Proposal

CRESCENT H PROPOSAL TRACTS 10, 16 & 17 Crescent H is a special project with rich history embodying significant memories for people across the country.

The nation’s original Orvis endorsed fly fishing lodge, an abundance of outdoor recreation and wildlife only enhance the truly unforgettable experience of anyone who visits or lives in Crescent H.

1185 C R E S C E NT H R OA D JACKS ON , W YO M I NG 8 3 001

Recent Crescent H Sales History Crescent H Ranch saw its peak in value in the early 2000’s, then had some Parcels sell in the mid to late 2000’s at fairly significant discounts.

Prices have not fully recovered in Crescent H, and projects have surpassed Crescent H in terms of desirability and pricing (Tucker Ranch, Indian Springs, 3 Creek Ranch, Shooting Star).

Reasons behind this change in buyer perception are: two high-end golf clubs coming onto the scene when previously there was only JHG&T and Teton Pines which did not compete; the larger homes in Crescent H are now 15 years old and are not as current as the high-end product that is selling in the other projects(with many featuring a more contemporary and stone/ reclaimed timber look); a smaller focus on fishing in lieu of winter recreation (JHMR).

New Construction Countering these factors, Crescent H has only improved since the downturn, having removed the commercial entitlements of the former guest ranch. In addition, 3 significant homes have been built on Tracts, 3 Tracts have sold in the high-$4M’s to $5M, one First Filing lot sold and one is under contract.

T he O PP O RT U N ITY Currently, Crescent H offers their homeowners wonderful amenities - unparalleled fishing, access to the Snake River and a trail system with direct access to the national forest. Creating social and ranch amenities will have the effect of enhancing the project and increasing property values across the board. There are a couple of examples of this in the Valley currently; the two best being Lake Creek Ranch and Indian Springs.

LAKE CREEK RANCH The ranch owns horses for member’s riding, boards owners’ horses and has a maintained trail network both summer & winter. They employ a ranch manager full time who lives in a home on the ranch and a summer wrangler, who also resides on the ranch. The ranch manager either maintains the roads or manages the contractors who do and serves as a bit of de facto security as he is always around. HOA dues are $17,000 and there are 19 lots (rough annual budget of $380k).

INDIAN SPRINGS Indian Springs has maintained trail network, swimming pool, lodge, tennis courts and an indoor horse boarding facility. They employ a ranch manager who lives on site as well. HOA dues are approximately $5,000 annually and there are about 50 lots (rough annual budget of $250k).

Crescent H Ranch TRAC TS 1 0, 1 6 & 1 7

Crescent H Crescent H could create a superior amenity to both of the aforementioned projects with the fishing, a better trail network, access the National Forest, riding arena, community lodge and guest housing (Liar’s den and cabins). All the facilities are already in place – maintenance, housing, lodge, cabins and additional housing for summer or year-round employees. With approximately 80 properties between the combined HOAs, a $400k budget (higher than both of the previously mentioned examples) would only cost $5,000/yr which is not a significant increase over the existing budget.

The SUMMARY Of fering List Pr ice Per Lot Assessment Fi nance Optio ns

Tracts 10, 16 & 17 $17,400,000 Apx. $200,000 1. HOA finances through a local bank 2. A Group of Crescent H Homeowners Purchase & Finance to HOA 3. Knoboloch Family Foundation Finances

From an economics standpoint, a purchase of Tracts 10, 16 & 17 (listed at $17.4M) would result in a per lot assessment of $200k. This purchase could be financed by a local bank, a group of CH homeowners or the Knobloch Family Foundation and assessed over time. The question will be raised as to whether all owners are assessed equally, as there is a significant difference in property values between the 1st Filing, Tracts and Parcels owners. On the one hand, because the added amenities are shared by all equally, the acquisition should be shared equally. On the other hand, if the assumption was made that all properties increased in value the same %, then the Tracts and Parcels should shoulder a larger burden than the 1st Filing lots. Regarding HOA dues, it seems that all lots, tracts and parcels are paying the same currently, so there is not an issue.

PROPOSAL T RACTS 10, 16 & 17 1185 CRESCENT H ROAD WI LSON, WYOMING 83014

T RACT 1 6 | 5 3 -ACRES EN TI TL E ME N TS

TRACT 16 CO NTI NUE D

PRD ALLOWING 20,000 SQFT TOTAL

CABIN 2 - 800 SQFT

2 HOMES; 2 GUEST HOMES; 6 TOTAL STRUCTURES

BEDS: 1

*LIAR’S DEN & LODGE CONSIDERED 1 HOME

BATH: 1 FULL KITCHEN, FIREPLACE, FURNISHED, FULL BATH

LODGE: 3,320 SQFT AMENITIES: POND, COVERED PORCHES, 2-WOOD BURNING FIREPLACES TOTAL BATHS: 2 COMMERCIAL KITCHEN: DRY STORAGE, WALK-IN REFRIGERATOR, BUTCHER BLOCK COUNTER TOPS

TRACT 10 | 35 ACRE S E NTI TLE ME NT 10,000 SQFT TOTAL VACANT LAND PROTECTED VIEWS; PROXIMITY TO LODGE

TACK SHED APPROX. 250 SQFT LIAR’S DEN: 2,158 SQFT BEDS: 3 BATHS: 3

TRACT 17 | 3 5 -ACRE S E NTI TLE ME NTS PRD ALLOWING 20,000 SQFT TOTAL 2 HOMES; 2 GUEST HOMES; 6 TOTAL STRUCTURES

WOOD FLOORS, COVERED PORCHES, VIEWS OF THE POND

EQUESTRIAN CENTER/RANCH

CABIN 1: 750 SQFT

WORKSHOP/BARN: APX. 2,500 SQFT (INCLUDES 4 LARGE BAYS, LOFT, STORAGE)

BEDS: 1

EMPLOYEE HOUSING: 3 CABINS APX. 1,000 SQFT EA.

BATHS: 1

RESIDENTIAL STUDIO & LAUNDRY: APX. 1,277 SQFT

FIREPLACE , FURNISHED, PRIVATE BATH

GRA H AM-FAU PE L - M E N D E N H A LL & A S S O CI AT E S

888.301.240 2 g fm @jhrea .com

It is our opinion that the increase in value provided to each owner significantly outweighs the c apital cost and the increased annual costs are minimal.

Fur ther, in speaking with the Knobloch family, they would think favorably having the H OA pur c ha s e the r a n c h s o the pur c ha s e e c o n o mi c s c o uld b e mo r e fa v o r a b le .

GRAHAM-FAUPEL-MENDENHALL & ASSOCIATES Jackson Hole Real Estate Associates Christie’s International Real Estate 307 690 0204 888 301 2402 gfm@jhrea.com grahamfaupelmendenhall.com 80 W. BROADWAY JACKSON, WY 83001