PROJ00090

• Contract/PO #: FS0015X
• Contractor Name: Powderhorn Metropolitan District No. 1 and No. 2
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Loan Projects - Doc Type: Feasibility Study

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construction. The reservoir site itself, as shown in Exhibit F, will be created as a separate
parcel and consist of approximately 11.25 acres. The reservoir site and project as
constructed can be utilized as collateral for the project and provided as part of the
District's share of project cost. If necessary, Metro District assets and/or other properties
can also be provided as collat,eral for the loan. Exhibit G includes a letter describing the
value assigned to the unimproved portion of the former Bieser property on which the
Robbins Reservoir site is located. When the Powderhom Recreation and Development
Company purchased the property, the "as is" value assigned to the unimproved portion of
the property zoned agricultural for the lower 500 acres of the property was at $2,000 per
acre. A change in zoning and use of the properties is anticipated to result in an increase
in the value of the property.

Repayment of the project loan by the Powderhom Metropolitan Districts will be provided
from revenue sources which can include service 'charges, tap fees, property taxes, ski
resort revenues, and other operating income. In order to provide or assure adequate
revenue for the loan, if necessary the District is prepared to increase utility and service
charges, tap fees, and property taxes.

Currently, the Powderhom Metropolitan District encompasses and serves areas which
consist of the base lodge, restaurants, condominium and time share units, rental apartments
and the Powderhom Ski Resort area, which is the most significant. A residential
community called the Wildewood Subdivision is currently under development. The
reports included under Exhibit C describe projected water demands and users for existing
and proposed development in the area. The amended official development plan included
in Exhibit A shows projected development for an area identified as the Powderhom Ski
Village, which may include up to 2,000 residential units in addition to the existing
development.

Because the ownership of the land involved with the access road and reservoir site are
owned currently by the Powderhom Recreation Development Company and included
within the Metropolitan District, the reservoir site and necessary easements and/or right-
of-way for the access road are available. It is assumed that the proposed transfer pipeline
between Mesa Creek and Beaver Creek will require an easement.

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