TETON VALLEY, WYDAHO

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TETON VALLEY, WYDAHO

• An Emerging Resort Market

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Teton Valley, Wydaho Investment Opportunity 2009

• The confluence of a number of trends has
  positioned the Teton Valley to emerge as the
  Wests next Jackson Hole. In particular, four
  primary drivers have, and will continue to
  provide the platform required for a strong market
  recovery and profitable future
• Jackson, Wyoming Market
• Titans Invest Heavily in the Teton Valley
• Grand Targhee Resort Expansion
• Tightening Entitlement Environment
• 5. Development Opportunities on the Market

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JACKSON, WYOMING

• An Affluently Priced Market

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Jackson, Wyoming Market Statistics Residential
Home Sales From 1999-2008
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Jackson, Wyoming Market Statistics Residential
Lot Sales From 1999-2008
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A Valley Anchored by Two Titans

• The Huntsman Gillette Families

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Commercial / Retail Anchored by Two Titans

• The Huntsman and Gillette families have invested
  hundreds of millions of dollars in the Teton
  Valley. There has been investment in public
  infrastructure related to these exceptional
  private developments. These families are
  essentially investing to re-build the Teton
  Valley.
• Gillette Family
• Former owner of the Vail and Beaver Creek ski
  resorts in Colorado.
• As the former owner/operator of the largest ski
  resort in North America, as well as the founder
  of the fourth largest ski resort operator, George
  Gillette is recognized as one of the icons in the
  ski industry.
• The Gillettes have surrounded themselves with
  the marketing and operations team to take Grand
  Targhee Resort from a Mom Pop ski hill to a
  premier all-season resort destination.
• Huntsman Family
• Industrialist family most notably known for the
  Huntsman Corporation.
• Originally from Blackfoot, Idaho, the Huntsmans
  have made Huntsman Springs their legacy project
  with significant investments in residential,
  commercial and retail development in Driggs.

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Commercial / Retail Gillette Family Investment

• Purchased Grand Targhee Resort in 2000
• - Recently received approval for base village
  resort
• expansion
• Redtail Resort Community
• - 25 Single Family Lots Avg. Price -
  350,000
• - 27 Estates Cabins Avg. Price - 1,200,000
• Coulter Building
• - LEED Certified
• - 28,000 s.f. of Office, Retail Restaurant
  space

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Commercial / Retail Huntsman Family Investment

• Huntsman Springs -
• David McLay Kidd Championship Golf Course
• - Designer of courses at St. Andrews,
  Scotland and Bandon Dunes , Oregon.
• - 2008 Architect of the Year, Golf Magazine
• Commercial Development
• - County Courthouse Fire Station
• - Hotel
• - Restaurants
• - Neighborhood Commercial
• Average Lot Price - 300,000
• Cabins Average Price - 1,100,000

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Grand Targhee Resort Expansion Modernization
With the experience of owning operating Vail
Resort, the Gillette family has the proven track
record to turn the Grand Targhee Resort (GTR)
into a peer with the Jackson Mountain Resort
(JMR).
GTR JMR Terrain (acres)
3,000 2,500 Avg. Snowfall
500 459 Avg. of Skiers
313,000 389,000 Projected upon
build-out of resort

• Base Village Expansion
• 150,000 s.f. new commercial space
• 45 Single Family Homes
• 45 Cabins
• 360 Condo-Hotel units
• Ski Mountain Expansion
• 1,000 additional acres of new lift service
  terrain
• New gladed snow cat skiing terrain

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The Winds of Change

• A Tightened Entitlement Environment

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The Winds of Change A Tightened Entitlement
Environment

• In 2007, two democratic County Commissioners
  were elected and took control of a 3-member
  commission (BOCC).
• By January 2008, the BOCC had appointed new PZ
  Commissioners and they had the majority of a
  7-member commission.
• New subdivision regulations effectuated in 2008
  have significantly reduced allowable densities
  and new overlays and maps have made many areas in
  the county undevelopable.
• In 2009, two new County Commissioners were
  elected, making for a fully democratic BOCC with
  a mission to continue to control and manage
  growth and further revise the subdivision
  regulations, preferred land use planning map,
  comprehensive plan, and other approval
  guidelines.
• By late 2008, the PZ majority had increased
  from 4 members to 5, with most votes going 5-2 on
  issues before them.
• Plat extensions for developments currently in
  the entitlement process will be extremely
  difficult to obtain due to intense scrutiny by
  the BOCC and new criteria by which the BOCC will
  evaluated extension requests. The BOCC is also
  requiring 60 of the total final platting fees to
  be paid in order for an approved extension to be
  valid.

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Teton Valley, Idaho

• The Real Estate Market Statistics

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Teton Valley, ID Market Statistics Residential
Home Sales From 2001-2008
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Teton Valley, ID Market Statistics Residential
Home Sales - Year ended 12.31.08
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Teton Valley, ID Market Statistics Residential
Lot Sales From 2001-2008
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Teton Valley, ID Market Statistics Residential
Lot Sales - Year ended 12.31.08
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Teton Valley, ID Market Statistics Active MLS
Residential Home Inventory 8/08 - 3/09
As of 03.06.09
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Teton Valley, ID Market Statistics Active MLS
Residential Home Inventory as of 03.06.09
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Teton Valley, ID Market Statistics Active MLS
Residential Lot Inventory 4/08 3/09
As of 03.06.09
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Teton Valley, ID Market Statistics Active MLS
Residential Lot Inventory as of 03.06.09
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Teton Valley, ID Market Statistics Active Lot
Inventory as of 03.06.09 for Standard
Subdivisions with No Amenities
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Teton Valley, ID Market Statistics Active Lot
Inventory as of 03.06.09 for Amenitized
Communities
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Teton Valley, Idaho

• Entitlement Platting Activity Analysis

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Teton Valley, ID Market Statistics Historical
Platting Activity

• According to data received through the Teton
  County Planning Zoning Department, since 1906,
  8,769 lots have been recorded in the County.
  However, nearly all of the plat recordations have
  occurred since 1970.
• Only 58, or 5,112 of the recorded lots have
  been indicated to have been sold at some point in
  time. Many of these lots are currently listed
  for sale in the MLS.
• It is unclear as to how many of these plats have
  actually been built versus just being recorded.
• It is unclear as to how many of these plats could
  be duplicative, meaning that a new plat was
  processed and recorded in place of an older plat
  on the same parcel.
• It is also unclear as to how accurate the data
  is as many of the fields of information appear to
  be incomplete or incorrect.

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Teton Valley, ID Market Statistics Entitlement
Pipeline Summary
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Teton Valley, ID Market Statistics Entitlement
Pipeline Concept Plan Submittals
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Teton Valley, ID Market Statistics Entitlement
Pipeline Concept Plan Approval
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Teton Valley, ID Market Statistics Entitlement
Pipeline Concept Plan Approval Contd

• Of the 4,268 lots that have received concept
  plan approval, less than one third (1,388) of the
  lots have submitted applications for preliminary
  plat approval.
• Of the 1,388 lots that had an application for
  preliminary plat submitted, 1,231 lots are
  associated with one development Mahogany Ridge.
  As we understand, the developer is not
  proceeding at this time, and liens have been
  filed on the properties for consulting and
  engineering fees.
• Excluding Mahogany Ridge from the 1,388 lots,
  only 157 lots remain that have submitted for
  preliminary plat.

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Teton Valley, ID Market Statistics Entitlement
Pipeline Preliminary Plat Approval

• Of the 364 lots that have received preliminary
  plat approval, 48, or 173 lots are associated
  with future phases of Targhee Hill Estates.

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Teton Valley, ID Market Statistics Entitlement
Pipeline Final Plat Approval
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Teton Valley, ID Market Statistics Entitlement
Pipeline Conclusion
Given the current financial market and the
inability that developers have to obtain
acquisition and development financing, we do not
feel that much of what is currently in the
entitlement pipeline will ultimately come to
market in its current form. Our conclusions are
as follows
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Targhee Hill Estates

• A Bulk Investment Opportunity

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The Best Value in the Teton Valley Targhee Hill
Estates

• Site Summary
• 307-Acre Master Plan
• Avg. Lot Price - 145,000
• 274 Residential Units
• Gated Access
• 50 Open Space
• 9 Mile Trail System
• 15 Lakes Ponds
• Cross Country Ski Track

• Recreational Clubhouse
• 4,000 Square Feet
• Fitness Center Yoga Studio
• Swimming Pool Jacuzzi
• Patios with built-in BBQs
• Overlooking the Teton Corridor
• Game Room