Table of Contents I Compelling Attributes .............. 1 II Deer Cove ....................... 5 III Jordanelle Specially Planned Area ..... 15 IV Residential Market ................. 21 V Hospitality Market ................. 26 VI Commercial Real Estate Overview ..... 33 VII Economic/Demographic Overview ..... 37 VIII Utah in the News .................. 46 IX Photos .......................... 59 Disclaimer: No representations or warranties, express or implied, are made with respect to the accuracy or completeness of the Information herein. The Information is subject to change and is not guaranteed as to completeness or accuracy. You understand that the Information is confidential and is furnished solely for the purpose of your review in connection with a potential investment in the property. COMPELLING ATTRIBUTES || I Opportunity Awaits World Class Mixed-Use Development Opportunity: The Deer Cove Master Planned Community (87 gross acres) represents one of the largest entitled mixed-use communities ready for development in the Park City/Deer Valley/Jordanelle Reservoir region. An infill location, with the closest proximity to existing on-mountain, freeway, and other public infrastructure, Deer Cove is located adjacent to U.S. 40, just off the Mayflower Interchange and within walking distance to both the Deer Crest Gondola and Jordanelle Reservoir. Deer Cove, with entitlements/approvals in-place, along with four on-mountain proposed luxury resorts developments will mark the beginning of the final build-out of the world-class Deer Valley/Deer Crest submarket. As such, with commanding mountain and lake views, from a mixed-use residential and hospitality perspective, Deer Cove is uniquely positioned to capture a broad spectrum of potential home buyers and hospitality patrons, who desire a value-oriented, year-round, contemporary alternative to the numerous near-by five star luxury on-mountain resorts and first generation homes located in the Park City/Deer Valley market. In addition, the Jordanelle Specially Planned Area (“JSPA”), approved by the Wasatch County, entitles Deer Cove to be the central residential/hospitality community of the JSPA, allowing the highest density/visibility of commercial uses, and the only community with direct on-site access to the Deer Crest Gondola. As an alternative to this proposed Deer Cove Master Planned Community (detailed below), the 87 acre site provides an ideal setting for corporate owners/users to create a fully integrated campus environment with commanding views of Jordanelle Reservoir, Deer Valley® Resort ski runs, and exceptional visibility from U.S. 40. As an example, Adobe Systems recently completed their 600,000 sq. ft. campus in Utah. Excellent Proximity to Year-Round Amenities and Services: Internationally Recognized Economy and Demographics: • Downtown Salt Lake City (Salt Lake City MSA: 1,150,000+ population): 30 minutes • At 3.7% as of August 2015, Utah achieved the sixth lowest unemployment rate in the U.S. • Salt Lake International Airport (Top 25 Busiest Airports in the U.S.: 21MM+ • Stable economic base with the largest employers in the state, located within a short passengers/year): 35 minutes commute of Deer Cove, such as: Government services, University of Utah, Brigham • Downtown Park City/Deer Valley® Resort: 10 minutes Young University, Utah State, Zions Bancorp, Wells Fargo Bank, and Delta Airlines, and • The top ranked ski resorts in North America of: Park City Resort, Brighton, Solitude, Goldman Sachs (4th largest office in the world at 1,775 employees), among others. Alta, and Snowbird: within 15-60 minutes. • One of the fastest growing most desirable regions in the country, especially • Deer Crest Gondola (to Deer Valley® Resort): Dedicated on-site transport directly from noteworthy, recognition of Utah’s position in the hi-tech industry during 2014/2015: » Forbes: “Fastest Growing states for » New Yorker: “How Utah became the Deer Cove planned hotel/village square to Deer Crest Gondola (approximately ¼ mile). Tech Jobs”. Utah ranked #2. next Silicon Valley” • Jordanelle Reservoir: Walking distance to paddle boarding, “Blue Ribbon” fishing, » CNBC: “Silicon Slopes” » New York Times: “What is the next canoeing, and water-skiing » Inc: “Move over Silicon Valley, Utah has Silicon Valley” • Championship 18-hole Golf Courses: Numerous choices within 10-15 minute drive. arrived” » New York Times: “Where graduates are going and where they are already” • Hiking, Biking, and Equestrian Trails: Doorstep • Highest birth rate in the U.S. at 17.6 per 1,000 v. National average of 12.5 • At 29.2 years old, Utah has the lowest median age in the U.S. 2 Highlights Entitlements/Approvals, Land Planning/Preliminary Costing, and Public Financing commenced and positioned for 2016/2017 ground breaking: • Currently entitled and approved via Jordanelle Specially Planned Area (”JSPA”) for 865 hospitality, commercial uses and parking requirements. As such, ownership submitted ERUs (residential density units), plus the maximum density allowed for hotel and retail initial plans to retain these benefits and allow for a phased development consisting of uses. The Master Plan (portions contained herein) was initially presented to Wasatch the following land use components: County in October 2015, and is currently under review/approval. • 170 single family attached and detached residential homes and/or lots; • Development Agreement with Wasatch County is currently being negotiated to • 1,006 multi-family and/or condominium units provide for favorable site planning and platting, and will serve letters, among • Up to 340 hotel/time share keys designed around the Village Square/ Ice Rink/Event Center. numerous other owner/developer benefits. • 137,000 square feet of “Main Street” ground floor retail space with dedicated retail • Public Financing is available and is currently being evaluated with Wasatch County’s parking, plus a Village Square and Ice Rink anchoring the terminus of pedestrian third party consulting firm. An adjacent on-mountain real estate development oriented street. completed their application for public financing in 2015. • A fully integrated master planned community, accessible via pedestrian paths and • Sewer and Water entitlements are in-place to accommodate the proposed master hiking/biking paths. planned community. • 33% open space • Deer Cove Master Planned Community is located adjacent to Highway 40 and • A detailed Land Residual Analyses and a Development Cash Flow are available upon Jordanelle Parkway, thus providing for cost efficient access to all dry/wet utilities and request and execution of the Confidentiality Agreement infrastructure. Updated preliminary civil engineering cost estimates are in process. • The Portal (underpass) from Deer Cove Master Planned Community to Deer Crest Gondola has been engineered, costed, and reviewed/approved by Wasatch County and Utah Department of Transportation. • Since 2004, ownership has spent $10M - $15M in costs related to planning and engineering, as well as obtaining entitlements, rights, water rights, water bonds, and approvals for the development of Deer Cove. All permits and rights are paid current with no pending expiration dates. • A Deer Cove Master Plan and Development Agreement were submitted to Wasatch County in 4Q/2015. The current zoning is extremely flexible regarding residential, 3 Adjacent Planned On-Mountain Developments (See maps of Jordanelle Specially Planned Area) 1. Deer Valley Resort 4. Pioche On December 12, 2014, the president and general manager of Deer Valley Resort on Pioche was foreclosed in 2015 by Wells Fargo Bank and the receiver plans to commence Thursday briefed Park City leaders about ambitious ideas at the resort involving expansions marketing the site for sale in 1Q/2016. Pioche is approved for 144 ERUs and will likely be a stretching from the Jordanelle Reservoir to Old Town. high-end development. Bob Wheaton addressed Mayor Jack Thomas and the Park City Council at a time when 3. Blue Ledge there is extensive internal planning underway at the resort. Blue Ledge, a ten (10) developable acre site was purchased by Extell Development (based He focused his comments on a planned development in Wasatch County overlooking in New York City, NY) in January 2015 and is approved for 58 ERUs. the Jordanelle Reservoir, an idea for a gondola linking Deer Valley with Old Town and the Based on local interviews, it appears the hospitality component of Blue Ledge will likely resort’s longheld intention to someday develop the parking lots outside Snow Park Lodge. be a five star hotel (e.g., Four Seasons, Ritz Carlton, Park Hyatt) and is planned to be It was a rare opportunity for the full slate of elected officials and a crowd of Parkites to listen announced in 1Q/2016 to Deer Valley’s top executive in a public setting. Wheaton, wearing his Deer Valley uniform, 5. Mayflower praised the relationship between Deer Valley and City Hall as he began his remarks. Mayflower has been owned by an investor group based in the Netherlands and is Wheaton spoke about ideas for a major development on the Jordanelle Reservoir side of actively being marketed for sale by Prudential’s Park City office. The Mayflower property Deer Valley, situated in Wasatch County. He said meetings have been held more frequently encompasses 4,000 plus acres of fee and leasehold land . recently. Deer Valley is one of four landowners in the Mayflower vicinity. State officials and (See maps of Jordanelle Specially Planned Area) Combined, as conceptually