Moonlight ODP Amendment – 5/28/18

Moonlight Basin is requesting 1,651 residential units as part of this 2018 Overall Development Plan (ODP) amendment. This density request is the same request that was reviewed and approved in 2007. The changes from the 2007 ODP to the existing proposal: ‐ Relocating 81 units collectively from the Lower Hillside, Hidden Lake, Three Peaks, and Overlook Neighborhoods into 3 neighborhood clusters located in the north‐east portion of the property. The 81 units would be in addition to the 19 – 160 Acre+ tracts previously planned in this area. Please see updated Figure 3. ‐ Elimination of a proposed development cluster (PA‐24 from 2007 ODP) (Exhibit C)

A natural resource benefit for relocating these units from the southwest and central portion of the property is to further reduce the density located immediately adjacent to conservation lands and the wildlife corridor that connects between the two areas of the Lee Metcalf Wilderness. There should be a net wildlife benefit to this area simply by minimizing the density and providing flexibility to enhance wildlife movement along South Jack Creek and Moonlight Creek.

In addition, by eliminating PA‐24 (Approved in 2007), the Jack Creek wildlife corridor is widened and improved (Exhibit C) .

Primary reasons for Moonlight to request this shift include: ‐ Taking advantage of the proposed Lee’s Pool amenity ‐ Providing access to a proposed ski portal at Lee’s Pool ‐ Greater flexibility in unit types in this area

Lee’s Pool Amenity In 2007, the Lee’s Pool neighborhood was contemplated to be a high density residential subdivision. Today, Moonlight is designing a 5‐Star Hotel with 80 hotel rooms and 40 residential units. The proposed amenities include three restaurants as well as a world‐class destination spa.

The new three proposed neighborhoods are located as close to Lee’s Pool as possible, while maintaining the Moonlight Creek and Jack Creek wildlife corridors (Exhibit C).

Ski Portal As mentioned above, in 2007 the proposed Lee’s Pool residential neighborhood was not planned to be ski in/out. Today, in combination with the proposed hospitality project, two new chairlifts are being designed that will provide ski access for Lee’s Pool (Exhibit D). The proposed three new neighborhoods will be located as close to ski access as possible, while maintaining the Moonlight Creek wildlife corridor (Exhibit C).

Flexibility Previously, 160+ Acre parcels where all that were planned in this area. By relocating 81 units to the proposed three neighborhoods, Moonlight can better respond to changing real estate market conditions to ensure they can deliver and sell product types that the market demands. Moonlight is not committing to developing these neighborhoods, rather requesting the flexibility to if the market conditions warrant it.

Moonlight recognizes the increase in unit density in this area will have impacts, specifically to wildlife. There are five primary concerns relative to wildlife – connectivity, displacement, direct mortality, habituation, and recreational impacts.

1. Connectivity Regional ‐ As the attached Exhibit A and B exemplifies, due to Moonlight’s previous efforts working with conservation buyers, permanent protections are in place to ensure wildlife movement between the two Lee Metcalf Wilderness Units. This corridor exceeds the width required to accommodate movement of all wildlife occurring in the area. Wildlife connectivity outside the corridor and adjacent to development will remain functional for wildlife movement between wilderness units but with varying potential for impacts as described below.

The main risk with regional connectivity is Jack Creek Road. Moonlight is committed to limit traffic and speeds on this road. Moonlight would like to work with other partners to realize a transportation system on the Jack Creek Road to further minimize traffic by shuttling employees and skiers from the Madison Valley to and from Big Sky.

Local – Moonlight is proposing to cluster the 81 units into three neighborhoods. As explained below, the neighborhoods are located primarily in the lowest value wildlife habitat (Exhibit E). In addition, high‐value stream corridors are left intact. As Exhibit C displays, “local” (on‐property) wildlife corridors will remain useful to allow wildlife movement through Moonlight, to the Lee Metcalf Wilderness areas.

2. Displacement To minimize displacing wildlife from critical habitat, Moonlight mapped all the habitat types prior to proposing the three neighborhoods. As Exhibit E exemplifies, the three neighborhoods are located primarily in the lowest value habitat types and appropriate buffers are maintained around high value wetlands and non‐forest habitat.

3. Direct Mortality Another risk to wildlife is direct mortality. Even though the steps outlined above will ensure wildlife can move freely between the Lee Metcalf Wilderness areas, there is a risk that wildlife, specifically bears, will become attracted to the food smells such as barbeques, etc. Once this occurs, there is a chance the bear will become acclimated and continue to return. This often leads to removal of bears from the local population due to the lack of human tolerance.

To minimize this risk, Moonlight is proposing to: 1. Educate Homeowners 2. Have rigid covenants that eliminate attractants 3. Ensure enforcement of the covenants through the employment of a Wildlife Education and Enforcement Officer (see Covenant Enforcement below).

4. Habituation Some wildlife, most notably elk and deer, may be attracted to developed neighborhoods where they find refuge from hunting and predators. This often leads to increased nuisance complaints due to damage to landscaping and property and limits options for managing populations. Major attractants for wildlife are irrigated and fertilized lawns and landscaping with exotic vegetation.

To minimize this risk, Moonlight is proposing to: 1. Educate Homeowners 2. Have rigid covenants that require xeriscaping with native vegetation. 3. Maintaining hunting as practicable in undeveloped areas of Moonlight Basin.

5. Recreational Impacts Higher density in this area will increase recreational activity within Moonlight Territory. Chronic disturbance from recreation can have impacts on wildlife that are often not easily detected such as habitat abandonment, elevated stress, and reduction in reproductive success. Winter recreation in the area is not expected to have significant impacts on wildlife and may reduce recreation pressures on adjacent public lands where impacts on wolverines and hibernating grizzly bears are expected to be more severe.

To minimize impacts from summer recreation, Moonlight proposed to: 1. Educate Homeowners 2. Manage trails to minimize impacts on sensitive habitats 3. Apply adaptive management to adjust recreation management in response to changing conditions

Covenant Enforcement The Moonlight Basin Community Association (MBCA) recognizes the importance of protecting wildlife and natural resources within the Moonlight Basin community. The Declaration of Master Covenants, Conditions and Restrictions for Moonlight Basin Community (CCRs) include restrictions and requirements intended to protect wildlife and natural resources in the areas covered by the CCRs, including those set forth in sections 7.6 through 7.10 of the CCRs. In order to ensure more uniform compliance with these provisions of the CCRs, the MBCA proposes that its board of directors adopt findings and a resolution that the MBCA shall retain an individual to monitor and, where necessary, use efforts to enforce compliance with the provisions of the CCRs intended for the protection of wildlife and natural resources. This position would be part time initially and gradually become full time. The proposed board resolution would specify that the board would not eliminate the position without consultation with and agreement from the Madison County Planning Department.

Jack Creek Road Update On May 3, 2018 Moonlight representatives toured the road with representatives from Madison County’s planning and emergency services departments as well representatives from the State Disaster and Emergency Services. Moonlight will continue to work with the County and the State to improve emergency ingress and egress.

Moonlight also received a draft plan from Terracon (engineering firm) the first week of May that details a plan to fix the slide. We are still waiting on the final plan. Once received, we will pursue a construction cost estimate to implement the plan.

F:\CIVIL 3D PROJECTS\16030\ACAD\EXHIBITS\ODP SITE PLAN - SIMPLE.dwg Plotted on Mar/30/2018

MOONLIGHT BASIN OVERALL DEVELOPMENT PLAN UPDATE SITE PLAN LOCATED IN PORTIONS OF TOWNSHIP 5 SOUTH RANGE 2 EAST, TOWNSHIP 6 SOUTH RANGE 2 EAST & TOWNSHIP 6 SOUTH RANGE 3 EAST, P.M., MADISON COUNTY, MONTANA

33 34 35

Jack Creek Preserve Custer-Gallatin National Forest Twp 5 South Twp 6 South

TERRITORY RESERVE III

3 2 4 JACK CREEK RD 1 (PRIVATE) TERRITORY

RESERVE I Range 2 East 2 Range Custer-Gallatin East 3 Range

National Forest TERRITORY RESERVE II 0 2400 K&R ( IN FEET ) InvestmentsLLC

TO MOONLIGHT TO (PRIVATE) 10 11 TERRITORY Certificate 9 of Survey JACK CREEK RD CREEK JACK 7/348A STRAWBERRY RIDGE SUB. EXEMPT RANCHES MoonJack LEE'S POOL LLC (PUBLIC)

TIMBER RIDGE SUB. Gwilliam GOLF COURSE Family

OVERLOOK

MADISON VILLAGE RH & DaughtersLLC 15 13 MOONLIGHT TRAIL 18 TO SOUTH JACK 14 16 LOWER HILLSIDE (PRIVATE) ULERY'S LAKE SUB.

(COS 1017) Beehive Basin ULERY'S HIDDEN LAKE LAKE

THREE PEAKS Cascade Subdivision LODGE MOUNTAIN LOOP RD. 22 (PUBLIC) 23 24 19 21 PONY VILLAGE VICINITY MAP SCALE: 1"=12,000'

33 34 35 36 1 Twp 5 South Twp 6 South DIAMOND 4 3 2 1 6 HITCH RD Beaverhead-DeerlodgeNational Forest 28 27 9 10 11 12 7 26 15 14 13 25 16 18 LEGEND Big Sky Resort 21 22 23 24 19 EXISTING Big Sky Resort PLATTED/DEVELOPED AREAS NOTE: ROADS SHOWN AS "PUBLIC" OR "PRIVATE" ON THIS 28 27 26 25 30

EXHIBIT ARE INDICATIVE OF THE CURRENT STATUS. Range 2 East East 3 Range

DRAWN BY: JCH

PROJECT NO. MOONLIGHT BASIN FIGURE NO.

112.06 OVERALL DEVELOPMENT PLAN CHK'D. BY: TWM 3 BIG SKY MONTANA APPR. BY: TWM DATE: 03/2018 SITE PLAN ([KLELW$

CUSTER GALLATIN NATIONAL FOREST 68%-(&73523(57< ( 5,0002,500 0 5,000

LEE METCALF WILDERNESS AREA

BEAVERHEAD DEERLODGE BIG SKY 64 NATIONAL FOREST RESORT MEADOW VILLAGE

SPANISH PEAKS BIG SKY LEE METCALF RESORT TOWN CENTER WILDERNESS AREA YELLOWSTONE SPANISH PEAKS MOUNTAIN ESTATES CLUB BIG SKY CONSERVATION

US Forest Service

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2 State of Montana

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8 Montana State Trust Land

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& MLR Conservation Easement

/ Other Conservation Easement

/ SOURCE: MONTANA STATE LIBRARY, GALLATIN COUNTY GIS DEPARTMENT $ * Exhibit B

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Moonlight Basin: Forest Carnivore Habitat Connectivity 100 Lot Alternative Legend This map depicts predicted elk connectivity between units of federally owned public land in the vicinity of Moonlight Basin with existing and Structure Concentration of Movement approved development plus planned development with 100 Lot Alternative in Moonlight Territory. This model uses grizzly bear and wolverine as High surrogate species representing a broader range of forest carnivores. Wolverine habitat is based on published wolverine models (Inman et al., 8 Lost Lake ODP 2013). The model assumes that the best movement habitat for forest carnivores is at least 500 yards away from human dwellings unless line-of- 8 Existing sight is obscured by terrain. The mapped area contains 6,147 acres of land predicted to be impacted by development for elk movement and management. Conservation prioriities typically focus on areas of high concentration of movement, but low concentration of movement does not Planned Low necessarily indicate poor habitat quality or connectivity value. Both large areas of high quality habitat that allows animal movement to disperse MoonlightBasinBoundary across the landscape, and areas of poor habitat quality or high disturbance result in low movement value. Conservation Easement Federal Land ¹ Exhibit C

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reek C - TIGER/Line; HERE Road Data

c Planning Area Approved in 2007, a Eliminated in 2017 thJ u

Moonlight Basin: Legend -DFN&UDQG0RRQOLJKW&U Structure Value

High &RUULGRUV 8 Existing

8 Planned Low Federal Land ¹ Exhibit D

Date: October 25, 2015 Scale: 1"=200' Jack Creek Lift 0 200 400 ft. Concept Plan Exhibit E

Service Layer Credits: Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS

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Moonlight Basin: General Habitat Types Legend MoonlightBasinBoundary Cover Type - Priority 100 Lot Alternative Structure Young Subalpine - Low The cover types depicted on this map were developed by Northwest Management, Inc. primarily for fuels 8 LostApproved Lakes ODP Douglas fir - Med management, but they are useful for delineating habitat quality for wildlife at a meso-scale. Areas mapped as 8 Existing High Elev Mixed - Med "Young Subalpine" contain thick regenerating stands of young conifers with little or no understory. Moose and dusky grouse are common in these stands along with some habitat generalist songbirds but relatively little sign of Planned Low Elev Mixed - Med species of conservation concern are found. Areas outside young subalpine stands vary in habitat quality, but MFWP Recommended Buffer Developed - Low generally support a much wider diversity of species. Federal Land Non Forest - High

Over 40% - Med Stream Buffer - High Wetland/Riparian - High ¹