMPLAN 2008. Note: Columns may not sum to totals due to rounding.

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Table 19 Total Employment Per Year at End of Phase and at Buildout

TOTAL EMPLOYMENT BY YEAR AT END OF PHASE Stabilized Source of Direct Output Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout B. Total employment, by sector, in Weber County - average per year

Construction-related employment: Total empl. per $1 million output (IMPLAN 2008 - Weber Co) Architectural, engineering, and related svcs 16.78760 15 14 7 35 50 49 23 23 34 19 19 19 18 0 Wholesale trade (margin) 13.5842154211151577106 6 6 6 0 Retail building materials (margin) 16.8130065313191999137 7 7 7 0 Construction - new residential permanent site single- and multi-family structures 15.24957 40 19 13 87 123 106 57 57 89 52 52 52 49 0

Construction - new nonresidential commercial and health care structures 13.41998 0 15 5 6 9 23 3 3 1 0 0 0 0 0 SUBTOTAL - Total employment 64 57 30 153 216 211 99 99 147 84 84 84 80 0

Trip-related visitor / second homeowner employment: Hotel room rentals 19.5518500000174174174174174174174174174 Rental pool rentals (assume similar to hotel) 19.55185 21 23 24 82 194 296 365 433 497 517 537 557 577 577 Food services and drinking places 25.73282 35 38 40 122 267 473 545 617 700 736 772 808 843 843 Recreation (other amusement and recreation) 14.35563 19 21 22 68 149 264 304 344 391 411 431 451 470 470 Other retail (margin) - blend of f&b, gas, clothing, sport/hobby, gen merch, & misc 24.573598892658103118134152160168175183183

Other services (blend - persl svcs, auto repair, museums/parks, perf arts) 23.47958 11 11 12 37 81 144 166 188 213 224 235 246 256 256 SUBTOTAL - Total employment 93 101 107 335 748 1,454 1,672 1,890 2,128 2,222 2,317 2,412 2,503 2,503

Maintenance services, furnishing purchases, and sales transaction services employment (local residents excluded):

Maintenance of second homes not in rental pool (services to buildings and dwellings) 25.47761667193651586475818894101101 Retail store furnishings purchases (margin)16.540626111424231516191414151510 Real estate sales services (rl estate estabs) 16.97721 18 6 6 44 72 79 68 74 94 87 93 99 104 88 Real estate sales services (legal / insurance) 14.31964 1 0 0 3 5 6 5 5 7 6 7 7 7 6 SUBTOTAL - Total employment 30 14 15 80 137 159 145 159 195 189 202 215 227 204

Local resident household employment: Total induced employees per $150k household SUBTOTAL - Total employment 1.23 18 40 55 103 167 220 243 267 314 342 371 400 422 422

GRAND TOTAL - TOTAL employment 206 213 207 671 1,269 2,044 2,159 2,415 2,782 2,838 2,974 3,110 3,232 3,130 Source: RRC Associates; IMPLAN 2008. Note: Total employment in the table above is shown by the sector responsible for direct output. Stated another way, the total employment shown above includes direct employment occurring in the sectors shown, plus secondary employment stimulated by direct output occurring in those respective sectors. Note: Columns may not sum to totals due to rounding.

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Direct and Total Labor Income

Direct labor income in Weber County which is attributable to the proposed development is estimated by applying industry‐specific labor income:output ratios to the direct output measures summarized in Table 16 previously. The results, illustrated in Table 20 below, indicate that direct labor income in Weber County is projected to be approximately $41 million upon project stabilization after buildout. The dominant share of income is projected to be attributable to trip‐related activities ($38 million), followed by maintenance, furnishing, and sales transaction services ($3 million).

Table 20 Direct Labor Income Per Year at End of Phase and at Buildout

DIRECT LABOR INCOME BY YEAR AT END OF PHASE Stabilized Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout

Direct labor income per $1 million output (IMPLAN 2008 - Weber Co) Construction-related labor income: Architectural, engineering, and related svcs 0.51672 $454,632 $417,816 $216,162 $1,082,568 $1,533,166 $1,508,131 $699,159 $699,159 $1,035,511 $595,220 $595,220 $595,220 $562,233 $0 Wholesale trade (margin) 0.36231 $120,969 $111,173 $57,517 $288,051 $407,947 $401,286 $186,033 $186,033 $275,530 $158,377 $158,377 $158,377 $149,600 $0 Retail building materials (margin) 0.40453 $135,063 $124,125 $64,218 $321,611 $455,476 $448,038 $207,707 $207,707 $307,631 $176,829 $176,829 $176,829 $167,029 $0 Construction - new residential permanent site single- and multi-family structures 0.34665 $898,941 $427,316 $291,382 $1,986,129 $2,802,992 $2,399,067 $1,301,573 $1,301,573 $2,020,732 $1,176,926 $1,176,926 $1,176,926 $1,111,700 $0

Construction - new nonresidential commercial and health care structures 0.35271 $0 $405,805 $138,412 $157,127 $232,527 $593,149 $82,284 $82,284 $27,246 $0 $0 $0 $0 $0 SUBTOTAL - Direct labor income $1,609,605 $1,486,235 $767,690 $3,835,486 $5,432,108 $5,349,672 $2,476,756 $2,476,756 $3,666,650 $2,107,352 $2,107,352 $2,107,352 $1,990,563 $0

Trip-related visitor / second homeowner labor income: Hotel room rentals 0.33062 $0 $0 $0 $0 $0 $2,941,524 $2,941,524 $2,941,524 $2,941,524 $2,941,524 $2,941,524 $2,941,524 $2,941,524 $2,941,524 Rental pool rentals (assume similar to hotel) 0.33062 $362,034 $386,546 $403,758 $1,379,680 $3,274,791 $5,013,021 $6,165,209 $7,317,396 $8,409,742 $8,747,279 $9,084,815 $9,422,351 $9,752,284 $9,752,284 Food services and drinking places 0.31496 $422,910 $461,709 $491,910 $1,493,574 $3,266,059 $5,790,051 $6,672,280 $7,554,508 $8,572,840 $9,012,951 $9,453,061 $9,893,171 $10,318,290 $10,318,290 Recreation (other amusement and recreation) 0.21165 $284,189 $310,261 $330,556 $1,003,658 $2,194,741 $3,890,824 $4,483,667 $5,076,511 $5,760,814 $6,056,561 $6,352,309 $6,648,056 $6,933,729 $6,933,729

Other retail (margin) - blend of f&b, gas, clothing, sport/hobby, gen merch, & misc 0.39506 $120,592 $131,656 $140,268 $425,891 $931,313 $1,651,027 $1,902,594 $2,154,160 $2,444,537 $2,570,034 $2,695,531 $2,821,028 $2,942,250 $2,942,250 Other services (blend - persl svcs, auto repair, museums/parks, perf arts) 0.44821 $200,610 $219,015 $233,341 $708,488 $1,549,280 $2,746,555 $3,165,047 $3,583,539 $4,066,593 $4,275,362 $4,484,132 $4,692,902 $4,894,560 $4,894,560 SUBTOTAL - Direct labor income $1,390,334 $1,509,187 $1,599,832 $5,011,293 $11,216,185 $22,033,003 $25,330,320 $28,627,637 $32,196,050 $33,603,711 $35,011,372 $36,419,032 $37,782,638 $37,782,638

Maintenance services, furnishing purchases, and sales transaction services labor income (local residents excluded): Maintenance of second homes not in rental pool (services to buildings and dwellings) 0.41831 $92,481 $102,756 $111,963 $305,720 $596,377 $843,464 $948,851 $1,054,238 $1,229,437 $1,336,016 $1,442,595 $1,549,174 $1,650,573 $1,650,573 Retail store furnishings purchases (margin) 0.39464 $140,375 $23,681 $22,695 $326,164 $566,207 $543,118 $354,313 $373,328 $457,014 $326,721 $338,507 $350,293 $356,531 $226,934 Real estate sales services (rl estate estabs) 0.17736 $183,167 $66,882 $65,911 $462,617 $755,265 $826,586 $706,964 $774,126 $981,401 $913,512 $972,569 $1,031,626 $1,084,890 $920,447 Real estate sales services (legal / insurance) 0.38858 $33,442 $12,211 $12,034 $84,464 $137,895 $150,916 $129,076 $141,338 $179,182 $166,787 $177,569 $188,352 $198,077 $168,053 SUBTOTAL - Direct labor income $449,464 $205,530 $212,603 $1,178,966 $2,055,743 $2,364,085 $2,139,204 $2,343,030 $2,847,035 $2,743,036 $2,931,240 $3,119,445 $3,290,071 $2,966,008

Local resident household labor income: SUBTOTAL - Direct labor income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

GRAND TOTAL - DIRECT labor income $3,449,404 $3,200,952 $2,580,126 $10,025,744 $18,704,037 $29,746,761 $29,946,280 $33,447,423 $38,709,735 $38,454,100 $40,049,964 $41,645,829 $43,063,271 $40,748,645 Source: RRC Associates; IMPLAN 2008.

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Total labor income in Weber County which is attributable to the proposed development is estimated by applying industry‐specific total labor income:direct output ratios to the direct output measures summarized in Table 16 previously. The results, illustrated in Table 21 below, indicate that total labor income in Weber County is projected to be approximately $74 million upon project stabilization after buildout. Of the $74 million in total income, $41 million is projected to be directly attributable to the project, while $33 million is projected to be indirectly attributable to the project.

Table 21 Total Labor Income Per Year at End of Phase and at Buildout

TOTAL LABOR INCOME BY YEAR AT END OF PHASE Stabilized Source of Direct Output Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 At Buildout Construction-related labor income: Total empl. per $1 million output (IMPLAN 2008 - Weber Co) Architectural, engineering, and related svcs 0.74965 $659,575 $606,162 $313,605 $1,570,576 $2,224,300 $2,187,979 $1,014,331 $1,014,331 $1,502,307 $863,539 $863,539 $863,539 $815,681 $0 Wholesale trade (margin) 0.53637 $179,083 $164,581 $85,148 $426,432 $603,926 $594,065 $275,404 $275,404 $407,896 $234,462 $234,462 $234,462 $221,468 $0 Retail building materials (margin) 0.57324 $191,391 $175,892 $91,000 $455,739 $645,432 $634,893 $294,332 $294,332 $435,929 $250,576 $250,576 $250,576 $236,689 $0 Construction - new residential permanent site single- and multi-family structures 0.55886 $1,449,248 $688,908 $469,759 $3,201,982 $4,518,906 $3,867,711 $2,098,360 $2,098,360 $3,257,769 $1,897,408 $1,897,408 $1,897,408 $1,792,253 $0 Construction - new nonresidential commercial and health care structures 0.54385 $0 $625,708 $213,417 $242,274 $358,532 $914,573 $126,873 $126,873 $42,010 $0 $0 $0 $0 $0 SUBTOTAL - Direct labor income $2,479,297 $2,261,250 $1,172,928 $5,897,003 $8,351,097 $8,199,221 $3,809,300 $3,809,300 $5,645,911 $3,245,984 $3,245,984 $3,245,984 $3,066,091 $0

Trip-related visitor / second homeowner labor income: Hotel room rentals 0.49855 $0 $0 $0 $0 $0 $4,435,551 $4,435,551 $4,435,551 $4,435,551 $4,435,551 $4,435,551 $4,435,551 $4,435,551 $4,435,551 Rental pool rentals (assume similar to hotel) 0.49855 $545,914 $582,877 $608,831 $2,080,433 $4,938,088 $7,559,180 $9,296,574 $11,033,968 $12,681,128 $13,190,101 $13,699,075 $14,208,049 $14,705,559 $14,705,559 Food services and drinking places 0.47823 $642,141 $701,053 $746,910 $2,267,827 $4,959,149 $8,791,552 $10,131,118 $11,470,683 $13,016,909 $13,685,168 $14,353,426 $15,021,685 $15,667,181 $15,667,181 Recreation (other amusement and recreation) 0.39106 $525,091 $573,264 $610,763 $1,854,445 $4,055,189 $7,189,017 $8,284,405 $9,379,792 $10,644,170 $11,190,618 $11,737,066 $12,283,513 $12,811,347 $12,811,347 Other retail (margin) - blend of f&b, gas, clothing, sport/hobby, gen merch, & misc 0.55894 $170,617 $186,270 $198,454 $602,561 $1,317,644 $2,335,912 $2,691,834 $3,047,756 $3,458,587 $3,636,143 $3,813,699 $3,991,255 $4,162,763 $4,162,763 Other services (blend - persl svcs, auto repair, museums/parks, perf arts) 0.54583 $244,304 $266,717 $284,163 $862,799 $1,886,717 $3,344,761 $3,854,401 $4,364,042 $4,952,306 $5,206,546 $5,460,786 $5,715,027 $5,960,606 $5,960,606 SUBTOTAL - Direct labor income $2,128,067 $2,310,181 $2,449,121 $7,668,064 $17,156,787 $33,655,973 $38,693,883 $43,731,793 $49,188,650 $51,344,127 $53,499,604 $55,655,081 $57,743,007 $57,743,007

Maintenance services, furnishing purchases, and sales transaction services labor income (local residents excluded): Maintenance of second homes not in rental pool (services to buildings and dwellings) 0.56926 $125,851 $139,835 $152,364 $416,036 $811,573 $1,147,820 $1,291,234 $1,434,649 $1,673,067 $1,818,104 $1,963,141 $2,108,177 $2,246,166 $2,246,166 Retail store furnishings purchases (margin) 0.56627 $201,421 $33,979 $32,565 $468,006 $812,438 $779,308 $508,396 $535,680 $655,759 $468,804 $485,716 $502,628 $511,577 $325,622 Real estate sales services (rl estate estabs) 0.27169 $280,583 $102,453 $100,965 $708,658 $1,156,949 $1,266,202 $1,082,959 $1,185,841 $1,503,355 $1,399,359 $1,489,825 $1,580,291 $1,661,884 $1,409,983 Real estate sales services (legal / insurance) 0.64713 $55,694 $20,336 $20,041 $140,663 $229,646 $251,332 $214,959 $235,380 $298,404 $277,762 $295,719 $313,676 $329,871 $279,871 SUBTOTAL - Total labor income $663,549 $296,602 $305,935 $1,733,364 $3,010,605 $3,444,661 $3,097,548 $3,391,550 $4,130,586 $3,964,030 $4,234,401 $4,504,772 $4,749,499 $4,261,642

Local resident household labor income: Total induced labor income per $150k household SUBTOTAL - Total labor income $34,575 $518,625 $1,123,688 $1,535,130 $2,906,029 $4,688,370 $6,183,739 $6,844,121 $7,504,504 $8,816,279 $9,621,877 $10,427,474 $11,233,072 $11,864,411 $11,864,411

GRAND TOTAL - TOTAL labor income $5,789,537 $5,991,721 $5,463,113 $18,204,460 $33,206,859 $51,483,595 $52,444,853 $58,437,147 $67,781,425 $68,176,018 $71,407,463 $74,638,909 $77,423,009 $73,869,060 Source: RRC Associates; IMPLAN 2008. Note: Total income in the table above is shown by the sector responsible for direct output. Stated another way, the total income shown above includes direct income occurring in the sectors shown, plus secondary income stimulated by direct output occurring in those respective sectors.

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Fiscal Impact Analysis

This section of the report examines the fiscal impact of the proposed Snowbasin project on the Weber County government, by examining the revenues and expenses attributable to Snowbasin which would accrue to Weber County’s several budgetary funds.

Summary of Impacts

The projected fiscal impacts of the proposed Snowbasin development on Weber County upon stabilization (after project buildout) are summarized by Weber County fund in Table 22 to follow. As shown, the Snowbasin development is projected to have a positive net fiscal impact on the Weber County General Fund and other growth‐sensitive funds. As discussed in more detail later in the report, the positive fiscal impacts accrue throughout the construction phases of the project as well. The order of magnitude of the net benefits is quite large for each fund, with revenues projected to exceed expenses by factors of 1.2 to as high as 15.0 upon project stabilization after buildout. This indicates a substantial “margin of error” for positive balances for each fund, even if revenues are substantially overestimated and expenses substantially underestimated.

The significant net fiscal benefit of the Snowbasin project to Weber County is primarily due to its revenue generating capacity, due to anticipated high property values, the assessment of most residential units at full market value, and significant visitor / second homeowner orientation (resulting in high per capita spending and resulting sales tax revenues).

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Table 22 Summary of Annual Fiscal Impacts on Weber County Government Funds Attributable to Snowbasin at Stabilization (After Project Buildout)

Stabilized Upon Buildout Fund Revenues Expenses Net Surplus (Deficit) Revenue:Expense Ratio Comments General Fund $3,721,342 $1,153,727 $2,567,614 3.2 **See note below Library Fund $891,146 $59,255 $831,891 15.0 Consolidated Health Fund $184,011 $52,442 $131,569 3.5 Municipal Services Fund $836,967 $687,994 $148,973 1.2 Paramedic Fund $299,298 $30,621 $268,677 9.8 **See note below

Debt Service Fund $442,975 $0 $442,975 #DIV/0! Capital Projects Fund $0 $72,536 -$72,536 Negative Capital Projects Fund & Debt Service Fund (combined) $442,975 $72,536 $370,439 6.1 For illustrative purposes only

Tourism Fund $2,040,106 $0 $2,040,106 n/a Contribution to fund Transportation Development Fund $355,771 $0 $355,771 n/a Contribution to fund RAMP Tax Fund $142,322 $0 $142,322 n/a Contribution to fund

Project Total Fund Revenues Expenses Net Surplus (Deficit) Revenue:Expense Ratio Comments Impact Fees - Trails* $2,026,388 $2,026,388 $0 0.0 Total for project. Assume costs=revenues. Impact Fees - Storm Drains* $1,757,130 $1,757,130 $0 0.0 Total for project. Assume costs=revenues. Impact Fees - Roadways* $959,874 $959,874 $0 0.0 Total for project. Assume costs=revenues. *Impact fees are shown for entire development of project, rather than a single year. **Note that this analysis does not include the cost of any capital improvements that may be warranted to ensure adequate delivery of Sheriff, Paramedic and other public safety services to the Snowbasin development, because those costs are not known. However, the Applicant plans to work with other public safety providers to ensure that adequate emergency services facilities are provided on site at appropriate location(s) and size(s). Source: RRC Associates.

Methodology

This fiscal impact analysis utilizes the following methodological approach:

1. Evaluate the Weber County budget to determine which funds should be included in the Snowbasin fiscal impact analysis. The County has numerous funds for budgeting purposes, including the General Fund, several special revenue funds, enterprise funds, internal service funds, a debt service fund, and a capital projects fund. Only those funds which are systematically affected by new growth and which are anticipated to be directly impacted in a predictable way by the Snowbasin development are included in the analysis.

2. For each applicable fund, determine which revenue and expense items are growth sensitive. Within each fund, revenue and expense items which are directly impacted by the development of Snowbasin are included in the analysis, while those which are not

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impacted (or for which revenues and expenses are intended to offset one another) are excluded. These determinations were made on the basis of a detailed review of the 2010 County budget, in some cases using judgment and assumptions.

3. Calculate applicable revenues and expenses attributable to Snowbasin, utilizing appropriate methodologies. Two primary methodologies were employed to evaluate applicable revenues and expenses attributable to Snowbasin ‐‐ the “per capita” (or per sometimes per household or per housing unit) approach and “case study” (independent calculation) approach, as further described in the applicable calculations.

4. Compare revenues and expenses to assess the net surplus (deficit) to Weber County.

Pursuant to Step 1 above (determination of funds subject to analysis), Table 23 lists Weber County’s budgetary funds and identifies which are appropriate for inclusion or exclusion in the Fiscal Impact Analysis. Also shown is the rationale for excluding selected funds from analysis. Key reasons for exclusion include the following:

• New growth does not have a direct marginal impact on costs and revenues, or stated another way, revenues and expenses are not systematically related to growth. Based on a review of revenues and expenses for each fund, it is believed that several funds will not experience a direct, systematic marginal revenue/expense impact as a result of the project, including the Crime Scene Investigations Fund, the Golden Spike Events Center Fund, the Ice Sheet Fund, the Ogden Eccles Conference Center Fund, the Landfill Gas Recovery Fund, and the Weber Housing Authority Fund.

• Expenses are designed to be offset by user fee revenue, as in the case of the Solid Waste Transfer Station Fund.

• Revenues and expenses are reflected in other funds, as in the case of the three internal services funds, the Municipal Building Authority Fund (for which costs or rents are charged to other departmental budgets), the Public Works Fund (funded by transfer from the General Fund in 2008, 2009, and 2010), and the Crime Scene Investigations Fund (which is primarily funded via charges to other governments for investigation services).

• Geographic area is not applicable, as in the case of the Redevelopment Agency Fund.

For the remaining funds, fund‐specific fiscal impact analyses have been conducted.

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Table 23 Weber County 2010 Budget Summary

2010 Budget Evaluated in Fund Type Fund Name Revenue Expense Transfers in Transfers out Fiscal Impact Analysis? General Fund General Fund $54,296,777 $54,873,377 $364,360 $1,027,289 Yes Special Revenue Funds Consolidated Health Fund $6,526,767 $6,594,503 -- $92,040 Yes Impact Fees Fund $104,750 $49,368 -- -- Yes Library Fund $7,540,111 $7,017,472 -- $537,650 Yes Municipal Services Fund $4,399,169 $4,632,113 -- -- Yes Paramedic Fund $2,429,959 $2,507,076 -- -- Yes RAMP Tax Fund $2,648,800 $2,647,706 -- -- Yes Tourism Fund $3,530,839 $2,658,186 -- $882,653 Yes Transportation Development Fund $4,965,000 ------Yes Crime Scene Investigations Fund $624,330 $624,330 -- -- No - not directly impacted (costs primarily charged to other gov't entities)

Golden Spike Events Center Fund $467,336 $1,504,954 $1,037,618 -- No - not directly impacted Ice Sheet Fund $432,700 $683,782 $251,082 -- No - not predictably impacted Municipal Building Authority Fund $2,935,622 $3,065,622 -- -- No - revenue mostly from rents charged to other depts

Ogden Eccles Conference Center Fund $2,250,275 $2,793,031 $521,242 -- No - not directly impacted Public Works Fund -- $116,042 -- -- No – not directly impacted Redevelopment Agency Fund $913,850 $1,231,496 -- $11,500 No - applies to redevelopment areas only

Capital Projects Fund Capital Projects Fund $3,030,000 $3,501,654 $192,040 -- Yes Debt Service Fund Debt Service Fund $3,916,048 $4,097,838 $537,650 $352,860 Yes, although the unit cost of existing debt service is not growth driven

Internal Service Fund Combined Termination Pool Funds $563,600 $581,450 -- -- No - costs charged to other dept. budgets

Fleet Management Fund $1,058,000 $1,017,301 -- -- No - costs charged to other dept. budgets

Risk Management Fund $1,205,355 $1,324,427 -- -- No - costs charged to other dept. budgets

Enterprise Fund Landfill Gas Recovery Fund $385,000 $295,305 -- -- No - not impacted Solid Waste Transfer Station Fund $7,665,000 $7,362,388 -- -- No - user fees offset costs

Weber Housing Authority Fund $1,041,453 $1,091,483 -- -- No - not directly impacted TOTAL $112,930,741 $110,270,904 $2,903,992 $2,903,992 --

Source: Weber County 2010 Budget; RRC Associates.

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Additional methodological notes include the following: • Multiplier impacts excluded: This analysis addresses the direct, first‐order impacts of the Snowbasin development. Indirect and secondary (“multiplier”) impacts are excluded. • Numbers are expressed in 2010 dollars, with no inflation or discount factors. • Impacts on entities other than Weber County are excluded.

The balance of the Fiscal Impact Analysis proceeds as follows: • Analysis of property tax revenues (applicable to multiple funds). • Analysis of sales tax revenues (applicable to multiple funds). • Analysis of revenues, expenses, and net surplus (deficit) for each impacted fund.

Calculation of Property Tax Revenues

Property taxes are calculated in a straightforward manner by multiplying the taxable property value (estimated earlier) by the property tax rates of applicable County funds. As shown in Table 24 to follow, upon project buildout at the completion of Phase 13, the development is projected to have a taxable property value of $1.48 billion, resulting in annual property tax collections to the County of $5.3 million. The General Fund is projected to accrue approximately $3.0 million annually, with $2.3 million accruing to other County funds .

To place these numbers in context, in 2010, the Weber County General Fund is budgeted to have $22.2 million in property taxes revenues. The Snowbasin project at buildout, with $3.0 million in annual property tax revenues, is projected to be roughly equivalent to a substantial 13.4 percent of the County’s current total property tax revenue stream, even though it is equivalent in size to only 2.5 percent of the County’s current roughly 80,000 households. The outsized property valuation of Snowbasin is due to primarily to high expected residential property values, combined with an anticipated high share of units used for non‐primary residential purposes (and thus taxed at 100 percent of market value rather than 55 percent of market value).

Also shown for reference in Table 24 are the projected property tax collections of other governmental entities with a levy on the project area lands, including the Weber School District, Mosquito Abatement District, Weber Basin Water, Weber Fire District, and Weber Area 911 and Emergency Services. Combined, these entities are projected to collect approximately $11.3 million in annual property tax revenue from the Snowbasin development upon buildout.

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Table 24 Projected Property Taxes by Fund

ANNUAL PROPERTY TAX COLLECTIONS AT END OF PHASE Phase 13 perty tax collections - calculation detail Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 (buildout) Total taxable property value $69,937,500 $99,568,750 $113,352,150 $279,506,175 $517,063,045 $752,438,142 $855,070,012 $957,701,882 $1,116,477,727 $1,207,385,177 $1,298,292,627 $1,389,200,077 $1,476,428,327

Weber County -- annual property tax collections upon completion of Phase Fund 2010 Mill levy Weber County General Fund 0.002004 $140,155 $199,536 $227,158 $560,130 $1,036,194 $1,507,886 $1,713,560 $1,919,235 $2,237,421 $2,419,600 $2,601,778 $2,783,957 $2,958,762 Weber County GO Bond Fund 0.000299 $20,911 $29,771 $33,892 $83,572 $154,602 $224,979 $255,666 $286,353 $333,827 $361,008 $388,189 $415,371 $441,452 Library 0.000601 $42,032 $59,841 $68,125 $167,983 $310,755 $452,215 $513,897 $575,579 $671,003 $725,638 $780,274 $834,909 $887,333 Weber / Morgan Health 0.000112 $7,833 $11,152 $12,695 $31,305 $57,911 $84,273 $95,768 $107,263 $125,046 $135,227 $145,409 $155,590 $165,360 Paramedic Fund 0.000202 $14,127 $20,113 $22,897 $56,460 $104,447 $151,993 $172,724 $193,456 $225,529 $243,892 $262,255 $280,618 $298,239 Assess & Collect / State 0.000142 $9,931 $14,139 $16,096 $39,690 $73,423 $106,846 $121,420 $135,994 $158,540 $171,449 $184,358 $197,266 $209,653 Assess & Collect / County 0.000200 $13,988 $19,914 $22,670 $55,901 $103,413 $150,488 $171,014 $191,540 $223,296 $241,477 $259,659 $277,840 $295,286 TOTAL MILL LEVY - WEBER COUNTY 0.003560 $248,978 $354,465 $403,534 $995,042 $1,840,744 $2,678,680 $3,044,049 $3,409,419 $3,974,661 $4,298,291 $4,621,922 $4,945,552 $5,256,085

Other entities -- annual property tax collections upon completion of Phase Entity 2010 Mill levy Weber School District 0.005721 $400,112 $569,633 $648,488 $1,599,055 $2,958,118 $4,304,699 $4,891,856 $5,479,012 $6,387,369 $6,907,451 $7,427,532 $7,947,614 $8,446,646 Mosquito Abatement District 0.000128 $8,952 $12,745 $14,509 $35,777 $66,184 $96,312 $109,449 $122,586 $142,909 $154,545 $166,181 $177,818 $188,983 Weber Basin Water - General 0.000188 $13,148 $18,719 $21,310 $52,547 $97,208 $141,458 $160,753 $180,048 $209,898 $226,988 $244,079 $261,170 $277,569 Weber Fire District 0.001219 $85,254 $121,374 $138,176 $340,718 $630,300 $917,222 $1,042,330 $1,167,439 $1,360,986 $1,471,803 $1,582,619 $1,693,435 $1,799,766 Weber Area 911 and Em Serv 0.000286 $20,002 $28,477 $32,419 $79,939 $147,880 $215,197 $244,550 $273,903 $319,313 $345,312 $371,312 $397,311 $422,259 Weber Fire GO Bond-2006 0.000097 $6,784 $9,658 $10,995 $27,112 $50,155 $72,986 $82,942 $92,897 $108,298 $117,116 $125,934 $134,752 $143,214 TOTAL MILL LEVY - OTHER ENTITIES 0.007639 $534,253 $760,606 $865,897 $2,135,148 $3,949,845 $5,747,875 $6,531,880 $7,315,885 $8,528,773 $9,223,215 $9,917,657 $10,612,099 $11,278,436

Note: Property tax collections exclude possible imposition of greenbelt rollback tax on selected parcels in study area upon development. Source: RRC Associates.

Calculation of Sales Tax Revenues

There are eight Weber County sales taxes which are projected to be impacted by the Snowbasin project. As outlined in Table 25 to follow, each is earmarked for a specific purpose and Weber County budgetary fund. There are also important distinctions between the taxes regarding the items subject to tax (e.g. inclusion or exclusion of grocery food), the location where taxes are levied (countywide vs. unincorporated county only), and the method of allocation (point of sale only vs. blend of point of sale and population).

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Table 25 Summary of Weber County Sales Taxes

Sales tax Weber County fund Tax rate Tax type (taxable items) Exemptions Where levied Allocation method County Option Sales Tax General fund 0.25% General sales and use tax None Countywide 50% share to Weber County, 50% to statewide pool and allocated back to counties on basis of population Local Sales & Use Tax Municipal services fund 1.00% General sales and use tax None Unincorporated 50% share to Weber County, 50% to to statewide pool and allocated back to cities/unincorp areas on basis of population

Botanical, Cultural, Zoo Tax RAMP tax fund (recreation, arts, 0.10% General sales and use tax Grocery food Countywide 100% to Weber County museums, parks) Transient Room Tax Tourism fund 4.25% Accommodations n/a Countywide 100% to Weber County Tourism - Restaurant Tax Tourism fund 1.00% Restaurants n/a Countywide 100% to Weber County County Option Transportation Transportation development fund 0.25% General sales and use tax Grocery food Countywide 75% to Weber Co; other 25% goes to UDOT for corridor preservation account Leased vehicle fees Tourism fund 7.00% Vehicle rentals n/a Countywide 3 ppts to Weber. Of remaining 4 ppts, 70% to Weber, 30% to particip counties on basis of population. Mass transit tax N/A-allocated to UTA 0.55% General sales and use tax Grocery food Countywide Allocated by Weber Co to UTA Source: RRC Associates.

For purposes of projecting sales tax collections for all of the taxes, it was necessary to project total taxable sales for each specified sector (i.e. all items, all items less groceries, lodging, restaurants, and rental vehicles), as further cross‐referenced by location of sale (countywide vs. unincorporated county). (Note that all taxes are levied countywide except for the local sales and use tax, which is levied in unincorporated areas only.)

Projections of taxable sales were based on the direct output calculations in the Economic Impact Analysis (previously). Specifically, incremental taxable sales were estimated from the projected spending of visitors, second homeowners, and residents staying at or living in the development, as well as other direct economic activity associated with the development. As a cross‐check for reasonableness against this occupant‐based approach, however, taxable sales were also estimated from the standpoint of the expected sales occurring at the retail spaces in the project (via sales per square foot assumptions). These two separate calculation methods produced similar conclusions, a finding which is not surprising, insofar as the commercial space proposed in the project is in large measure intended to serve visitors to and residents of the development. Calculations of taxable sales via both the occupant spending and retail space approaches are shown in Table 26 to follow.

To estimate sales tax proceeds, for taxes distributed on a point‐of‐sale basis, sales tax collections were estimated as a function of taxable sales multiplied by the applicable tax rate. For taxes distributed on a per capita basis, sales tax proceeds were estimated as a function of the new permanent resident population of the development, multiplied by the applicable statewide or multi‐county per capita tax distribution factor (which was estimated). Calculations are shown in Table 27 to follow.

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Table 28 to follow illustrates the results of the analysis. Overall, upon stabilization after buildout, the development is projected to generate approximately $4.2 million annually in aggregate sales tax revenue for Weber County. On a fund‐by fund basis: • The General Fund is projected to accrue approximately $212,000 annually upon stabilization after buildout. • The Municipal Services Fund is projected to accrue approximately $711,000 annually. • The RAMP Tax Fund is projected to accrue approximately $146,000 annually. • The Tourism Fund is projected to accrue approximately $2.0 million annually across three levies (lodging tax, restaurant tax, and vehicle rental tax). • The Transportation Development Fund is projected to accrue approximately $356,000 annually. • The mass transit tax is projected to accrue approximately $782,000 annually (note that these taxes are currently allocated to the UTA).

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Table 26 Calculation of Projected Taxable Sales

ANNUAL TAXABLE SALES AT END OF PHASE Stabilized At Phase 1 Phase 2 Phase 4 Phase 5 Phase 7 Phase 8 Phase 10 Phase 11 Phase 13 Buildout Construction & furnishing expenditures Source 1. Construction materials purchases Econ impacts analysis (per yr per phase) $2,593,231 $2,383,231 $6,174,991 $8,745,217 $3,988,017 $3,988,017 $3,395,151 $3,395,151 $3,206,991 $0 2. Furnishings -- initial purchases Econ impacts; 80% of purchases in Weber $680,000 $60,000 $1,516,400 $2,557,200 $1,144,800 $1,144,800 $709,600 $709,600 $682,720 $0 3. Furnishings -- refurnishing upon resale Econ impacts; 80% in Weber $59,500 $64,750 $201,845 $425,600 $721,735 $821,905 $1,011,577 $1,073,667 $1,195,495 $1,195,495

Visitor & second home-related expenditures 4. Lodging in project area Econ impacts analysis $1,095,000 $1,169,141 $4,172,954 $9,904,868 $27,544,041 $31,028,924 $35,353,718 $36,374,623 $38,393,438 $38,393,438 5. Non-lodging, non-furn. taxable spending Sum of below $4,028,231 $4,397,794 $14,226,358 $31,109,352 $63,553,745 $71,957,005 $85,848,736 $90,040,807 $98,282,149 $98,282,149 5a. Recreation Econ impacts analysis $1,342,744 $1,465,931 $4,742,119 $10,369,784 $21,184,582 $23,985,668 $28,616,245 $30,013,602 $32,760,716 $32,760,716 5b. Restaurants Econ impacts analysis $1,342,744 $1,465,931 $4,742,119 $10,369,784 $21,184,582 $23,985,668 $28,616,245 $30,013,602 $32,760,716 $32,760,716 5c. Grocery food Econ impacts analysis; assume 40% of "other retail" $358,065 $390,915 $1,264,565 $2,765,276 $5,649,222 $6,396,178 $7,630,999 $8,003,627 $8,736,191 $8,736,191 5d. Other retail Econ impacts analysis; assume 60% of "other retail" $537,098 $586,373 $1,896,848 $4,147,914 $8,473,833 $9,594,267 $11,446,498 $12,005,441 $13,104,287 $13,104,287 5e. Car rentals Econ impacts analysis; assume 10% of "other services" $44,758 $48,864 $158,071 $345,659 $706,153 $799,522 $953,875 $1,000,453 $1,092,024 $1,092,024 5f. Other svcs Econ impacts analysis; assume 90% of "other services" $402,823 $439,779 $1,422,636 $3,110,935 $6,355,375 $7,195,701 $8,584,874 $9,004,081 $9,828,215 $9,828,215

Local resident expenditures 6. Local resident non-housing taxable spending - calculation: General methodology: Assume $150,000 annual household income. Assume spending distribution per 2008 US BLS Cons. Exp Svy - $150K+ category. Exclude goods & svcs not taxed in Weber County. Category expenditures per HH per yr from same source (BLS).

Local resident households 15 33 84 136 198 217 278 302 343 343 Average household income RRC assumption $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 Average annual taxable spending BLS (above note); RRC estimates $46,863 $46,863 $46,863 $46,863 $46,863 $46,863 $46,863 $46,863 $46,863 $46,863 Share of taxable purchases made in Weber Co RRC assumption 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% Total local resident taxable expenditures in Weber County $632,647 $1,370,735 $3,544,931 $5,719,128 $8,348,830 $9,154,400 $11,737,286 $12,719,998 $14,472,852 $14,472,852

Avg annual spending/HH/yr: 6a. Restaurants $4,507 x # HHs $67,601 $146,469 $378,792 $611,115 $892,111 $978,190 $1,254,183 $1,359,191 $1,546,491 $1,546,491 6b. Grocery food $3,786 x # HHs $56,790 $123,045 $318,213 $513,382 $749,439 $821,751 $1,053,606 $1,141,820 $1,299,166 $1,299,166 6c. Car rentals Assume $50/hh/yr (1 day rental/hh/yr) $750 $1,625 $4,203 $6,780 $9,898 $10,853 $13,915 $15,080 $17,158 $17,158 6d. Other taxable purchases Residual $507,506 $1,099,596 $2,843,723 $4,587,851 $6,697,382 $7,343,606 $9,415,583 $10,203,908 $11,610,037 $11,610,037

TOTAL taxable expenditures 7. TOTAL taxable expenditures - all items $9,088,609 $9,445,650 $29,837,479 $58,461,365 $105,301,168 $118,095,051 $138,056,068 $144,313,845 $156,233,644 $152,343,933 7a. Grocery food $414,855 $513,960 $1,582,778 $3,278,657 $6,398,661 $7,217,930 $8,684,605 $9,145,447 $10,035,357 $10,035,357 7b. Lodging $1,095,000 $1,169,141 $4,172,954 $9,904,868 $27,544,041 $31,028,924 $35,353,718 $36,374,623 $38,393,438 $38,393,438 7c. Restaurants $1,410,345 $1,612,401 $5,120,912 $10,980,899 $22,076,693 $24,963,858 $29,870,429 $31,372,793 $34,307,208 $34,307,208 7d. Car rentals $45,508 $50,489 $162,273 $352,439 $716,050 $810,375 $967,789 $1,015,533 $1,109,181 $1,109,181 7e. Construction materials $2,593,231 $2,383,231 $6,174,991 $8,745,217 $3,988,017 $3,988,017 $3,395,151 $3,395,151 $3,206,991 $0 7f. Furnishings $739,500 $124,750 $1,718,245 $2,982,800 $1,866,535 $1,966,705 $1,721,177 $1,783,267 $1,878,215 $1,195,495 7g. All other $2,790,170 $3,591,679 $10,905,326 $22,216,484 $42,711,171 $48,119,243 $58,063,200 $61,227,032 $67,303,255 $67,303,255 Total - incl. grocery food $9,088,609 $9,445,650 $29,837,479 $58,461,365 $105,301,168 $118,095,051 $138,056,068 $144,313,845 $156,233,644 $152,343,933 Total - excl. grocery food $8,673,754 $8,931,690 $28,254,700 $55,182,708 $98,902,507 $110,877,122 $129,371,463 $135,168,398 $146,198,287 $142,308,576

Taxable spending in UNINCORP. Cnty Assumed share in unincorp. Area 7a. Grocery food 90% $373,370 $462,564 $1,424,501 $2,950,792 $5,758,794 $6,496,137 $7,816,144 $8,230,902 $9,031,821 $9,031,821 7b. Lodging 100% $1,095,000 $1,169,141 $4,172,954 $9,904,868 $27,544,041 $31,028,924 $35,353,718 $36,374,623 $38,393,438 $38,393,438 7c. Restaurants 90% $1,269,311 $1,451,161 $4,608,820 $9,882,809 $19,869,024 $22,467,473 $26,883,386 $28,235,514 $30,876,487 $30,876,487 7d. Car rentals 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 7e. Construction materials 5% $129,662 $119,162 $308,750 $437,261 $199,401 $199,401 $169,758 $169,758 $160,350 $0 7f. Furnishings 20% $147,900 $24,950 $343,649 $596,560 $373,307 $393,341 $344,235 $356,653 $375,643 $239,099 7g. Visitor recreation 90% $1,208,469 $1,319,338 $4,267,907 $9,332,806 $19,066,124 $21,587,102 $25,754,621 $27,012,242 $29,484,645 $29,484,645 7g. All other 50% $723,713 $1,062,874 $3,081,603 $5,923,350 $10,763,295 $12,066,787 $14,723,477 $15,606,715 $17,271,269 $17,271,269 Total - incl. grocery food $4,947,424 $5,609,189 $18,208,184 $39,028,446 $83,573,985 $94,239,163 $111,045,339 $115,986,406 $125,593,652 $125,296,759 Total - excl. grocery food $4,574,055 $5,146,625 $16,783,683 $36,077,654 $77,815,191 $87,743,027 $103,229,195 $107,755,504 $116,561,831 $116,264,937

Taxable spending in UNINCORPORATED county - based on sales at commercial projects - alternate calculation (with similar results) A. Sales at retail spaces Cumulative retail sqft in all project areas 0 70,000 120,000 150,188 180,563 195,750 200,938 200,938 200,938 200,938 Assumed sales per sqft per yr $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 Sales at project retail spaces per yr $0 $21,000,000 $36,000,000 $45,056,280 $54,168,840 $58,725,120 $60,281,400 $60,281,400 $60,281,400 $60,281,400 B. Lodging sales (from above) $1,095,000 $1,169,141 $4,172,954 $9,904,868 $27,544,041 $31,028,924 $35,353,718 $36,374,623 $38,393,438 $38,393,438 C. Recreation sales (ski lift tickets, golf, etc.) - visitors (from above) $1,342,744 $1,465,931 $4,742,119 $10,369,784 $21,184,582 $23,985,668 $28,616,245 $30,013,602 $32,760,716 $32,760,716 D. TOTAL $2,437,744 $23,635,072 $44,915,073 $65,330,932 $102,897,462 $113,739,712 $124,251,363 $126,669,625 $131,435,554 $131,435,554 Source: RRC Associates. Note: Phases 3, 6, 9, and 12 are not shown for space and readability reasons.

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Table 27 Calculations of Projected Sales Taxes

ANNUAL TAXABLE SALES AT END OF PHASE Stabilized At Phase 1 Phase 2 Phase 4 Phase 5 Phase 7 Phase 8 Phase 10 Phase 11 Phase 13 Buildout A. Total sales taxes generated (regardless of final recipient) -- by type of tax Sales tax Weber County fund Tax rate Taxable items County Option Sales Tax General fund 0.25% All retail sales $22,722 $23,614 $74,594 $146,153 $263,253 $295,238 $345,140 $360,785 $390,584 $380,860 Local Sales & Use Tax Municipal services fund 1.00% All retail sales (uninco $49,474 $56,092 $182,082 $390,284 $835,740 $942,392 $1,110,453 $1,159,864 $1,255,937 $1,252,968 Botanical, Cultural, Zoo Tax (County) RAMP tax fund 0.10% All exc. Grocery $8,674 $8,932 $28,255 $55,183 $98,903 $110,877 $129,371 $135,168 $146,198 $142,309 Transient Room Tax (TRT) county-wide Tourism fund 4.25% Accommodations $46,538 $49,688 $177,351 $420,957 $1,170,622 $1,318,729 $1,502,533 $1,545,921 $1,631,721 $1,631,721 Tourism - Restaurant Tax Tourism fund 1.00% Restaurants $14,103 $16,124 $51,209 $109,809 $220,767 $249,639 $298,704 $313,728 $343,072 $343,072 County Option Transportation Transportation development fund 0.25% All exc. Grocery $21,684 $22,329 $70,637 $137,957 $247,256 $277,193 $323,429 $337,921 $365,496 $355,771 Leased vehicle fees Tourism fund 7.00% Vehicle rentals $3,186 $3,534 $11,359 $24,671 $50,124 $56,726 $67,745 $71,087 $77,643 $77,643 Mass transit tax N/A-allocated to UTA 0.55% All exc. Grocery $47,706 $49,124 $155,401 $303,505 $543,964 $609,824 $711,543 $743,426 $804,091 $782,697 TOTAL $214,086 $229,438 $750,887 $1,588,519 $3,430,628 $3,860,617 $4,488,919 $4,667,901 $5,014,741 $4,967,040

B. Sales taxes which are allocated to Weber County based on point of sale Pooled & reallocated Share redirected to Sales tax Weber direct share share other agencies County Option Sales Tax 50% 50% 0% $11,361 $11,807 $37,297 $73,077 $131,626 $147,619 $172,570 $180,392 $195,292 $190,430 Local Sales & Use Tax 50% 50% 0% $24,737 $28,046 $91,041 $195,142 $417,870 $471,196 $555,227 $579,932 $627,968 $626,484 Botanical, Cultural, Zoo Tax (County) 100% 0% 0% $8,674 $8,932 $28,255 $55,183 $98,903 $110,877 $129,371 $135,168 $146,198 $142,309 Transient Room Tax (TRT) county-wide 100% 0% 0% $46,538 $49,688 $177,351 $420,957 $1,170,622 $1,318,729 $1,502,533 $1,545,921 $1,631,721 $1,631,721 Tourism - Restaurant Tax 100% 0% 0% $14,103 $16,124 $51,209 $109,809 $220,767 $249,639 $298,704 $313,728 $343,072 $343,072 County Option Transportation 75% 0% 25% $16,263 $16,747 $52,978 $103,468 $185,442 $207,895 $242,571 $253,441 $274,122 $266,829 Leased vehicle fees 83% 17% 0% $2,639 $2,928 $9,412 $20,441 $41,531 $47,002 $56,132 $58,901 $64,333 $64,333 Mass transit tax 0% 0% 100% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL $124,315 $134,272 $447,542 $978,077 $2,266,761 $2,552,956 $2,957,109 $3,067,484 $3,282,706 $3,265,177

C. Sales taxes which are allocated to Weber County based on population

County Option and Local Sales & Use Taxes - calculation of per capita tax factors (using 2008 statewide figures): 2008 Utah statewide taxable sales $47,360,540,317 Utah State Tax Commission, http://tax.utah.gov/esu/sales/calendaryear/cy2008.xls 2008 Utah statewide population 2,736,424 U.S. Census Taxable sales per resident $17,307 Arithmetic Per capita taxes distributed - 0.125% tax $22 Per capita taxes distributed - 0.5% tax $87

Resident population living in project area (average at end of phase): 41 97 244 388 563 618 795 862 981 981

Sales tax Per capita taxes distributed (2008) - approx. Sales taxes allocated to Weber County on basis of project area resident population: County Option Sales Tax $22 $876 $2,088 $5,277 $8,392 $12,183 $13,372 $17,204 $18,639 $21,214 $21,214 Local Sales & Use Tax $87 $3,505 $8,351 $21,108 $33,569 $48,730 $53,490 $68,817 $74,556 $84,855 $84,855 Leased vehicle fees $1 Prelim est - subject to further research $41 $97 $244 $388 $563 $618 $795 $862 $981 $981 TOTAL $4,421 $10,535 $26,629 $42,349 $61,476 $67,481 $86,817 $94,056 $107,049 $107,049

D. T OTAL SALES TAXES TO WEBER COUNTY (including taxes distributed by point of sale and population) Sales tax Weber County fund Allocation method County Option Sales Tax General fund POS & population $12,237 $13,895 $42,574 $81,469 $143,809 $160,991 $189,774 $199,031 $216,506 $211,644 Local Sales & Use Tax Municipal services fund POS & population $28,242 $36,397 $112,149 $228,711 $466,600 $524,686 $624,044 $654,488 $712,823 $711,338 Botanical, Cultural, Zoo Tax (County) RAMP tax fund Point of sale (POS) $8,674 $8,932 $28,255 $55,183 $98,903 $110,877 $129,371 $135,168 $146,198 $142,309 Transient Room Tax (TRT) county-wide Tourism fund Point of sale (POS) $46,538 $49,688 $177,351 $420,957 $1,170,622 $1,318,729 $1,502,533 $1,545,921 $1,631,721 $1,631,721 Tourism - Restaurant Tax Tourism fund Point of sale (POS) $14,103 $16,124 $51,209 $109,809 $220,767 $249,639 $298,704 $313,728 $343,072 $343,072 County Option Transportation Transportation development fund Point of sale (POS) $21,684 $22,329 $70,637 $137,957 $247,256 $277,193 $323,429 $337,921 $365,496 $355,771 Leased vehicle fees Tourism fund POS & population $2,680 $3,025 $9,656 $20,829 $42,094 $47,620 $56,927 $59,762 $65,313 $65,313 TOTAL $134,158 $150,390 $491,830 $1,054,915 $2,390,051 $2,689,735 $3,124,783 $3,246,020 $3,481,129 $3,461,168 Source: RRC Associates. Note: Phases 3, 6, 9, and 12 are not shown for space and readability reasons.

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Table 28 Summary of Projected Sales Tax Collections

ANNUAL SALES TAX COLLECTIONS AT END OF PHASE Stabilized At Sales tax Weber County fund Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout County Option Sales Tax General fund $12,237 $13,895 $14,272 $42,574 $81,469 $133,763 $143,809 $160,991 $184,593 $189,774 $199,031 $208,288 $216,506 $211,644 Local Sales & Use Tax Municipal services fund $28,242 $36,397 $42,038 $112,149 $228,711 $410,763 $466,600 $524,686 $594,977 $624,044 $654,488 $684,931 $712,823 $711,338 Botanical, Cultural, Zoo Tax RAMP tax fund (recreation, arts, $8,674 $8,932 $8,547 $28,255 $55,183 $92,637 $98,903 $110,877 $126,834 $129,371 $135,168 $140,965 $146,198 $142,309 museums, parks) Transient Room Tax Tourism fund $46,538 $49,688 $51,901 $177,351 $420,957 $1,022,514 $1,170,622 $1,318,729 $1,459,145 $1,502,533 $1,545,921 $1,589,310 $1,631,721 $1,631,721 Tourism - Restaurant Tax Tourism fund $14,103 $16,124 $17,619 $51,209 $109,809 $191,895 $220,767 $249,639 $283,681 $298,704 $313,728 $328,752 $343,072 $343,072 County Option Transportation Transportation development fund $21,684 $22,329 $21,368 $70,637 $137,957 $231,593 $247,256 $277,193 $317,086 $323,429 $337,921 $352,413 $365,496 $355,771

Leased vehicle fees Tourism fund $2,680 $3,025 $3,280 $9,656 $20,829 $36,568 $42,094 $47,620 $54,092 $56,927 $59,762 $62,598 $65,313 $65,313 Mass transit tax N/A-allocated to UTA $47,706 $49,124 $47,010 $155,401 $303,505 $509,504 $543,964 $609,824 $697,589 $711,543 $743,426 $775,309 $804,091 $782,697 TOTAL $181,864 $199,514 $206,036 $647,231 $1,358,419 $2,629,238 $2,934,015 $3,299,559 $3,717,996 $3,836,326 $3,989,446 $4,142,567 $4,285,219 $4,243,865 Source: RRC Associates.

Revenue and Cost Projections: General Fund

The General Fund is the principal operating fund of the County, and accounts for all financial resources of the County which are not accounted for in another fund.

The General Fund has multiple sources of revenue, which were projected based on a combination of case study and per capita approaches. Property tax and sales tax projections were calculated as described previously. Most other revenue sources were calculated on a per household basis, i.e. by deriving a per household revenue factor on a countywide basis, and multiplying that factor by the projected number of permanent resident households at Snowbasin, as illustrated in Table 29 to follow.

Some revenue sources calculated on a per household basis were first adjusted to exclude revenues which are not believed to be growth sensitive, i.e.: • Some revenues associated with charges for services were excluded, i.e. jail fees for state and federal inmates and Sheriff contract cities. • Intergovernmental revenues were assumed to be partially related to population, and thus only 50 percent of these revenues were included. • Miscellaneous revenues were reduced by 50 percent to exclude interest and jail commissary revenues. • Other financing sources (a very modest revenue source at $10,000 in 2010) were excluded.

Based on the above calculations, total revenues generated by the Snowbasin development for the General Fund are projected to be $3.7 million upon buildout. The large majority of these revenues (80 percent) are from property taxes, highlighting the importance of that revenue source. An additional 14 percent is attributable to property taxes earmarked for covering the

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cost of assessing and collecting property taxes, further underscoring the importance of property taxes generated by the project.

On the expense side, all General Fund costs were projected on a per housing and hotel unit basis, in an attempt to account for the impacts of both residents and visitors to the development. All General Fund activities were assumed to have costs which are 100 percent variable with new growth, with the exception of selected Public Safety functions, where selected Jail and Sheriff costs (i.e. jail fees for state and federal inmates and Sheriff contract cities) were excluded as non‐variable. The per housing/hotel unit expense factors were multiplied by Snowbasin’s combined housing and hotel units. The resulting calculations yield an estimate of approximately $1.15 million in annual General Fund costs attributable to the development upon project buildout.

Comparing revenues and costs, the General Fund is projected to experience a net surplus from the Snowbasin project across all construction phases, followed by an annual surplus of approximately $2.6 million after buildout. Viewed another way, revenues are projected to exceed expenses by a factor of approximately 3.2 to 1 annually upon buildout. The highly positive fiscal impact is due primarily to the strong property tax generation of the project. The large positive margin adds confidence that even if the project were to significantly underperform expectations (with lower revenues and/or higher costs), it would still be highly likely to have a positive fiscal impact on the General Fund.

Note that this analysis does not include the cost of any capital improvements that may be warranted to ensure adequate delivery of Sheriff services and other public safety services to the Snowbasin development, because those costs are not known. However, the applicant plans to work with the Sheriff and other public safety providers to ensure that adequate emergency services facilities are provided on site at appropriate location(s) and size(s).

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Table 29 Projected General Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized At Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout

Snowbasin local resident households 15 33 44 84 136 179 198 217 255 278 302 325 343 343

Amount per household Revenues - General Fund 2010 budget % Variable /5 County option sales tax (.25%) $7,903,665 100% Independent calc. $12,237 $13,895 $14,272 $42,574 $81,469 $133,763 $143,809 $160,991 $184,593 $189,774 $199,031 $208,288 $216,506 $211,644 Property taxes /1 $22,151,121 100% Independent calc. $140,155 $199,536 $227,158 $560,130 $1,036,194 $1,507,886 $1,713,560 $1,919,235 $2,237,421 $2,419,600 $2,601,778 $2,783,957 $2,958,762 $2,958,762 Assessing and collecting prop. taxes $3,440,840 100% Independent calc. $23,919 $34,053 $38,766 $95,591 $176,836 $257,334 $292,434 $327,534 $381,835 $412,926 $444,016 $475,106 $504,938 $504,938 Charges for services /2 $15,521,132 42% $80.42 $1,206 $2,614 $3,571 $6,759 $10,905 $14,383 $15,919 $17,455 $20,507 $22,380 $24,254 $26,128 $27,597 $27,597 Fines and forfeitures $427,044 100% $5.32 $80 $173 $236 $447 $721 $951 $1,053 $1,155 $1,356 $1,480 $1,604 $1,728 $1,825 $1,825 Intergovernmental /3 $1,144,864 50% $7.13 $107 $232 $317 $599 $967 $1,275 $1,411 $1,548 $1,818 $1,984 $2,150 $2,317 $2,447 $2,447 Miscellaneous /4 $785,641 50% $4.89 $73 $159 $217 $411 $664 $875 $969 $1,062 $1,248 $1,362 $1,476 $1,590 $1,679 $1,679 Other financing sources $10,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Licences, permits, & fees $2,912,470 100% $36.28 $544 $1,179 $1,611 $3,049 $4,919 $6,489 $7,181 $7,874 $9,251 $10,096 $10,941 $11,787 $12,449 $12,449 Total revenue $54,296,777 $178,321 $251,839 $286,148 $709,562 $1,312,675 $1,922,957 $2,176,337 $2,436,854 $2,838,029 $3,059,603 $3,285,252 $3,510,901 $3,726,204 $3,721,342

Snowbasin housing & hotel units 100 125 143 372 744 1,217 1,379 1,541 1,761 1,873 1,985 2,097 2,201 2,201

Amount per housing Expenses - General Fund /6 2010 budget % Variable and hotel unit /6 General government $17,594,945 100% $201.34 $20,134 $25,167 $28,832 $74,978 $149,715 $244,988 $277,645 $310,302 $354,637 $377,187 $399,737 $422,287 $443,145 $443,145 Conservation and development $619,669 100% $7.09 $709 $886 $1,015 $2,641 $5,273 $8,628 $9,778 $10,928 $12,490 $13,284 $14,078 $14,872 $15,607 $15,607 Parks and recreation $1,659,317 100% $18.99 $1,899 $2,373 $2,719 $7,071 $14,119 $23,104 $26,184 $29,264 $33,445 $35,571 $37,698 $39,824 $41,791 $41,791 Public health & welfare $2,004,896 100% $22.94 $2,294 $2,868 $3,285 $8,544 $17,060 $27,916 $31,637 $35,358 $40,410 $42,979 $45,549 $48,118 $50,495 $50,495 Public safety /2 $32,308,266 72% $265.97 $26,597 $33,246 $38,087 $99,048 $197,777 $323,634 $366,775 $409,916 $468,483 $498,271 $528,060 $557,849 $585,404 $585,404 Streets and public improvements $686,284 100% $7.85 $785 $982 $1,125 $2,925 $5,840 $9,556 $10,829 $12,103 $13,832 $14,712 $15,592 $16,471 $17,285 $17,285 Total expenses $54,873,377 $524.18 $52,418 $65,523 $75,063 $195,206 $389,783 $637,826 $722,849 $807,871 $923,296 $982,005 $1,040,713 $1,099,422 $1,153,727 $1,153,727

Annual surplus (deficit) - General Fund $125,903 $186,317 $211,084 $514,356 $922,892 $1,285,131 $1,453,489 $1,628,983 $1,914,733 $2,077,598 $2,244,538 $2,411,479 $2,572,476 $2,567,614 Source: RRC Associates.

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Revenue and Cost Projections: Library Fund

The Library Fund accounts for the operations of the County’s main library and three branches. Revenues are primarily generated from property taxes.

On the revenue side, Library Fund property tax revenues were projected as discussed earlier. Additional revenues from charges for services and registered vehicle fees were calculated on a per capita basis. Total revenues attributable to the Snowbasin development are projected at approximately $891,000 annually upon buildout.

On the expense side, all Library Fund expenses were assumed to be 100% variable with growth. Per capita costs were projected against Snowbasin’s combined resident and second homeowner populations, under the assumption that both groups would make use of the library system. Total costs are projected at approximately $59,000 annually upon buildout.

Comparing revenues and costs, the Library Fund is projected to experience a net surplus from the Snowbasin project across all construction phases, followed by an annual surplus of approximately $831,000 after buildout. The highly positive fiscal impact is due to the use of property taxes as the primary revenue source, combined with the moderate cost impact of the project.

Table 30 Projected Library Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized At venue and cost projections - Library Fund Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout

Snowbasin local resident population 41 97 132 244 388 508 563 618 729 795 862 928 981 981

Revenues - Library Fund 2010 budget % Variable Amount per capita Charges for services $154,142 100% $0.68 $27 $65 $90 $165 $263 $345 $382 $419 $494 $539 $584 $629 $665 $665 Intergov't (fed. grants & state lib. contract) $101,236 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Miscellaneous (sundry revenue) $12,602 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Property taxes $6,542,721 100% Independent calc. $42,032 $59,841 $68,125 $167,983 $310,755 $452,215 $513,897 $575,579 $671,003 $725,638 $780,274 $834,909 $887,333 $887,333 Registered vehicle fees $729,410 100% $3.21 $130 $310 $424 $783 $1,245 $1,631 $1,807 $1,984 $2,340 $2,552 $2,765 $2,978 $3,147 $3,147 Total revenue $7,540,111 $42,190 $60,216 $68,638 $168,932 $312,263 $454,191 $516,086 $577,982 $673,837 $728,730 $783,623 $838,517 $891,146 $891,146

Snowbasin local resident & second home population 82 143 182 384 673 918 1,033 1,147 1,344 1,458 1,571 1,685 1,782 1,782

Expenses - Library Fund 2010 budget % Variable Amount per capita Operational expenses $7,017,472 100% $30.88 $2,522 $4,402 $5,618 $11,868 $20,784 $28,344 $31,886 $35,429 $41,516 $45,016 $48,517 $52,017 $55,038$55,038 Transfer to debt service fund $537,650 100% $2.37 $193 $337 $430 $909 $1,592 $2,172 $2,443 $2,714 $3,181 $3,449 $3,717 $3,985 $4,217 $4,217 Total expenses $7,555,122 $2,715 $4,739 $6,049 $12,777 $22,377 $30,515 $34,329 $38,143 $44,696 $48,465 $52,234 $56,002 $59,255 $59,255

Annual surplus (deficit) - Library Fund $39,475 $55,477 $62,589 $156,154 $289,886 $423,676 $481,757 $539,839 $629,141 $680,265 $731,390 $782,514 $831,891 $831,891

Note: Snowbasin expenses calculated on basis of local resident population and average daily second homeowner population. 7/1/09 Weber Co population=227,259. Source: Utah Population Estimates Committee. Source: RRC Associates.

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Revenue and Cost Projections: Consolidated Health Fund

The Consolidated Health Fund accounts for all activities of the Weber/Morgan Health Department. Revenues are primarily generated from property taxes, intergovernmental revenues, and charges for services.

On the revenue side, Consolidated Health Fund property tax revenues were projected as illustrated earlier. Additional revenues from charges for services and registered vehicle fees were calculated on a per capita basis. Intergovernmental revenues were assumed to be largely variable and were also calculated on a per capita basis. Total revenues are projected at approximately $184,000 annually upon buildout.

On the expense side, all Consolidated Health Fund expenses were assumed to be 100% variable with growth. Per capita costs were projected against Snowbasin’s combined resident and second homeowner populations, under the assumption that both groups would make use of the health system. Total costs are projected at approximately $52,000 annually upon buildout.

Comparing revenues and costs, the Consolidated Health Fund is projected to experience a net surplus from the Snowbasin project across all construction phases, followed by an annual surplus of approximately $131,000 after buildout. Again, the highly positive fiscal impact is due to the use of property taxes as the primary revenue source, combined with the moderate cost impact of the project. Table 31 Projected Consolidated Health Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized Post- venue and cost projections - Consolidated Health Fund Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Constr.

Snowbasin local resident population 41 97 132 244 388 508 563 618 729 795 862 928 981 981

Amount per Revenues 2010 budget % Variable capita Charges for services $1,639,100 100% $7.21 $292 $696 $952 $1,759 $2,798 $3,665 $4,061 $4,458 $5,257 $5,736 $6,214 $6,692 $7,072 $7,072 Intergovernmental /1 $3,396,755 75% $11.21 $454 $1,082 $1,480 $2,734 $4,348 $5,696 $6,313 $6,929 $8,171 $8,915 $9,658 $10,401 $10,992 $10,992 Miscellaneous $112,150 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other financing sources $3,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Property taxes $1,239,672 100% Independent calc. $7,833 $11,152 $12,695 $31,305 $57,911 $84,273 $95,768 $107,263 $125,046 $135,227 $145,409 $155,590 $165,360 $165,360 Registered vehicle fees $136,090 100% $0.60 $24 $58 $79 $146 $232 $304 $337 $370 $437 $476 $516 $556 $587 $587 Total revenue $6,526,767 $8,603 $12,987 $15,207 $35,944 $65,290 $93,938 $106,479 $119,020 $138,911 $150,353 $161,796 $173,239 $184,011 $184,011

/1 Assume intergovernmental revenue is partially related to population, and thus a portion is variable with growth.

Snowbasin local resident & second home population 82 143 182 384 673 918 1,033 1,147 1,344 1,458 1,571 1,685 1,782 1,782

Amount per Expenses 2010 budget % Variable capita Operational expenses $6,594,503 100% $29.02 $2,370 $4,136 $5,280 $11,153 $19,531 $26,635 $29,964 $33,294 $39,013 $42,303 $45,592 $48,882 $51,721$51,721 Transfer to capital projects fun $92,040 100% $0.41 $33 $58 $74 $156 $273 $372 $418 $465 $545 $590 $636 $682 $722 $722 Total expenses $6,686,543 $2,403 $4,194 $5,353 $11,308 $19,804 $27,007 $30,383 $33,758 $39,558 $42,893 $46,229 $49,564 $52,442 $52,442

Annual surplus (deficit) - Consolidated Health Fund $6,200 $8,793 $9,854 $24,636 $45,486 $66,931 $76,096 $85,262 $99,353 $107,460 $115,568 $123,675 $131,569 $131,569 Source: RRC Associates.

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Revenue and Cost Projections: Municipal Services Fund

The Municipal Services Fund accounts for certain municipal‐type services in the unincorporated areas of the County including justice courts, planning and zoning, building inspection, public safety, road maintenance, and street lighting. The fund is required to exist by state statutes.

Revenues come from a variety of sources. Sales tax revenues were projected as illustrated earlier. All other revenues (charges for services, intergovernmental, fines and forfeitures, and licenses, permits and fees) were each calculated on a per capita method. Each of these revenues were projected to be 100% variable with growth. In one adjustment, revenues associated with construction activity (i.e. planning, engineering, and building inspection licenses, permits and fees) were excluded, under the assumption that incremental amounts of such revenues attributable to Snowbasin will be equivalent to associated expenses. Total revenues are projected at approximately $837,000 annually upon buildout.

On the expense side, all Municipal Services Fund expenses were assumed to be 100% variable with growth. Expenses associated with construction activity were excluded (to offset the exclusion of corresponding revenues per above). Per capita costs were projected against Snowbasin’s combined resident, second homeowner, and visitor populations, under the assumption that all groups would cause expenses for the Municipal Services Fund. Total costs are projected at approximately $688,000 annually upon buildout.

Comparing revenues and costs, the Municipal Services Fund is projected to experience a net surplus from the Snowbasin project across all construction phases, followed by an annual surplus of approximately $149,000 after buildout.6

6 Note that per capita expense factors for the Municipal Services Fund are calculated against the County’s unincorporated resident population, while Snowbasin’s associated expenses are calculated against the project’s combined resident, second homeowner, and visitor populations. Insofar as the unincorporated County also has second homeowner and visitor populations which are excluded from the per capita factor calculations (due to lack of available data), this mismatch has the effect of somewhat overstating Snowbasin’s relative costs, and understating the net fund surplus resulting from the development – making this a conservative estimation approach.

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Table 32 Projected Municipal Services Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized At venue and cost projections - Municipal Services Fund Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout

Snowbasin local resident population 41 97 132 244 388 508 563 618 729 795 862 928 981 981

Amount per capita Revenues 2010 budget % Variable (unincorp. pop'n) /1 Charges for services - planning & eng /2 $64,286 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Charges for services - other $179,034 100% $10.21 $413 $985 $1,348 $2,490 $3,959 $5,186 $5,747 $6,309 $7,440 $8,117 $8,793 $9,470 $10,008 $10,008 Fines and forfeitures $540,000 100% $30.79 $1,247 $2,971 $4,065 $7,509 $11,942 $15,642 $17,336 $19,029 $22,440 $24,481 $26,523 $28,564 $30,186 $30,186 Intergovernmental (allotments & grants) $1,480,696 100% $84.41 $3,419 $8,146 $11,148 $20,590 $32,745 $42,892 $47,534 $52,177 $61,531 $67,128 $72,726 $78,323 $82,772 $82,772 Other financing sources $145,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales taxes $1,700,304 100% Independent calc. $28,242 $36,397 $42,038 $112,149 $228,711 $410,763 $466,600 $524,686 $594,977 $624,044 $654,488 $684,931 $712,823 $711,338 Franchise fees $22,220 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Lic, perm, fees - blg perm & plan rev fees /2 $220,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Licences, permits, & fees - other $47,629 100% $2.72 $110 $262 $359 $662 $1,053 $1,380 $1,529 $1,678 $1,979 $2,159 $2,339 $2,519 $2,662 $2,662 Total revenue $4,399,169 $33,431 $48,760 $58,958 $143,400 $278,410 $475,863 $538,747 $603,879 $688,367 $725,930 $764,869 $803,808 $838,452 $836,967

/1 2008 Weber unincorporated population = 17,541 per U.S. Census. /2 While planning and engineering licenses, permits & fees are variable, they are zeroed out as revenues, under the assumption that incremental amounts of such revenues attributable to Snowbasin will be equivalent to associated expenses.

Snowbasin local resident, second home, and visitor population 114 177 218 504 956 1,515 1,724 1,932 2,220 2,363 2,506 2,649 2,776 2,776

Amount per capita Expenses 2010 budget % Variable (unincorp. pop'n) Administrative Fees - General Fund $185,738 100% $10.59 $1,208 $1,872 $2,305 $5,334 $10,124 $16,047 $18,254 $20,462 $23,511 $25,024 $26,537 $28,050 $29,391 $29,391 Animal Control $54,429 100% $3.10 $354 $549 $675 $1,563 $2,967 $4,702 $5,349 $5,996 $6,890 $7,333 $7,776 $8,220 $8,613 $8,613 J.P. Court $361,741 100% $20.62 $2,353 $3,647 $4,488 $10,389 $19,718 $31,252 $35,552 $39,851 $45,790 $48,736 $51,683 $54,629 $57,241 $57,241 Planning, Bldg Inspection, & Engineering $1,098,826 74% $46.44 $5,297 $8,211 $10,106 $23,393 $44,399 $70,371 $80,052 $89,734 $103,106 $109,741 $116,375 $123,010 $128,892 $128,892 Roads and Highways $2,282,021 100% $130.10 $14,841 $23,004 $28,314 $65,538 $124,387 $197,152 $224,275 $251,398 $288,862 $307,450 $326,038 $344,626 $361,104 $361,104 Sewer Division $12,350 100% $0.70 $80 $124 $153 $355 $673 $1,067 $1,214 $1,361 $1,563 $1,664 $1,764 $1,865 $1,954 $1,954 Sheriff $540,618 100% $30.82 $3,516 $5,450 $6,708 $15,526 $29,468 $46,706 $53,131 $59,557 $68,432 $72,836 $77,239 $81,643 $85,547 $85,547 Weed $96,390 100% $5.50 $627 $972 $1,196 $2,768 $5,254 $8,327 $9,473 $10,619 $12,201 $12,986 $13,771 $14,557 $15,253 $15,253 Total expenses $4,632,113 $247.87 $28,275 $43,829 $53,945 $124,866 $236,990 $375,624 $427,301 $478,977 $550,355 $585,770 $621,184 $656,599 $687,994 $687,994

Annual surplus (deficit) - Municipal Services Fund $5,155 $4,931 $5,012 $18,534 $41,421 $100,239 $111,446 $124,902 $138,011 $140,160 $143,685 $147,209 $150,458 $148,973 Source: RRC Associates.

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Revenue and Cost Projections: Paramedic Fund

The Paramedic Fund accounts for the County’s paramedic services.

On the revenue side, Paramedic Fund property tax revenues were calculated as illustrated earlier. Registered vehicle fee revenue was calculated on a per capita basis. Total annual revenue is projected at approximately $299,000 upon buildout.

On the expense side, all Paramedic Fund expenses were assumed to be 100% variable with growth. Per capita costs were projected against Snowbasin’s combined resident, second homeowner, and visitor populations, under the assumption that all groups would cause expenses for the Paramedic Fund. Total operating costs are projected at approximately $31,000 annually upon buildout, assuming that the cost per capita in Snowbasin is similar to the cost per capita countywide.

Comparing revenues and costs, the Paramedic Fund is projected to experience a net operating surplus from the Snowbasin project across all construction phases, followed by an annual surplus of approximately $267,000 after buildout.

Note that this analysis does not include the cost of capital improvements that may be warranted to ensure adequate delivery of Paramedic services to the Snowbasin project, because those costs are not known. However, the applicant plans to work with Paramedic services and other public safety providers to ensure that adequate emergency services facilities are provided on site at appropriate location(s) and size(s).

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Table 33 Projected Paramedic Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized At venue and cost projections - Paramedic Fund Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout

Snowbasin local resident population 41 97 132 244 388 508 563 618 729 795 862 928 981 981

Amount per Revenues 2010 budget % Variable capita Property taxes $2,184,512 100% Independent calc. $14,127 $20,113 $22,897 $56,460 $104,447 $151,993 $172,724 $193,456 $225,529 $243,892 $262,255 $280,618 $298,239 $298,239 Registered vehicle fees $245,447 100% $1.08 $44 $104 $143 $263 $419 $549 $608 $668 $787 $859 $930 $1,002 $1,059 $1,059 Total revenue $2,429,959 $14,171 $20,217 $23,040 $56,724 $104,866 $152,541 $173,332 $194,123 $226,316 $244,751 $263,186 $281,621 $299,298 $299,298

7/1/09 Weber Co population=227,259. Source: Utah Population Estimates Committee.

Snowbasin local resident, second home, and visitor population 114 177 218 504 956 1,515 1,724 1,932 2,220 2,363 2,506 2,649 2,776 2,776

Amount per Expenses 2010 budget % Variable capita Total expenses $2,507,076 100% $11.03 $1,258 $1,951 $2,401 $5,557 $10,548 $16,718 $19,018 $21,318 $24,495 $26,071 $27,647 $29,223 $30,621 $30,621

Annual surplus (deficit) to Paramedic Fund $12,913 $18,266 $20,639 $51,166 $94,318 $135,823 $154,314 $172,806 $201,821 $218,680 $235,539 $252,397 $268,677 $268,677 Source: RRC Associates.

Revenue and Cost Projections: Debt Service Fund and Capital Projects Fund

The Debt Service Fund and Capital Projects Fund are discussed together in this section insofar as they have related costs and revenues.

The Debt Service Fund accounts for the accumulation of monies for the payment of principal, interest, and related costs on the County’s general obligation and sales tax revenue bonds. It is primarily funded through property taxes. As illustrated in Table 34 to follow, the Snowbasin development is projected to generate approximately $443,000 annually towards the fund upon buildout, primarily from property taxes. On the expense side, since the Debt Service Fund services the cost of existing debt (which is fixed), incremental revenues from Snowbasin help to reduce the unit cost of existing debt. Alternatively, the proposed Snowbasin project can be viewed to increase the tax base available to offset the cost of debt service for future projects which may be undertaken.

The Capital Projects Fund accounts for the acquisition and construction of major capital facilities, and revenue typically comes from bond proceeds (thus a relationship with the Debt Service Fund), transfers from other funds and interest earnings. Total budgeted expenses in 2010 sum to $3.5 million. If it is assumed that future capital projects would be similar in cost to those undertaken in 2010, Snowbasin’s pro‐rata share of such costs upon buildout would be approximately $73,000 per year (utilizing a conservative per household/per hotel unit expense factor).

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The costs and revenues of the Debt Service Fund and Capital Projects Fund cannot be directly compared due to somewhat differing sources and uses of funds. However, for illustrative purposes, it is of interest to note that at current budgetary levels, the funds raised from Snowbasin for Debt Service Fund purposes ($443,000 annually at buildout) significantly exceed Snowbasin’s pro‐rata share of existing Capital Projects Fund expenses ($73,000 share at buildout), a positive differential of $370,000. This points generally to the likely capacity of the Snowbasin project to comfortably fund its share of future County capital projects (particularly via property taxes).

Table 34 Projected Revenues and Expenses: Debt Service Fund and Capital Projects Fund

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized At Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout Revenue and cost projections - Debt Service Fund

Snowbasin local resident population 41 97 132 244 388 508 563 618 729 795 862 928 981 981

Revenues 2010 budget % Variable Amount per capita Charges for services - rents $315,243 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Miscellaneous $3,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Property taxes $3,244,945 100% Independent calc. $20,911 $29,771 $33,892 $83,572 $154,602 $224,979 $255,666 $286,353 $333,827 $361,008 $388,189 $415,371 $441,452 $441,452 Registered vehicle fees $352,860 100% $1.55 $63 $150 $205 $379 $602 $789 $874 $960 $1,132 $1,235 $1,338 $1,441 $1,522 $1,522 Transfer from Library Fund $537,650 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total revenue $4,453,698 $20,974 $29,921 $34,097 $83,951 $155,204 $225,768 $256,540 $287,313 $334,959 $362,243 $389,527 $416,811 $442,975 $442,975

Expenses 2010 budget % Variable Amount per capita Bond payments $4,082,838 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Trustee fees $15,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Transfers to General Fund $352,860 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total expenses $4,450,698 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Annual surplus (deficit) - Debt Service Fund $20,974 $29,921 $34,097 $83,951 $155,204 $225,768 $256,540 $287,313 $334,959 $362,243 $389,527 $416,811 $442,975 $442,975

Revenue and cost projections - Capital Projects Fund

Revenues 2010 budget % Variable Amount per capita Interest earnings $30,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sale of bonds $3,000,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Transfers in - Health $92,040 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Transfers in - General Fund $100,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total revenue $3,222,040 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Snowbasin housing and hotel units 100 125 143 372 744 1,217 1,379 1,541 1,761 1,873 1,985 2,097 2,201 2,201

Amount per housing and hotel Expenses 2010 budget % Variable unit /1 Animal shelter construction $2,880,000 100% $32.96 $3,296 $4,119 $4,719 $12,273 $24,506 $40,101 $45,446 $50,791 $58,048 $61,739 $65,430 $69,121 $72,536 $72,536 Misc. improvements $621,654 100% $2.74 $274 $342 $392 $1,019 $2,034 $3,328 $3,772 $4,216 $4,818 $5,125 $5,431 $5,737 $6,021 $6,021 Total expenses $3,501,654 $3,296 $4,119 $4,719 $12,273 $24,506 $40,101 $45,446 $50,791 $58,048 $61,739 $65,430 $69,121 $72,536 $72,536

Annual surplus (deficit) - Capital Projects Fund -$3,296 -$4,119 -$4,719 -$12,273 -$24,506 -$40,101 -$45,446 -$50,791 -$58,048 -$61,739 -$65,430 -$69,121 -$72,536 -$72,536

Combined surplus (deficit) - Cap Proj & Debt Svc Funds $17,679 $25,801 $29,378 $71,678 $130,698 $185,667 $211,094 $236,521 $276,910 $300,504 $324,097 $347,690 $370,439 $370,439 /1 Total 87,390. Weber Co households projected 2010: 80,279 (Utah Pop Ests Cmte 2008 baseline projections). Weber Co vacant housing units 2008: 5,080 (US Census). Weber Co hotel units 2010: 2,031 (STR). Source: RRC Associates.

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Revenue and Cost Projections: Tourism Fund

The Tourism Fund accounts for the County's tourism‐related taxes. These funds are spent to promote tourism and recreation within the county.

As calculated earlier, Tourism Fund revenues from sales taxes on lodging, restaurants, and rental vehicles are projected to be approximately $2.0 million upon project stabilization. Insofar as incremental expenses are minimal, these tax revenues represent new money available to promote tourism and recreation in the County.

Table 35 Projected Tourism Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized At venue and cost projections - Tourism Fund Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout

Revenues 2010 budget % Variable Amount per capita Transient room tax $1,013,596 100% Independent calc. $46,538 $49,688 $51,901 $177,351 $420,957 $1,022,514 $1,170,622 $1,318,729 $1,459,145 $1,502,533 $1,545,921 $1,589,310 $1,631,721 $1,631,721 Restaurant tax $2,267,901 100% Independent calc. $14,103 $16,124 $17,619 $51,209 $109,809 $191,895 $220,767 $249,639 $283,681 $298,704 $313,728 $328,752 $343,072 $343,072 Leased vehicle fees $248,342 100% Independent calc. $2,680 $3,025 $3,280 $9,656 $20,829 $36,568 $42,094 $47,620 $54,092 $56,927 $59,762 $62,598 $65,313 $65,313 Miscellaneous $1,000 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total revenue $3,530,839 $63,321 $68,837 $72,800 $238,215 $551,595 $1,250,978 $1,433,483 $1,615,988 $1,796,917 $1,858,164 $1,919,412 $1,980,659 $2,040,106 $2,040,106

Expenses 2010 budget % Variable Amount per capita Convention Bureau $715,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Municipal Bldg Authority F $1,808,186 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Special projects $135,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Transfers out - conferenc $521,242 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Transfers out - G.S. Arena $361,411 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total expenses3,540,839 $0$0$0$0$0$0$0$0$0$0$0$0$0$0

Annual contribution to Tourism Fund $63,321 $68,837 $72,800 $238,215 $551,595 $1,250,978 $1,433,483 $1,615,988 $1,796,917 $1,858,164 $1,919,412 $1,980,659 $2,040,106 $2,040,106 Source: RRC Associates.

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Revenue and Cost Projections: Transportation Development Fund

The Transportation Development Fund accounts for a voter‐approved 0.25% sales tax that is restricted for expenditure on transportation‐related infrastructure and expanded transit facilities.

As calculated earlier, the Snowbasin development is projected to contribute approximately $356,000 annually in sales taxes to the Transportation Development Fund upon buildout, money which would be available for use on transportation projects.

Table 36 Projected Transportation Development Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized At Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout

Revenues 2010 budget % Variable Amount per capita Transportation sales tax $4,890,000 100% Independent calc. $21,684 $22,329 $21,368 $70,637 $137,957 $231,593 $247,256 $277,193 $317,086 $323,429 $337,921 $352,413 $365,496 $355,771 Interest $75,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total revenue $4,965,000 $21,684 $22,329 $21,368 $70,637 $137,957 $231,593 $247,256 $277,193 $317,086 $323,429 $337,921 $352,413 $365,496 $355,771

Expenses 2010 budget % Variable Amount per capita Contributions to fund balance $4,965,000 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total expenses $4,965,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Annual contribution to Transportation Development Fund $21,684 $22,329 $21,368 $70,637 $137,957 $231,593 $247,256 $277,193 $317,086 $323,429 $337,921 $352,413 $365,496 $355,771 Source: RRC Associates.

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Revenue and Cost Projections: Impact Fees Fund

The Impact Fees Fund accounts for the County's impact fees that are charged to new development in the unincorporated areas of the County. Impact fees are used to pay for capital improvements to trails, storm drains, and roadways. The fees are intended to ensure that new development pays a proportionate share of the cost of capital facilities necessary to accommodate new growth. Impact fees are charged in the unincorporated portions of Weber County, and separate fee structures are in place in the Ogden Valley and Western Weber County. Impact fees are charged on a per unit of development basis, as applicable to the type of capital improvement and type of development.

As illustrated in Table 37 below, the Snowbasin development is anticipated to generate a total of approximately $2.0 million in trails impact fees, $1.75 million in storm drain fees, and $960,000 in roadway fees over the entirety of project construction. The cost of providing commensurate capital improvements to serve this new growth is assumed to be equal to these fee amounts.

Table 37 Projected Impact Fees Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Total for Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 project Impact fee revenues -- Total per phase:

Amount (uninc. Item Ogden Valley) Unit Trails $988 per household (housing unit) $98,800 $24,700 $17,982 $226,450 $366,746 $319,322 $160,254 $160,254 $217,558 $110,656 $110,656 $110,656 $102,357 $2,026,388

Storm Drains Per Acre Total Acres Single family residential $1,619 405.6 $0 $64,128 $25,138 $53,354 $53,354 $25,138 $25,138 $25,138 $106,195 $69,771 $69,771 $69,771 $69,771 $656,666 Multi-family residential $3,239 231.3 $41,737 $0 $3,506 $86,980 $146,247 $130,804 $63,607 $63,607 $74,626 $35,393 $35,393 $35,393 $31,887 $749,181 Commercial / industrial $5,506 63.8 $0 $77,831 $22,237 $33,356 $50,243 $128,074 $16,887 $16,887 $5,768 $0 $0 $0 $0 $351,283 Total Storm Drains 700.7 $41,737 $141,959 $50,881 $173,690 $249,844 $284,016 $105,632 $105,632 $186,589 $105,164 $105,164 $105,164 $101,658 $1,757,130

Wastewater Not applicable - service not anticipated to be provided by County

Per unit Roadways $455 per single family residential $0 $11,375 $4,459 $9,464 $9,464 $4,459 $4,459 $4,459 $18,837 $12,376 $12,376 $12,376 $12,376 $116,480 $303 per multi-family residential $30,300 $0 $2,545 $63,145 $106,171 $94,960 $46,177 $46,177 $54,176 $25,694 $25,694 $25,694 $23,149 $543,885 $948 per 1,000 SF commercial (incl. hote $0 $66,360 $18,960 $28,440 $42,838 $109,198 $14,398 $14,398 $4,918 $0 $0 $0 $0 $299,509 $303 per 1,000 SF industrial $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Roadways $30,300 $77,735 $25,964 $101,049 $158,473 $208,617 $65,034 $65,034 $77,931 $38,070 $38,070 $38,070 $35,525 $959,874

Expenses: Expenses are assumed to equal impact fee revenues. Net fund balance: Assumed to be $0 (offseting revenues and expenses). Source: RRC Associates.

RRC Associates, Inc. 55

Snowbasin Cost Benefit Analysis May 5, 2010

Revenue and Cost Projections: RAMP Tax Fund

The RAMP Tax Fund accounts for a voter‐approved 0.1% sales tax that is restricted for use on facilities and activities related to recreation, arts, museums and parks ("RAMP").

As calculated earlier, the Snowbasin development is projected to contribute approximately $142,000 annually in sales taxes to the RAMP Tax Fund upon buildout, money which would be available for use on eligible projects and programs.

Table 38 Projected RAMP Tax Fund Revenues and Expenses

ANNUAL REVENUES AND EXPENSES AT END OF PHASE Stabilized At Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 Phase 8 Phase 9 Phase 10 Phase 11 Phase 12 Phase 13 Buildout

Revenues 2010 budget % Variable Amount per capita RAMP sales tax $2,608,800 100% Independent calc. $8,674 $8,932 $8,547 $28,255 $55,183 $92,637 $98,903 $110,877 $126,834 $129,371 $135,168 $140,965 $146,198 $142,309 Interest $40,000 0% $0.00 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 Total revenue $2,648,800 $8,674 $8,933 $8,549 $28,258 $55,187 $92,642 $98,909 $110,884 $126,842 $129,380 $135,178 $140,976 $146,210 $142,322

Expenses 2010 budget % Variable Amount per capita Appropriations to other agency $2,608,574 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Administrative fees $39,132 0% $0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total expenses $2,608,574 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Annual contribution to RAMP Tax Fund $8,674 $8,933 $8,549 $28,258 $55,187 $92,642 $98,909 $110,884 $126,842 $129,380 $135,178 $140,976 $146,210 $142,322 Source: RRC Associates.

RRC Associates, Inc. 56