Quimby Mountain Forest

QUIMBY MOUNTAIN FOREST A timber investment opportunity where long-term asset appreciation from its timber resource will provide value growth year over year, with the additional benefit of recreational opportunities from its well-developed trails and campsite with long views.

Property in foreground with Pico Peak and Green Mountain National Forest lands to the west

±842 Acres Killington, Rutland County, Vermont

Price: $652,000

Fountains Land, an F&W company, 79 River Street, Suite 301, Montpelier, VT 05602 Contact: Michael Tragner ~ [email protected] ~ O: 802 223-8644 x22 ~ C: 802 233-9040 fountainsland.com INVESTMENT OVERVIEW Quimby Mountain Forest represents a long- term timber investment opportunity with attractive species composition and mostly well-drained soils on sloping terrain, providing for solid asset appreciation from long-term timber growth and management.

The ownership, The Conservation Fund (TCF), is a non-profit conservation organization whose Mission Statement is “TCF, working with public, private and nonprofit partners, protects America’s legacy of land and water resources through land acquisition, sustainable community and economic development, and leadership training, emphasizing the integration of economic and environmental goals”. Their goal in divesting is to raise funds to further their forestland conservation work on new projects. A maple stand with small to mid-sized sawlog stems. Investment highlights include:  Long-term timber investment opportunity well positioned for strong asset appreciation;  Ideal species composition, dominated by sugar maple, red spruce & yellow birch;  Developed and deeded access along private roads over adjacent landowners;  Standing timber value is below the property asking price;  Attractive property site well suited to recreation and camp development, one camp site with a bird’s eye view to Killington Ski Resort;  Option Agreement held by the seller to acquire a conservation easement on the land, creating income opportunity for the new owner within a 10-year period (see details at end of report).

Looking west over the headwaters of Quimby Brook which originates on the property, Green Mtns are in background.

Fountains Land — Specializing in the sale of forestland and rural estates. LOCATION Quimby Mountain Forest is located in a mountainous region of central Vermont which is, surprisingly, sparsely developed, given its close proximity to some of the state’s most popular destinations. Known as the Chateauguay-Notown Region, this scenic area has a rich working landscape heritage, as evidenced by the numerous stone walls and cellar holes that cover the hillsides. In the late 19th century, there was even a brief gold rush episode. Now the area is largely forested and hosts the Appalachian Trial (½ mile north of the property), Thundering Falls Trail (1.3 miles from the property), and many large, protected properties.

The Chateauguay-Notown Region covers nearly 60,000 acres and is bounded by Routes 12 to the east, 4 to the south, 100 to the west, and 107 to the north. The property is located in the area’s southwestern The junction of River Road and Route 4, just south of the property quadrant. Because of its undeveloped and near the Killington Ski Resort access road. nature, the region has been the focus of many conservation groups and individuals who have worked to protect its unique landscape. To date, over 30% of the area has been protected from development by various means (see location map for designation of protected lands in the region). The region’s scenic and natural significance has also made it a coveted place for investment.

The northeastern quarter of the township of Killington, the home of Quimby Mountain Forest, largely falls within the Chateauguay-Notown Region.

The majority of Killington’s population and residences are located near the Killington Ski Resort which is 4.5 miles from the property. Killington, with a population of less then 1,000, is largely a tourist town surrounding its ski resort. Many hotels, inns, shops and restaurants are located along the resort’s access road and along Route 4/100.

Bridgewater is located 11 miles to the east along Route 4, with Woodstock Village 7 additional miles further east. Rutland, Vermont’s third largest city, is 13 miles to the west. Boston is a 3-hour drive to the southeast and New York is 4.5 hours to the southwest.

The land’s upper slopes with Killington and Pico Peaks in the background, both home to the nearby ski resorts.

Fountains Land — Specializing in the sale of forestland and rural estates. ACCESS The property’s truck access for forest management purposes originates northeast of the land in the Town of Stockbridge at the end of Stony Brook Road, in an area referred to as Notown. The beginning section of this access road runs along the Class IV part of Stony Brook Road and then becomes a legally deeded private road which was reconstructed around 1998. The access road runs ±3 miles from Stony Brook Road to the eastern end of the property. For forest management purposes, the road would require some improvements to support trucking of forest products in association with any future silvicultural activities on the property.

Once on the property, the road runs ±3,300’ across the northeast corner of the property. The internal access road at the land’s northeastern end. From this internal access road, woods trails extend to the south and west, accessing all of the land north of Taylor Brook.

The land south of Taylor Brook, the southern third of the property, appears to have been accessed in the past via an adjacent landowner to the west along River Road. The lands near the headwaters of Taylor Brook (at the property’s southeastern corner) were accessed across an adjacent landowner to the east from a road that extends south from the Stony Brook access road.

Additional access for high clearance vehicles is provided by Quimby Mountain Road, which begins on River Road and runs ±1.1 miles to the property. Where this road first enters the property, there is a driveway to the right (east) that leads to a site with views to Killington Ski Resort (with tree clearing). Quimby Mountain Road then becomes a right-of-way through lands owned by the Forest Service to the north, then connecting to the property’s main internal road system.

SITE DESCRIPTION The property has variable terrain, characterized by mostly moderate slopes with some steep terrain along the stream channels and at the southern part of the land. All aspects are present; however, a westerly aspect predominates.

Elevation ranges from 1,280’ ASL (above sea level) at the land’s southwest corner (near River Road) to 2,620’ ASL at the land’s northeastern tip. The land’s upland and sloping terrain creates well-drained, productive soils throughout the property, supporting the hardwood timber resource that prevails.

Both Taylor and Quimby Brooks originate on the property, each running low in the summer months and fast during spring runoff. The property’s northern high ground along the access road offers long views to the west and southwest with tree clearing.

The internal access road covers gentle slopes at the land’s northern end.

Fountains Land — Specializing in the sale of forestland and rural estates. TIMBER RESOURCE

Timber data in this report are based on a timber inventory, conducted in the fall of 2018 by the ownership’s forest consultant, Redstart Natural Resource Management. Stumpage values have been assigned by Redstart. Upon adding growth for the 2019 and 2020 growing seasons, the data reveal a total sawlog volume of 2,595 MBF International ¼” scale (3.1 MBF/acre) and 11,480 pulpwood cords (13.7 cords/acre). Combined total per acre volume is 19.8 cords, a figure parallel to the regional average. Stumpage values were assigned to the volumes in March of 2019 producing a property-wide Capital Timber Value (CTV) of $699,000 ($832/total acre). See the Timber Volume & Valuation in this report for details.

Species Composition: Above - Typical mix of small sawlogs and advanced saplings. A species composition dominated by Below - Pole and sawlog stand at property’s southern end. hardwoods prevails, with hardwoods at 89% and softwoods at 11% of total volume. Species composition for all products combined offers a favorable mix led by the sugar maple at 36% of total volume, with yellow birch (14%), red spruce (9%) and red maple (7%). Other common northern hardwoods and hemlock exist as associates, making up the balance. The sawlog volume breakdown consists largely of species with historically strong demand, dominated by sugar maple, yellow birch and red spruce.

Stocking and Stem Quality: Overall, forest stocking is variable, with the overstory generally fully stocked. Natural regeneration has become fully established in areas that were previously thinned or intended to be regenerated well over two decades ago. Average Basal Area (BA) is 99 ft2 on 161 stems/acre.

Stem quality for the maple, yellow birch and red spruce in all age classes is exceptional, providing for robust asset appreciation in the coming decades.

Fountains Land — Specializing in the sale of forestland and rural estates. TIMBER RESOURCE (continued) Sawlog Value: Sawlog value is largely dominated by Sawlog Volume vs Value Volume sugar maple (60%), followed by other Value species with a long history of 70% consistent demand from 60% manufacturing facilities situated locally, regionally and across the 50% border in Quebec, Canada (all within 40% trucking distance of the property). 30%

Diameter Distribution: 20% Average diameter for all products combined by volume is 13.5”, while 10% the average sawlog diameter is close 0% to 16”. Average diameters for the Sugar Maple Yellow Birch Red Spruce Red Maple All Others White Ash Paper Birch three major species are sugar maple 16”, yellow birch 15.5” and red spruce 13.5”. Financial maturity for most hardwood sawlog species is 18- Diameter Distribution Sawlog Total 24”, therefore many of the stands on 2500 this property are within 20-35 years of generating considerable income. 2000

Silvicultural History: 1500 The property’s forest management Cords plan has delineated 11 forest stands 1000 (copy available upon request).

500 During the ownership’s tenure

(which started in 2014), no forestry 0 operations have been conducted. 5678910111213141516171819202122232425262728+ The most recent silvicultural activity Diameter (in Inches) was conducted by the previous owner nearly 21 years ago.

The management plan calls for thinning in stands containing the highest stocking levels, with this activity helping to offset holding costs by producing income for the new owner. More considerable income generation will occur during the second 10-year management period (20 years out), with robust asset appreciation occurring in the interim.

Diameter Distribution of 3 Major Species Sugar Maple Yellow Birch Red Spruce 300 250 200 150 MBF 100 50 0 6 7 8 9 101112131415161718192021222324+ Diameter (in Inches)

Fountains Land — Specializing in the sale of forestland and rural estates. TIMBER VALUATION

Fountains Land — Specializing in the sale of forestland and rural estates. CONSERVATION EASEMENT OPTION The seller is retaining an option over the next 10 years to acquire a conservation easement covering the property from the new owner. This Option will allow the seller to purchase a conservation easement at a value of 75% of the fair market value of the conservation easement (based on appraised value) at the time the option is exercised. This Option offers the new owner an active partner who will work to secure the necessary funding to purchase the easement, providing an alternative revenue source Quimby Mountain Rd with Killington Peak in view, similar view from property. during their ownership tenure. During the 10-year option term, the owner shall maintain the land’s enrollment in the Use Value Appraisal program in good standing and not develop or subdivide the land unless mutually agreed upon with the option holder.

A copy of the Option Agreement is available upon request.

ACREAGE, TAXES & TITLE The property is owned by The Conservation Fund. Property taxes for 2020 are undetermined given the land was part of a larger property and thus no tax bill is available for the ±842 acres offered for sale. With the exception of 1 acre, the entire property is enrolled in the State of Vermont’s Use Value Appraisal (UVA) program. The current approved plan was developed in 2014.

Looking southwest - the property’s access road is in view with the land’s forestland to the right in view.

Fountains Land is the exclusive broker representing the seller's interest in the marketing, negotiating and sale of this property. Fountains has an ethical and legal obligation to show honesty and fairness to the buyer. The buyer may retain brokers to represent their interests. All measurements are given as a guide, and no liability can be accepted for any errors arising therefrom. No responsibility is taken for any other error, omission, or misstatement in these particulars, nor do they constitute an offer or a contract. We do not make or give, whether in these particulars, during negotiations or otherwise, any representation or warranty in relation to the property.

Fountains Land — Specializing in the sale of forestland and rural estates. Locus Map Quimby Mountain Forest q 846 GIS Acres Killington, Rutland County, Vermont a ad O an PL ATTSBURG! C L BURLINGTON N D ! Adirondack 87 O M ¨¦§ !MONTPELIER

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H H W I Conserved Land L Y L RA B E Town Line 2 R C K 1 D R D 1,320 660 0 1,320 This is Not A Survey Feet Map produced from the best available information including UVA map, town tax maps, hand held GPS data, aerial photography and reference information obtained from publicly available GIS sources. Boundary lines portrayed on this map are approximate and could be different than the actual location of boundaries found in the field. Map is not a survey. Quimby Mountain Forest 846 GIS Acres q Killington, Rutland County, Vermont

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Legend Quimby Mountain Forest US Highway State Highways T ToOwWn Roads N H VAST TraWilsY 19 Access Roads Skid Trails T D ¤£4 r Gates O E W

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H H W I Conserved Land L Y L RA B E Town Line 2 R C K 1 D R D 1,320 660 0 1,320 This is Not A Survey FeeVt CGI Map produced from the best available information including UVA map, town tax maps, hand held GPS data, aerial photography and reference information obtained from publicly available GIS sources. Boundary lines portrayed on this map are approximate and could be different than the actual location of boundaries found in the field. Map is not a survey.