MASTER PLAN August 2015 Prepared for: Prepared by: SE Group PO Box 2729 | Frisco, CO 80435 | 970.668.3398 www.segroup.com TABLE OF CONTENTS I. INTRODUCTION .............................................. 2 Project Overview....................................................................... 2 Project Background .......................................................................................2 Consultant Team ............................................................................................2 Master Plan Process ......................................................................................3 II. ANALYSIS ....................................................... 4 Site Analysis ............................................................................. 4 Existing Conditions – Ski Area Operations ................................ 6 Lifts ...............................................................................................................6 Terrain ...........................................................................................................7 Comfortable Carrying Capacity ....................................................................10 Density Analysis ...........................................................................................11 Guest Service Facilities ................................................................................12 Restaurant Seating ......................................................................................14 Parking ........................................................................................................15 Benchmark Analysis .....................................................................................16 Market Assessment ................................................................ 18 Key Findings ................................................................................................18 Observations and Opportunities ...................................................................19 Tourism Visitation Potential ..........................................................................20 Community Input .................................................................... 22 Open House .................................................................................................22 Survey .........................................................................................................23 III. MASTER PLAN ............................................ 26 Positioning for Future Development ....................................... 27 Winter ..................................................................................... 28 Lifts .............................................................................................................29 Terrain .........................................................................................................30 Comfortable Carrying Capacity ....................................................................34 Density Analysis ...........................................................................................35 Guest Service Facilities ................................................................................36 Restaurant Seating ......................................................................................39 Parking ........................................................................................................40 Summer .................................................................................. 42 Activities ......................................................................................................43 Programs ....................................................................................................49 Events .........................................................................................................52 Parking ........................................................................................................53 – i – TABLE OF CONTENTS IV. FINANCIAL ANALYSIS & PHASING .............. 54 Assumptions & Inputs ............................................................. 54 Overview of Financial Modeling ....................................................................54 Assumptions and Inputs...............................................................................54 Capital Expenditures ....................................................................................54 Phasing .......................................................................................................56 Potential Visitation .......................................................................................58 Revenue Potential ........................................................................................59 Operations and Maintenance Expenses ........................................................60 Source of Captial and Debt Service ..............................................................60 Results .................................................................................... 62 Pro Forma Analysis ......................................................................................62 Conclusions .................................................................................................64 V. CONSISTENCY WITH TRPA GUIDELINES ..... 66 Consistency Analysis .............................................................. 66 Needs Assessment ......................................................................................66 Environmental Opportunities and Limitations ................................................66 Consistency with TRPA Regional Plan Documents ........................................66 PAOT Calculations ........................................................................................67 Ski Area Cumulative Watershed Effects Analysis ..........................................67 APPENDICES Appendix A: Market Assessment Report Appendix B: Open House Presentation Boards Appendix C: Diamond Peak Master Plan Survey Results DIAMOND PEAK MASTER PLAN – ii – The Diamond Peak Master Plan is the result of a collaboration between our planning group (SE Group, Bull Stockwell Allen and RRC Associates), the Diamond Peak and IVGID management teams, and the Incline Village community. SE Group would like to thank all team members for their contributions and collaborative spirit throughout the planning process. In addition, SE Group would like to thank to the vendors who provided planning assistance, product specifications, product capabilities, and cost estimates. The time and effort of these individuals and their respective company is very much appreciated. The information was used to develop the Diamond Peak winter and summer concepts, provide input for the financial analysis, and guide the phasing for implementation of projects discussed in this master plan. Eric Cylvick, Terra Nova LLC of Utah, Master Distributor for ZipRider and ZipTour Jesse Desens, North Tahoe Adventures Larry Hays, Weigand Sports LLC Dave Horan, Outdoor Ventures Group, Adventure construction and consulting Jon Mauch, Leitner-Poma of America, Inc. Randy Woolwine, Doppelmayr USA, Inc. Judd de Vall, Alpine Bike Parks – 1 – I. INTRODUCTION PROJECT BACKGROUND The primary purpose of a Master Plan is to articulate the vision for future development, and provide Master Plan also incorporates the latest advances in ski area development and multi-season operations. Thisguidance multi-faceted toward achieving foundation that ensures vision. thatBased the on strategy market, provided site, operations within aand Master fiscal Plan intelligence, allows for a futureski area business decisions to be focused toward staying competitive and economically viable. Diamond Peak has a 47-year history of providing community-based winter recreation opportunities. Diamond Peak’s previous Master Plan was developed in 1986. Many of the improvements outlined in that plan have been implemented, including expansion of the upper mountain, establishing snowmaking on a number of trails, remodeling of the Base Lodge and building the new Skier Services and on-mountain maintenance facility. The Incline Village General Improvement District (IVGID) has continued to developments and modern guest service trends, so that Diamond Peak’s winter operations will remain upgrade the ski area facility and refine the winter operation to stay current with industry technological financially viable and competitive in the marketplace. ski industry toward four-season operations. Diamond Peak’s summer business remains very limited, consistingBy contrast, primarily since the of 1986 infrequently Master Plan scheduled was developed special events there hasand beenlocal ause significant of the area evolution for hiking within and the biking. Following a large and comprehensive data gathering in 2012, conducted over a number of weeks and multiple diverse sessions, the Incline Village/Crystal Bay 2020 Vision Action Plan recommended exploring opening Diamond Peak for year-round use. Additional summer operations at Diamond Peak would enhance an underutilized community asset, while creating additional recreational opportunities for residents and visitors to the Lake Tahoe Basin. Creating a more diverse multi-season operation would foster economic viability and allow Diamond Peak to remain competitive. Within this context, the Diamond Peak Master Plan revisits the vision for the future development of Diamond Peak as a community recreational