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 planned in the Air Force are also involved in the discussions. The Air Force has long been interested in 2002, Mayflower property comprises a Target Density of 1,945 ERUs or 2,415 dwelling offering lodging opportunities in the Park City area for members of the military. units under the Resort Specially Planned Area (RSPA). Now, these 3 large parcels are to The project could involve an expansion of Deer Valley’s skiing terrain totaling between be developed under Wasatch County’s newly adopted Jordanelle Specially Planned Area 800 and 1,000 acres with at least seven and, perhaps, eight new lifts. Wheaton told the (JSPA) Development Code which encourages commercial/hotel-type development. A new elected officials work could start as early as next summer. Master Plan was submitted in October, 2015 with a proposed total density of 3,923 ERUs. (source: Park Record) The Deer Cove property is strategically located to large portions of the Mayflower and will 2. Deer Crest likely play an extremely important role in any future development plans for Mayflower (See Is an existing ski in/out custom home development located directly across US 40 from maps of Jordanelle Specially Planned Area). Deer Cove. Deer Crest is approved for an additional 195 ERUs, located at the base of the mountain in the immediate vicinity of the Deer Crest gondola building/terminus and future Deer Cove Portal.

4 DEER COVE || II General Concept

6 Phasing Plan

7 Land Use Plan

8 Land Use Summary

9 Ski Portals

Source: Jordanelle Specially Planned Area Overlay Zone Plan Book / Wasatch County 10 Ski Portals

Source: Jordanelle Specially Planned Area Overlay Zone Plan Book / Wasatch County 11 Land Use Summary

DEER COVE LAND USE SUMMARY PARCEL DESCRIPTION RETAIL HOTEL MULTIFAMILY/CONDO SINGLE FAMILY RESIDENTIAL PARCEL TOTALS WATER & SEWER PARKING

Water ERUs Water ERUs Parking 0 Parcel Land Use Acres Avg. Exist. Slope Avg. Prop. Slope Retail sf Floor sf Floors Rooms/Floor Avg Room Size Total sf Total Rooms Floor sf Floors Units/Floor Total sf Total Units Avg Unit Size Total Units Avg Unit Size Avg Lot Size Res. Units Res. Units/acre ERUs/unit ERU/acre* ERU/parcel* Sewer ERUs Parking 0 Retail ** Parking Type (inside) (outside) Hotel/Resid. **

One Multifamily / Retail 3.94 19.48% 21.82% 46,000 0 0 0 0 0 0 42,600 4 48 170,400 192 37.5% at 700sf, 62.5% at 1000sf 0 0 0 192 48.7 .33 for 700sf, .50 for 1000sf 21.3 84 80 0.50 199 240 138 Wrapped (3 floors above grade)

Two Multifamily / Retail 3.10 25.59% 27.22% 30,000 0 0 0 0 0 0 32,400 5 24 162,000 120 1350 sf 0 0 0 120 38.7 0.75 29.0 90 50 0.39 125 150 90 Wrapped (3 floors above grade)

30,000 (around garage) 45,000 Three Multifamily / Retail 3.08 29.32% 34.28% 16,000 0 0 0 0 0 0 5 38 225,000 166 1350 sf 0 0 0 166 53.9 0.75 40.4 124.5 64 0.39 158 192 48 Wrapped (3 floors above grade) (above garage)

24,000 (around garage) 45,000 Four Multifamily / Retail 3.06 18.06% 24.67% 16,000 0 0 0 0 0 0 5 40 207,000 154 1350 sf 0 0 0 154 50.3 0.75 37.7 115.5 59 0.38 148 192 48 Wrapped (3 floors above grade) (above garage)

Five (Total) Multifamily 3.84 15.56% 16.06% 15,000 0 0 0 0 0 0 46,800 3 34 140,400 102 1350 sf 0 0 0 102 26.6 0.75 for non0hotel units 0.0 76.5 40 0.48 100 128 0 Podium (1 floor below grade)

Five (B1) Multifamily 0 0 0 0 0 0 0 0 19,000 3 14 57,000 42 1350 sf 0 0 0 42 0 0.75 0 31.5 15 0.00 38 53 0 0

Five (B2) Multifamily 0 0 0 0 0 0 0 0 17,000 3 12 51,000 36 1350 sf 0 0 0 36 0 0.75 0 27 13 0.00 32 45 0 0

Five (B3) Multifamily 0 0 0 0 0 0 0 0 10,800 3 8 32,400 24 1350 sf 0 0 0 24 0.75 0 18 9 0.00 22 30 0 0

Hotel/Retail & Branded Six (Total) 2.65 14.91% 17.38% 14,000 19,500 5 34 560 sf 97,500 170 19,500 5 14 97,500 70 1350 sf 0 0 0 70 26.4 0.75 19.8 52.5 44 0.33 110 258 48 Podium (1 floor below grade) Condos/Residential/Retail

Six (B10Hotel) Hotel/Retail 0 15.56% 16.06% 7,000 19,500 5 34 560 sf 97,500 170 0 0 0 0 0 0 0 0 0 0 0.0 0 0.0 0 17 0.00 43 170 24 Podium (1 floor below grade)

Branded Six (B20Condo) 0 7,000 19,500 5 14 97,500 70 1350 sf 0 0 0 70 0.0 0.75 52.5 27 0.00 67 88 24 Podium (1 floor below grade) Condos/Residential/Retail

Seven (Total) Multifamily 2.39 14.62% 16.57% 0 0 0 0 0 0 0 32,400 3 8 97,200 72 1350 sf 0 0 0 72 30.1 0.75 22.6 54 26 0.30 65 90 0 Podium (1 floor below grade)

Seven (B1) Multifamily 0 0 0 0 0 0 0 0 10,800 3 8 32,400 24 1350 sf 0 0 0 24 0.0 0.75 18 9 0.00 22 30 0 Podium (1 floor below grade)

Seven (B2) Multifamily 0 0 0 0 0 0 0 0 10,800 3 8 32,400 24 1350 sf 0 0 0 24 0 0.75 18 9 0.00 22 30 0 Podium (1 floor below grade)

Seven (B3) Multifamily 0 0 0 0 0 0 0 0 10,800 3 8 32,400 24 1350 sf 0 0 0 24 0 0.75 18 9 0.00 22 30 0 Podium (1 floor below grade)

Eight (Total) Multifamily 2.72 12.85% 13.93% 0 0 0 0 0 0 0 43,500 4 16.5 (ave) 178,200 130 1350 sf 0 0 0 130 47.8 0.75 35.8 97.5 47 0.34 117 163 0 Podium (1 floor below grade)

Eight (B1) Multifamily 0 0 0 0 0 0 0 0 20,250 4 14 81,000 58 1350 sf 0 0 0 58 0 0.75 0 43.5 21 0.00 52 73 0 Podium (1 floor below grade)

Eight (B2) Multifamily 0 0 0 0 0 0 0 0 24,300 4 18 97,200 72 1350 sf 0 0 0 72 0 0.75 0 54 26 0.00 65 90 0 Podium (1 floor below grade)

Residential Single Family .30 Acres/Fourplex (based on 15' Nine 2.32 17.85% 20.78% 0 0 0 0 0 0 0 0 0 0 0 0 0 20 160002400 sf 20 8.6 1 8.6 20 8 0.40 20 0 0 Individually Parked Attached rear setback) Residential Single Family .30 Acres/Fourplex (based on 15' Ten 4.64 13.86% 15.32% 0 0 0 0 0 0 0 0 0 0 0 0 0 45 160002400 sf 45 9.7 1 9.7 45 18 0.80 45 0 0 Individually Parked Attached rear setback) Residential Single Family .30 Acres/Fourplex (based on 15' Eleven 4.22 20.78% 24.68% 0 0 0 0 0 0 0 0 0 0 0 0 0 36 160002400 sf 36 8.5 1 8.5 36 14 0.72 36 0 0 Individually Parked Attached rear setback) Residential Single Family .17 Acres/Duplex (based on 15' Twelve 5.40 21.67% 24.32% 0 0 0 0 0 0 0 0 0 0 0 0 0 44 160002400 sf 44 8.1 1 8.1 44 18 0.93 44 0 0 Individually Parked Attached rear setback) Residential Single Family .25 Acres based on 15' rear Thirteen 6.70 0 0 0 0 0 0 0 0 0 0 0 0 0 25 200002400 sf 25 3.7 1 3.7 25 10 2.49 25 0 0 Individually Parked Detached setback)

Fourteen Club House 1.75 39.21% 58.59% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0.0 0 0 0.65 0 0 0 0

Plaza/Park/Ice Rink/Event Fifteen 0.71 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0.0 0 0 0.26 0 0 0 0 Space

Sixteen Open Space 28.01 26.38% 28.37% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0.0 0 0 0.00 0 0 0 0

128 On0Street Angled 0 Roads 7.88 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0 0 Parking Spaces

Totals 86.41 137,000 97,500 170 1,277,700 1,006 170 1176 864.5 478 9 1192 Land Use Summary

DEER COVE LAND USE SUMMARY PARCEL DESCRIPTION RETAIL HOTEL MULTIFAMILY/CONDO SINGLE FAMILY RESIDENTIAL PARCEL TOTALS WATER & SEWER PARKING

Water ERUs Water ERUs Parking 0 Parcel Land Use Acres Avg. Exist. Slope Avg. Prop. Slope Retail sf Floor sf Floors Rooms/Floor Avg Room Size Total sf Total Rooms Floor sf Floors Units/Floor Total sf Total Units Avg Unit Size Total Units Avg Unit Size Avg Lot Size Res. Units Res. Units/acre ERUs/unit ERU/acre* ERU/parcel* Sewer ERUs Parking 0 Retail ** Parking Type (inside) (outside) Hotel/Resid. **

One Multifamily / Retail 3.94 19.48% 21.82% 46,000 0 0 0 0 0 0 42,600 4 48 170,400 192 37.5% at 700sf, 62.5% at 1000sf 0 0 0 192 48.7 .33 for 700sf, .50 for 1000sf 21.3 84 80 0.50 199 240 138 Wrapped (3 floors above grade)

Two Multifamily / Retail 3.10 25.59% 27.22% 30,000 0 0 0 0 0 0 32,400 5 24 162,000 120 1350 sf 0 0 0 120 38.7 0.75 29.0 90 50 0.39 125 150 90 Wrapped (3 floors above grade)

30,000 (around garage) 45,000 Three Multifamily / Retail 3.08 29.32% 34.28% 16,000 0 0 0 0 0 0 5 38 225,000 166 1350 sf 0 0 0 166 53.9 0.75 40.4 124.5 64 0.39 158 192 48 Wrapped (3 floors above grade) (above garage)

24,000 (around garage) 45,000 Four Multifamily / Retail 3.06 18.06% 24.67% 16,000 0 0 0 0 0 0 5 40 207,000 154 1350 sf 0 0 0 154 50.3 0.75 37.7 115.5 59 0.38 148 192 48 Wrapped (3 floors above grade) (above garage)

Five (Total) Multifamily 3.84 15.56% 16.06% 15,000 0 0 0 0 0 0 46,800 3 34 140,400 102 1350 sf 0 0 0 102 26.6 0.75 for non0hotel units 0.0 76.5 40 0.48 100 128 0 Podium (1 floor below grade)

Five (B1) Multifamily 0 0 0 0 0 0 0 0 19,000 3 14 57,000 42 1350 sf 0 0 0 42 0 0.75 0 31.5 15 0.00 38 53 0 0

Five (B2) Multifamily 0 0 0 0 0 0 0 0 17,000 3 12 51,000 36 1350 sf 0 0 0 36 0 0.75 0 27 13 0.00 32 45 0 0

Five (B3) Multifamily 0 0 0 0 0 0 0 0 10,800 3 8 32,400 24 1350 sf 0 0 0 24 0.75 0 18 9 0.00 22 30 0 0

Hotel/Retail & Branded Six (Total) 2.65 14.91% 17.38% 14,000 19,500 5 34 560 sf 97,500 170 19,500 5 14 97,500 70 1350 sf 0 0 0 70 26.4 0.75 19.8 52.5 44 0.33 110 258 48 Podium (1 floor below grade) Condos/Residential/Retail

Six (B10Hotel) Hotel/Retail 0 15.56% 16.06% 7,000 19,500 5 34 560 sf 97,500 170 0 0 0 0 0 0 0 0 0 0 0.0 0 0.0 0 17 0.00 43 170 24 Podium (1 floor below grade)

Branded Six (B20Condo) 0 7,000 19,500 5 14 97,500 70 1350 sf 0 0 0 70 0.0 0.75 52.5 27 0.00 67 88 24 Podium (1 floor below grade) Condos/Residential/Retail

Seven (Total) Multifamily 2.39 14.62% 16.57% 0 0 0 0 0 0 0 32,400 3 8 97,200 72 1350 sf 0 0 0 72 30.1 0.75 22.6 54 26 0.30 65 90 0 Podium (1 floor below grade)

Seven (B1) Multifamily 0 0 0 0 0 0 0 0 10,800 3 8 32,400 24 1350 sf 0 0 0 24 0.0 0.75 18 9 0.00 22 30 0 Podium (1 floor below grade)

Seven (B2) Multifamily 0 0 0 0 0 0 0 0 10,800 3 8 32,400 24 1350 sf 0 0 0 24 0 0.75 18 9 0.00 22 30 0 Podium (1 floor below grade)

Seven (B3) Multifamily 0 0 0 0 0 0 0 0 10,800 3 8 32,400 24 1350 sf 0 0 0 24 0 0.75 18 9 0.00 22 30 0 Podium (1 floor below grade)

Eight (Total) Multifamily 2.72 12.85% 13.93% 0 0 0 0 0 0 0 43,500 4 16.5 (ave) 178,200 130 1350 sf 0 0 0 130 47.8 0.75 35.8 97.5 47 0.34 117 163 0 Podium (1 floor below grade)

Eight (B1) Multifamily 0 0 0 0 0 0 0 0 20,250 4 14 81,000 58 1350 sf 0 0 0 58 0 0.75 0 43.5 21 0.00 52 73 0 Podium (1 floor below grade)

Eight (B2) Multifamily 0 0 0 0 0 0 0 0 24,300 4 18 97,200 72 1350 sf 0 0 0 72 0 0.75 0 54 26 0.00 65 90 0 Podium (1 floor below grade)

Residential Single Family .30 Acres/Fourplex (based on 15' Nine 2.32 17.85% 20.78% 0 0 0 0 0 0 0 0 0 0 0 0 0 20 160002400 sf 20 8.6 1 8.6 20 8 0.40 20 0 0 Individually Parked Attached rear setback) Residential Single Family .30 Acres/Fourplex (based on 15' Ten 4.64 13.86% 15.32% 0 0 0 0 0 0 0 0 0 0 0 0 0 45 160002400 sf 45 9.7 1 9.7 45 18 0.80 45 0 0 Individually Parked Attached rear setback) Residential Single Family .30 Acres/Fourplex (based on 15' Eleven 4.22 20.78% 24.68% 0 0 0 0 0 0 0 0 0 0 0 0 0 36 160002400 sf 36 8.5 1 8.5 36 14 0.72 36 0 0 Individually Parked Attached rear setback) Residential Single Family .17 Acres/Duplex (based on 15' Twelve 5.40 21.67% 24.32% 0 0 0 0 0 0 0 0 0 0 0 0 0 44 160002400 sf 44 8.1 1 8.1 44 18 0.93 44 0 0 Individually Parked Attached rear setback) Residential Single Family .25 Acres based on 15' rear Thirteen 6.70 0 0 0 0 0 0 0 0 0 0 0 0 0 25 200002400 sf 25 3.7 1 3.7 25 10 2.49 25 0 0 Individually Parked Detached setback)

Fourteen Club House 1.75 39.21% 58.59% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0.0 0 0 0.65 0 0 0 0

Plaza/Park/Ice Rink/Event Fifteen 0.71 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0.0 0 0 0.26 0 0 0 0 Space

Sixteen Open Space 28.01 26.38% 28.37% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0 0.0 0 0 0.00 0 0 0 0

128 On0Street Angled 0 Roads 7.88 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0 0 Parking Spaces

Totals 86.41 137,000 97,500 170 1,277,700 1,006 170 1176 864.5 478 9 1192 Portal

Deer Cove will have direct access to the existing Jordanelle Express Gondola terminal at the Deer Valley® Resort through a portal. The portal has been designed to accommodate direct pedestrian access and shuttle service from the Deer Cove site to the gondola thus enabling the visitors and residents to be seamlessly transported from the front door of their lodging accommodations to the top of the Deer Valley® Resort mountain without having to remove their ski boots.

The portal will provide direct skier access for the parcels on the east side of US Highway 40 thereby creating one cohesive mountain village. US Highway 40 will pass directly over the portal area.

The preliminary time estimate to construct the portal is 6 - 8 months; which will involve closing down each side of US Highway 40 for about 3 months while the excavation and construction takes place. 14 JSPA - Jordanelle Specially Planned Area || III Jordanelle Specially Planned Area

Source: Jordanelle Specially Planned Area Overlay Zone Plan Book / Wasatch County 16 Jordanelle Specially Planned Area

Source: Jordanelle Specially Planned Area Overlay Zone Plan Book / Wasatch County 17 Jordanelle Specially Planned Area

DEER COVE

LAND USE LEGEND

NAME DESCRIPTION UNITS/ MAX. HEIGHT

RSF RESIDENTIAL SINGLE FAMILY (6 ERU/AC) 2.5 FLOORS

RMD RESIDENTIAL MEDIUM DENSITY (6-20 ERU/AC) 3.5 FLOORS

RESIDENTIAL SINGLE FAMILY OR 2.5 FLOORS HC (6 ERU/AC) HOSPITALITY CASITA (21-40 ERU/AC) 2 FLOORS

RVMD RESORT VILLAGE MEDIUM DENSITY (70 ERU/AC) 4-6 FLOORS

RVHD RESORT VILLAGE HIGH DENSITY (80 ERU/AC) 4-8 FLOORS

NC NEIGHBORHOOD COMMERCIAL (FSR) 2.5 FLOORS

SCH SCHOOL (NA) NA

CS COMMUNITY SITE (NA) 2.5 FLOORS

OS OPEN SPACE (NA) NA

SALT LAKE CITY 10 Exchange Place Ste 112 Deer Cove N Salt Lake City, UT 84111 USA Wasatch County, Utah NTS www.ibigroup.com JSPA Overlay tel 801 532 4233 fax 801 532 4231 September 2015 18 # 35681 Project Jordanelle Specially Planned Area

Source: Jordanelle Specially Planned Area Overlay Zone Plan Book / Wasatch County 19 20 RESIDENTIAL MARKET || IV 22 23 6-Month Comparative Market Analysis

6-MONTH COMPARATIVE6-MONTH COMPARATIVE MARKET ANALYSIS MARKET ANALYSIS July 22, 2015July 22, 2015

Lower Deer ValleyLower Deer Valley Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold 1 U/C 1 7 U/C 7 Assigned SharedAssigned Underground Shared Underground Lodges at DeLeord Vgaelsle ayt Deer Valley No No 4 2084 1,492078 10001,49 - 2307 7 10001 -- 32307 $475k1 - 3 - $800$475kk - $800$636kk $393$636 k- $444 $393 -$42 $4474 1997$427 - 1999 1997 - 19988 9 6/9/98-3/30/1188 6/9/98-3/30/11 Sold Sold Heated GarageHeated Garage Assigned SharedAssigned Underground Shared Underground Powder RunPowder Run No N1o 1 1391 1,510309 1,,500 1,5200 2$735k $735$k735k $73$54k90 $49$0490 $4910985 198533 33 Garage Garage Assigned SharedAssigned Underground Shared Underground Silver Baron Silver Baron No N4o 43 2433 1,826453 11910,8 -6 25984 11910 -- 42984 $5410 -k 4 - $110$05k40k - $$1816050kk $$484625 k- $496 $442 -$ 4$64196 2$040651 - 2009 2005 - 230509 385/4/05-6/9/181/4/05-6/9/11 Heated GarageHeated Garage

Upper Deer UpperValley Deer Valley Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold Assigned SharedAssigned Underground Shared Underground Chateaux at ChateauxSilver Lak eat Silver Lake No N2o 24 1564 1,401516 13761,40 - 2761 0 13762 -- 42760 $881K2 - 4 - $995$881KK - $995$938KK $639$938 K- $699 $639 -$66 $6999 $661999 9 199970 12/6/99-10/10/0670 12/6/99-10/10/06 Heated GarageHeated Garage

Empire PassEmpire Pass Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold Assigned SharedAssigned Underground Shared Underground Arrow Leaf Arrow Leaf Yes Y2es 24 2034 1,928053 12218,9 -8 15999 12228 -- 31999 $129 9- 93 - $210$01999 - $$22,100409 $925,024 -9 $1001$952 -$ $9170801 $9728007 200761 26/13/96-10/12/0173/96-10/1/07 Heated GarageHeated Garage Assigned SharedAssigned Underground Shared Underground Flagstaff Flagstaff Yes Y0es 02 0 2 00 1749 0- 2324 17429 -- 42324 2 - 40 0 0 0 0 0$0 $02009 200938 23/820/08-3/8/21/20/08-3/8/12 Heated GarageHeated Garage Assigned SharedAssigned Underground Shared Underground Grand LodgeGrand Lodge Yes 2Y Ue/sC 2 U6/C 0 6 00 2037 0- 3441 20337 -- 63441 3 - 60 0 0 0 0 0$0 $02007 200730 360/1/07-2/9/160/1/07-2/9/10 Heated GarageHeated Garage Assigned SharedAssigned Underground Shared Underground Shooting StaSrhooting Star Yes Y0es 02 0 2 00 1442 0- 2114 14422 -- 32114 2 - 30 0 0 0 0 0$0 $02006 200622 12/219/03-4/2162/0169/03-4/26/06 Heated GarageHeated Garage Assigned SharedAssigned Underground Shared Underground Silverstrike Silverstrike Yes Y0es 08 0 8 00 1689 0- 3386 1689 3- 3386 3 0 0 0 0 0 0$0 $02008 200835 5/3258/08-12/150/2/181/08-12/10/11 Heated GarageHeated Garage

Park City MountainPark City Resort Mountain Resort Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold Assigned SharedAssigned Underground Shared Underground Silver Star - cSoilnvdeor sStar - condos Yes Y2es 25 135 2,21333 14128,2 -3 23537 14128 -- 42537 $1622 0- k4 - $20$8186k20k - $$12804848kk $$1783404 -k $824 $730 -$ 7$78724 $7727007 200726 1226/6/06-9/201/21/16/06-9/20/11 Heated GarageHeated Garage Silver Star - cSoiltvtearg eSstar - cottages Yes Y1es 1 221 4,02221 35345,0 -2 41232 35345 -- 64232 4$ -2 6,995 $2,9$925,995 $2,9$97533 $73$3733 $7323007 200722 12/212/07-12/81/0192/07-12/8/A0t9tached 2 CAatrt Gacahreagde 2 Car Garage

Canyons ResortCanyons Resort Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold Assigned SharedAssigned Underground Shared Underground Grand SummitGrand (whole Summit) (whole) Yes Ye0s 01 0 1 00 1368 0- 1390 1368 2- 1390 2 0 0 0 0 0 0$0 $02000 2002000 200 Garage Garage Assigned SharedAssigned Underground Shared Underground Silverado Silverado No N6o 68 748 1,07948 2713, 0- 928120 2730 -- 24120 $100 0- k4 - $599$k100k - $$539794kk $$39704 -k $595 $90 -$ $356905 $3620007 2001707 1/0274/07-5/21/0274/07-5/21/07 Garage Garage 1 U/C 1 U/C Assigned SharedAssigned Underground Shared Underground Sundial LodgSeundial Lodge Yes Yes 4 2334 712343 44071 - 1404 2 4401 -- 1403 2 $349k1 - 3 - $629$349kk - $629$429kk $498$429 k- $619 $498 -$55 $6199 $551999 9 199159 1 12/20/99-12/20/00151 12/20/99-12/20/00 4 Sold 4 Sold Garage Garage

High-End Condo-HotelsHigh-End Condo-Hotels Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold Unassigned SharedUnassigned Shared Hotel Park CityHotel (Park Park City City Golf (Park Course City) Golf CourseNo) N6o 6 656 79655 47679 - 1805 8 4760 -- 1802 8 $345k0 - 2 - $1200$345kk - $1200$550kk $658$550 k- $755 $658 -$70 $7515 2002$701 - 2006 2002 - 20086 6 8610/8/04-? 10/8/04-? UndergroundUnderground Garage Garage 1 U/C 1 U/C Unassigned SharedUnassigned Shared Hyatt EscalaHyatt Lodge Escala(Canyons Lodge) (Canyons) Yes Yes 11 12151 2,12125 6802,12 - 2715 5 6801 -- 2714 5 1 -$925 4 k $925$925k k $925$43k 5 $43$435 5 $432005 7 200397 0 3910/20/08-now0 10/20/08-now 1 Sold 1 Sold UndergroundUnderground Garage Garage Assigned SharedAssigned Underground Shared Underground Montage Montage Yes Y1e0s 109 9119 2,59413 12221,5 -4 63858 12211 -- 46858 $2615 0- k4 - $75$0206k50k - $$37656040kk $$13362674 -k $154$01327$ -1 $,4135340 $1,4230310 201085 851/7/11-now 1/7/11-now Heated GarageHeated Garage Unassigned SharedUnassigned Shared Newpark HotelNewpark (Kimball Hotel Junction (Kimball) Junction) No N1o 15 685 1,11681 7761,11 - 1151 4 7761 -- 1152 4 1 -$298 2 k $298$298k k $298$26k 4 $26$264 4 $262004 7 20079 71/24/08-now9 1/24/08-now UndergroundUnderground Garage Garage Assigned SharedAssigned Underground Shared Underground St Regis St Regis Yes Y1es 118 118 2,4617 9921, 4- 67228 9911 -- 66228 1 $-3 6000k $300$03k000k $3$010,02k16 $1,$211,6216 $1,2210608 200867 6171/27/09-no1w1/27/09-now Heated GarageHeated Garage

24 6-Month Comparative Market Analysis

New DevelopmentsNew Developments in Old Town in Old Town Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold 2/27/14-reservations2/27/14-reservations Assigned Shared Assigned Underground Shared Underground 820 Park Ave8n2u0e Park Avenue Yes 10Y eUs/C 10 0U/C 1730 1,610703 9113, 6- 020562 9131 -- 24562 $5510 -k 4 - $240$05k50k - $$21430302kk $$1530312 -k $946 $501 -$ 8$09946 $8029016 201614 14 sold out sold out Heated GarageHeated Garage The Parkite The Parkite No 1 NUo/C 1 U6/C 4 6 2,6148 14122,6 -1 28872 14122 -- 32872 2 $-3 3495k $349$53k495k $3$419,53k35 $1,$313,5335 $1,3230515 201518 Ta1k8ing reservTatkiionngs reservatioHnesated 1 CarH Geatreagde 1 Car Garage

The RoundabTohuet Roundabout No N0o 04 1094 3,319049 32230,3 -9 34849 3220 3- 3849 $28530k - $37$2258k50k - $$33170265kk $$3818056 -k $968 $885 -$ 9$19368 $9123015 20154 Tak4ing reservTatkiionngs reseArvtataticohnesd 2 CAatrt Hacehaetedd 2 G Caarra Hgeated Garage

Sky Silver/SkSyk Syt rSaildvaer/Sky Strada No N0o 09 289 1,52081 7714, 5- 02178 7741 -- 24178 $719 5- k4 - $339$5795k - $13938945k $$11092874 -k $361$21027$ -1 $,5306212 $1,5200215 2051/152** 5T/a1k2in*g* reservTatkiionngs reservSahtaiorends SpaceS hina rSkyeed S pLodgeace in Skye Lodge

Deer Crest Deer Crest Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold 3 U/C 3 U/C Houses Houses Yes Yes 10 21100 10,201603 301140 ,-0 165300030144 -- 185000$5840 0- k8 - $97$5508k00k - $$79375500kk $$7536540 -k $773 $564 -$ 6$6773 $667 Attached 2 - A4t Ctaacrh Geadr 2a g-e 4 Car Garage 3 Sold 3 Sold 2 U/C 2 U/C Condos Condos Yes Yes 20 120 2,4617 9912,46 - 6527 7 9911 -- 6526 7 $1325k1 - 6 - $3200$1325kk - $2163$3200kk $2163N/kA N/AN/A N/A 1 Sold 1 Sold

Enclave at SunEnclave Canyon at Sun Canyon Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold Duplexes Duplexes No N4o 48 2308 4,27390 30940,2 -7 59622 30930 -- 45622 $2035 -8 4k - $22$927058k -$ $22,125947 $$24,0195 4- $626 $409 -$ 5$26526 2$051225 - now 2012 - now 10/23/12 - n1o0w/23/12 - noAwttached 2 CAatrt Gacahreagde 2 Car Garage

Homes Homes No N2o 21 5 1 5,7255 56452,7 -2 55807 56442 -- 55807 $3940 0- k5 - $46$3399k00k - $$44267309kk $$4721750 -k $799 $715 -$ 7$57799 $757 5 5 Attached 3 CAatrt Gacahreagde 3 Car Garage

Park City HomesPark City Homes Property Property Ski In/ 6 MoSki #In Sold/ 6 Mo# On# Sold Avg #DO OnM AvgAvg DOSq MRangeAvg Square Sq Range # Bed Squares #Sales Beds Price SalesAvg Pric Salese Avg SalesSP/SF SP/SAvg FSP/SF AvgYear SP/S BuilF t Year# Units Built in # UnitsSell in Out DateSells Out Dates Parking Parking Out 1/22/15Out - 1/22/15Market - Market Feet 6 FeetFeet 6 Feet Price Price Project Project 7/22/15 7/22/15 Mo Sold Mo Sold Bear HollowBear Hollow No N5o 51 511 2,85611 14628,8 -6 51264 14628 -- 75264 $622 0- k7 - $830$K620k - $$863808KK $263868 K- $270 $236 -$ 2$52170 1$929591 - now 1999 -2 n7o5w 275 Attached 2 CAatrt Gacahreagde 2 Car Garage

Blackhawk StBalaticoknhawk Station No N3o 3 313 1,53616 8510, 5- 626431 8501 -- 24431 $415 9- k4 - $535$k459k - $$553056kk $$258086 k- $367 $288 -$ 3$23867 1$939288 - 2001 1998 - 1260001 160 Attached 2 CAatrt Gacahreagde 2 Car Garage

Trapper's CaTbrinaps p(Perro'sm Coanbtinosry ()Promontory) No N8o 180 22120 2,525292 18825,5 -5 29731 18825 -- 42731 $1025 -5 4k - $15$511055k -$ $11,258561 $$14,328 6- $568 $438 -$ 5$05268 2$05062 - now 2006 - n64ow 64 Attached 2 CAatrt Gacahreagde 2 Car Garage

Hideout Hideout No N0o 06 6 0 2056 0- 5980 20536 -- 65980 3 - 6 2006 - now 2006 -1 n5o7w 157 Attached 2 oAr t3ta Ccahre Gda 2r aogre 3 Car Garage 1 CL 1 CL Stein EriksenStein Residence Eriksens Residences Yes Yes 4 824 6,18923 55060,1 -9 73833 55040 -- 67833 $5940 0- k6 - $88$0509k00k - $$78281030kk $$979211 3- k$1275$991 $- 1$,1126755 $1,1260516 20165 65 Attached 2 oAr t3ta Ccahre Gda 2r aogre 3 Car Garage 10 U/C 10 U/C The Belles The Belles Yes Y1es 13 3513 7,03591 56479,0 -5 79148 56459 -- 67148 5 $-5 6250k $525$05k250k $52$5704k4 $74$4744 2$071414 - now 2011 - n17ow 17 Attached 2 CAatrt Gacahreagde 2 Car Garage

Tuhaye Tuhaye No N3o 130 46190 5,147639 21859,1 -7 83300 21839 -- 68300 $8635 -k 6 - $249$58k65k - $$21449558kk $$1146568 -k $404 $166 -$ 2$4704 2$020467 - now 2006 -2 n6o7w 267 Attached 2 CAatrt Gacahreagde 2 Car Garage

Victory RancVhi cCtaobriyn sRanch Cabins No 9 NUo/C 9 U1/C 271 2,82378 21325,8 -3 38029 21335 -- 43029 $1235 0- k4 - $18$5102k50k - $$11581590kk $$1454149 -k $653 $444 -$ 5$36753 2$051347 - now 2014 -1 n5o1w 151 Attached 2 CAatrt Gacahreagde 2 Car Garage

River View River View No N1o 1 1801 2,61830 26520,6 -8 33668 26530 -- 43668 3 -$ 4500k $500$k500k $50$01k82 $18$2182 2$01182 - now 2012 -1 n4o6w 146 Attached 2 CAatrt Gacahreagde 2 Car Garage

Source: Keller Williams

25 HOSPITALITY MARKET || V 27 TravelUTAH and TRAVEL Tourism & TOURISM Profile PROFILE Summit County

SUMMIT COUNTY Summit County, Salt Lake County’s eastern neighbor, had a Tourism At-A-Glance 42.2% leisure and hospitality1 share of total private jobs in Summit County, Salt Lake County’s eastern neighbor, had a 42.2% leisure and Statewide Tourism Ranking: 6th* 2013, ranking 6th statewide. Summit County, which is nestled hospitality share of total private jobs in 2013, ranking 6th statewide. Summit County, 2012 2013 % Change among the Wasatch and Uinta Mountains, contains 39 of which is nestled among the Wasatch and Uinta Mountains, contains 39 of Utah’s Summit County Population 37,904 38,486 1.5% Utah’s highest peaks (>12,600’). In addi�on, Summit County’s Utah Population 2,855,287 2,900,872 1.6% highest peaks (>12,600’). In addition,largest Summit city, County’s the resort largest town city, of Parkthe resort City, servedtown as a main Tourism-Related Tax Revenues of Park City, served as a main venue for the 2002 Winter Olympics and was more $14,484.4 $15,735.6 8.6% venue for the 2002 Winter Olympics and was more recently (Fiscal Year; In Thousands) recently (2013) named “The Best Town(2013) in America” named “The by Outside Best Town magazine. in America” Summit by Outside Leisure & Hospitality Taxable Sales $437.5 $488.7 11.7% County has three world-class ski resortsmagazine. (Canyons, Summit Deer CountyValley and has Park three City world Ski ‐class ski resorts (Calendar Year; In Millions) Resort), as well as over 100 hotels and(Canyons, restaurants, Deer drawing Valley and both Park Utah City residents Ski Resort), and as well as over Leisure & Hospitality Jobs 8,723 8,773 0.6% nonresidents year-round. In addition 100to skiing hotels and and snowboarding, restaurants, drawing each January both Utah Park residents and Leisure & Hospitality Wages (Millions) $216.5 $228.4 5.5% City hosts the popular Sundance Filmnonresidents Festival, which year attracts‐round. upwards In addi �ofonUTAH 30,000 to skiing TRAVELand &Average TOURISM Annual Hotel OccupancyPROFILE 39.0% 40.0% 2.6% nonresident visitors to the state of Utah.snowboarding, Other Summit each County January attractions Park City includehosts the popular Rate (Summit C ounty) the Utah Olympic Park, Park City ArtsSundance Festival, Park Film Silly Fes �Sundayval, which Market, a�racts and upwards Rockport of 30,000 *Based on share of private leisure and hospitality jobs to total private jobs. 1The "Leisure and Hopsitality" sector includes NA ICS 71 and 72. State Park. Summit County continuesnonresident to attract more visitors visitors to the to itsstate mountain of Utah. resorts Other Summit during its “shoulder seasons” by offeringCounty a wider a�rac range�ons includeof family-friendly, the Utah Olympic warm Park, Park City 54 jobs. Wages in the leisure and hospitality sector increased Arts Fes�val, Park Silly Sunday Market,Wasatch and Rockport State 5.5% in 2013, matchingCounty the statewide average and outpacing weather activities. Park. Summit County con�nues to a�ract more visitors to its the U.S. average (4.1%). Since 2010, the number of spring/ mountain resorts during its “shoulder seasons” by offering a summer leisure and hospitality jobs has increased by an WASATCH COUNTY wider range ofWasatch family‐ friendly,County, warmencompassing weather theac� vimountain�es. average of 33% everyTourism fall/winter, At-A-Glance highligh�ng Summit County’s Total tourismvalleys‐related east of taxthe revenues Wasatch increasedFront, had 8.6% a 21.1% in  scal Statewidewinter Tourism tourism Ranking: seasonality.10th* Wasatch County, encompassing the mountain valleys east of the Wasatch1 Front, year 2013,leisure due largely and hospitality to increases share in transient of private room jobs and in In 2012 and 2013, Summit County’s2012 accommoda 2013�ons % Change had a 21.1% leisure and hospitality1 share of private jobs in 2013, ranking 10th restaurant2013, tax revenue. ranking In10th 2013, statewide. leisure and Wasatch hospitality County sector is an Wasatchoccupancy County rates Population were highest between25,311 December 26,437 and March 4.4% statewide. Wasatch County is an outdoor recreationist’s paradise with a touch of winter salesoutdoor were more recrea than�onist’s four � paradisemes total with spring a touch sales, of Utahand Population June through September, with2,855,287 lows in April, 2,900,872 May, October 1.6% Swiss charm. Strawberry Reservoir, Deer Creek State Park, and Jordanelle State Park reec�ng strongSwiss charm. winter Strawberrytourism seasonality. Reservoir, Annual Deer Creek arts, Tourism-Relatedand November. Tax TheRevenues average annual occupancy rate, average $1,942.6 $2,186.9 12.6% offer boa ting and fishing opportunientertainment ties to visitors.State and Park,Wasatch recrea and �JordanelleMountainon sales Statewere State Parkup Park over o ff100%er boa from�ng (Fiscaldaily Year; room In Thousands)rate and revenue per available room increased has a campground, an 18-hole golf course, and access to numerous hiking, biking, Leisure & Hospitality Taxable Sales the previousand year, shing with opportuni annual restaurant�es to visitors. sales Wasatchshowing healthy 2.6%, 2.0%, and 6.2%, respec�vely. Summit$78.8 County’s $87.3 three 10.8% ski ATV, horseback, and cross-country skiingincreases trails. asMountainEvery well. Labor Both State Day, private Park the and townhas publica ofcampground, Midway amusement an and18‐hole (Calendarresorts Year; reported In Millions) 1.78 million skier visits (combined) during the holds the Swiss Days fes tival with a parade,recrea� onfoodgolf jobs and course, experienced ac tivi and ties access forincreases families. to numerous (>100 jobs hiking, combined), biking, Leisure2012/2013 & Hospitality ski season Jobs and Rockport State1,086 Park reported 1,146 5.5% while accommodaATV, horseback,�ons reported and cross an average‐country annual skiing decreasetrails. of Leisure103,503 & Hospitality recrea� Wagesonal visitors (Millions) in 2013. $18.0 $19.1 6.5% Average Annual Hotel Occupancy Rate Every Labor Day, the town of Midway holds the 48.9% 48.7% -0.4% SwissTourism-Related Days fes�val with Taxa parade, Revenue food and (Summit-WasatchGross C ounties)Leisure & Hospitality Taxable Sales *Based on share of private leisure and hospitality jobs to total private jobs. (In Thousands of Dollars) ac�vi�es for families. 1The "Leisure and Hopsitality" sector(In includes Millions NAICS 71 of and Dollars) 72. Total tourism‐related tax revenues grew 12.6% in scal year 2013, due to increases in county transient average of 9% in the warmer months of 2010 and 2011, $15,735.6 room, resort communi�es sales (Independence and and at twice that rate (18%)$488.7 in 2012 and 2013. 28 $14,484.4 $2,108.9 $13,198.0Midway) and restaurant tax revenues. In 2013, leisure $426.2In both 2012$437.5 and 2013, Wasatch County hotel $1,896.3 $142.0 $1,752.0and hospitality taxable sales wereRestaurant up 10.8% Tax and were occupancy rates peaked during the monthFood Services of March, & as highest between January and March, as well as July well$117.7 as June through$122.1 September, reDriec� nking ng both Plac late es $7,459.2 $40.0 through September. Wasatch County’s leisure and winter and summer$18.8 tourism seasonality. The average $7,182.8 Resort Communities $16.9 Arts, E nt ert ainment , $6,629.3hospitality sector experienced aSales 5.5% Tax increase in jobs and annual occupancy rate in Wasatch andand Summit Recreation Coun�es

a 6.5% increase in wages in 2013.Count The y greatestTransi ent job growth remained at in 2013, while the average daily rate and Accommodations was in foodservice, traveler accommodaRoom Tax�ons, revenue$291.6 per available$296.7 room$306.6 increased 3.4% and 2.9%. $6,167.5 $4,816.7amusement/recrea$5,405.3 �on and gas sta�ons. The number of Wasatch County’s Jordanelle and Deer Creek State Parks fall/winter leisure and hospitality jobs increased by an reported 262,854 and 224,823 visitors, respec�vely.

FY2011 FY2012 FY2013 2011 2012 2013 Tourism-Related Tax Revenues Gross Leisure & Hospitality Taxable Sales Source: Utah State Tax Commission(In Thousands of Dollars) Source: Utah State Tax Commission(In Millions of Dollars)

Bureau of Economic and Business Research July 2014 2,186.9 $87.3

1,942.6 $78.8 1,871.6 $412.3 $71.5 Resort Community $28.7 $373.0 Food Services & $404.1 Sales Tax $27.0 $421.8 Dri nki ng Places $24.5 $373.0 Resta urant Tax $82.2 $357.9 Re venue Accommodations $80.8 $84.0 Municipality Transient Room Ta x $50.0 Arts, $43.9 $39.8 $1,270.6 Entertainment, and $1,025.6 $1,115.8 Count y Transi ent Recreation Room Tax

$7.2 $7.8 $8.7

FY2011 FY2012 FY2013 2011 2012 2013

Source: Utah State Tax Commission Source: Utah State Tax Commission

Bureau of Economic and Business Research July 2014 News and Events

RECREATION & ACTIVITIES

Winter sports put Park City on the map, but keeping it there is a host of year-round Park City Recreation offers a wide variety of adult and youth programs and activities. recreational activities for all ages and interests. Each of the town’s three world-class ski Programs vary by season and community interest, and include everything from team sports, resorts made the SKI Magazine reader survey top ten for best overall resort in both 2012 fitness classes and triathlon training to kids’ classes, parent/child activities and summer and 2013. With on mountain lodging, dining, shopping, activities and acres of terrain camps to dog obedience classes and bike clinics. Visit www.parkcity.org for information. to ski and ride they offer something to please every taste. Off-mountain, cross-country Adventures await within a day’s drive of Park City, as Utah is home to five National Parks, and skate skiing, snowshoeing, snowmobiling, ice skating, snow tubing, sleigh rides and seven National Monuments, two National Recreation Areas, a National Historic Site, six more keep visitors and residents alike entertained outdoors all winter long. In summer, a National Forests and over 40 state parks. network of over 300 miles of trails for mountain biking and hiking can be accessed from SUMMER ACTIVITIES multiple points in town. Lift accessed mountain biking and hiking can be found at each ski resort. Nearby Jordanelle, Deer Creek, Echo, East Canyon and Rockport reservoirs offer • Mountain Biking • State Parks & • Racquetball water sports, including sailing, fishing, water skiing, paddle boarding and swimming. • Hiking Reservoirs • Disabled Recreation • Road Biking • Swimming • Historic Tours Solitude can be found on over 244,000 acres of wilderness in the nearby Uinta Mountains, • Fishing & Hunting • Water Skiing • Rock Climbing which provide an ideal getaway for hiking, camping and fishing among alpine lakes and • Golf • Jet Skiing • Camping snow-capped mountains. And of course, indoor activities abound with numerous art • Hay Rides • Boating • Alpine Slide galleries, museums and restaurants, a bowling alley and enough shopping and nightlife to • Hot Air Ballooning • Sailing • Heber Valley Railroad satisfy year-round. • Horseback Riding • Tennis • Outdoor Concerts Park City was the site of 26 medal competitions at three venues during the 2002 Olympic Winter Games. A number of commemorative Olympic sites exist throughout town, including the Utah Olympic Park (utaholympiclegacy.com). During the 2002 games the park hosted bobsled, skeleton, Luge, Nordic ski jumping, and Nordic combined events. It still serves as a training center for Olympic athletes and is a popular tourist destination. Guests can visit the George Eccles 2002 Winter Olympic Games and Alf Engen Ski Museums, watch athletes train and even take part in activities themselves, like freestyle ski jumping into a splash pool. In summer, the Comet Bobsled, Xtreme Zipline and Quicksilver Alpine Slide provide thrills while winter guests can ride down the Olympic Comet Bobsled or Rocket Skeleton track, or try Nordic Ski Jumping, Moguls or a Terrain Park. Visit www. utaholympiclegacy.com for information on activities and events.

29 News and Events

RECREATION & ACTIVITIES (CONT.)

DRIVING TOURS FISHING Alpine Scenic Loop (24 miles on HWY 92) Mirror Lake Road (HWY 150 to Evanston, Jordanelle offers great fishing for rainbow trout and smallmouth bass. Brown trout, returning to Park City on I-80) Wolf Creek Pass (20 miles east of Woodland on HWY 35) cutthroat trout, and yellow perch are also found at this water; making for a diverse Summit County Historic Driving Tour (Available at both Park City Visitor Centers, 528 Main angling experience. Whether boating, floating, or shore fishing, anglers will find Jordanelle St. and 1794 Olympic Pkwy.). to be a true Blue Ribbon fishery. Note that easy access, and close proximity to urban WINTER ACTIVITIES centers, makes Jordanelle a popular destination among recreational boaters. Source: Utah Division of Wildlife • Skiing • Snowshoeing • Hot Air Ballooning • Snowboarding • Ice Skating • Historic Tours • Interconnect Tour • Cross Country Skiing • Fly Fishing • Sleigh Rides • Snow Tubing • Snowmobiling • Heli-& Cat Skiing

YEAR-ROUND ACTIVITES • Gallery Strolls • Shopping • Fishing • Dining/Nightlife • Park City Film Series • Hunting • Theater/Concerts • Hot Air Ballooning • Wildlife Watching Source: Park City Chamber of Commerce : Visitor’s Bureau

30 News and Events

VAIL RESORTS ACQUIRES PARK CITY VAIL RESORTS TO INVEST AN UNPRECEDENTED MOUNTAIN RESORT IN PARK CITY UTAH $50 MILLION IN PARK CITY MOUNTAIN RESORT

BROOMFIELD, Colo.—Sept. 11, 2014—Vail Resorts, Inc. (NYSE: MTN) today announced IN ONE SEASON that the Company has acquired Park City Mountain Resort (PCMR) from Powdr Corp. BROOMFIELD, Colo.—Dec. 8, 2014—Vail Resorts, Inc. (NYSE: MTN) today announced for $182.5 million in cash, subject to certain post-closing adjustments. The acquisition details of the company’s planned upgrades to Park City Mountain Resort for the 2015- includes all of the assets of Greater Park City Company (GPCC), the land used for ski 2016 ski season. The plan, which totals over $50 million, is one of the most ambitious terrain at the resort held by Ian Cumming, and certain base parking lands owned by Powdr and impactful capital programs in U.S. ski industry history and will transform the guest Development Corp., which have approved zoning for approximately 687,000 square feet experience at Park City Mountain Resort. The plan would establish the connection of residential and commercial development. between Park City Mountain Resort and Canyons Resort, creating the largest single ski Park City Mountain Resort offers terrain for every type of skier and snowboarder, from area in the country with more than 7,300 acres of skiable terrain, and complete a number perfectly manicured groomers to powder-filled bowls and some of the industry’s most of critical upgrades to the infrastructure of both resorts. The plan will be subject to progressive terrain parks and half pipes. Located in the heart of historic Park City, Utah– approval by both Summit County and the City of Park City. one of the country’s greatest ski towns–PCMR was named the fifth best resort in North http://news.vailresorts.com/corporate/vail-resorts-park-city-improvements.htm America by readers of SKI Magazine in 2014. The mountain resort’s 16 lifts serve 114 ® runs, nine powder-filled bowls, four terrain parks and two half pipes. The mountain also DEER VALLEY RESORT VYING AGAIN FOR offers many summer adventures including one of the world’s longest alpine slides, a nearly WORLD’S BEST SKI RESORT 4,000-foot long alpine coaster, zip lines and more than 70 miles of hiking and biking trails. Deer Valley® Resort; PARK CITY, UTAH (May 27, 2015) Together with Canyons, the combined resort will offer over 7,000 acres of skiing and will be the largest ski resort in the United States. Beginning June 5, the competition for the third annual World Ski Awards commences Source: http://news.vailresorts.com/corporate/vailresorts/resort-news/vail-resorts-acquires-pcmr.print 1/3 and Deer Valley® Resort hopes to maintain its title as United States’ Best Ski Resort earned the past two consecutive years and vie for the title of World’s Best Ski Resort. The World Ski Awards serves to celebrate and reward excellence in ski tourism and focuses on the leading 20 nations who are shaping the future of the ski industry. Launched in 2013, World Ski Awards was developed in reaction to overwhelming demand from the ski industry for a fair and transparent program with a mission to serve as the definitive benchmark of ski tourism excellence. http://blog.deervalley.com/skiing/deer-valley-resort-vying-again-for-worlds-best-ski-resort

31 News and Events

DEER VALLEY® MUSIC FESTIVAL ANNOUNCES IMPRESSIVE LINEUP FOR 2015 SUMMER FESTIVAL

Deer Valley® Resort, PARK CITY, UTAH (Summer 2015) – The celebrated and renowned The complete 2015 season lineup at the Snow Park Outdoor Amphitheater includes: ® Utah Symphony | Utah Opera’s Deer Valley Music Festival sets the stage for its 12th July 4 - Patriotic Pops with Bravo Broadway summer of impressive symphony performances at Deer Valley® Resort’s renowned Snow July 10 - Big Bad Voodoo Daddy with the Utah Symphony Park Outdoor Amphitheater. The summer season launches with a bang with a Patriotic Pops with Bravo Broadway performance on Saturday, July 4. July 11 - Smokey Robinson with the Utah Symphony “For twelve consecutive summers with Deer Valley® Resort as our summer home, we July 17 - Disney’s Fantasia: Live in Concert with the Utah Symphony have entertained guests with time-honored favorites and thrilling guest performers,” July 18 - Classical Mystery tour with the Utah Symphony said Natalie Cope, director of special events and Deer Valley® Music Festival community July 24 - Country Legends relations. “There are few settings quite like Deer Valley’s mountainside venue that are able to transport guests to another place musically and lift the spirits of all in attendance. It July 25 - Sinatra Sings Sinatra: A Multimedia Centennial Celebration truly is an escape into the music.” July 31 - 1812 Overture! Following its Fourth of July kickoff, the Deer Valley® Music Festival will be honored with August 1 - Ozomatli with the Utah Symphony such featured guests as Big Bad Voodoo Daddy, Smokey Robinson, Classical Mystery August 7 - Hollywood Under the Stars Tour, Frank Sinatra Jr., Ozomatli, Kristin Chenoweth and Diana Krall. The Festival runs through August 14, with varying performances of chamber music, classical and pops August 8 - Kristin Chenoweth with the Utah Symphony offerings at the Snow Park Outdoor Amphitheater, chamber orchestra and guest chamber August 14 - Diana Krall with the Utah Symphony performances at Park City’s St. Mary’s Church, and salon events in exquisite Deer Valley http://press.deervalley.com area homes, where guests will hear and meet artists in intimate settings.

32 COMMERCIAL REAL ESTATE MARKET || VI Office & Retail Markets

CUSHMAN & WAKEFIELD - EXECUTIVE SUMMARY OF COMMERCIAL REAL ESTATE: 2014 YEAR END

Utah continued to display one of the strongest economies in the nation, adding over MILLENNIALS 43,000 jobs at an annual rate of 3.3%. Job growth has been well balanced with growth A major trend over the past several years has and will continue to change the way occurring in every major sector. As a result of this strong job growth, the market showed office space is used and where it is located. Millennials now represent almost 40% of significant signs of expansion, adding 707,000 square feet (sf) of new construction or the workforce and as baby boomers transition out of the workforce it is estimated that renovated space and recording 904,000 sf of positive absorption. by 2025 millennials will comprise 75%. Millennials grew up in an era surrounded by MARKET TRENDS advancements in technology, higher levels of education and expectations to become independent thinkers. Due to their upbringing, Millennials are constantly seeking to be After a strong 2013, 2014 showed continued strength in the office market for Salt Lake engaged by new experiences, thrive on collaboration and competition and have become as strong absorption continued to outpace construction. The direct vacancy rate of 10.8% consumers of space rather than users of space. was down by 1.0 percentage point (pp) on a year-over-year basis representing the lowest vacancy rate since 2007. Although the suburban market continued to have the highest The shift of companies to downtown continued to show the impact level of absorption, the CBD posted 315,781 sf, more than tripling2014 YEARits 10-year END average. The the “Millennial” generation is having on businesses. CBD is expected to continue in this direction in 2015 as severalMARKET leases haveREVIEW been executed but these tenants have not yet taken occupancy. The shift of companies to downtown continued to show the impact the “Millennial” generation is having on businesses. Businesses successful at attracting this demographic have had to alter both their strategy Salt Lake County | Office Market for engaging employees as well as the layout of their offices. To Millennials, working in a cool building, with relevant amenities, in a comfortable and energetic environment has replaced the desire for a corner office. Building owners are also clueing in to the fact Utah continued to display one of the strongest economies in MARKET INDICATORS that amenities are important. These owners are adding amenities such as on-site gyms, the nation, adding over 43,000 jobs at an annual rate of 3.3%. CHANGE SINCE locker rooms and restaurants for multiple tenants to share. Millennials are also pushing off Job growth has been well balanced with growth occurring in CURRENT Q4 13 Q2 14 life decisions such as marriage and having children and are looking more at community every major sector. As a result of this strong job growth, the Direct Office Vacancy 10.8% market showed significant signs of expansion, adding 707,000 centered areas to live rather than suburban silos. Currently 62% of Millennials prefer to live Sublease Vacancy 1.3% square feet (sf) of new construction or renovated space and in mixed use communities in urban centers with easy access to shopping, restaurants and Average Asking Lease Rate (psf) $21.65 recording 904,000 sf of positive absorption. offices. An amazing two-thirds of Millennials are also renters. As this talent pool continues Completed For Lease 416,000 Construction (sf) to move to urban locations, businesses located in suburban markets trying to attract this Completed Owner talent will need to consider providing access to these urban clusters. Within Salt Lake City, MARKET TRENDS 80,000 Construction (sf) this can be observed as tenants such as Neumont University, Progrexion and Venafi have After a strong 2013, 2014 showed continued strength in the office ARROWS ARE INDICATORS, AND DO NOT REPRESENT A POSITIVE OR NEGATIVE VALUE. recognized this trend and have made moves from suburban markets to the CBD. market for Salt Lake as strong absorption continued to outpace construction. The direct vacancy rate of 10.8% was down by 1.0 Source: comre.com/uploads/reports/p19cmomcorol1hdg1kotu2vhb53.pdf percentage point (pp) on a year-over-year basis representing34 the free rent and tenant improvements continued to decline lowest vacancy rate since 2007. Although the suburban market having an even larger positive impact on effective rents achieved continued to have the highest level of absorption, the CBD posted for landlords. 315,781 sf, more than tripling its 10-year average. The CBD is expected to continue in this direction in 2015 as several leases In addition to new construction of 496,000 sf, an additional have been executed but these tenants have not yet taken 210,000 sf of renovated space was added to the existing inventory. occupancy. The shift of companies to downtown continued to Of the 496,000 sf, 416,000 sf was for-lease property while the show the impact the “Millennial” generation is having on businesses. other 80,000 sf was an owner build-to-suit for Savage Services Corp. There is currently 1,117,000 sf of total construction under Average asking lease rates were up for both class A and class B way, the largest project is 111 Main (440,000 sf) located at the product. Class B rents led the market with an increase of 3.9%. In corner of 1st South and Main Street in the Salt Lake CBD. Of the addition to rental rate increases, lease concessions such as total construction, 677,000 sf is expected to be delivered in 2015.

OFFICE MARKET OVERVIEW – 2014 DIRECT OFFICE SPACE* SUBLEASE CBD*** TOTAL SF VACANT SF ABSORPTION SF VACANCY RENTS PSF** AVAILABLE SF VACANCY Class A 3,787,464 416,256 151,902 11.0% $30.77 63,156 1.7% Class B 2,577,448 418,316 142,564 16.2% $21.57 8,799 0.3% Class C 1,187,133 362,363 21,315 30.5% $16.09 11,382 1.0% OVERALL 7,552,045 1,096,935 315,781 14.5% $25.32 83,337 1.1% PERIPHERY Class A 1,175,993 37,089 (4,569) 3.2% $25.09 29,460 2.5% Class B 1,572,118 165,186 75,005 10.5% $20.57 20,892 1.3% Class C 710,088 114,144 317 16.1% $15.81 0 0.0% OVERALL 3,458,199 316,419 73,551 9.1% $21.13 50,352 1.5% SUBURBAN Class A 7,692,768 541,946 249,251 7.0% $25.20 196,048 2.5% Class B 8,769,026 722,022 201,075 8.2% $19.90 101,969 1.2% Class C 5,506,891 790,187 64,332 14.3% $14.77 11,650 0.2% OVERALL 21,968,685 2,054,155 514,658 9.4% $20.47 309,667 1.4% TOTAL MARKET 32,978,929 3,567,509 903,990 10.8% $21.65 443,356 1.3% * SUBLEASE SPACE IS NOT INCLUDED IN THESE FIGURES. ** WEIGHTED FULL SERVICE ASKING LEASE RATES. *** CENTRAL BUSINESS DISTRICT - SALT LAKE CITY, UTAH.

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MARKET FORECAST MARKET TRENDS All signs point to a positive 2015 as leasing activity is expected to continue and absorption Vacancy continued to improve through 2014 as the overall vacancy rate declined by 0.7 will once again outpace construction across the entire market. With 677,444 sf of new percentage points (pps) on a yearover- year basis to end at 6.2%. This represents the product expected to hit the suburban market in 2015, vacancy numbers are expected to lowest vacancy rate of the past decade. With supply constrained and demand improving, stay relatively flat. However the CBD and Periphery have no new construction expected average asking lease rates jumped by 9.0% on a yearover- year basis to $18.98 per in 2015 and will see their vacancy rate continue to decline. The CBD and Periphery square foot (psf). New construction continued across the valley with 548,577 sf of space submarkets are also expected to continue seeing increased activity as tenants located in added to the market. New construction included the Smith’s Marketplace portion of suburban markets consider downtown due to its increased level of amenities and ever The Highlands (123,000 sf) in West Jordan, a new Costco (153,570 sf) in South Jordan growing talent pool. and RC Willey (160,000 sf) in Draper. This new construction, all of which was occupied upon delivery, helped push overall absorption to 768,007 sf. Additional projects are The area between 7200 S and Lehi will continue to be another hotbed for growth and is 2014 YEAR END where the majority of new construction is expected to be completed. Two major factors also underway and expected to be completed in 2015. AdditionalMARKET shop REVIEW space will be will continue to drive this growth. First, this area can easily draw talent from both the completed at The Highlands to accompany the Smith’s Marketplace. Early 2015 should see University of Utah to the north and Brigham Young University and Utah Valley State the completion of Dillard’s new space at Fashion Place Mall, and their relocation. University to the south. Second, thisSalt area continuesLake County to add housing | Retailat the fastest Market rate in the state and has the capacity to continue adding housing for the foreseeable future. Retail Sales remained strong through 2014 improving by 5.3% SALT LAKE COUNTY RETAIL MARKET MARKET INDICATORS on a year-over-year basis. This number is even more CHANGE SINCE RETAIL SALES impressive when considering the significant drop in gasoline CURRENT Q4 13 Q2 14 prices which makes up a portion of this number. Inflation Retail Vacancy 6.2% Retail Sales remained strong throughremained 2014 improving in check by 5.3% as well, on a increasingyear-over-year by basis. just 1.5%. New Average Asking Lease Rate (psf) $18.98 This number is even more impressiveconstruction when considering can bethe seensignificant across drop the in Saltgasoline Lake Valley as a Completed Construction (sf) 548,577 prices which makes up a portion ofvariety this number. of retail Inflation tenants remained continue in checkto expand as well, in the market. increasing by just 1.5%. New construction can be seen across the Salt Lake Valley as a ARROWS ARE INDICATORS, AND DO NOT REPRESENT A POSITIVE OR NEGATIVE VALUE. variety of retail tenants continue to expand in the market. MARKET TRENDS Vacancy continued to improve through 2014 as the overall GROCER EXPANSION: One of the most notable events of vacancy rate declined by 0.7 percentage points (pps) on a year- 2014 has been the expansion of grocers. Sprout’s Farmers Market Source: comre.com/uploads/reports/p19cmomcorol1hdg1kotu2vhb53.pdfover-year basis to end at 6.2%. This represents the lowest vacancy opened a new store in Holladay, and will open their new South rate of the past decade. With supply constrained and demand Jordan location in January of 2015. A Smith’s Marketplace opened improving, average asking lease rates jumped by 9.0% on a year- its doors in West Jordan at The Highlands. A new Walmart 35 over-year basis to $18.98 per square foot (psf). New construction Neighborhood Market was added in Magna at Arbor Park. In continued across the valley with 548,577 sf of space added to the addition to newly completed projects, a number of other grocers market. New construction included the Smith’s Marketplace are currently under construction or renovation including a Trader portion of The Highlands (123,000 sf) in West Jordan, a new Joes in Union Heights and two other Walmart Neighborhood Costco (153,570 sf) in South Jordan and RC Willey (160,000 sf) in Markets in Riverton and Herriman. Draper. This new construction, all of which was occupied upon delivery, helped push overall absorption to 768,007 sf. Additional One of the most projects are also underway and expected to be completed in 2015. Additional shop space will be completed at The Highlands notable events of to accompany the Smith’s Marketplace. Early 2015 should see the 2014 completion of Dillard’s new space at Fashion Place Mall, and has been the expansion of grocers. their relocation.

RETAIL MARKET OVERVIEW – 2014 NEW RETAIL SECTOR MARKET SF VACANT SF VACANCY ABSORPTION SF CONSTRUCTION SF North East 5,578,911 380,540 6.8% - (99,277) Central East 6,266,157 545,874 8.7% - 227,860 South East 9,868,079 409,487 4.1% 3,830 171,415 North West 892,089 11,960 1.3% - 72,243 Central West 7,538,738 840,457 11.1% 151,986 123,926 South West 9,256,266 263,200 2.8% 392,761 271,840 TOTAL BY SECTOR 39,400,240 2,451,518 6.2% 548,577 768,007 RETAIL TYPE Regional Mall 3,972,316 323,832 8.2% - (25,953) Regional Center 6,969,112 395,976 5.7% 10,045 78,079 Community Center 15,938,989 875,330 5.5% 455,009 423,151 Neighborhood Center 7,836,779 501,772 6.4% 83,523 223,815 Anchorless Center 4,683,044 354,608 7.6% - 68,915 TOTAL BY TYPE 39,400,240 2,451,518 6.2% 548,577 768,007 *REFERS ONLY TO SHOPPING CENTER OR MULTI-TENANT DEVELOPMENTS OVER 10,000 SQUARE FEET. ** ABSORPTION INCLUDES REGIONAL MALLS.

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SUMMIT COUNTY OFFICE MARKET SUMMIT COUNTY RETAIL MARKET

Summit County’s unemployment rate of just 3.5% continued to be one of the lowest Retail continued to be the deepest sector in Summit County. The best known retail corridor, in the state and remained a positive driver for growth. Park City’s historic Main Street Park City’s Historic Main Street, continued to command some of the highest lease rates in continued to draw new development and renovations. The September 2014 settlement the state, with rates as high as $60 psf NNN. The Main Street Mall was completed and five of the long running lawsuit between Powdr Corporation (former owner/operator of Park of the seven spaces have already been leased. The luxury oriented residential units on the City Mountain Resort) and Vail Resorts was a relief to both the local business community upper level are anticipated for delivery in mid-2015. Some new residential units are also and public. With the addition of Park City Mountain Resort to Vail’s Epic Pass offering, planned along Lower Main Street which will continue to add life to the area. Vail reported increased Epic Pass sales for the 2014 – 2015 ski season. More recently, Kimball Junction continued to be an area of strong growth and interest was shown as over Vail announced a $50 million capital improvement plan for Park City Mountain Resort 50,000 sf of new retail development was completed. This brought national tenants such and Canyons, most of which is scheduled to be completed in the summer of 2015. The as Jimmy John’s and Five Guys to the market. Occupancy is now above 95% and rates are highlight of the plan is a proposed gondola which will connect the two resorts, thereby solid. The Tanger Outlet Shopping Center also completed 23,500 sf of expansion space. creating the nation’s largest ski resort. There has been strong interest in Mayflower, a land development opportunity consisting of approximately 4,000 acres, including 2,400 entitled units located adjacent to Deer Valley® 2014 YEAR END 2014 YEAR END Resort at the Mayflower exit on US Highway 40 in Wasatch County.MARKET The REVIEW land has the MARKET REVIEW potential for Deer Valley ski terrain/ski lift expansion and a new base village. This property offers year round resort development opportunity due to the proximity to Jordanelle Summit County | Office Market Reservoir and would be favorable forSummit the Wasatch County County economy | Retail due to the Market Highway 40 connectivity.

Summit County’s unemployment rate of just 3.5% continued OFFICE MARKET RETAIL:INDICATORS Retail continued to be the deepest sector in Summit RETAIL MARKET INDICATORS to be one of the lowest in the state and remained a positive County. The best known retail corridor, Park City’s Historic Main Total Inventory (sf) 1,239,669 Total Inventory (sf) 3,015,480 driver for growth. Park City’s historic Main Street continued Street, continued to command some of the highest lease rates in to draw new development and renovations. The September Lease Rates (psf) the state, with rates as high as $60 psf NNN. The Main Street Mall Lease Rates (psf) 2014 settlement of the long running lawsuit between Powdr Old Town was completed and$25.00 five - of$60.00 the sevenNNN spaces have already been Old Town $25.00 - $60.00 NNN Corporation (former owner/operator of Park City Mountain Prospector leased. The luxury$12.00 oriented - $28.00 residential NNN units on the upper level Prospector $12.00 - $28.00 NNN Resort) and Vail Resorts was a relief to both the local business Snyderville are anticipated for$16.00 delivery - $32.00 in mid-2015. NNN Some new residential Snyderville $14.00 - $24.00 NNN community and public. With the addition of Park City Vacancy units are also planned along Lower Main5.2% Street which will continue Vacancy 5.8% Mountain Resort to Vail’s Epic Pass offering, Vail reported to add life to the area. increased Epic Pass sales for the 2014 – 2015 ski season. Kimball Junction continued to be an area of strong growth and John’s and Five Guys to the market. Occupancy is now above 95% More recently, Vail announced a $50 million capital MARKET TRENDS interest was shown as over 50,000 sf of new retail development and rates are solid.Source: The comre.com/uploads/reports/p19cmomcorol1hdg1kotu2vhb53.pdf Tanger Outlet Shopping Center also improvement plan for Park City Mountain Resort and 36 OFFICE: Office propertieswas completed. continued This to strengthenbrought national through tenants such as Jimmy completed 23,500 sf of expansion space. Canyons, most of which is scheduled to be completed in the 2014 as 58,500 square feet (sf) of space was absorbed. This summer of 2015. The highlight of the plan is a proposed strong absorption causedRETAIL the vacancy MARKET rate TOTALto decline INVENTORY by an – FIVE YEAR HISTORY gondola which will connect the two resorts, thereby creating impressive 4.4 percentage points (pps) to just 5.2%. The Park the nation’s largest ski resort. City Film Studio at Quinn’s Junction began construction with 3,000,000 SF Phase 1 of the 374,000 sf project stalling out mid-year. A new There has been strong interest in Mayflower, a land partner and financing were obtained and the project is now development opportunity consisting of approximately 4,000 moving forward. 2,750,000 SF acres, including 2,400 entitled units located adjacent to Deer Valley Resort at the Mayflower exit on US Highway 40 in Assemble, an 11,000 sf executive2,500,000 suite SF operator, opened in April Wasatch County. The land has the potential for Deer Valley at Cottonwood Newpark III. The market response was strong ski terrain/ski lift expansion and a new base village. This with leasing exceeding projections. A 3,000 sf expansion seems 2,250,000 SF property offers year round resort development opportunity likely, based on ongoing demand. With very little space available, due to the proximity to Jordanelle Reservoir and would be opportunity abounds for new development. The Boyer Company has entitlements for up to2,000,000 1.2 million SF sf in the Park City Tech favorable for the Wasatch County economy due to the 2010 2011 2012 2013 2014 Highway 40 connectivity. Center but there are restrictions allowing only research and technology related uses. 2010 2011 2012 2013 2014 Square Feet 2,797,139 2,782,462 2,807,764 2,930,015 3,015,480

RETAIL VACANCY RATES – FIVE YEAR HISTORY

12% 10% 8% 6% 4% 2% 0% 2010 2011 2012 2013 2014

2010 2011 2012 2013 2014 Vacancy 9.3% 10.1% 11.2% 6.3% 5.8%

MARKET FORECAST Limited inventory is expected to exert upward pressure on lease opportunity. This project should benefit from the low vacancy in rates across all market segments in 2015. Newpark at Kimball competing properties. Junction remains the most significant retail and office leasing www.comre.com | All of our listings, anytime. www.comre.com | All of our listings, anytime. © Copyright 2015 - All Rights Reserved © Copyright 2015 - All Rights Reserved ECONOMIC & DEMOGRAPHIC OVERVIEW || VII Economic Overview

TRACKING ECONOMIC PERFORMANCE IN THE INTERMOUNTAIN WEST’S METROPOLITAN AREAS July 2015 || Brookings Mountain West

This analysis of employment, output, unemployment, and house prices finds that the 10 reported larger declines in unemployment than did their national peer group, despite major metropolitan areas of the Mountain West, despite significant economic headwinds, already having below-average rates. With a 2.2 percent expansion in employment, a 1.0 weathered the first quarter of 2015 with robust economic growth. Eight of the region’s percent increase in output, and an unemployment rate of 3.0 percent, Provo stood out as 10 major metro areas advanced on all four metrics of economic performance, and the the region’s—and perhaps the nation’s—strongest performer in the first quarter. Denver, remaining two metro areas slipped only on a single front. meanwhile, ended the quarter with nearly 10 percent more jobs than it had in 2008 and The national economic slowdown that arrived in early 2015 did not entirely bypass the remained the only metro area where home prices have fully recovered from the Great Mountain West, but the region resisted the drag better than any other. As U.S. economic Recession. output contracted by 0.3 percent in the first quarter, Mountain region output expanded All together, this quarter’s Monitor finds that, although the rates of recovery still differ, by 0.2 percent. Nine out of 10 Mountain metro areas achieved positive output growth, steady economic growth appears to have finally taken hold in every one of the region’s compared to only one in five nationwide. major metro areas. This widespread return to growth suggests that—years after a brutal Job growth proceeded at its fastest rate in over a year in Mountain metro areas. dislocation—the regional economy is getting back on track. Employment in the region expanded by 0.9 percent over the quarter, compared to 0.6 percent across the country’s 100 largest metro areas. The region’s major metro areas also

38 Economic Overview

ST MOUNTAIN MONITOR: 1 QUARTER 2015 4

Summary table of performance over the past two quarters Ogden Ogden registered a strong first quarter. The rate of job growth accelerated to 1.5 percent, the second-fastest job growth rate in the region and triple the national rate. The Employment Output Unemployment House prices 2014Q4 2014Q3 2014Q4 2014Q3 2014Q4 2014Q4 2014Q3 rate of output growth slowed significantly, from 1.2 percent in the fourth quarter of 2014 to to to to to Rate to to to 0.5 percent in the first of 2015. Just like its peers, however, Ogden avoided the national Metro Area 2015Q1 2014Q4 2015Q1 2014Q4 2015Q1 2015Q1 2015Q1 2014Q4 Albuquerque, NM 0.6% 0.4% -0.6% 0.2% -0.1% 5.8% 1.3% 1.5% economy’s outright contraction. The unemployment rate fell 0.2 percentage points to 3.4 Boise City-Nampa, ID 1.3% 0.4% 0.6% 0.2% -0.4% 3.7% 2.9% 1.8% percent. Home prices increased by 1.8 percent for the second straight quarter. Over the Colorado Springs, CO 0.3% 0.2% 0.3% 0.2% -0.1% 5.1% 2.9% 1.4% Denver-Aurora, CO 1.1% 0.8% 0.3% 1.1% -0.1% 3.9% 2.2% 3.3% year, home prices increased more slowly in Ogden and its Utah neighbors than they did Las Vegas-Paradise, NV 0.5% 0.4% 0.1% -0.2% 0.1% 7.2% 1.9% 2.8% nationally. Ogden-Clearfield, UT 1.5% 1.3% 0.5% 1.2% -0.2% 3.4% 1.8% 1.8% Phoenix-Mesa-Glendale, AZ 0.8% 1.2% 0.3% 1.0% -0.8% 5.0% 1.0% 2.9% Provo Provo posted the best economic performance in the region in the first quarter. The Provo-Orem, UT 2.2% 1.6% 1.0% 1.3% -0.2% 3.0% 1.4% 3.3% rate of job growth accelerated rapidly to 2.2 percent—the fastest quarterly expansion in Salt Lake City, UT 0.9% 0.9% 0.3% 0.8% -0.2% 3.3% 1.0% 2.3% Tucson, AZ 0.7% 0.5% 0.0% 0.4% -0.8% 5.2% 1.0% 1.6% the nation. Provo also bested its peers nationwide with a full 1.0 percent quarterly increase 10 Largest IMW Metro Areas 0.9% 0.8% 0.2% 0.7% -0.3% 4.8% 1.4% 3.0% in output, even as national economic growth turned negative. The unemployment rate fell 100 Largest U.S. Metro Areas 0.6% 0.6% -0.3% 0.6% -0.2% 5.3% 2.0% 2.3% United States 0.5% 0.6% -0.3% 1.0% -0.1% 5.5% 0.5% 3.1% by 0.2 percentage points to 3.0 percent, the lowest in the region. House price growth was more restrained, however. Home prices increased by 1.4 percent, in line with the regional Please visit the Monitor’s interactive website, www.brookings.edu/metromonitor, for additional materials, including average but below the previous quarter’s 3.3 percent growth. individualUtah Valley metro Convention profiles with Center, job and Provo, output UT information by industry and trendline graphics across each indicator. Salt Lake City Salt Lake City’s economic growth continued unabated in the first quarter of 2015. The rate of job growth held steady at the beginning of the year as employment expanded by 0.9 percent—in line with the regional average—for the second straight quarter. The rate of output growth slowed to 0.3 percent but remained positive. The unemployment rate continued to fall, declining by 0.2 percentage points to 3.3 percent. House prices increased by 1.0 percent—more slowly than in the previous quarter and restrained by regional standards but faster than nationwide.

Kenan Fikri and Siddharth P. Kulkarni || July 2015 Source: www.unlv.edu/sites/default/files/page_files/27/Brookings-MountainMonitor-2015-Q1-July.pdf

39 Economic Overview

FOREIGN DIRECT INVESTMENT IN UTAH Utah Governor’s Office for Economic Development

#1 “Best State for Business” Forbes Magazine Utah has a stable and predictable business friendly climate. It consistently receives recognition for its low operating costs, high economic growth and excellent governance. The Pew Center called Utah the “Best Managed State in the Nation.” The Pollina Corporate Top 10 Pro-Business States report ranked Utah #1 in the country for business and careers. CROSSROADS OF THE WESTERN U.S. AND BRIDGE TO THE WORLD As a low-cost distribution point, Utah is the perfect solution Utah is a central, highly cost-effective distribution point for the western U.S. The state is positioned as the “Crossroads of the West” where three major U.S. highways meet. Every major western seaport is within a one-day trip by rail from Utah. Salt Lake International Airport boasts flights to over 90 cities in the U.S. and direct flights to Europe, Asia, Canada, and Mexico. Utah has one of the most expansive broadband networks in the U.S. and was ranked #1 for home broadband adoption out of all 50 states in the U.S. Utah is globally connected. Per capita, Utah is the most linguistically diverse state in the U.S. with more than 130 different languages spoken in business daily. From the state’s largest airport, travelers can take direct flights to Europe, Asia, Canada, and Mexico. Major rail lines link Utah to the major seaports of Los Angeles, Oakland, Portland, and Seattle. Whether you are looking for a place to buy, sell, relocate or invest, Utah is the place to be. Please read further and discover what nearly 3 million Utah residents already know: this is an unparalleled place to do business. Cost of doing business Accessibility • One of the lowest tax states in the U.S. • #1 state in export performance • One of the lowest operating cost states in the U.S. • Salt Lake City International Airport hosts over 700 daily flights • Second-lowest commercial electric and third-lowest natural gas rates in the U.S. • One-day truck service to most major cities in the western U.S. Workforce Quality of Life • Over 103 different languages are spoken in commerce daily • 4 of the top 20 ski resorts in North America are within one hour of the international • Competitive wage rates airport • Youngest population in the country with a median age of 29 • Home to 5 national parks, 7 national monuments and 43 state parks • Named “happiest state in the U.S.”

40 Economic Overview

Utah’s dynamic, educated workforce National parks, monuments and recreations areas Utah has ten public and three Utah-based private universities and colleges. More than Utah is home to the greatest concentration of national parks in the U.S. The state’s five one out of every three Utahns has a college degree. Utahns conduct business in over 130 national parks – Arches, Bryce Canyon, Canyonlands, Capitol Reef and Zion – are famous languages daily. Many residents have lived and worked abroad. This enhances their ability around the world for their spectacular and diverse natural beauty. In addition to its five to make immediate contributions to the success of companies and divisions based in national parks, Utah’s seven national monuments, two national recreation areas and 43 Utah that operate internationally. Utah’s workforce is also the youngest in the U.S. with a state parks attract millions of visitors every year. median age of 29. Arts and culture • 24 total public and private universities, colleges, and other accredited higher Utah offers a wealth of artistic and cultural activities. There are hundreds of theaters, education institutions dance and music organizations in Utah including the renowned Ballet West, Festival Opera, • 39 percent of the workforce has an associate degree or above and the Utah Symphony. Distinguished cultural and artistic events are also found in Utah: • Utah’s workforce has been recognized for its productivity the Sundance Film Festival, the Mormon Tabernacle Choir and the Tony Award-winning Utah Shakespearean Festival. QUALITY OF LIFE Families and education Winter and summer recreation Surveys show that Utah’s citizens are among the happiest, its communities among the In the winter, Utah’s 14 ski resorts provide the world’s finest skiing and snowboarding. Ski safest and its citizens the healthiest in the U.S. The overall cost of living in Utah’s capital, magazine has named Utah’s Deer Valley® Resort “North America’s Top Overall Ski Resort” Salt Lake City, is below the national average. Parents and children can depend on Utah five of the last six years. Park City Mountain Resort was ranked the “#1 Family Destination.” to deliver world-class public education. Utah students regularly score above the national In the summer, Utah’s outdoors offer numerous recreation activities including camping, average on standardized tests. hiking, mountain biking, ATV riding, rock climbing, fishing and hunting in some of the Source: business.utah.gov/international/aboutinternational/foreigndirectinvestment/ most varied and spectacular scenery on earth. Utah is also ranked 6th in the U.S. for the amount of boatable water. The state is a global destination for water sports enthusiasts seeking adventure while whitewater rafting, kayaking, boating, jet skiing and scuba diving.

41 Summit County Demographics

COUNTY OVERVIEW LARGEST EMPLOYERS

Summit County is located in Northern Utah, approximately 30 miles east of Salt Lake Company Name Employees City in a geographic area known as the “Wasatch Back” referring to the backside of the • Deer Valley® Resort 500-999 Wasatch Mountains. It contains 39 of Utah’s highest peaks and has earned its reputation • The Canyons 500-999 as an upscale getaway, bringing in many new development opportunities. With a • Backcounty Com, Inc. 250-499 highly educated and affluent population, exceptional schools, a myriad of recreational • CFI Resorts Management, Inc. 250-499 opportunities, and an urban lifestyle within a rural setting, net in-migration is anticipated. • Montage Hotels & Resorts LLC 250-499 In Summit County, tourism is the largest single component of the economic base; it • Park City Mountain Resort 250-499 provides more than 6,500 jobs in travel and recreation related employment, 53 percent • Park City Surgical Center 250-499 of Summit County’s total employment. Previous economies were based on agriculture, • Stein Eriksen Lodge Owner’s Association 250-499 logging, and mining. • Triumph Gear Systems, Inc. 250-499 • All Seasons Resort Management, Inc. 100-249 • Dakota Mountain Lodge 100-249 • District Office 100-249 • Glenwild Golf Club LLC 100-249 • Hotel Park City 100-249 • McDonald’s 100-249 • Park City Fire Service District 100-249 Source: Utah DWS

42 Summit County Demographics

POPULATION EDUCATIONAL ATTAINMENT 2014 Population Households Grade Level Number Percent Coalville 1,558 518 Grade 9 800 3.0% Park City 8,368 3,184 Grades 9-12 962 3.7% Summit County 40,230 14,389 High School 4,732 18.0% State of Utah 2,905,510 923,700 Some College 4,827 18.4% 2019 (projected) Population Households Associate 2,022 7.7% Coalville 1,656 553 Bachelors 8,362 31.8% Park City 8,890 3,406 Graduate 4,592 17.5%

Summit County 42,751 15,389 Source: Research360, DecisionData State of Utah 3,113,129 993,130 Source: edcutah.org/2015%20County%20Profiles/documents/Summit.pdf

POPULATION BY AGE Age 2014 % of Total 0 to 4 2,650 6.6% 5 to 14 6,015 15.0% 15 to 19 2,922 7.3% 20 to 24 2,249 5.6% 25 to 34 4,756 11.8% 35 to 44 5,504 13.7% 45 to 54 6,515 16.2% 55 to 64 5,604 14.0% 65 to 74 2,853 7.1% 75 to 84 892 2.3% 85+ 270 0.7% Median 38.0 -

43 Wasatch County Demographics

COUNTY OVERVIEW LARGEST EMPLOYERS

Wasatch County was named for a Ute Indian word meaning mountain pass. In the midst Company Name Employees of the mountainous region is Heber city, serving as the county seat and the largest city in • Gemstone Midway LLC 250-499 the County. The Heber Valley has experienced a tremendous boom in economic activity • Heber Valley Medical Center 100-249 during the last couple years and was singled out by Forbes Magazine as the “Fifth-fastest • Hotel Cleaning Services, Inc. 100-249 growing town in America.” There is a strong base of light manufacturers in the County • Probst Electric, Inc. 100-249 with room to grow. In addition, the Software development and information technology • RMD Management, Inc. 100-249 sector is expanding; the Wasatch Campus of Utah Valley University provides opportunities • Smiths Food and Drug 100-249 for the development of software, including digital media products, and enhancement and • Wal Mart 100-249 utilization of information technology throughout the county. • Wasatch County High School 100-249 • Days Market 50-99 • Heber Valley Elementary 50-99 • J R Smith Elementary 50-99 • McDonalds 50-99 • Old Mill Elementary 50-99 • Redmond Minerals, Inc. 50-99 • Ridley’s Family Markets 50-99 • Rocky Mountain Middle School 50-99 • Swiss Alps Inn/Dairy Kenn 50-99 Source: Utah DWS

44 Wasatch County Demographics

POPULATION EDUCATIONAL ATTAINMENT 2014 Population Households Grade Level Number Percent Heber 12,916 3,870 Grade 9 400 2.6% Midway 4,362 1,492 Grades 9-12 973 6.3% Wasatch County 26,665 8,276 High School 3,540 22.8% State of Utah 2,905,510 923,700 Some College 4,658 30.0% 2019 (projected) Population Households Associate 1,296 8.3% Heber 14,606 4,394 Bachelors 3,061 19.7% Midway 4,936 1,694 Graduate 1,614 10.4%

Wasatch County 30,148 9,398 Source: Research360, DecisionData State of Utah 3,113,129 993,130 Source: edcutah.org/2015%20County%20Profiles/documents/Summit.pdf

POPULATION BY AGE Age 2014 % of Total 0 to 4 2,211 8.3% 5 to 14 4,994 18.8% 15 to 19 2,142 8.0% 20 to 24 1,577 5.9% 25 to 34 3,271 12.3% 35 to 44 3,868 14.5% 45 to 54 3,225 12.1% 55 to 64 2,745 10.3% 65 to 74 1,666 6.2% 75 to 84 737 2.8% 85+ 229 0.9% Median 32.6 -

45 UTAH IN THE NEWS || VIII

46 Utah in the News

WORK ON SALT LAKE CITY’S DELTA TO REINSTATE SALT LAKE CITY SERVICE OUT OF RDU NEW AIRPORT READY FOR August 10, 2015, 2014 || By Jeff Jeffrey, Staff Writer - Triangle Business Journal TAKEOFF It’s been nearly a year since Delta Air Lines (NYSE: DAL) “This is fantastic news for the market JULY 19, 2014 || BY CHRISTOPHER SMART, Salt Lake Tribune decided to cancel its service to Salt Lake City from Raleigh-Durham International Airport. But visitors to RDU and fantastic news for the business A $1.8 billion terminal, capable of handling up to 24 will soon be able to fly direct to the city once again. community,” says Joe Milazzo, executive million passengers a year, will open in 2022. director of the Regional Transportation Delta has announced it will reinstate its service to Salt The $1.8 billion project will boast a brand-new terminal Lake City International Airport, starting in March. Alliance business coalition. and, officials say, transform Salt Lake City International “Salt Lake City has long been a very popular destination into one of the nation’s most efficient airports. Milazzo says it’s a positive sign that an air carrier is willing for RDU travelers and we are glad Delta is resuming the When completed in 2022, the airport will have one to dedicate an aircraft to a long-distance route. “This is service,” said Michael Landguth, president and CEO of terminal rather than the three it now has. Its length will the last major hub city that RDU didn’t have a direct flight the Raleigh-Durham Airport Authority. “The Salt Lake be the equivalent of six Salt Lake City blocks. to, and this announcement takes care of that,” he says. City region has several business ties to our region, has The existing airport was built to handle 10 million abundant leisure opportunities, while SLC provides Delta has offered RDU-to-SLC service twice before. The passengers annually. It now sees twice that many, Riley connections to other popular destinations in the West.” route was available between 2005 and 2009 and then explained. The new design has anticipated growth again in 2013 to 2014. RDU says more than 54,000 passengers travel between decades into the future — estimated at 23 million to 24 the Triangle and SLC each year. The return of the service Prior to its most recent cancelation, the RDU-to-SLC route million passengers a year by 2024 and up to 30 million by brings the number of nonstop destinations passengers saw the highest frequency of on-time flights at RDU. 2034. can reach from RDU to 43. Delta’s announcement comes just days after Southwest About half the new terminal will be operational by spring “This is fantastic news for the market and fantastic news began offering service to Dallas, setting up a competition 2019, according to project manager Mike Williams. The for the business community,” says Joe Milazzo, executive between Southwest and American Airlines. entire terminal will open by summer 2022. director of the Regional Transportation Alliance business Source: bizjournals.com/triangle/news/2015/08/10/delta-salt-lake-city- Source: sltrib.com/sltrib/news/58194814-78/airport-lake-salt- flight-rdu.html terminal.html.csp coalition.

47 Utah in the News

SALT LAKE CITY LANDS LONDON HEATHROW NONSTOP AS DELTA ADDS U.K. ROUTES

August 31, 2015 || Ben Mutzabaugh For Salt Lake City International, securing new overseas routes has been a priority in recent Salt Lake City is getting a nonstop route to London, one years. It will now have three European routes once the Heathrow service begins. of two new routes announced by Delta Air Lines this week. Delta also revealed plans to add nonstop service “International travel is up all throughout the world and Salt As for Delta’s Edinburgh route, The Scotsman newspaper between New York JFK and the Scottish capital of Lake City is no exception,” airport spokeswoman Bianca notes Delta’s JFK-Edinburgh route “will come seven years Edinburgh. Shreeve says to Deseret News of Salt Lake City. “The after Delta scrapped the route after switching it from Delta’s Salt Lake City route will operate seasonally, Paris flight has been a success for Delta and Amsterdam Edinburgh-Atlanta.” launching May 1 with daily flights to London Heathrow has been tremendously successful, so we’re hopeful that And unlike with its Salt Lake City route, Delta will face Airport on 210-seat Boeing 767-300ER aircraft. The London goes off with a bang as well.” competition from its two biggest U.S. rivals. American New York-Edinburgh route launches May 26, with Delta Also at Salt Lake City, Delta will add a domestic route to also flies from Edinburgh to JFK while United flies to its operating one daily round-trip flight on 163-seat Boeing Raleigh-Durham starting in March. That route, announced hub at Newark Liberty. All three airlines use Boeing 757 757 aircraft, according to Business Traveller magazine. earlier this month, will restore a route Delta dropped last on those flights. year, the Triangle Business Journal reports. The Raleigh- Source: usatoday.com/story/travel/flights/todayinthesky/2015/08/28/ Delta said it was launching both routes as part of its new salt-lake-city-lands-london-heathrow-nonstop--delta-adds-uk- joint-venture partnership with Virgin Atlantic that began based publication notes “Delta has offered RDU-to-SLC routes/71315284/ in 2013. service twice before. The route was available between 2005 and 2009 and then again in 2013 to 2014.” The London route was lauded by officials at Salt Lake City International, which has long been Delta’s top western Delta is by far the dominant carrier at Salt Lake City, hub. The airline will be the only one flying between Utah where it controls about 71% of seats for sale from the and London. For Salt Lake City International, securing airport, according to aviation site anna.aero. Southwest new overseas routes has been a priority in recent years. It is No. 2 at the airport with about 11% of overall seat will now have three European routes once the Heathrow capacity there, anna.areo says. service begins. Delta also flies from Salt Lake City to Paris (year-round) and Amsterdam (seasonal).

48 Utah in the News

HOW UTAH BECAME THE NEXT SILICON VALLEY FEBRUARY 3, 2015 || VAUHINI VARA …Muro and his colleagues also mapped their super-sector, and the results are surprising and instructive. Some of In Utah, by contrast, the firms aren’t concentrated in one particular sector—the state’s super- the metropolitan areas with the highest concentration of sector employment comes largely from software businesses, but also from medical-device employees in the sector were expected: the area around manufacturers and makers of aerospace products, among others—and the three cities on the San Jose, California, is number one, for example, followed list are all within driving and public-transit distance of one another. by the Seattle area. But they also found that Utah had three cities in the top fifteen: the metropolitan areas of super-sector employment comes largely from software local governments, along with an economic-development Salt Lake City, Provo, and Ogden. This fascinated Muro, businesses, but also from medical-device manufacturers organization, facilitate partnerships, and, because many especially when he realized that much of the employment and makers of aerospace products, among others—and of Utah’s businesses are home-grown, and the state’s in the sector was coming from well-known companies the three cities on the list are all within driving and public- population is small, densely located, and tightly knit, its that have opened offices in Utah, like the software firm transit distance of one another. “We don’t pay attention businesspeople tend to get to know each other well). Adobe, or from startups that have come to be worth to Utah much, and Utah clearly sticks to its own affairs,” In fact, the Wasatch Front region of Utah—the small billions of dollars. (In 2013, the C.E.O. of one such startup, Muro said. “There’s a sense that they’re not like some section that contains Provo, Salt Lake City, and Ogden, the software company Qualtrics*, wrote that his firm, metros, selling themselves externally, and yet, they do and is home to eighty per cent of the state’s population— which had recently been valued by investors at more than seem to be executing.” looks a lot like Silicon Valley in certain ways. Much as Intel a billion dollars, was headquartered within a thousand How are they doing it? Some observers, including Muro, and other semiconductor manufacturers helped create yards of two other startups worth more than a billion have pointed to a certain cultural knack for salesmanship Silicon Valley, the software company Novell—one of the dollars.) “You think this is going to be fairly corn-pone and entrepreneurship among Mormons, who make up flagships for the Utah super-sector—was founded in stuff, and then you realize, ‘Holy cow, these are significant two-thirds of the state’s population. But, religion aside, Provo, in the nineteen-seventies, and helped attract, and companies,’” Muro said. Utah turns out to also have features in common with spawn, other local tech businesses. Also, the Wasatch The report shows other unanticipated cities with high other places involved in the super-sector: local universities Front, like Silicon Valley, is densely populated and concentrations of advanced industries—Wichita, Kansas, that graduate a lot of S.T.E.M. students (most notably, connected by a freeway and a mass-transit system. And, for example—but these places tend to rely heavily on Brigham Young University); policies and infrastructure that especially since the mid-aughts, venture capitalists have single industries, and they tend to stand alone rather attract businesses (for instance, tax breaks and a light-rail invested surprising amounts in Utah companies; in the than being clustered. In Utah, by contrast, the firms system that connects the state’s biggest cities); and strong first half of last year, the state was the sixth most popular aren’t concentrated in one particular sector—the state’s relationships among local companies (Utah’s state and destination for venture-capital funding. Utah in the News

To understand how those features help stimulate local Draper, UT: Lured by factors such as tax breaks, affordable real estate, an educated populace (many of economies—and how that growth perpetuates itself— whom had foreign-language skills gained during missionary trips), and the strong public-transit system, consider the small town of Draper, Utah, part of which big companies, ranging from eBay and E.M.C. to Edwards Lifesciences, which makes heart valves, is included in the metropolitan area of Salt Lake City, to started opening offices in town, employing many hundreds of people each. its north, and part of which is the metropolitan area of Provo, to its south. The population of Draper rose rapidly in the nineties and aughts, during a statewide population the old-timers. Walker and his allies advocated for the and insert an Intel or a Novell —or, for that matter, a boom. The scale might seem modest to someone from regional light-rail system to be extended to Draper and Stanford or B.Y.U.—into every state. Still, the Brookings San Jose or Seattle— Draper’s population is just over won. researchers argue that Utah’s cities, and other places like forty-five thousand—until you consider that, twenty years Lured by factors such as tax breaks, affordable real estate, them, offer a number of crucial lessons, if governments ago, fewer than ten thousand people lived there, in what an educated populace (many of whom had foreign- and businesses elsewhere are willing to heed them: was then a quiet agricultural village. Troy Walker, the language skills gained during missionary trips), and the expand government- and corporate-funded R. &. D.; mayor, grew up in a nearby town and moved to Draper strong public-transit system, big companies, ranging nurture startups by getting them capital and other help; in the early aughts. “It was interesting, watching these from eBay to Edwards Lifesciences, which makes heart improve the pipeline of S.T.E.M. workers through schools, fields turn into homes,” he recalls. “There was a big dairy valves, started opening offices in town, employing many universities, and corporate-funded training programs; and operation where, right now, there’s a whole bunch of hundreds of people each. Startups, too, have sprouted collaborate to create local “ecosystems” that encourage commercial buildings and a high-end apartment complex.” up, some of them founded by B.Y.U. graduates. The super-sector companies to cluster together. As the report Walker believes Draper’s population will reach a hundred unemployment rate in Draper is around three per cent, puts it, “The speed and complexity of innovation and thousand before too long. compared to six per cent nationwide, Now, the state its global champions are ratcheting up the urgency of the enterprise”—that is, the ongoing national enterprise Walker told me that when he got involved in local politics legislature has voted to relocate a state prison that has of encouraging innovation —“and demanding new several years ago, as a member of the city council, he been based there for decades. Walker envisions turning strategies for engaging in it. Both the private and encountered a philosophical rift. Longtime residents that real estate into a multi-use development with public sectors must radically rethink their technology of Draper wanted it to remain mostly residential, while housing and businesses—anchored, he hopes, by a big development strategies accordingly if they are to remain he and some other newcomers felt that the local corporation. relevant.” government wouldn’t be able to provide proper services The open question is whether the success of a place Source: newyorker.com/business/currency/utah-became-next-silicon- and infrastructure to the influx of residents unless they like Draper can be replicated. For years, researchers and valley became more aggressive in courting businesses and the policymakers have tried to figure out how to copy Silicon tax revenue they provide. Over time, the newcomers have Valley’s success elsewhere, with mixed success; you prevailed, in part because they have come to outnumber can’t, of course, turn back time to the nineteen-seventies Utah in the News

WHAT IS THE NEXT ‘NEXT SILICON VALLEY’? MARCH 5, 2015 || Josh Barro

“Nerds love Orlando,” according to public relations But let’s look at the place that scored fourth on P.P.I.’s list: Utah County, Utah, whose largest materials I received this week from the city of Orlando, city is Provo. In February, The New Yorker proclaimed that Utah is “the next Silicon Valley.” Fla. But as Orlando seeks to rebrand itself as “a high tech That’s hyperbole, but Provo (population: 116,288) does punch far above its weight; of 73 hub for innovation,” it faces a lot of competition. private venture-funded companies in the world with valuations over $2 billion, according to In 2010, Chicago proclaimed its intention to become “the The Wall Street Journal, Provo is home to two. A large, new National Security Agency facility top destination for technology business.” In December, in the area is adding to the concentration of tech jobs and workers. Citibank joined with The Huffington Post to declare that “you might be living in the next Silicon Valley” if you live in Chicago — or Miami, or Cincinnati or Chattanooga. Slate metropolitan areas in the United States, San Jose, Calif., 214. (The index compares tech jobs added to the overall tracked “next Silicon Valleys” in 2013 and profiled two ranks first in “advanced industry” employment as a share job base, so it doesn’t discriminate in favor of places with dozen cities that had been described as such, including of total employment. Orlando ranks 73rd — and places high total populations.) Las Vegas, which received the distinction from Slate itself. 78th in advanced industry employment growth from 2010 But let’s look at the place that scored fourth on P.P.I.’s to 2013. For its part, Orlando brags it was named a “promising list: Utah County, Utah, whose largest city is Provo. tech hub to watch” in 2014 by Techie.com. If you hadn’t The gap between San Jose and the No. 2 metro area is In February, The New Yorker proclaimed that Utah heard of Techie.com, don’t worry, neither had I; the tech large. Seattle, no tech slouch with Microsoft, Amazon, is “the next Silicon Valley.” That’s hyperbole, but Provo site, based in South Bend, Ind., folded a few months Zillow and others, has 16 percent of its work force in (population: 116,288) does punch far above its weight; of ago, but not before it awarded the “promising tech hub” advanced industry compared with 30 percent for San Jose. 73 private venture-funded companies in the world with distinction to Orlando along with Minneapolis, Detroit, The Progressive Policy Institute puts out its own “tech/ valuations over $2 billion, according to The Wall Street Champaign-Urbana, Ill., and Sioux Falls, S.D. info jobs index,” which uses a narrower definition of the Journal, Provo is home to two. A large, new National Security Agency facility in the area is adding to the The hard data does not bear out the proposition that high-tech sector, but it produces broadly similar results: concentration of tech jobs and workers. nerds love Orlando. They do not love Las Vegas, and The three large counties showing the strongest gain in they are lukewarm about Chicago. Research from the tech jobs from 2009 to 2013 were San Francisco, Santa Provo provides an example of one of two models for Brookings Institution, based on figures from the Bureau Clara and San Mateo — the three counties at the core competing with Silicon Valley. “There’s a group of people of Labor Statistics, tells a rather more conventional of Northern California’s tech industry cluster. Orange who really want to live there and there’s a really good story: Nerds love Silicon Valley. Among the 100 largest County, Fla., which contains Orlando, scored 89th out of research university,” says the urban theorist Richard

51 Utah in the News

Florida. He’s referring to Brigham Young University tech business, but also the impetus to keep it there flight simulators and theme park rides can rely on a lot of and the opportunity to live among a large Mormon once it succeeds. In the Provo (or Boulder) example, the the same technology. Tourism isn’t generally thought of community. But approximately the same formula businesses stay local because the owners and the workers as a tech-intensive field, but Disney recently developed its describes the success of Boulder, Colo., which has the really want to live there. (This is something else Silicon MyMagic Plus system (waterproof wristbands with RFID University of Colorado, proximity to great mountain Valley has always had going for it.) In the New York chips that give visitors access to rides and unlock their sports and a disproportionate concentration of tech jobs example, they stay local because the location provides an hotel room doors) in-house in Orlando. and venture capital funding. irreplaceable business advantage. Still, tourism is heavily dispersed geographically, and while there are a lot of tourism dollars in Orlando, even Disney In the Provo (or Boulder) example, the businesses stay local because the owners and the is not headquartered there. Companies that produce workers really want to live there. technology for the hospitality industry do not need to cluster in Orlando. The other model for competing with Silicon Valley is Mr. Florida pointed to Pittsburgh as a cautionary example. “I would say, over all, this is a relatively thin backdrop,” about cross-industry collaboration. Michael Mandel, He used to teach at Carnegie Mellon, a top research said Mark Muro, the researcher behind the Brookings the chief economic strategist at P.P.I., notes that strong university that produces a lot of graduates capable of report, after examining his own figures about industry growth in New York’s tech industry has helped soften starting and staffing great technology companies. But concentration in Orlando, which show few high-tech the blow from the financial crisis. Its numbers show New start-ups that spin out of Carnegie Mellon have neither specialties. “But I would note it is possible to diversify, York gained almost 28,000 jobs, about what Santa Clara a strong lifestyle reason nor a strong economic reason starting from nothing.” County, Calif., did. to stay in Pittsburgh once they succeed. “If there was It is also possible to set more modest goals. In 2013, my a successful start-up, eventually it got sucked into the “What you had was the intermix between the content colleague Claire Cain Miller received a more-modest-than- Silicon Valley vortex,” he said. hub and the tech hub that turned out to create a lot usual pitch about a city’s technological surge: “While of job gain,” Mr. Mandel said. That is, New York is not So, what lessons does this provide for someplace like Chicago may never give Silicon Valley a run for its money, a broad-spectrum competitor to Silicon Valley, but is Orlando, if it wants to shift its economy toward high tech? digital start-ups no longer have to leave Chicago to seeing extensive growth in areas of the tech industry that “I think what Orlando has is a combination of the space survive.” benefit from exposure to other industries with a large stuff and the Disney stuff,” Mr. Florida said. “It’s not trivial, A version of this article appears in print on March 5, 2015, on page concentration in New York, especially media, but also A3 of the New York edition with the headline: The Elusive Search those things taken together, but it’s hard to see how you for the Next Silicon Valley. fashion and finance. put them together.” Source: nytimes.com/2015/03/05/upshot/what-is-the-next-next- What New York and Provo have in common is they Local officials point to one way they might. Orlando is a silicon-valley.html provide not just the resources necessary to start a high- center for modeling and simulation technology, because

52 Utah in the News

WHERE THE GRADUATES ARE GOING, AND WHERE THEY ALREADY ARE OCT. 21, 2014 || Claire Cain Miller

Which cities are magnets for young college graduates? …see which cities have a larger than average percentage of the young and college-educated: One way to answer the question is to look at the cities people between 25 and 34 years old with a bachelor’s degree. attracting growing numbers of young, educated people, Measured this way, some surprising cities stand out as skewing young, including Columbus, as a chart we ran Monday did. Another way is to see which cities have a larger than average percentage of the Baltimore and Salt Lake City. young and college-educated: people between 25 and 34 years old with a bachelor’s degree. Economists have debated whether jobs follow people are attracting this group at a much faster rate than their or whether people follow jobs. Joe Cortright, who runs total population is growing are New Orleans, San Diego, Measured this way, some surprising cities stand out as City Observatory, the think tank that published the report, Oklahoma City and Las Vegas. skewing young, including Columbus, Baltimore and Salt said that companies are increasingly locating where Lake City. When big cities like New York and San Francisco become large numbers of young, college-educated people live, unaffordable for young people to live, they increasingly Denver’s population of the young and educated is up because young people are pickier about location. One choose smaller cities like Baltimore and Portland over the 47 percent since 2000, nearly double the percentage reason is that men and women are both likely to work, so suburbs that many in their parents’ generation chose. increase in the New York metro area.Denver, Nashville couples seek a place they want to live and then find jobs, In Portland, for instance, the number of young college and Portland, Ore., fall into both groups: They each have as opposed to wives following their husbands’ careers. graduates has grown 37 percent since 2000; they now a disproportionately large and fast-growing group of such Where they choose to live matters because a large young, make up 5.6 percent of the population, up from 4.8 residents. In Las Vegas, San Antonio and Riverside, Calif., educated work force is the economic engine of a vibrant percent a decade and a half ago. meanwhile, this population is growing more quickly than city. in most other metropolitan areas, yet they have a smaller In readers’ comments on our first article, there was some Cities in which the growth in the population of young share than any other area. Over all, in the 51 largest fierce city loyalty, including consternation that certain graduates lagged overall population growth include metropolitan areas, 5.2 percent of people are 25 to 34 cities weren’t included in our chart. We heard most about Atlanta, Dallas, Charlotte and Raleigh. Cities where the years old and have a four-year college degree. Denver’s Chicago, Seattle and Philadelphia — so for all of you, growth was about the same as overall population growth share is 7.5 percent, while Riverside’s share is 2.5 percent. here are the details. All are popular with the young and are Memphis, Phoenix, Austin and Richmond. Cities that educated.

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Percentage of the population in 2012 with a college Chicago’s population of young people has climbed 17 degree and aged 25 to 34, in selected cities. percent since 2000, more than Boston’s but less than Washington 8.1% New York’s, and a higher than average 6 percent of its San Francisco 7.6% population is in this group. Seattle’s population of young Austin 7.0% graduates climbed 27 percent; its share is 6.1 percent. New York 6.6% Philadelphia’s climbed 22 percent, and 5.4 percent of its Seattle 6.1% population is young and college-educated, slightly above Columbus 6.0% average. Source: nytimes.com/2014/10/22/upshot/where-the-graduates-are- Chicago 6.0% going-and-where-they-already-are.html Philadelphia 5.4% Salt Lake City 5.3% Top 51 metro areas, average 5.2% Kansas City 5.2% Los Angeles 5.1% New Orleans 4.9% Dallas 4.6% Houston 4.5% Phoenix 3.9% Miami 3.9% San Antonio 3.6% Las Vegas 3.3% Riverside 2.5% Source: Joe Cortright, City Observatory

54 Utah in the News

WALL STREET WEST: HOW SALT LAKE CITY BECAME GOLDMAN SACHS’ 4TH LARGEST GLOBAL OFFICE August 26, 2013 || By Paul Beebe || The Salt Lake Tribune

Finance: Bank’s Utah workforce has grown Utah’s capital is fast becoming Wall Street’s Western outpost and the world’s biggest “exponentially” to 1,775. investment bank is its poster boy. The number of Goldman employees in Utah’s capital, split Two nights before Halloween last year, a massive wall of between seven floors at 222 S. Main St. and a 75,000-square-foot space on Chipeta Way sandbags surrounding Goldman Sachs’ steel and glass near the University of Utah, is 1,775 people. headquarters in lower Manhattan stood as the global investment bank’s last defense against a tide of storm And, Cohn quipped, “that’s definitely in a complete Like an accelerating race car, the growth of Goldman in water pushed inland by Hurricane Sandy. Across the different weather pattern.” Salt Lake City is more and more rapid every year. In an Hudson River, 8 feet of water lapped against sandbags Utah’s capital is fast becoming Wall Street’s Western interview, Lang wouldn’t provide firm numbers, but six stacked outside Goldman’s tower in Jersey City, N.J. outpost and the world’s biggest investment bank is its years ago Goldman’s local workforce was fewer than 300. Next year, the count could be close to 2,000. Many of the More than 10,000 Goldman employees were cut off from poster boy. The number of Goldman employees in Utah’s new hires will be graduates of Brigham Young University their jobs by the massive storm as it swirled across the capital, split between seven floors at 222 S. Main St. and and the University of Utah. BYU provides more graduates region, forcing the New York Stock Exchange to halt all a 75,000-square-foot space on Chipeta Way near the to Goldman than any other university in the U.S. The U. is trading operations, causing the Port Authority of New University of Utah, is 1,775 people. Over 10 weeks this in the top five. York and New Jersey to suspend train service and cutting summer, that number was augmented by 274 college power to millions of customers. interns and, if history is a guide, Goldman will hire most “It’s an exponential line,” Lang said, “the growth is of them. exponential.” Dire as the conditions were, Goldman was not without resources to keep its global business running. Today, 13 years after Goldman established a foothold in Lang is a 20-year veteran of Goldman. Originally from Utah, Salt Lake City is the firm’s fourth-largest location Buffalo, N.Y., he joined the company as a summer intern “We’ve got a very large building and very large operations in the world, behind New York-New Jersey; London; and in 1993. During the next two decades, he worked his way in Salt Lake City,” Gary Cohn, Goldman’s president Bangalore, India’s technology capital. While Sandy raged, up to his present post, moving back and forth between and chief operating officer, assured interviewers on Salt Lake City was “front and center,” said managing New York and Tokyo until he took on the top job in Salt Bloomberg TV a day later. “We’ve got [hundreds of] director David Lang. “We were able to keep the lights on Lake City in 2008. people in Salt Lake City that can carry on many if not all as a firm because of our Salt Lake City office.” of the operations of Goldman Sachs as well.”

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From Bangalore to Utah • Lang portrays Goldman’s Five years later, “we’ve grown from one division in the “Here is this city down in the mountains that just doesn’t growth to prominence in Utah as a happy accident. firm [and] 275 people to 1,775 people. Today, nine of the understand why on earth there is all this anger toward Someone Goldman had hired to run its new online [company’s] 11 divisions are represented,” Lang told the Goldman Sachs,” Reuters reporter Katya Wachtel said last brokerage business persuaded her bosses to put the board of directors of the Governor’s Office of Economic year in a video posted on YouTube. client-service operations in Salt Lake City. An office Development earlier this month. Some of that disdain was on display in Salt Lake City. Late opened on Chipeta Way in 2000. But what seemed a “Pretty much every activity or any activity that happens in 2011, dozens of protesters and onlookers gathered on good idea at the time never took off. The dot-com bubble within Goldman Sachs is happening here in Salt Lake City,” the sidewalk outside the Main Street building for a street- crash in 2001 soured many retail investors on electronic he told the delighted GOED board. theater performance that chided Goldman for its “sins trading, and Goldman pulled away from the business. Critics and questions • Goldman may feel welcome of manipulating the market during the dot-com bubble.” The company stayed in town but kept a low profile. For in Utah, but the company has lots of critics elsewhere. The event was part of a nationwide series of rallies several years, the main duty of the office was to support On the day he resigned last year, a Goldman executive organized by Occupy Wall Street. the company’s private wealth business by setting up director and vice president published in The New York “What you read in the newspaper is that they are a titan, client accounts and solving problems. Because several Times what he termed a “wake-up call” to the board they have a lot of money, and they pay large bonuses and employees spoke Portuguese, the office had a hand in of directors. Greg Smith said Goldman’s “toxic and they get what they want. That’s not the Goldman that building software that buttressed a push into Brazil’s destructive” culture no longer put the interests of its we know in Utah,” said Spencer Eccles, GOED’s executive private wealth market. Back-office staff also supported clients ahead of the firm and that Cohn and CEO Lloyd director. Goldman’s industrial loan bank operations. Blankfein had “lost control” of the traditions that had Goldman isn’t blind to its critics. In May, at its annual At the same time, Goldman was moving a lot of jobs made one of the world’s most important banks great. meeting in Salt Lake City — its first-ever outside New away from traditional — and expensive — financial Two years earlier, Rolling Stone magazine printed a York — the firm released a report detailing actions it has centers such as New York, London and Tokyo. The lengthy polemic by journalist Matt Taibbi, who called “the taken to improve its business practices after a series of company opened an office in Singapore. The Bangalore world’s most powerful investment bank” a “great vampire embarrassing blunders that stained its reputation in the office grew to more than 4,500 employees, more than squid” that had brought about every major market aftermath of the financial crisis. CEO Blankfein announced half of whom are software developers hired from India’s gyration since the Great Depression of the 1930s. publication of the report, which makes more than three top universities. Because Bangalore was so successful, In the wake of the 2008 financial crisis, these and similar dozen recommendations for change, covering client Goldman looked across the world to see where else it accusations touched a nerve in the U.S. They even led service, financial products it sells and employee incentives. could grow. In 2008, the company decided to launch a some business journalists to speculate that Goldman The changes were implemented in February. major expansion in Utah. Sachs came to heavily Mormon, business-friendly Salt Lake City to escape the animosity.

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Through the years, the company has become part of the city’s fabric. By some estimates, Goldman Sachs in Salt Lake City Goldman employees serve on the boards of more than 20 local nonprofits. Lang said many employees live and shop within walking distance of the downtown office. And with the firm • The company has been here since 2000. Significant planning more growth, there may be a Goldman campus downtown in a couple of years that growth began in 2008. includes a yet-to-be-constructed building, he said. • 1,775 employees today, almost 6 percent of its global workforce of 30,000. Colleges and community • But for many Utahns, Lang said many employees live and shop within walking • Nine of 11 divisions are here: finance, compliance, Goldman is nothing but good. The U. places about 25 distance of the downtown office. And with the firm global investment research, human capital graduates and 40 interns a year at Goldman. BYU’s planning more growth, there may be a Goldman campus management, investment banking, investment business school has provided 77 graduates to Goldman in downtown in a couple of years that includes a yet-to-be- management, operations, services, technology. the past three years, and 216 former students list the firm constructed building, he said. • Second-largest U.S. location; No. 4 in the world. as their current employer, according to the university’s In May, 33 Utah small-business owners were the first LinkedIn page. Kim Smith, a BYU finance professor who class to graduate from Goldman Sachs’ 10,000 Small • In May, Goldman held its first annual shareholders worked at Goldman for 28 years, said the firm hires Businesses program, an educational initiative that aims to meeting at its downtown Salt Lake City office. It students from every college and department across the create jobs and spur growth in the state and elsewhere was first annual meeting outside New York since university — not just the business school — because it in the U.S. Many of the graduates said the training had Goldman became a public company in 1999. likes the product. already allowed them to hire more workers. “I know BYU best, and I know BYU students now are In June, Goldman loaned $4.6 million to United Way of “They are investing in Utah because they believe in Utah,” much better than they would have been 20 years ago,” Salt Lake, which oversees the Utah High Quality Preschool GOED’s Eccles said. “That gets everybody’s attention, Smith said. “Goldman Sachs has always been willing to go Program. The loan, which Goldman calls a “social impact whether they are tourists or whether they are businesses. wherever it can to find talented, quality people. The fact bond,” will support preschool programs that prepare And that’s a great thing for Salt Lake and for Utah.” that they’ve come here means that’s what they’ve found.” 3- and 4-year-olds in the Granite and Park City school Source: sltrib.com/sltrib/money/56759646-79/goldman-lake-salt-office. html.csp Through the years, the company has become part of the districts for kindergarten. The firm is betting that the city’s fabric. By some estimates, Goldman employees program will reduce the need for remedial-education serve on the boards of more than 20 local nonprofits. programs later on, and the savings will be enough to repay the loan.

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GOLDMAN SACHS TO EXPAND ITS PRESENCE IN UTAH August 14 2014 || Utah Governor’s Office of Economic Development (GOED)

Salt Lake City, UTAH — The Governor’s Office of “The continued growth of Utah’s vibrant financial industry and this internationally respected Economic Development (GOED) met today and has company in Utah speaks volumes about the business friendly environment the state has extended an incentive offer to The Goldman Sachs Group created.” Inc., in consideration for the company’s plan to create up to 350 additional jobs over the next 20 years. “It goes without saying that part of the economic Goldman’s continued commitment to grow their business success Utah has experienced over the last decade can in the state.” be credited to Goldman Sachs investing in Utah,” said Goldman Sachs has indicated that they plan to create up Governor Gary R. Herbert. “The continued growth of to 350 new jobs over the next 20 years. The total wages, Utah’s vibrant financial industry and this internationally including medical benefits, in aggregate are expected respected company in Utah speaks volumes about the to exceed 125 percent of the county average wage. The business friendly environment the state has created.” projected new state wages over the life of the agreement Goldman Sachs Group, Inc. is a leading financial services are expected to be up to $1.1 billion. Projected new state firm providing investment banking, securities and tax revenues, as a result of corporate, payroll and sales investment management services to a substantial and taxes, are estimated to be up to $43.5 million over 20 diversified client base that includes corporations, financial years. institutions, governments and high-net-worth individuals. As part of a contract with Goldman Sachs, the GOED Founded in 1869, the firm maintains offices in all major Board of Directors has approved up to a maximum tax financial centers around the world. Goldman Sachs is now credit of $13,057,377 in the form of a post-performance approaching 14 years of presence in and partnership with Economic Development Tax Increment Finance (EDTIF) Salt Lake City and Utah. incentive, which is 30 percent of the new state taxes “Goldman Sachs’ growth in Utah is reflective of the quality Goldman Sachs will pay over the 20-year life of the of our people and our robust business environment,” agreement. Each year as Goldman Sachs meets the said Jeff Edwards, president and CEO of Economic criteria in its contract with the state, it will earn a portion Development Corporation of Utah. “We appreciate of the tax credit incentive. Source: business.utah.gov/news/goldman-sachs-expand-presence-utah/

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