Deer cove by Scott Maizlish

Table of Contents I

Compelling Attributes . . . . . . . . . . . . . . 1

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+ passengers/year): 35 minutes

• Stable economic base with the largest employers in the state, located within a short commute of Deer Cove, such as: Government services, University of Utah, Brigham Young University, Utah State, Zions Bancorp, Wells Fargo Bank, and Delta Airlines, and Goldman Sachs (4th largest office in the world at 1,775 employees), among others.

• Downtown Park City/Deer Valley® Resort: 10 minutes • The top ranked ski resorts in North America of: Park City Resort, Brighton, Solitude, Alta, and Snowbird: within 15-60 minutes. • Deer Crest Gondola (to Deer Valley® Resort): Dedicated on-site transport directly from Deer Cove planned hotel/village square to Deer Crest Gondola (approximately ¼ mile). • Jordanelle Reservoir: Walking distance to paddle boarding, “Blue Ribbon” fishing, canoeing, and water-skiing • Championship 18-hole Golf Courses: Numerous choices within 10-15 minute drive. • Hiking, Biking, and Equestrian Trails: Doorstep

• One of the fastest growing most desirable regions in the country, especially 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 Tech Jobs”. Utah ranked #2. next Silicon Valley” »» CNBC: “Silicon Slopes” »» Inc: “Move over Silicon Valley, Utah has arrived”

»» New York Times: “What is the next Silicon Valley” »» New York Times: “Where graduates are going and where they are already”

• 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 ERUs (residential density units), plus the maximum density allowed for hotel and retail uses. The Master Plan (portions contained herein) was initially presented to Wasatch County in October 2015, and is currently under review/approval. • Development Agreement with Wasatch County is currently being negotiated to provide for favorable site planning and platting, and will serve letters, among numerous other owner/developer benefits. • Public Financing is available and is currently being evaluated with Wasatch County’s third party consulting firm. An adjacent on-mountain real estate development completed their application for public financing in 2015. • Sewer and Water entitlements are in-place to accommodate the proposed master planned community. • Deer Cove Master Planned Community is located adjacent to Highway 40 and Jordanelle Parkway, thus providing for cost efficient access to all dry/wet utilities and infrastructure. Updated preliminary civil engineering cost estimates are in process.

hospitality, commercial uses and parking requirements. As such, ownership submitted initial plans to retain these benefits and allow for a phased development consisting of the following land use components: • 170 single family attached and detached residential homes and/or lots; • 1,006 multi-family and/or condominium units • Up to 340 hotel/time share keys designed around the Village Square/ Ice Rink/Event Center. • 137,000 square feet of “Main Street” ground floor retail space with dedicated retail parking, plus a Village Square and Ice Rink anchoring the terminus of pedestrian oriented street. • A fully integrated master planned community, accessible via pedestrian paths and hiking/biking paths. • 33% open space • A detailed Land Residual Analyses and a Development Cash Flow are available upon request and execution of the Confidentiality Agreement

• 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,

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 Thursday briefed Park City leaders about ambitious ideas at the resort involving expansions stretching from the Jordanelle Reservoir to Old Town.

Pioche was foreclosed in 2015 by Wells Fargo Bank and the receiver plans to commence marketing the site for sale in 1Q/2016. Pioche is approved for 144 ERUs and will likely be a high-end development.

Bob Wheaton addressed Mayor Jack Thomas and the Park City Council at a time when there is extensive internal planning underway at the resort.

3. Blue Ledge

He focused his comments on a planned development in Wasatch County overlooking the Jordanelle Reservoir, an idea for a gondola linking Deer Valley with Old Town and the resort’s longheld intention to someday develop the parking lots outside Snow Park Lodge. It was a rare opportunity for the full slate of elected officials and a crowd of Parkites to listen to Deer Valley’s top executive in a public setting. Wheaton, wearing his Deer Valley uniform, praised the relationship between Deer Valley and City Hall as he began his remarks. Wheaton spoke about ideas for a major development on the Jordanelle Reservoir side of Deer Valley, situated in Wasatch County. He said meetings have been held more frequently recently. Deer Valley is one of four landowners in the Mayflower vicinity. State officials and the Air Force are also involved in the discussions. The Air Force has long been interested in offering lodging opportunities in the Park City area for members of the military. The project could involve an expansion of Deer Valley’s skiing terrain totaling between 800 and 1,000 acres with at least seven and, perhaps, eight new lifts. Wheaton told the elected officials work could start as early as next summer. (source: Park Record)

2. Deer Crest Is an existing ski in/out custom home development located directly across US 40 from 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.

Blue Ledge, a ten (10) developable acre site was purchased by Extell Development (based in New York City, NY) in January 2015 and is approved for 58 ERUs. Based on local interviews, it appears the hospitality component of Blue Ledge will likely be a five star hotel (e.g., Four Seasons, Ritz Carlton, Park Hyatt) and is planned to be announced in 1Q/2016 5. Mayflower Mayflower has been owned by an investor group based in the Netherlands and is actively being marketed for sale by Prudential’s Park City office. The Mayflower property encompasses 4,000 plus acres of fee and leasehold land . (See maps of Jordanelle Specially Planned Area) Combined, as conceptually planned in 2002, Mayflower property comprises a Target Density of 1,945 ERUs or 2,415 dwelling units under the Resort Specially Planned Area (RSPA). Now, these 3 large parcels are to be developed under Wasatch County’s newly adopted Jordanelle Specially Planned Area (JSPA) Development Code which encourages commercial/hotel-type development. A new Master Plan was submitted in October, 2015 with a proposed total density of 3,923 ERUs. The Deer Cove property is strategically located to large portions of the Mayflower and will likely play an extremely important role in any future development plans for Mayflower (See maps of Jordanelle Specially Planned Area).

DEER COVE || II

General Concept

Phasing Plan

Land Use Plan

Land Use Summary

Ski Portals

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

Ski Portals

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

Land Use Summary DEER COVE LAND USE SUMMARY PARCEL DESCRIPTION

HOTEL

RETAIL

Parcel

Land Use

Acres

Avg. Exist. Slope Avg. Prop. Slope

MULTIFAMILY/CONDO

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

One

Multifamily / Retail

3.94

19.48%

21.82%

46,000

42,600

170,400

192

37.5% at 700sf, 62.5% at 1000sf

Two

Multifamily / Retail

3.10

25.59%

27.22%

30,000

32,400

162,000

120

1350 sf

Three

Multifamily / Retail

3.08

29.32%

34.28%

16,000

30,000 (around garage) 45,000 (above garage)

225,000

166

1350 sf

Four

Multifamily / Retail

3.06

18.06%

24.67%

16,000

24,000 (around garage) 45,000 (above garage)

207,000

154

1350 sf

Five (Total)

Multifamily

3.84

15.56%

16.06%

15,000

46,800

140,400

102

1350 sf

Five (B1)

Multifamily

19,000

57,000

1350 sf

Five (B2)

Multifamily

17,000

51,000

1350 sf

Five (B3)

Multifamily

10,800

32,400

1350 sf

Six (Total)

Hotel/Retail & Branded Condos/Residential/Retail

2.65

14.91%

17.38%

14,000

19,500

560 sf

97,500

170

19,500

97,500

1350 sf

Six (B10Hotel)

Hotel/Retail

15.56%

16.06%

7,000

19,500

560 sf

97,500

170

Six (B20Condo)

Branded Condos/Residential/Retail

19,500

97,500

1350 sf

Seven (Total)

Multifamily

2.39

14.62%

16.57%

32,400

97,200

1350 sf

Seven (B1)

Multifamily

10,800

32,400

1350 sf

Seven (B2)

Multifamily

10,800

32,400

1350 sf

Seven (B3)

Multifamily

10,800

32,400

1350 sf

Eight (Total)

Multifamily

2.72

43,500

16.5 (ave)

178,200

130

1350 sf

Eight (B1)

Multifamily

20,250

81,000

1350 sf

7,000

12.85%

13.93%

Eight (B2)

Multifamily

24,300

97,200

1350 sf

Nine

Residential Single Family Attached

2.32

17.85%

20.78%

Ten

Residential Single Family Attached

4.64

13.86%

15.32%

Eleven

Residential Single Family Attached

4.22

20.78%

24.68%

21.67%

24.32%

97,500

170

1,277,700

1,006

Twelve

Residential Single Family Attached

5.40

Thirteen

Residential Single Family Detached

6.70

Fourteen

Club House

1.75

Fifteen

Plaza/Park/Ice Rink/Event Space

0.71

Sixteen

Open Space

28.01

Roads

7.88

86.41

137,000

Totals

39.21%

58.59%

26.38%

28.37%

170

Land Use Summary

CONDO

SINGLE FAMILY RESIDENTIAL Total Units

Total sf

Total Units

Avg Unit Size

Avg Lot Size

170,400

192

37.5% at 700sf, 62.5% at 1000sf

162,000

120

1350 sf

225,000

166

1350 sf

207,000

154

1350 sf

140,400

102

1350 sf

57,000

1350 sf

51,000

1350 sf

32,400

1350 sf

97,500

Res. Units

WATER & SEWER

PARKING Sewer ERUs

Parking 0 Hotel/Resid. **

Parking 0 Retail **

192

48.7

.33 for 700sf, .50 for 1000sf

21.3

0.50

199

240

138

Wrapped (3 floors above grade)

120

38.7

0.75

29.0

0.39

125

150

Wrapped (3 floors above grade)

166

53.9

0.75

40.4

124.5

0.39

158

192

Wrapped (3 floors above grade)

154

50.3

0.75

37.7

115.5

0.38

148

192

Wrapped (3 floors above grade)

102

26.6

0.75 for non0hotel units

0.0

76.5

0.48

100

128

Podium (1 floor below grade)

0.75

31.5

0.00

0.75

0.00

0.75

0.00

1350 sf

26.4

0.75

19.8

52.5

0.33

110

258

Podium (1 floor below grade)

0.0

0.00

170

Podium (1 floor below grade)

97,500

1350 sf

0.0

0.75

52.5

0.00

Podium (1 floor below grade)

97,200

1350 sf

30.1

0.75

0.30

Podium (1 floor below grade)

32,400

1350 sf

0.0

0.75

0.00

Podium (1 floor below grade)

32,400

1350 sf

0.75

0.00

Podium (1 floor below grade)

32,400

1350 sf

0.75

0.00

Podium (1 floor below grade)

178,200

130

1350 sf

130

47.8

0.75

35.8

97.5

0.34

117

163

Podium (1 floor below grade)

81,000

1350 sf

0.75

43.5

0.00

Podium (1 floor below grade)

97,200

1350 sf

0.75

0.00

Podium (1 floor below grade)

160002400 sf

.30 Acres/Fourplex (based on 15' rear setback)

8.6

0.40

Individually Parked

160002400 sf

.30 Acres/Fourplex (based on 15' rear setback)

9.7

0.80

Individually Parked

160002400 sf

.30 Acres/Fourplex (based on 15' rear setback)

8.5

0.72

Individually Parked

160002400 sf

.17 Acres/Duplex (based on 15' rear setback)

8.1

0.93

Individually Parked

200002400 sf

.25 Acres based on 15' rear setback)

3.7

2.49

Individually Parked

0.0

0.65

0.0

0.26

0.0

0.00

128 On0Street Angled Parking Spaces

1,277,700

1,006

864.5

478

1192

22.6

ERU/parcel*

Water ERUs (outside)

ERUs/unit

1176

ERU/acre*

Water ERUs (inside)

Res. Units/acre

170

Avg Unit Size

PARCEL TOTALS

Parking Type

Portal Deer Cove will have direct access to the existing Jordanelle Express Gondola terminal at the Deer ValleyÂŽ 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 ValleyÂŽ 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

Jordanelle Specially Planned Area

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

Jordanelle Specially Planned Area

DEER COVE

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 HOSPITALITY CASITA

(6 ERU/AC) (21-40 ERU/AC)

2.5 FLOORS 2 FLOORS

RVMD

RESORT VILLAGE MEDIUM DENSITY

(70 ERU/AC)

4-6 FLOORS

RVHD

RESORT VILLAGE HIGH DENSITY

(80 ERU/AC)

4-8 FLOORS

NEIGHBORHOOD COMMERCIAL

(FSR)

2.5 FLOORS

SCH

SCHOOL

(NA)

COMMUNITY SITE

(NA)

2.5 FLOORS

OPEN SPACE

(NA)

SALT LAKE CITY 10 Exchange Place Ste 112 Salt Lake City, UT 84111 USA

www.ibigroup.com tel 801 532 4233 fax 801 532 4231

Deer Cove Wasatch County, Utah September 2015

JSPA Overlay

N NTS

Project # 35681

LAND USE LEGEND

Jordanelle Specially Planned Area

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

RESIDENTIAL MARKET || IV

6-Month Comparative Market Analysis 6-MONTH COMPARATIVE 6-MONTH COMPARATIVE MARKET ANALYSIS MARKET ANALYSIS July 22, 2015July 22, 2015 Lower Deer Valley Lower Deer Valley Property Property

Ski In/ Out

Lodges at DeLeordVgaelsleayt Deer Valley

Powder Run Powder Run

N1o

1391

1,510309

Silver Baron Silver Baron

N4o

2433

1,826453

Upper Deer Upper Valley Deer Valley Property Property

Chateaux at Chateaux Silver Lakeat Silver Lake Empire Pass Empire Pass Property Property

Ski In/ Out No

Ski In/ Out

Arrow Leaf Arrow Leaf

Yes

Flagstaff

1,500

1,5200

2$735k

$735$k735k

11910,8-625984 11910 -- 42984 $5410-k4- $110$05k40k - $$1816050kk

6 Mo # Sold Avg #DOM Ski #InSold / 6 Mo Square #Sales # Beds BedsPrice SalesAvg Price Sales # On Avg DOM Sq Range On Avg AvgSquare Sq Range Feet6 Feet Price 1/22/15 Out - 1/22/15 Market Market Feet 6 Feet 7/22/15 7/22/15 Mo Sold Mo Sold No 2

1564

1,401 156

1376 1,401 - 2760 1376 2 -- 42760 $881K 2 - 4 - $995K $881K - $995K $938K

# Beds BedsPrice SalesAvg Price Sales 6 Mo Ski #InSold / 6 Mo # Sold Avg #DOM Square #Sales # On On Avg Avg DOM Sq Range AvgSquare Sq Range Price 1/22/15 Feet6 Feet Out - 1/22/15 Market Market Feet 6 Feet 7/22/15 7/22/15 Mo Sold Mo Sold Y2es

2034

1,928053

12218,9-815999 12228 -- 31999 $1299- 93 - $210$01999 - $$22,100409

SP/SF Avg Sales Price

SP/SF Avg SP/SF

$393 $636k- $444 $393 -$427 $444 $73$54k90

$49$0490

$$484625k- $496 $442 -$4 $6 41 96

Avg Sales SP/SF Price

SP/SF Avg SP/SF

$639 $938K- $699 $639 -$669 $699

Avg Sales SP/SF Price

SP/SF Avg SP/SF

$925,024-9$1001$952 -$$9170801

AvgYear SP/SF Built

Year # Units Built in Project

1997 $427- 1999 1997 - 1999 88 $4910985

198533

2$040651- 2009 2005 - 230509

AvgYear SP/SF Built

Year # Units Built in Project

$669 1999

199970

AvgYear SP/SF Built

Year # Units Built in Project

$9728007

200761

Yes

Y0es

1749 0- 2324 17429 -- 42324

2 - 40

0 0

0 $0

$02009

200938

Grand LodgeGrand Lodge

Yes

2YUe/sC

2 U6/C

2037 0- 3441 20337 -- 63441

3 - 60

0 0

0 $0

$02007

200730

Shooting StaSrhooting Star

Yes

Y0es

1442 0- 2114 14422 -- 32114

2 - 30

0 0

0 $0

$02006

200622

Silverstrike Silverstrike

Yes

Y0es

1689 0- 3386 16893- 3386

3 0

0 0

0 $0

$02008

200835

AvgYear SP/SF Built

Year # Units Built in Project

Park City Mountain Park City Resort Mountain Resort Property Property

Ski In/ Out

# Beds BedsPrice SalesAvg Price Sales 6 Mo Ski #InSold / 6 Mo # Sold Avg #DOM Square #Sales # On On Avg Avg DOM Sq Range AvgSquare Sq Range 1/22/15 Feet6 Feet Price Out - 1/22/15 Market Market Feet 6 Feet 7/22/15 7/22/15 Mo Sold Mo Sold

Avg Sales SP/SF Price

SP/SF Avg SP/SF

# Units SellinOut Dates Sell Out Dates Project

Parking

Assigned Shared Assigned Underground Shared Underground 6/9/98-3/30/11 88 6/9/98-3/30/11 Heated Garage Heated Garage Assigned Shared Assigned Underground Shared Underground 33 Garage Garage Assigned Shared Assigned Underground Shared Underground 385/4/05-6/9/181/4/05-6/9/11 Heated Garage Heated Garage

# Units SellinOut Dates Sell Out Dates Project

Parking

Assigned Shared Assigned Underground Shared Underground 12/6/99-10/10/06 70 12/6/99-10/10/06 Heated Garage Heated Garage # Units SellinOut Dates Sell Out Dates Project

Parking

Assigned Shared Assigned Underground Shared Underground 26/1 3/96-10/1 2/0 17 3/96-10/1/07 Heated Garage Heated Garage Assigned Shared Assigned Underground Shared Underground 23/820/08-3/8/21/20/08-3/8/12 Heated Garage Heated Garage Assigned Shared Assigned Underground Shared Underground 360/1/07-2/9/160/1/07-2/9/10 Heated Garage Heated Garage Assigned Shared Assigned Underground Shared Underground 12/219/03-4/2 16 2/0 16 9/03-4/26/06 Heated Garage Heated Garage Assigned Shared Assigned Underground Shared Underground 5/3258/08-12/1 50 /2/1 81 /08-12/10/11 Heated Garage Heated Garage

# Units SellinOut Dates Sell Out Dates Project

Parking

Silver Star - cSoilnvdeor sStar - condos

Yes

Y2es

135

2,21333

14128,2-323537 14128 -- 42537 $16220- k4 - $20$8186k20k - $$12804848kk

$$1783404-k$824 $730 -$7 $7 87 24

$7727007

200726

Assigned Shared Assigned Underground Shared Underground 1226/6/06-9/20 1/21/1 6/06-9/20/11 Heated Garage Heated Garage

Silver Star - cSoiltvteargeSstar - cottages

Yes

Y1es

221

4,02221

35345,0-241232 35345 -- 64232

$2,9$97533

$7323007

200722

12/212/07-12/8 1/0 19 2/07-12/8/A0t9tached 2 CAatrtG acahreagde2 Car Garage

AvgYear SP/SF Built

Year # Units Built in Project

$02000

2000 200

Canyons Resort Canyons Resort Property Property

Grand Summit Grand (whole) Summit (whole) Silverado

Silverado

Sundial LodgSeundial Lodge

High-End Condo-Hotels High-End Condo-Hotels Property Property

Ski In/ Out Yes

4$-26,995

$2,9$ 92 5,995

# Beds BedsPrice SalesAvg Price Sales 6 Mo Ski #InSold / 6 Mo # Sold Avg #DOM Square #Sales # On Avg DOM Sq Range On Avg AvgSquare Sq Range 1/22/15 Feet6 Feet Price Out - 1/22/15 Market Market Feet 6 Feet 7/22/15 7/22/15 Mo Sold Mo Sold Yes 0

1368 0- 1390 13682- 1390

2 0

Avg Sales SP/SF Price 0 0

0 $0

N6o

748

1,07948

2713,0- 928120 2730 -- 24120

$1000- k4 - $599$k100k - $$539794kk

$$39704-k$595 $90 -$$356905

$3620007

2001707

1 U/C Yes 4 Sold

1 U/C 4 4 Sold

2334

714 233

440714 - 1402 4401 -- 1402 3

$349k 1 - 3 - $629k $349k - $629k $429k

$498 $429k- $619 $498 -$559 $619

$559 1999

1999 151

AvgYear SP/SF Built

Year # Units Built in Project

Ski In/ Out

656

795 65

1 U/C 11 1 Sold

476795 - 1808 4760 -- 1808 2 $345k 0 - 2- $1200k $345k - $1200k $550k

SP/SF Avg Sales Price

Hyatt Escala Hyatt LodgeEscala (Canyons) Lodge (Canyons)

Yes

125 11

2,125 125

680 2,125 - 2715 6801 -- 2715 4

Yes

Y1e0s

109

9119

2,59413

12221,5-463858 12211 -- 46858 $26150- k4 - $75$0206k50k - $$37656040kk

Newpark Hotel Newpark (Kimball Hotel Junction) (Kimball Junction) No

No 1

685

1,111 68

776 1,111 - 1154 7761 -- 1154 2

1 -$298k 2

$298k $298k

$298k $264

St Regis

Y1es

118

2,4617

9921,4- 67228 9911 -- 66228

1$-36000k

$300$03k000k

$3$010,02k16

Yes

1 -$925k 4

$925k $925k

SP/SF Avg SP/SF

$658 $550k- $755 $658 -$701 $755

Montage

St Regis

SP/SF Avg SP/SF

1 U/C Yes 1 Sold

Montage

$73$3733

Yes

Hotel Park City Hotel (Park Park City City Golf (Park Course) City Golf Course) No

6 Mo # Sold Avg #DOM Ski #InSold / 6 Mo Square #Sales On Avg AvgSquare Sq Range # On Avg DOM Sq Range # Beds BedsPrice SalesAvg Price Sales 1/22/15 Feet6 Feet Price Out - 1/22/15 Market Market Feet 6 Feet 7/22/15 7/22/15 Mo Sold Mo Sold 1 U/C 17U/C 7 No 4 2084 1,497 208 1000 1,497 - 2307 1000 1 -- 32307 $475k 1 - 3 - $800k $475k - $800k $636k Sold Sold

$925k $435

$435 $435

$$13362674-k$154$01327$-1$,4135340

2002 $701- 2006 2002 - 2006 86 $435 2007

2007 390

$1,4230310

201085

$264 $264

$264 2007

200779

$1,$211,6216

$1,2210608

200867

# Units SellinOut Dates Sell Out Dates Project

Parking

Assigned Shared Assigned Underground Shared Underground Garage Garage Assigned Shared Assigned Underground Shared Underground 1/0274/07-5/21/0 27 4/07-5/21/07 Garage Garage Assigned Shared Assigned Underground Shared Underground 12/20/99-12/20/00 151 12/20/99-12/20/00 Garage Garage 200

# Units SellinOut Dates Sell Out Dates Project

Parking

Unassigned Shared Unassigned Shared UndergroundUnderground Garage Garage Unassigned Shared Unassigned Shared 390 10/20/08-now 10/20/08-now UndergroundUnderground Garage Garage Assigned Shared Assigned Underground Shared Underground 851/7/11-now 1/7/11-now Heated Garage Heated Garage Unassigned Shared Unassigned Shared 79 1/24/08-now1/24/08-now UndergroundUnderground Garage Garage Assigned Shared Assigned Underground Shared Underground 6171/27/09-no1w1/27/09-now Heated Garage Heated Garage 86 10/8/04-? 10/8/04-?

6-Month Comparative Market Analysis New Developments New Developments in Old Townin Old Town Property Property Ski In/ Out 820 Park Ave8n2u0ePark Avenue

$8029016

201614

# Units SellinOut Dates Sell Out Dates Project

Parking

2/27/14-reservations 2/27/14-reservations Assigned Shared Assigned Underground Shared Underground 14 sold out sold out Heated Garage Heated Garage

The Parkite The Parkite

1 NUo/C

1 U6/C

2,6148

14122,6-128872 14122 -- 32872

$1,$313,5335

$1,3230515

201518

Ta1k8ing reservTatkiionngsreservatio Hnesated 1 CarHGeatreagde1 Car Garage

The RoundabTohuetRoundabout

N0o

1094

3,319049

32230,3-934849 32203- 3849 $28530k - $37$2258k50k - $$33170265kk

$$3818056-k$968 $885 -$9 $1 93 68

$9123015

20154

Tak4ing reservTatkiionngsreseArvtataticohnesd 2 CAatrtH acehaetedd2GCaarraH ge ated Garage

Sky Silver/SkSykSytrSaildvaer/Sky Strada

N0o

289

1,52081

7714,5- 021 78 7741 -- 24178 $7195- k4 - $339$5795k - $13938945k

$$11092874-k$361$21027$-1$,5306212

$1,5200215

2051/152**

5T/a1k2in*g* reservTatkiionngsreservSahtaiorends SpaceShinarSkye ed SpLodge ace in Skye Lodge

AvgYear SP/SF Built

Year # Units Built in Project

Houses

Yes

Condos

Yes

Enclave at Sun Enclave Canyon at Sun Canyon Property Property

Ski In/ Out

2$-33495k

$349$53k495k

$$1530312-k$946 $501 -$8 $0 99 46

Year # Units Built in Project

10 0U/C

Houses

9113,6- 020562 9131 -- 24562 $5510-k4- $240$05k50k - $$21430302kk

AvgYear SP/SF Built

10YeUs/C

Ski In/ Out

1,610703

SP/SF Avg SP/SF

Yes

Deer Crest Deer Crest Property Property

1730

Avg Sales SP/SF Price

$3$419,53k35

6 Mo Ski #InSold / 6 Mo # Sold Avg #DOM Square #Sales # On Avg DOM Sq Range On Avg AvgSquare Sq Range # Beds BedsPrice SalesAvg Price Sales 1/22/15 Feet6 Feet Price Out - 1/22/15 Market Market Feet 6 Feet 7/22/15 7/22/15 Mo Sold Mo Sold 3 U/C 3 U/C 10 21100 10,201603 301140,-0165300030144 -- 185000$58400- k8 - $97$5508k00k - $$79375500kk Yes 3 Sold 3 Sold 2 U/C 2 U/C Yes 20 120 2,467 1 991 2,467 - 6527 9911 -- 6527 6 $1325k 1 - 6 - $3200k $1325k - $2163k $3200k 1 Sold 1 Sold

SP/SF Avg Sales Price

# Beds BedsPrice SalesAvg Price Sales 6 Mo # Sold Avg #DOM Square #Sales Ski #InSold / 6 Mo # On Avg DOM Sq Range On Avg AvgSquare Sq Range 1/22/15 Feet6 Feet Price Out - 1/22/15 Market Market Feet 6 Feet 7/22/15 7/22/15 Mo Sold Mo Sold

Avg Sales SP/SF Price

SP/SF Avg SP/SF

$$7536540-k$773 $564 -$6 $6 773 $2163k N/A

N/A N/A

SP/SF Avg SP/SF

# Units SellinOut Dates Sell Out Dates Project

$667

Parking

Attached 2 - A4tC taacrhGeadr2ag-e4 Car Garage

N/A

AvgYear SP/SF Built

Year # Units Built in Project

# Units SellinOut Dates Sell Out Dates Project

Parking

Duplexes

N4o

2308

4,27390

30940,2-759622 30930 -- 45622 $2035-84k - $22$927058k -$$22,125947

$$24,01954- $626 $409 -$5 $2 65 26

2$051225 - now 2012 - now

10/23/12 - n1o0w/23/12 - noAwttached 2 CAatrtG acahreagde2 Car Garage

Homes

N2o

5,7255

56452,7-255807 56442 -- 55807 $39400- k5 - $46$3399k00k - $$44267309kk

$$4721750-k$799 $715 -$7 $5 77 99

$757

Park City Homes Park City Homes Property Property

Ski In/ Out

Ski #InSold / 6 Mo 6 Mo # Sold Avg #DOM Square #Sales # On On Avg Avg DOM Sq Range AvgSquare Sq Range # Beds BedsPrice SalesAvg Price Sales Out - 1/22/15 1/22/15 Feet6 Feet Price Market Market Feet 6 Feet 7/22/15 7/22/15 Mo Sold Mo Sold

Avg Sales SP/SF Price

SP/SF Avg SP/SF

AvgYear SP/SF Built

Year # Units Built in Project

Attached 3 CAatrtG acahreagde3 Car Garage

SellinOut Dates Sell Out Dates # Units Project

Parking

Bear Hollow Bear Hollow

N5o

511

2,85611

14628,8-651264 14628 -- 75264 $6220- k7 - $830$K620k - $$863808KK

$263868K- $270 $236 -$2 $5 21 70

1$929591 - now 1999 -2n7o5w

275

Attached 2 CAatrtG acahreagde2 Car Garage

Blackhawk StBalaticoknhawk Station

N3o

313

1,53616

8510,5- 626431 8501 -- 24431 $4159- k4 - $535$k459k - $$553056kk

$$258086k- $367 $288 -$3 $2 38 67

1$939288- 2001 1998 - 1260001

160

Attached 2 CAatrtG acahreagde2 Car Garage

Trapper's CaTbrinap s p(Pero'smCoanbtin osry()Promontory)

N8o

180

22120

2,525292

18825,5-529731 18825 -- 42731 $1025-54k - $15$511055k -$$11,258561

$$14,328 6- $568 $438 -$5 $0 52 68

Hideout

N0o

Stein EriksenStein Residences Eriksen Residences

Yes

1 CL Yes 10 U/C

1 CL 4 10 U/C

824

6,18923

55060,1-973833 55040 -- 67833 $59400- k6 - $88$0509k00k - $$78281030kk

$$9792113- k$1275$991 $- 1$,1126755

The Belles The Belles

Yes

Y1es

3513

7,03591

56479,0-579148 56459 -- 67148

$52$5704k4

Tuhaye

N3o

130

46190

5,147639

21859,1-783300 21839 -- 68300 $8635-k6- $249$58k65k - $$21449558kk

Victory RancV hicCtaobriynsRanch Cabins

9 NUo/C

9 U1/C

271

2,82378

River View River View

N1o

1801

2,61830

Hideout

20560- 5980 20536 -- 65980

3-6

2$05062 - now 2006 - n 64 ow

Attached 2 CAatrtG acahreagde2 Car Garage

2006 - now 2006 -1n5o7w

157

Attached 2 oAr t3taCcahreG da2raogre3 Car Garage

2$071414 - now 2011 - n 17 ow

Attached 2 CAatrtG acahreagde2 Car Garage

$$1146568-k$404 $166 -$2 $47 04

2$020467 - now 2006 -2n6o7w

267

Attached 2 CAatrtG acahreagde2 Car Garage

21325,8-338029 21335 -- 43029 $12350- k4 - $18$5102k50k - $$11581590kk

$$1454149-k$653 $444 -$5 $3 67 53

2$051347 - now 2014 -1n5o1w

151

Attached 2 CAatrtG acahreagde2 Car Garage

26520,6-833668 26530 -- 43668

$50$01k82

2$01182 - now 2012 -1n4o6w

146

Attached 2 CAatrtG acahreagde2 Car Garage

5$-56250k

3 -$4500k

$525$05k250k

$500$k500k

$74$4744

$18$2182

$1,1260516

20165

Source: Keller Williams

HOSPITALITY MARKET || V

Travel and Tourism U TA H T R AV E L & T O U Profile RISM PROFILE

Summit County SUMMIT COUNTY

Tourism At-A-Glance Summit County, Salt Lake County’s eastern neighbor, had a 42.2% leisure and hospitality1 share of total private jobs in Statewide Tourism Ranking: 6th* Summit County, Salt Lake County’s eastern neighbor, had a 42.2% leisure and 2013, ranking 6th statewide. Summit County, which is nestled 2012 2013 % Change hospitality share of total private jobs in 2013, ranking 6th statewide. Summit County, among the Wasatch and Uinta Mountains, contains 39 of Summit C ounty Population 37,904 38,486 1.5% which is nestled among the WasatchUtah’s highest peaks (>12,600’). In addi�on, Summit County’s and Uinta Mountains, contains 39 of Utah’s Utah Population 2,855,287 2,900,872 1.6% highest peaks (>12,600’). In addition,largest city, the resort town of Park City, served as a main Summit County’s largest city, the resort town 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 in America” by Outside magazine. Summit (2013) named “The Best Town in America” by Outside Leisure & Hospitality Taxable Sales $437.5 $488.7 11.7% (C alendar Year; In Millions) County has three world-class ski resorts (Canyons, Deer Valley and Park City Ski magazine. Summit County has three world‐class ski resorts Resort), as well as over 100 hotels and restaurants, drawing both Utah residents and Leisure & Hospitality Jobs 8,723 8,773 0.6% (Canyons, Deer Valley and Park City Ski Resort), as well as over nonresidents year-round. In addition 100 hotels and restaurants, drawing both Utah residents and to skiing and snowboarding, each January Park Leisure & Hospitality Wages (Millions) $216.5 $228.4 5.5% City hosts the popular Sundance Filmnonresidents year‐round. In addi�on to skiing and Festival, which attracts upwards ofU30,000 TA H T R AV E L &Average T O UAnnual R I SHotel M Occupancy P R O F I L E 39.0% 40.0% 2.6% Rate (Summit C ounty) snowboarding, each January Park City hosts the popular nonresident visitors to the state of Utah. Other Summit County attractions include *B ased o n share o f private leisure and ho spitality jo bs to to tal private jo bs. the Utah Olympic Park, Park City ArtsSundance Film Fes�val, which a�racts upwards of 30,000 Festival, Park Silly Sunday Market, and Rockport The "Leisure and Ho psitality" secto r includes NA ICS 71and 72. State Park. Summit County continuesnonresident visitors to the state of Utah. Other Summit to attract more visitors to its mountain resorts 54 jobs. Wages in the leisure and hospitality sector increased County a�rac�ons include the Utah Olympic Park, Park City during its “shoulder seasons” by offering a wider range of family-friendly, warm 5.5% in 2013, matching the statewide average and outpacing Arts Fes�val, Park Silly Sunday Market, and Rockport State weather activities. the U.S. average (4.1%). Since 2010, the number of spring/ Park. Summit County con�nues to a�ract more visitors to its summer leisure and hospitality jobs has increased by an mountain resorts during its “shoulder seasons” by oﬀering a WASATCH COUNTY wider range of family‐friendly, warm weather ac�vi�es. Tourism At-A-Glance Wasatch County, encompassing the mountain average of 33% every fall/winter, highligh�ng Summit County’s valleys east of the Wasatch Front, had a 21.1% Statewide Tourism Ranking: 10th* winter tourism seasonality. Total tourism‐related tax revenues increased 8.6% in scal Wasatch County, encompassing the mountain valleys east of the Wasatch Front, leisure and hospitality1 share of private jobs in 2012 2013 % Change year 2013, due largely to increases in transient room and In 2012 and 2013, Summit County’s accommoda�ons had a 21.1% leisure and hospitality1 share of private jobs in 2013, ranking 10th 2013, ranking 10th statewide. Wasatch County is an restaurant tax revenue. In 2013, leisure and hospitality sector occupancy rates were highest between December and March Wasatch C ounty Population 25,311 26,437 4.4% statewide. Wasatch County is an outdoor recreationist’s paradise with a touch of outdoor recrea�onist’s paradise with a touch of winter sales were more than four �mes total spring sales, Utahand June through September, with lows in April, May, October Population 2,855,287 2,900,872 1.6% Swiss charm. Strawberry Reservoir, Deer Creek State Park, and Jordanelle State Park Swiss charm. Strawberry Reservoir, Deer Creek reec�ng strong winter tourism seasonality. Annual arts, and November. The average annual occupancy rate, average Tourism-Related Tax Revenues $1,942.6 $2,186.9 12.6% offer boa ting and fishing opportuni entertainment and recrea�on sales were up over 100% from ties to visitors. Wasatch Mountain State Park (Fiscal Year; In Thousands) State Park, and Jordanelle State Park oﬀer boa�ng daily room rate and revenue per available room increased has a campground, an 18-hole golf course, andand shing opportuni�es to visitors. Wasatch access to numerous hiking, biking, Leisure & Hospitality Taxable Sales the previous year, with annual restaurant sales showing healthy 2.6%, 2.0%, and 6.2%, respec�vely. Summit County’s three ski $78.8 $87.3 10.8% (C alendar Year; In Millions) ATV, horseback, and cross-country skiing trails. Mountain State Park has a campground, an 18‐hole Every Labor Day, the town of Midway increases as well. Both private and public amusement and resorts reported 1.78 million skier visits (combined) during the Leisure & Hospitality Jobs 1,086 1,146 5.5% holds the Swiss Days fes tival with a parade, food and ac tivi ties for families. golf course, and access to numerous hiking, biking, recrea�on jobs experienced increases (>100 jobs combined), 2012/2013 ski season and Rockport State Park reported Leisure & Hospitality Wages (Millions) $18.0 $19.1 6.5% ATV, horseback, and cross‐country skiing trails. while accommoda�ons reported an average annual decrease of 103,503 recrea�onal visitors in 2013. Average Annual Hotel Occupancy Rate Every Labor Day, the town of Midway holds the 48.9% 48.7% -0.4% (Summit-Wasatch C ounties) Tourism-Related Tax Revenue Gross Leisure & Hospitality Taxable Sales Swiss Days fes�val with a parade, food and *B ased o n share o f private leisure and ho spitality jo bs to to tal private jo bs. (In Thousands of Dollars) (In Millions of Dollars) ac�vi�es for families. The "Leisure and Ho psitality" secto r includes NA ICS 71and 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%) in 2012 and 2013. $488.7 $14,484.4 28 $2,108.9 $437.5 Midway) and restaurant tax revenues. In 2013, leisure In both 2012 and 2013, Wasatch County hotel $13,198.0 $426.2 $1,896.3 and hospitality taxable sales were up 10.8% and were occupancy rates peaked during the month of March, as $142.0

Wasatch County 1

News and Events

RECREATION & ACTIVITIES Winter sports put Park City on the map, but keeping it there is a host of year-round recreational activities for all ages and interests. Each of the town’s three world-class ski resorts made the SKI Magazine reader survey top ten for best overall resort in both 2012 and 2013. With on mountain lodging, dining, shopping, activities and acres of terrain to ski and ride they offer something to please every taste. Off-mountain, cross-country and skate skiing, snowshoeing, snowmobiling, ice skating, snow tubing, sleigh rides and more keep visitors and residents alike entertained outdoors all winter long. In summer, a network of over 300 miles of trails for mountain biking and hiking can be accessed from 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 water sports, including sailing, fishing, water skiing, paddle boarding and swimming. Solitude can be found on over 244,000 acres of wilderness in the nearby Uinta Mountains, which provide an ideal getaway for hiking, camping and fishing among alpine lakes and snow-capped mountains. And of course, indoor activities abound with numerous art galleries, museums and restaurants, a bowling alley and enough shopping and nightlife to satisfy year-round.

Park City Recreation offers a wide variety of adult and youth programs and activities. Programs vary by season and community interest, and include everything from team sports, fitness classes and triathlon training to kids’ classes, parent/child activities and summer camps to dog obedience classes and bike clinics. Visit www.parkcity.org for information. Adventures await within a day’s drive of Park City, as Utah is home to five National Parks, seven National Monuments, two National Recreation Areas, a National Historic Site, six National Forests and over 40 state parks. SUMMER ACTIVITIES • • • • • • • •

Mountain Biking Hiking Road Biking Fishing & Hunting Golf Hay Rides Hot Air Ballooning Horseback Riding

• State Parks & Reservoirs • Swimming • Water Skiing • Jet Skiing • Boating • Sailing • Tennis

• • • • • • • •

Racquetball Disabled Recreation Historic Tours Rock Climbing Camping Alpine Slide Heber Valley Railroad 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, returning to Park City on I-80) Wolf Creek Pass (20 miles east of Woodland on HWY 35) Summit County Historic Driving Tour (Available at both Park City Visitor Centers, 528 Main St. and 1794 Olympic Pkwy.).

Jordanelle offers great fishing for rainbow trout and smallmouth bass. Brown trout, cutthroat trout, and yellow perch are also found at this water; making for a diverse angling experience. Whether boating, floating, or shore fishing, anglers will find Jordanelle to be a true Blue Ribbon fishery. Note that easy access, and close proximity to urban centers, makes Jordanelle a popular destination among recreational boaters.

WINTER ACTIVITIES • • • • •

Skiing Snowboarding Interconnect Tour Sleigh Rides Snowmobiling

• • • • •

Snowshoeing Ice Skating Cross Country Skiing Snow Tubing Heli-& Cat Skiing

• Hot Air Ballooning • Historic Tours • Fly Fishing

• Shopping • Park City Film Series • Hot Air Ballooning

• Fishing • Hunting • Wildlife Watching

YEAR-ROUND ACTIVITES • Gallery Strolls • Dining/Nightlife • Theater/Concerts

Source: Park City Chamber of Commerce : Visitor’s Bureau

Source: Utah Division of Wildlife

News and Events

VAIL RESORTS ACQUIRES PARK CITY MOUNTAIN RESORT IN PARK CITY UTAH BROOMFIELD, Colo.—Sept. 11, 2014—Vail Resorts, Inc. (NYSE: MTN) today announced that the Company has acquired Park City Mountain Resort (PCMR) from Powdr Corp. for $182.5 million in cash, subject to certain post-closing adjustments. The acquisition includes all of the assets of Greater Park City Company (GPCC), the land used for ski terrain at the resort held by Ian Cumming, and certain base parking lands owned by Powdr Development Corp., which have approved zoning for approximately 687,000 square feet of residential and commercial development. Park City Mountain Resort offers terrain for every type of skier and snowboarder, from perfectly manicured groomers to powder-filled bowls and some of the industry’s most progressive terrain parks and half pipes. Located in the heart of historic Park City, Utah– one of the country’s greatest ski towns–PCMR was named the fifth best resort in North 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 offers many summer adventures including one of the world’s longest alpine slides, a nearly 4,000-foot long alpine coaster, zip lines and more than 70 miles of hiking and biking trails. 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. Source: http://news.vailresorts.com/corporate/vailresorts/resort-news/vail-resorts-acquires-pcmr.print 1/3

VAIL RESORTS TO INVEST AN UNPRECEDENTED $50 MILLION IN PARK CITY MOUNTAIN RESORT IN ONE SEASON BROOMFIELD, Colo.—Dec. 8, 2014—Vail Resorts, Inc. (NYSE: MTN) today announced details of the company’s planned upgrades to Park City Mountain Resort for the 20152016 ski season. The plan, which totals over $50 million, is one of the most ambitious and impactful capital programs in U.S. ski industry history and will transform the guest experience at Park City Mountain Resort. The plan would establish the connection between Park City Mountain Resort and Canyons Resort, creating the largest single ski area in the country with more than 7,300 acres of skiable terrain, and complete a number of critical upgrades to the infrastructure of both resorts. The plan will be subject to approval by both Summit County and the City of Park City. http://news.vailresorts.com/corporate/vail-resorts-park-city-improvements.htm

DEER VALLEY ® RESORT VYING AGAIN FOR WORLD’S BEST SKI RESORT Deer Valley® Resort; PARK CITY, UTAH (May 27, 2015) Beginning June 5, the competition for the third annual World Ski Awards commences 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

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 Utah Symphony | Utah Opera’s Deer Valley® Music Festival sets the stage for its 12th summer of impressive symphony performances at Deer Valley® Resort’s renowned Snow Park Outdoor Amphitheater. The summer season launches with a bang with a Patriotic Pops with Bravo Broadway performance on Saturday, July 4.

The complete 2015 season lineup at the Snow Park Outdoor Amphitheater includes: July 4 - Patriotic Pops with Bravo Broadway July 10 - Big Bad Voodoo Daddy with the Utah Symphony July 11 - Smokey Robinson with the Utah Symphony

“For twelve consecutive summers with Deer Valley® Resort as our summer home, we have entertained guests with time-honored favorites and thrilling guest performers,” said Natalie Cope, director of special events and Deer Valley® Music Festival community 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 truly is an escape into the music.”

July 17 - Disney’s Fantasia: Live in Concert with the Utah Symphony

Following its Fourth of July kickoff, the Deer Valley Music Festival will be honored with such featured guests as Big Bad Voodoo Daddy, Smokey Robinson, Classical Mystery 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 offerings at the Snow Park Outdoor Amphitheater, chamber orchestra and guest chamber performances at Park City’s St. Mary’s Church, and salon events in exquisite Deer Valley area homes, where guests will hear and meet artists in intimate settings.

August 1 - Ozomatli with the Utah Symphony

July 18 - Classical Mystery tour with the Utah Symphony July 24 - Country Legends July 25 - Sinatra Sings Sinatra: A Multimedia Centennial Celebration July 31 - 1812 Overture!

August 7 - Hollywood Under the Stars August 8 - Kristin Chenoweth with the Utah Symphony August 14 - Diana Krall with the Utah Symphony http://press.deervalley.com

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 43,000 jobs at an annual rate of 3.3%. Job growth has been well balanced with growth occurring in every major sector. As a result of this strong job growth, the market showed significant signs of expansion, adding 707,000 square feet (sf) of new construction or renovated space and recording 904,000 sf of positive absorption. MARKET TRENDS After a strong 2013, 2014 showed continued strength in the office market for Salt Lake as strong absorption continued to outpace construction. The direct vacancy rate of 10.8% 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 2014 YEAR END average. The level of absorption, the CBD posted 315,781 sf, more than tripling its 10-year MARKET REVIEW CBD is expected to continue in this direction in 2015 as several leases have 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.

economies in rate of 3.3%. h occurring in b growth, the ding 707,000 ed space and

th in the office ed to outpace s down by 1.0 presenting 34 the burban market

M A R K E T I N D I C AT O R S CHANGE SINCE CURRENT Direct Office Vacancy Sublease Vacancy Average Asking Lease Rate (psf) Completed For Lease Construction (sf) Completed Owner Construction (sf)

Q4 13

Q2 14

10.8% 1.3% $21.65 416,000 80,000

ARROWS ARE INDICATORS, AND DO NOT REPRESENT A POSITIVE OR NEGATIVE VALUE.

MILLENNIALS A major trend over the past several years has and will continue to change the way office space is used and where it is located. Millennials now represent almost 40% of the workforce and as baby boomers transition out of the workforce it is estimated that by 2025 millennials will comprise 75%. Millennials grew up in an era surrounded by advancements in technology, higher levels of education and expectations to become independent thinkers. Due to their upbringing, Millennials are constantly seeking to be engaged by new experiences, thrive on collaboration and competition and have become consumers of space rather than users of space.

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 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 that amenities are important. These owners are adding amenities such as on-site gyms, locker rooms and restaurants for multiple tenants to share. Millennials are also pushing off life decisions such as marriage and having children and are looking more at community centered areas to live rather than suburban silos. Currently 62% of Millennials prefer to live in mixed use communities in urban centers with easy access to shopping, restaurants and offices. An amazing two-thirds of Millennials are also renters. As this talent pool continues to move to urban locations, businesses located in suburban markets trying to attract this talent will need to consider providing access to these urban clusters. Within Salt Lake City, this can be observed as tenants such as Neumont University, Progrexion and Venafi have recognized this trend and have made moves from suburban markets to the CBD. Source: comre.com/uploads/reports/p19cmomcorol1hdg1kotu2vhb53.pdf

free rent and tenant improvements continued to decline having an even larger positive impact on effective rents achieved

Office & Retail Markets

MARKET FORECAST

MARKET TRENDS

All signs point to a positive 2015 as leasing activity is expected to continue and absorption will once again outpace construction across the entire market. With 677,444 sf of new product expected to hit the suburban market in 2015, vacancy numbers are expected to stay relatively flat. However the CBD and Periphery have no new construction expected in 2015 and will see their vacancy rate continue to decline. The CBD and Periphery submarkets are also expected to continue seeing increased activity as tenants located in suburban markets consider downtown due to its increased level of amenities and ever growing talent pool.

Vacancy continued to improve through 2014 as the overall vacancy rate declined by 0.7 percentage points (pps) on a yearover- year basis to end at 6.2%. This represents the lowest vacancy rate of the past decade. With supply constrained and demand improving, average asking lease rates jumped by 9.0% on a yearover- year basis to $18.98 per square foot (psf). New construction continued across the valley with 548,577 sf of space added to the market. New construction included the Smith’s Marketplace portion of The Highlands (123,000 sf) in West Jordan, a new Costco (153,570 sf) in South Jordan 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 2014 YEAR END also underway and expected to be completed in 2015. Additional shopREVIEW space will be MARKET completed at The Highlands to accompany the Smith’s Marketplace. Early 2015 should see the completion of Dillard’s new space at Fashion Place Mall, and their relocation.

The area between 7200 S and Lehi will continue to be another hotbed for growth and is where the majority of new construction is expected to be completed. Two major factors will continue to drive this growth. First, this area can easily draw talent from both the University of Utah to the north and Brigham Young University and Utah Valley State University to the south. Second, this area continues to add housing at the fastest rate in the state and has the capacity to continue adding housing for the foreseeable future.

Salt Lake County | Retail Market

Retail Sales remained strong through 2014 improving by 5.3% number is even more impressive when considering the significant drop in gasoline RETAIL SALES prices which makes up a portion of this number. Inflation Retail Sales remained strong through 2014 improving by 5.3% on a increasing year-over-year remained in check as well, by basis. just 1.5%. New This number is even more impressive when considering the significant drop in gasoline construction can be seen across the Salt Lake Valley as a prices which makes up a portion ofvariety this number. Inflation remained in check as well, in the market. of retail tenants continue to expand

SALT LAKE COUNTY MARKET on aRETAIL year-over-year basis. This

increasing by just 1.5%. New construction can be seen across the Salt Lake Valley as a variety of retail tenants continue to expand in the market. MARKET TRENDS

Vacancy continued to improve through 2014 as the overall vacancy rate declined by 0.7 percentage points (pps) on a yearover-year basis to end at 6.2%. This represents the lowest vacancy Source: comre.com/uploads/reports/p19cmomcorol1hdg1kotu2vhb53.pdf rate of the past decade. With supply constrained and demand improving, average asking lease rates jumped by 9.0% on a yearover-year basis to $18.98 per square foot (psf). New construction

M A R K E T I N D I C AT O R S CHANGE SINCE CURRENT Retail Vacancy Average Asking Lease Rate (psf) Completed Construction (sf)

Q4 13

Q2 14

6.2% $18.98 548,577

ARROWS ARE INDICATORS, AND DO NOT REPRESENT A POSITIVE OR NEGATIVE VALUE.

GROCER EXPANSION: One of the most notable events of 2014 has been the expansion of grocers. Sprout’s Farmers Market opened a new store in Holladay, and will open their new South Jordan location in January of 2015. A Smith’s Marketplace opened its doors in West Jordan at The Highlands. A new Walmart Neighborhood Market was added in Magna at Arbor Park. In

Office & Retail Markets

SUMMIT COUNTY OFFICE MARKET

SUMMIT COUNTY RETAIL MARKET

Summit County’s unemployment rate of just 3.5% continued to be one of the lowest in the state and remained a positive driver for growth. Park City’s historic Main Street continued to draw new development and renovations. The September 2014 settlement of the long running lawsuit between Powdr Corporation (former owner/operator of Park City Mountain Resort) and Vail Resorts was a relief to both the local business community and public. With the addition of Park City Mountain Resort to Vail’s Epic Pass offering, Vail reported increased Epic Pass sales for the 2014 – 2015 ski season. More recently, Vail announced a $50 million capital improvement plan for Park City Mountain Resort and Canyons, most of which is scheduled to be completed in the summer of 2015. The highlight of the plan is a proposed gondola which will connect the two resorts, thereby creating the nation’s largest ski resort.

Retail continued to be the deepest sector in Summit County. The best known retail corridor, Park City’s Historic Main Street, continued to command some of the highest lease rates in the state, with rates as high as $60 psf NNN. The Main Street Mall was completed and five of the seven spaces have already been leased. The luxury oriented residential units on the upper level are anticipated for delivery in mid-2015. Some new residential units are also planned along Lower Main Street which will continue to add life to the area. Kimball Junction continued to be an area of strong growth and interest was shown as over 50,000 sf of new retail development was completed. This brought national tenants such as Jimmy John’s and Five Guys to the market. Occupancy is now above 95% and rates are solid. The Tanger Outlet Shopping Center also completed 23,500 sf of expansion space.

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 Resort at the Mayflower exit on US Highway 40 in Wasatch County. TheREVIEW land has the MARKET 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 Reservoir and would be favorable for the Wasatch County economy due to the Highway 40 connectivity.

3.5% continued ained a positive reet continued The September etween Powdr City Mountain e local business of Park City Vail reported 015 ski season. million capital n Resort and 36 mpleted in the is a proposed

2014 YEAR END MARKET REVIEW

Summit County | Retail Market

O F F I C E M A R K E T RETAIL: I N D I C ATRetail O R S continued to be the deepest sector in Summit Total Inventory (sf) Lease Rates (psf) Old Town Prospector Snyderville Vacancy

County. The best known retail corridor, Park City’s Historic Main 1,239,669 Street, continued to command some of the highest lease rates in the state, with rates as high as $60 psf NNN. The Main Street Mall - $60.00 NNN spaces have already been was completed and$25.00 five of the seven leased. The luxury$12.00 oriented residential - $28.00 NNN units on the upper level are anticipated for$16.00 delivery in mid-2015. Some new residential - $32.00 NNN units are also planned along Lower Main Street which will continue 5.2% to add life to the area.

Kimball Junction continued to be an area of strong growth and interest was shown as over 50,000 sf of new retail development was completed. brought national OFFICE: Office properties continued This to strengthen through tenants such as Jimmy 2014 as 58,500 square feet (sf) of space was absorbed. This MARKET TRENDS

R E T A I L M A R K E T I N D I C AT O R S Total Inventory (sf)

3,015,480

Lease Rates (psf) Old Town

$25.00 - $60.00 NNN

Prospector

$12.00 - $28.00 NNN

Snyderville

$14.00 - $24.00 NNN

Vacancy

5.8%

John’s and Five Guys to the market. Occupancy is now above 95% and rates are solid.Source: Thecomre.com/uploads/reports/p19cmomcorol1hdg1kotu2vhb53.pdf Tanger Outlet Shopping Center also completed 23,500 sf of expansion space.

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 major metropolitan areas of the Mountain West, despite significant economic headwinds, weathered the first quarter of 2015 with robust economic growth. Eight of the region’s 10 major metro areas advanced on all four metrics of economic performance, and the remaining two metro areas slipped only on a single front. The national economic slowdown that arrived in early 2015 did not entirely bypass the Mountain West, but the region resisted the drag better than any other. As U.S. economic output contracted by 0.3 percent in the first quarter, Mountain region output expanded by 0.2 percent. Nine out of 10 Mountain metro areas achieved positive output growth, compared to only one in five nationwide. Job growth proceeded at its fastest rate in over a year in Mountain metro areas. 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

reported larger declines in unemployment than did their national peer group, despite already having below-average rates. With a 2.2 percent expansion in employment, a 1.0 percent increase in output, and an unemployment rate of 3.0 percent, Provo stood out as the region’s—and perhaps the nation’s—strongest performer in the first quarter. Denver, meanwhile, ended the quarter with nearly 10 percent more jobs than it had in 2008 and remained the only metro area where home prices have fully recovered from the Great Recession. All together, this quarter’s Monitor finds that, although the rates of recovery still differ, steady economic growth appears to have finally taken hold in every one of the region’s major metro areas. This widespread return to growth suggests that—years after a brutal dislocation—the regional economy is getting back on track.

Economic Overview

MOUNTAIN MONITOR: 1ST QUARTER 2015 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 rate of output growth slowed significantly, from 1.2 percent in the fourth quarter of 2014 to 0.5 percent in the first of 2015. Just like its peers, however, Ogden avoided the national economy’s outright contraction. The unemployment rate fell 0.2 percentage points to 3.4 percent. Home prices increased by 1.8 percent for the second straight quarter. Over the year, home prices increased more slowly in Ogden and its Utah neighbors than they did nationally. Provo Provo posted the best economic performance in the region in the first quarter. The rate of job growth accelerated rapidly to 2.2 percent—the fastest quarterly expansion in the nation. Provo also bested its peers nationwide with a full 1.0 percent quarterly increase in output, even as national economic growth turned negative. The unemployment rate fell 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 average but below the previous quarter’s 3.3 percent growth.

Employment

Output

Unemployment

House prices

2014Q4 to 2015Q1

2014Q3 to 2014Q4

2014Q4 to 2015Q1

2014Q3 to 2014Q4

2014Q4 to 2015Q1

Rate 2015Q1

2014Q4 to 2015Q1

2014Q3 to 2014Q4

Albuquerque, NM

0.6%

0.4%

-0.6%

0.2%

-0.1%

5.8%

1.3%

1.5%

Boise City-Nampa, ID

1.3%

0.4%

0.6%

0.2%

-0.4%

3.7%

2.9%

1.8%

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%

Las Vegas-Paradise, NV

0.5%

0.4%

0.1%

-0.2%

0.1%

7.2%

1.9%

2.8%

Ogden-Clearfield, UT

1.5%

1.3%

0.5%

1.2%

-0.2%

3.4%

1.8%

Phoenix-Mesa-Glendale, AZ

0.8%

1.2%

0.3%

1.0%

-0.8%

5.0%

1.0%

2.9%

Provo-Orem, UT

2.2%

1.6%

1.0%

1.3%

-0.2%

3.0%

1.4%

3.3%

Salt Lake City, UT

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%

10 Largest IMW Metro Areas

0.9%

0.8%

0.2%

0.7%

-0.3%

4.8%

1.4%

3.0%

100 Largest U.S. Metro Areas

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%

Metro Area

Please visit the Monitor’s interactive website, www.brookings.edu/metromonitor, for additional materials, including Utah Valley Convention Center, Provo, UTinformation by industry and trendline graphics across each indicator. individual metro profiles with job and output

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

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 • Over 103 different languages are spoken in commerce daily

Quality of Life

• Competitive wage rates

• 4 of the top 20 ski resorts in North America are within one hour of the international 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.”

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 one out of every three Utahns has a college degree. Utahns conduct business in over 130 languages daily. Many residents have lived and worked abroad. This enhances their ability to make immediate contributions to the success of companies and divisions based in Utah that operate internationally. Utah’s workforce is also the youngest in the U.S. with a median age of 29.

Utah is home to the greatest concentration of national parks in the U.S. The state’s five national parks – Arches, Bryce Canyon, Canyonlands, Capitol Reef and Zion – are famous around the world for their spectacular and diverse natural beauty. In addition to its five national parks, Utah’s seven national monuments, two national recreation areas and 43 state parks attract millions of visitors every year.

• 24 total public and private universities, colleges, and other accredited higher education institutions • 39 percent of the workforce has an associate degree or above • Utah’s workforce has been recognized for its productivity

QUALITY OF LIFE Winter and summer recreation In the winter, Utah’s 14 ski resorts provide the world’s finest skiing and snowboarding. Ski magazine has named Utah’s Deer Valley® Resort “North America’s Top Overall Ski Resort” five of the last six years. Park City Mountain Resort was ranked the “#1 Family Destination.” In the summer, Utah’s outdoors offer numerous recreation activities including camping, hiking, mountain biking, ATV riding, rock climbing, fishing and hunting in some of the 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.

Arts and culture Utah offers a wealth of artistic and cultural activities. There are hundreds of theaters, dance and music organizations in Utah including the renowned Ballet West, Festival Opera, and the Utah Symphony. Distinguished cultural and artistic events are also found in Utah: the Sundance Film Festival, the Mormon Tabernacle Choir and the Tony Award-winning Utah Shakespearean Festival. Families and education Surveys show that Utah’s citizens are among the happiest, its communities among the safest and its citizens the healthiest in the U.S. The overall cost of living in Utah’s capital, Salt Lake City, is below the national average. Parents and children can depend on Utah to deliver world-class public education. Utah students regularly score above the national average on standardized tests. Source: business.utah.gov/international/aboutinternational/foreigndirectinvestment/

Summit County Demographics

COUNTY OVERVIEW

LARGEST EMPLOYERS

Summit County is located in Northern Utah, approximately 30 miles east of Salt Lake City in a geographic area known as the “Wasatch Back” referring to the backside of the Wasatch Mountains. It contains 39 of Utah’s highest peaks and has earned its reputation as an upscale getaway, bringing in many new development opportunities. With a highly educated and affluent population, exceptional schools, a myriad of recreational opportunities, and an urban lifestyle within a rural setting, net in-migration is anticipated. In Summit County, tourism is the largest single component of the economic base; it provides more than 6,500 jobs in travel and recreation related employment, 53 percent of Summit County’s total employment. Previous economies were based on agriculture, logging, and mining.

Company Name • • • • • • • • • • • • • • • •

Source: Utah DWS

Employees

Deer Valley Resort 500-999 The Canyons 500-999 Backcounty Com, Inc. 250-499 CFI Resorts Management, Inc. 250-499 Montage Hotels & Resorts LLC 250-499 Park City Mountain Resort 250-499 Park City Surgical Center 250-499 Stein Eriksen Lodge Owner’s Association 250-499 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 ®

Summit County Demographics

POPULATION 2014

EDUCATIONAL ATTAINMENT 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%

40,230

14,389

High School

4,732

18.0%

2,905,510

923,700

Some College

4,827

18.4%

Population

Households

Associate

2,022 7.7%

Summit County State of Utah 2019 (projected) Coalville

1,656 553

Bachelors

8,362 31.8%

Park City

8,890

3,406

Graduate

4,592 17.5%

42,751

15,389

3,113,129

993,130

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 -

Summit County State of Utah

Source: Research360, DecisionData Source: edcutah.org/2015%20County%20Profiles/documents/Summit.pdf

POPULATION BY AGE

Wasatch County Demographics

COUNTY OVERVIEW

LARGEST EMPLOYERS

Wasatch County was named for a Ute Indian word meaning mountain pass. In the midst of the mountainous region is Heber city, serving as the county seat and the largest city in the County. The Heber Valley has experienced a tremendous boom in economic activity during the last couple years and was singled out by Forbes Magazine as the “Fifth-fastest growing town in America.” There is a strong base of light manufacturers in the County with room to grow. In addition, the Software development and information technology sector is expanding; the Wasatch Campus of Utah Valley University provides opportunities for the development of software, including digital media products, and enhancement and utilization of information technology throughout the county.

Company Name • • • • • • • • • • • • • • • •

Gemstone Midway LLC 250-499 Heber Valley Medical Center 100-249 Hotel Cleaning Services, Inc. 100-249 Probst Electric, Inc. 100-249 RMD Management, Inc. 100-249 Smiths Food and Drug 100-249 Wal Mart 100-249 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 Source: Utah DWS

Employees

50-99

Wasatch County Demographics

POPULATION 2014 Heber Midway Wasatch County State of Utah 2019 (projected) Heber Midway Wasatch County

EDUCATIONAL ATTAINMENT Population Households

Number

Percent

Grade 9

400

2.6%

Grades 9-12

973

6.3%

High School

3,540

22.8%

Some College

4,658

30.0%

Associate

1,296 8.3%

14,606 4,394

Bachelors

3,061 19.7%

4,936 1,694

Graduate

1,614 10.4%

12,916 3,870 4,362 1,492 26,665

8,276

2,905,510

923,700

Population

Households

30,148

9,398

3,113,129

993,130

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 -

State of Utah

Grade Level

Source: Research360, DecisionData Source: edcutah.org/2015%20County%20Profiles/documents/Summit.pdf

POPULATION BY AGE

UTAH IN THE NEWS || VIII 46

Utah in the News

WORK ON SALT LAKE CITY’S NEW AIRPORT READY FOR TAKEOFF JULY 19, 2014 || BY CHRISTOPHER SMART, Salt Lake Tribune

A $1.8 billion terminal, capable of handling up to 24 million passengers a year, will open in 2022. The $1.8 billion project will boast a brand-new terminal and, officials say, transform Salt Lake City International into one of the nation’s most efficient airports. When completed in 2022, the airport will have one terminal rather than the three it now has. Its length will be the equivalent of six Salt Lake City blocks. The existing airport was built to handle 10 million passengers annually. It now sees twice that many, Riley explained. The new design has anticipated growth decades into the future — estimated at 23 million to 24 million passengers a year by 2024 and up to 30 million by 2034. About half the new terminal will be operational by spring 2019, according to project manager Mike Williams. The entire terminal will open by summer 2022. Source: sltrib.com/sltrib/news/58194814-78/airport-lake-saltterminal.html.csp

DELTA TO REINSTATE SALT LAKE CITY SERVICE OUT OF RDU August 10, 2015, 2014 || By Jeff Jeffrey, Staff Writer - Triangle Business Journal

It’s been nearly a year since Delta Air Lines (NYSE: DAL) decided to cancel its service to Salt Lake City from Raleigh-Durham International Airport. But visitors to RDU will soon be able to fly direct to the city once again. Delta has announced it will reinstate its service to Salt Lake City International Airport, starting in March. “Salt Lake City has long been a very popular destination for RDU travelers and we are glad Delta is resuming the service,” said Michael Landguth, president and CEO of the Raleigh-Durham Airport Authority. “The Salt Lake City region has several business ties to our region, has abundant leisure opportunities, while SLC provides connections to other popular destinations in the West.” RDU says more than 54,000 passengers travel between the Triangle and SLC each year. The return of the service brings the number of nonstop destinations passengers can reach from RDU to 43. “This is fantastic news for the market and fantastic news for the business community,” says Joe Milazzo, executive director of the Regional Transportation Alliance business coalition.

“This is fantastic news for the market and fantastic news for the business community,” says Joe Milazzo, executive director of the Regional Transportation Alliance business coalition. Milazzo says it’s a positive sign that an air carrier is willing to dedicate an aircraft to a long-distance route. “This is the last major hub city that RDU didn’t have a direct flight to, and this announcement takes care of that,” he says. Delta has offered RDU-to-SLC service twice before. The route was available between 2005 and 2009 and then again in 2013 to 2014. Prior to its most recent cancelation, the RDU-to-SLC route saw the highest frequency of on-time flights at RDU. Delta’s announcement comes just days after Southwest began offering service to Dallas, setting up a competition between Southwest and American Airlines. Source: bizjournals.com/triangle/news/2015/08/10/delta-salt-lake-cityflight-rdu.html

Utah in the News

SALT LAKE CITY LANDS LONDON HEATHROW NONSTOP AS DELTA ADDS U.K. ROUTES August 31, 2015 || Ben Mutzabaugh

Salt Lake City is getting a nonstop route to London, one of two new routes announced by Delta Air Lines this week. Delta also revealed plans to add nonstop service between New York JFK and the Scottish capital of Edinburgh. Delta’s Salt Lake City route will operate seasonally, launching May 1 with daily flights to London Heathrow Airport on 210-seat Boeing 767-300ER aircraft. The New York-Edinburgh route launches May 26, with Delta operating one daily round-trip flight on 163-seat Boeing 757 aircraft, according to Business Traveller magazine. Delta said it was launching both routes as part of its new joint-venture partnership with Virgin Atlantic that began in 2013. The London route was lauded by officials at Salt Lake City International, which has long been Delta’s top western hub. The airline will be the only one flying between Utah and London. For Salt Lake City International, securing new overseas routes has been a priority in recent years. It will now have three European routes once the Heathrow service begins. Delta also flies from Salt Lake City to Paris (year-round) and Amsterdam (seasonal).

For Salt Lake City International, securing new overseas routes has been a priority in recent years. It will now have three European routes once the Heathrow service begins. “International travel is up all throughout the world and Salt Lake City is no exception,” airport spokeswoman Bianca Shreeve says to Deseret News of Salt Lake City. “The Paris flight has been a success for Delta and Amsterdam has been tremendously successful, so we’re hopeful that London goes off with a bang as well.” Also at Salt Lake City, Delta will add a domestic route to Raleigh-Durham starting in March. That route, announced earlier this month, will restore a route Delta dropped last year, the Triangle Business Journal reports. The Raleighbased publication notes “Delta has offered RDU-to-SLC service twice before. The route was available between 2005 and 2009 and then again in 2013 to 2014.” Delta is by far the dominant carrier at Salt Lake City, where it controls about 71% of seats for sale from the airport, according to aviation site anna.aero. Southwest is No. 2 at the airport with about 11% of overall seat capacity there, anna.areo says.

As for Delta’s Edinburgh route, The Scotsman newspaper notes Delta’s JFK-Edinburgh route “will come seven years after Delta scrapped the route after switching it from Edinburgh-Atlanta.” And unlike with its Salt Lake City route, Delta will face competition from its two biggest U.S. rivals. American also flies from Edinburgh to JFK while United flies to its hub at Newark Liberty. All three airlines use Boeing 757 on those flights. Source: usatoday.com/story/travel/flights/todayinthesky/2015/08/28/ salt-lake-city-lands-london-heathrow-nonstop--delta-adds-ukroutes/71315284/

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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 the metropolitan areas with the highest concentration of employees in the sector were expected: the area around San Jose, California, is number one, for example, followed by the Seattle area. But they also found that Utah had three cities in the top fifteen: the metropolitan areas of Salt Lake City, Provo, and Ogden. This fascinated Muro, especially when he realized that much of the employment in the sector was coming from well-known companies that have opened offices in Utah, like the software firm Adobe, or from startups that have come to be worth billions of dollars. (In 2013, the C.E.O. of one such startup, the software company Qualtrics*, wrote that his firm, which had recently been valued by investors at more than a billion dollars, was headquartered within a thousand yards of two other startups worth more than a billion dollars.) “You think this is going to be fairly corn-pone stuff, and then you realize, ‘Holy cow, these are significant companies,’” Muro said. The report shows other unanticipated cities with high concentrations of advanced industries—Wichita, Kansas, for example—but these places tend to rely heavily on single industries, and they tend to stand alone rather than being clustered. In Utah, by contrast, the firms aren’t concentrated in one particular sector—the state’s

In Utah, by contrast, the firms aren’t concentrated in one particular sector—the state’s supersector employment comes largely from software businesses, but also from medical-device manufacturers and makers of aerospace products, among others—and the three cities on the list are all within driving and public-transit distance of one another. super-sector employment comes largely from software businesses, but also from medical-device manufacturers and makers of aerospace products, among others—and the three cities on the list are all within driving and publictransit distance of one another. “We don’t pay attention to Utah much, and Utah clearly sticks to its own affairs,” Muro said. “There’s a sense that they’re not like some metros, selling themselves externally, and yet, they do seem to be executing.” How are they doing it? Some observers, including Muro, have pointed to a certain cultural knack for salesmanship and entrepreneurship among Mormons, who make up two-thirds of the state’s population. But, religion aside, Utah turns out to also have features in common with other places involved in the super-sector: local universities that graduate a lot of S.T.E.M. students (most notably, Brigham Young University); policies and infrastructure that attract businesses (for instance, tax breaks and a light-rail system that connects the state’s biggest cities); and strong relationships among local companies (Utah’s state and

local governments, along with an economic-development organization, facilitate partnerships, and, because many of Utah’s businesses are home-grown, and the state’s population is small, densely located, and tightly knit, its businesspeople tend to get to know each other well). In fact, the Wasatch Front region of Utah—the small section that contains Provo, Salt Lake City, and Ogden, and is home to eighty per cent of the state’s population— looks a lot like Silicon Valley in certain ways. Much as Intel and other semiconductor manufacturers helped create Silicon Valley, the software company Novell—one of the flagships for the Utah super-sector—was founded in Provo, in the nineteen-seventies, and helped attract, and spawn, other local tech businesses. Also, the Wasatch Front, like Silicon Valley, is densely populated and connected by a freeway and a mass-transit system. And, especially since the mid-aughts, venture capitalists have invested surprising amounts in Utah companies; in the first half of last year, the state was the sixth most popular destination for venture-capital funding.

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To understand how those features help stimulate local economies—and how that growth perpetuates itself— consider the small town of Draper, Utah, part of which is included in the metropolitan area of Salt Lake City, to 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 boom. The scale might seem modest to someone from San Jose or Seattle— Draper’s population is just over forty-five thousand—until you consider that, twenty years ago, fewer than ten thousand people lived there, in what was then a quiet agricultural village. Troy Walker, the mayor, grew up in a nearby town and moved to Draper in the early aughts. “It was interesting, watching these fields turn into homes,” he recalls. “There was a big dairy operation where, right now, there’s a whole bunch of commercial buildings and a high-end apartment complex.” Walker believes Draper’s population will reach a hundred thousand before too long. Walker told me that when he got involved in local politics several years ago, as a member of the city council, he encountered a philosophical rift. Longtime residents of Draper wanted it to remain mostly residential, while he and some other newcomers felt that the local government wouldn’t be able to provide proper services and infrastructure to the influx of residents unless they became more aggressive in courting businesses and the tax revenue they provide. Over time, the newcomers have prevailed, in part because they have come to outnumber

Draper, UT: Lured by factors such as tax breaks, affordable real estate, an educated populace (many of whom had foreign-language skills gained during missionary trips), and the strong public-transit system, big companies, ranging from eBay and E.M.C. to Edwards Lifesciences, which makes heart valves, started opening offices in town, employing many hundreds of people each. the old-timers. Walker and his allies advocated for the regional light-rail system to be extended to Draper and won. Lured by factors such as tax breaks, affordable real estate, an educated populace (many of whom had foreignlanguage skills gained during missionary trips), and the strong public-transit system, big companies, ranging from eBay to Edwards Lifesciences, which makes heart valves, started opening offices in town, employing many hundreds of people each. Startups, too, have sprouted up, some of them founded by B.Y.U. graduates. The unemployment rate in Draper is around three per cent, compared to six per cent nationwide, Now, the state legislature has voted to relocate a state prison that has been based there for decades. Walker envisions turning that real estate into a multi-use development with housing and businesses—anchored, he hopes, by a big corporation. The open question is whether the success of a place like Draper can be replicated. For years, researchers and policymakers have tried to figure out how to copy Silicon Valley’s success elsewhere, with mixed success; you can’t, of course, turn back time to the nineteen-seventies

and insert an Intel or a Novell —or, for that matter, a Stanford or B.Y.U.—into every state. Still, the Brookings researchers argue that Utah’s cities, and other places like them, offer a number of crucial lessons, if governments and businesses elsewhere are willing to heed them: expand government- and corporate-funded R. &. D.; nurture startups by getting them capital and other help; improve the pipeline of S.T.E.M. workers through schools, universities, and corporate-funded training programs; and collaborate to create local “ecosystems” that encourage super-sector companies to cluster together. As the report puts it, “The speed and complexity of innovation and its global champions are ratcheting up the urgency of the enterprise”—that is, the ongoing national enterprise of encouraging innovation —“and demanding new strategies for engaging in it. Both the private and public sectors must radically rethink their technology development strategies accordingly if they are to remain relevant.” Source: newyorker.com/business/currency/utah-became-next-siliconvalley

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

“Nerds love Orlando,” according to public relations materials I received this week from the city of Orlando, Fla. But as Orlando seeks to rebrand itself as “a high tech hub for innovation,” it faces a lot of competition. In 2010, Chicago proclaimed its intention to become “the top destination for technology business.” In December, 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 tracked “next Silicon Valleys” in 2013 and profiled two dozen cities that had been described as such, including Las Vegas, which received the distinction from Slate itself. For its part, Orlando brags it was named a “promising tech hub to watch” in 2014 by Techie.com. If you hadn’t heard of Techie.com, don’t worry, neither had I; the tech site, based in South Bend, Ind., folded a few months ago, but not before it awarded the “promising tech hub” distinction to Orlando along with Minneapolis, Detroit, Champaign-Urbana, Ill., and Sioux Falls, S.D. The hard data does not bear out the proposition that nerds love Orlando. They do not love Las Vegas, and they are lukewarm about Chicago. Research from the Brookings Institution, based on figures from the Bureau of Labor Statistics, tells a rather more conventional story: Nerds love Silicon Valley. Among the 100 largest

But let’s look at the place that scored fourth on P.P.I.’s list: Utah County, Utah, whose largest city is Provo. In February, The New Yorker proclaimed that Utah is “the next Silicon Valley.” That’s hyperbole, but Provo (population: 116,288) does punch far above its weight; of 73 private venture-funded companies in the world with valuations over $2 billion, according to The Wall Street Journal, Provo is home to two. A large, new National Security Agency facility in the area is adding to the concentration of tech jobs and workers. metropolitan areas in the United States, San Jose, Calif., ranks first in “advanced industry” employment as a share of total employment. Orlando ranks 73rd — and places 78th in advanced industry employment growth from 2010 to 2013. The gap between San Jose and the No. 2 metro area is large. Seattle, no tech slouch with Microsoft, Amazon, Zillow and others, has 16 percent of its work force in advanced industry compared with 30 percent for San Jose. The Progressive Policy Institute puts out its own “tech/ info jobs index,” which uses a narrower definition of the high-tech sector, but it produces broadly similar results: The three large counties showing the strongest gain in tech jobs from 2009 to 2013 were San Francisco, Santa Clara and San Mateo — the three counties at the core of Northern California’s tech industry cluster. Orange County, Fla., which contains Orlando, scored 89th out of

214. (The index compares tech jobs added to the overall job base, so it doesn’t discriminate in favor of places with high total populations.) But let’s look at the place that scored fourth on P.P.I.’s list: Utah County, Utah, whose largest city is Provo. In February, The New Yorker proclaimed that Utah is “the next Silicon Valley.” That’s hyperbole, but Provo (population: 116,288) does punch far above its weight; of 73 private venture-funded companies in the world with valuations over $2 billion, according to The Wall Street Journal, Provo is home to two. A large, new National Security Agency facility in the area is adding to the concentration of tech jobs and workers. Provo provides an example of one of two models for competing with Silicon Valley. “There’s a group of people who really want to live there and there’s a really good research university,” says the urban theorist Richard

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Florida. He’s referring to Brigham Young University and the opportunity to live among a large Mormon community. But approximately the same formula describes the success of Boulder, Colo., which has the University of Colorado, proximity to great mountain sports and a disproportionate concentration of tech jobs and venture capital funding.

tech business, but also the impetus to keep it there once it succeeds. In the Provo (or Boulder) example, the businesses stay local because the owners and the workers really want to live there. (This is something else Silicon Valley has always had going for it.) In the New York example, they stay local because the location provides an irreplaceable business advantage.

In the Provo (or Boulder) example, the businesses stay local because the owners and the workers really want to live there. The other model for competing with Silicon Valley is about cross-industry collaboration. Michael Mandel, the chief economic strategist at P.P.I., notes that strong growth in New York’s tech industry has helped soften the blow from the financial crisis. Its numbers show New York gained almost 28,000 jobs, about what Santa Clara County, Calif., did.

Mr. Florida pointed to Pittsburgh as a cautionary example. He used to teach at Carnegie Mellon, a top research university that produces a lot of graduates capable of starting and staffing great technology companies. But start-ups that spin out of Carnegie Mellon have neither a strong lifestyle reason nor a strong economic reason to stay in Pittsburgh once they succeed. “If there was a successful start-up, eventually it got sucked into the Silicon Valley vortex,” he said.

“What you had was the intermix between the content hub and the tech hub that turned out to create a lot of job gain,” Mr. Mandel said. That is, New York is not a broad-spectrum competitor to Silicon Valley, but is seeing extensive growth in areas of the tech industry that benefit from exposure to other industries with a large concentration in New York, especially media, but also fashion and finance.

“I think what Orlando has is a combination of the space stuff and the Disney stuff,” Mr. Florida said. “It’s not trivial, those things taken together, but it’s hard to see how you put them together.”

What New York and Provo have in common is they provide not just the resources necessary to start a high-

Local officials point to one way they might. Orlando is a center for modeling and simulation technology, because

So, what lessons does this provide for someplace like Orlando, if it wants to shift its economy toward high tech?

flight simulators and theme park rides can rely on a lot of the same technology. Tourism isn’t generally thought of as a tech-intensive field, but Disney recently developed its MyMagic Plus system (waterproof wristbands with RFID chips that give visitors access to rides and unlock their hotel room doors) in-house in Orlando. Still, tourism is heavily dispersed geographically, and while there are a lot of tourism dollars in Orlando, even Disney is not headquartered there. Companies that produce technology for the hospitality industry do not need to cluster in Orlando. “I would say, over all, this is a relatively thin backdrop,” said Mark Muro, the researcher behind the Brookings report, after examining his own figures about industry concentration in Orlando, which show few high-tech specialties. “But I would note it is possible to diversify, starting from nothing.” It is also possible to set more modest goals. In 2013, my colleague Claire Cain Miller received a more-modest-thanusual pitch about a city’s technological surge: “While Chicago may never give Silicon Valley a run for its money, digital start-ups no longer have to leave Chicago to survive.” A version of this article appears in print on March 5, 2015, on page A3 of the New York edition with the headline: The Elusive Search for the Next Silicon Valley. Source: nytimes.com/2015/03/05/upshot/what-is-the-next-nextsilicon-valley.html

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

Which cities are magnets for young college graduates? One way to answer the question is to look at the cities attracting growing numbers of young, educated people, as a chart we ran Monday did. Another way is to see which cities have a larger than average percentage of the young and college-educated: people between 25 and 34 years old with a bachelor’s degree. Measured this way, some surprising cities stand out as skewing young, including Columbus, Baltimore and Salt Lake City. Denver’s population of the young and educated is up 47 percent since 2000, nearly double the percentage increase in the New York metro area.Denver, Nashville and Portland, Ore., fall into both groups: They each have a disproportionately large and fast-growing group of such residents. In Las Vegas, San Antonio and Riverside, Calif., meanwhile, this population is growing more quickly than in most other metropolitan areas, yet they have a smaller share than any other area. Over all, in the 51 largest metropolitan areas, 5.2 percent of people are 25 to 34 years old and have a four-year college degree. Denver’s share is 7.5 percent, while Riverside’s share is 2.5 percent.

…see which cities have a larger than average percentage of the young and college-educated: people between 25 and 34 years old with a bachelor’s degree. Measured this way, some surprising cities stand out as skewing young, including Columbus, Baltimore and Salt Lake City. Economists have debated whether jobs follow people or whether people follow jobs. Joe Cortright, who runs City Observatory, the think tank that published the report, said that companies are increasingly locating where large numbers of young, college-educated people live, because young people are pickier about location. One reason is that men and women are both likely to work, so couples seek a place they want to live and then find jobs, as opposed to wives following their husbands’ careers. Where they choose to live matters because a large young, educated work force is the economic engine of a vibrant city. Cities in which the growth in the population of young graduates lagged overall population growth include Atlanta, Dallas, Charlotte and Raleigh. Cities where the growth was about the same as overall population growth are Memphis, Phoenix, Austin and Richmond. Cities that

are attracting this group at a much faster rate than their total population is growing are New Orleans, San Diego, Oklahoma City and Las Vegas. When big cities like New York and San Francisco become unaffordable for young people to live, they increasingly choose smaller cities like Baltimore and Portland over the suburbs that many in their parents’ generation chose. In Portland, for instance, the number of young college graduates has grown 37 percent since 2000; they now make up 5.6 percent of the population, up from 4.8 percent a decade and a half ago. In readers’ comments on our first article, there was some fierce city loyalty, including consternation that certain cities weren’t included in our chart. We heard most about Chicago, Seattle and Philadelphia — so for all of you, here are the details. All are popular with the young and educated.

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Percentage of the population in 2012 with a college degree and aged 25 to 34, in selected cities. Washington 8.1% San Francisco 7.6% Austin 7.0% New York 6.6% Seattle 6.1% Columbus 6.0% Chicago 6.0% 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

Chicago’s population of young people has climbed 17 percent since 2000, more than Boston’s but less than New York’s, and a higher than average 6 percent of its population is in this group. Seattle’s population of young graduates climbed 27 percent; its share is 6.1 percent. Philadelphia’s climbed 22 percent, and 5.4 percent of its population is young and college-educated, slightly above average. Source: nytimes.com/2014/10/22/upshot/where-the-graduates-aregoing-and-where-they-already-are.html

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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 “exponentially” to 1,775. Two nights before Halloween last year, a massive wall of sandbags surrounding Goldman Sachs’ steel and glass headquarters in lower Manhattan stood as the global investment bank’s last defense against a tide of storm water pushed inland by Hurricane Sandy. Across the Hudson River, 8 feet of water lapped against sandbags stacked outside Goldman’s tower in Jersey City, N.J. More than 10,000 Goldman employees were cut off from their jobs by the massive storm as it swirled across the region, forcing the New York Stock Exchange to halt all trading operations, causing the Port Authority of New York and New Jersey to suspend train service and cutting power to millions of customers. Dire as the conditions were, Goldman was not without resources to keep its global business running. “We’ve got a very large building and very large operations in Salt Lake City,” Gary Cohn, Goldman’s president and chief operating officer, assured interviewers on Bloomberg TV a day later. “We’ve got [hundreds of] people in Salt Lake City that can carry on many if not all of the operations of Goldman Sachs as well.”

Utah’s capital is fast becoming Wall Street’s Western outpost and the world’s biggest investment bank is its poster boy. The number of Goldman employees in Utah’s capital, split between seven floors at 222 S. Main St. and a 75,000-square-foot space on Chipeta Way near the University of Utah, is 1,775 people. And, Cohn quipped, “that’s definitely in a complete different weather pattern.” Utah’s capital is fast becoming Wall Street’s Western outpost and the world’s biggest investment bank is its poster boy. The number of Goldman employees in Utah’s capital, split between seven floors at 222 S. Main St. and a 75,000-square-foot space on Chipeta Way near the University of Utah, is 1,775 people. Over 10 weeks this summer, that number was augmented by 274 college interns and, if history is a guide, Goldman will hire most of them. Today, 13 years after Goldman established a foothold in Utah, Salt Lake City is the firm’s fourth-largest location in the world, behind New York-New Jersey; London; and Bangalore, India’s technology capital. While Sandy raged, Salt Lake City was “front and center,” said managing director David Lang. “We were able to keep the lights on as a firm because of our Salt Lake City office.”

Like an accelerating race car, the growth of Goldman in Salt Lake City is more and more rapid every year. In an interview, Lang wouldn’t provide firm numbers, but six years ago Goldman’s local workforce was fewer than 300. Next year, the count could be close to 2,000. Many of the new hires will be graduates of Brigham Young University and the University of Utah. BYU provides more graduates to Goldman than any other university in the U.S. The U. is in the top five. “It’s an exponential line,” Lang said, “the growth is exponential.” Lang is a 20-year veteran of Goldman. Originally from Buffalo, N.Y., he joined the company as a summer intern in 1993. During the next two decades, he worked his way up to his present post, moving back and forth between New York and Tokyo until he took on the top job in Salt Lake City in 2008.

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From Bangalore to Utah • Lang portrays Goldman’s growth to prominence in Utah as a happy accident. Someone Goldman had hired to run its new online brokerage business persuaded her bosses to put the client-service operations in Salt Lake City. An office opened on Chipeta Way in 2000. But what seemed a good idea at the time never took off. The dot-com bubble crash in 2001 soured many retail investors on electronic trading, and Goldman pulled away from the business. The company stayed in town but kept a low profile. For several years, the main duty of the office was to support the company’s private wealth business by setting up client accounts and solving problems. Because several employees spoke Portuguese, the office had a hand in building software that buttressed a push into Brazil’s private wealth market. Back-office staff also supported Goldman’s industrial loan bank operations. At the same time, Goldman was moving a lot of jobs away from traditional — and expensive — financial centers such as New York, London and Tokyo. The company opened an office in Singapore. The Bangalore office grew to more than 4,500 employees, more than half of whom are software developers hired from India’s top universities. Because Bangalore was so successful, Goldman looked across the world to see where else it could grow. In 2008, the company decided to launch a major expansion in Utah.

Five years later, “we’ve grown from one division in the firm [and] 275 people to 1,775 people. Today, nine of the [company’s] 11 divisions are represented,” Lang told the board of directors of the Governor’s Office of Economic Development earlier this month. “Pretty much every activity or any activity that happens within Goldman Sachs is happening here in Salt Lake City,” he told the delighted GOED board. Critics and questions • Goldman may feel welcome in Utah, but the company has lots of critics elsewhere. On the day he resigned last year, a Goldman executive director and vice president published in The New York Times what he termed a “wake-up call” to the board of directors. Greg Smith said Goldman’s “toxic and destructive” culture no longer put the interests of its clients ahead of the firm and that Cohn and CEO Lloyd Blankfein had “lost control” of the traditions that had made one of the world’s most important banks great. Two years earlier, Rolling Stone magazine printed a lengthy polemic by journalist Matt Taibbi, who called “the world’s most powerful investment bank” a “great vampire squid” that had brought about every major market gyration since the Great Depression of the 1930s. In the wake of the 2008 financial crisis, these and similar accusations touched a nerve in the U.S. They even led some business journalists to speculate that Goldman Sachs came to heavily Mormon, business-friendly Salt Lake City to escape the animosity.

“Here is this city down in the mountains that just doesn’t understand why on earth there is all this anger toward Goldman Sachs,” Reuters reporter Katya Wachtel said last year in a video posted on YouTube. Some of that disdain was on display in Salt Lake City. Late in 2011, dozens of protesters and onlookers gathered on the sidewalk outside the Main Street building for a streettheater performance that chided Goldman for its “sins of manipulating the market during the dot-com bubble.” The event was part of a nationwide series of rallies organized by Occupy Wall Street. “What you read in the newspaper is that they are a titan, they have a lot of money, and they pay large bonuses and they get what they want. That’s not the Goldman that we know in Utah,” said Spencer Eccles, GOED’s executive director. Goldman isn’t blind to its critics. In May, at its annual meeting in Salt Lake City — its first-ever outside New York — the firm released a report detailing actions it has taken to improve its business practices after a series of embarrassing blunders that stained its reputation in the aftermath of the financial crisis. CEO Blankfein announced publication of the report, which makes more than three dozen recommendations for change, covering client service, financial products it sells and employee incentives. The changes were implemented in February.

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Through the years, the company has become part of the city’s fabric. By some estimates, 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 planning more growth, there may be a Goldman campus downtown in a couple of years that includes a yet-to-be-constructed building, he said.

Goldman Sachs in Salt Lake City • The company has been here since 2000. Significant growth began in 2008. • 1,775 employees today, almost 6 percent of its global workforce of 30,000.

Colleges and community • But for many Utahns, Goldman is nothing but good. The U. places about 25 graduates and 40 interns a year at Goldman. BYU’s business school has provided 77 graduates to Goldman in the past three years, and 216 former students list the firm as their current employer, according to the university’s LinkedIn page. Kim Smith, a BYU finance professor who worked at Goldman for 28 years, said the firm hires students from every college and department across the university — not just the business school — because it likes the product.

Lang said many employees live and shop within walking distance of the downtown office. And with the firm planning more growth, there may be a Goldman campus downtown in a couple of years that includes a yet-to-beconstructed building, he said.

• Nine of 11 divisions are here: finance, compliance, global investment research, human capital management, investment banking, investment management, operations, services, technology.

In May, 33 Utah small-business owners were the first class to graduate from Goldman Sachs’ 10,000 Small Businesses program, an educational initiative that aims to create jobs and spur growth in the state and elsewhere in the U.S. Many of the graduates said the training had already allowed them to hire more workers.

• In May, Goldman held its first annual shareholders meeting at its downtown Salt Lake City office. It was first annual meeting outside New York since Goldman became a public company in 1999.

“I know BYU best, and I know BYU students now are much better than they would have been 20 years ago,” Smith said. “Goldman Sachs has always been willing to go wherever it can to find talented, quality people. The fact that they’ve come here means that’s what they’ve found.”

In June, Goldman loaned $4.6 million to United Way of Salt Lake, which oversees the Utah High Quality Preschool Program. The loan, which Goldman calls a “social impact bond,” will support preschool programs that prepare 3- and 4-year-olds in the Granite and Park City school districts for kindergarten. The firm is betting that the program will reduce the need for remedial-education programs later on, and the savings will be enough to repay the loan.

Through the years, the company has become part of the city’s fabric. By some estimates, Goldman employees serve on the boards of more than 20 local nonprofits.

• Second-largest U.S. location; No. 4 in the world.

“They are investing in Utah because they believe in Utah,” GOED’s Eccles said. “That gets everybody’s attention, whether they are tourists or whether they are businesses. And that’s a great thing for Salt Lake and for Utah.” Source: sltrib.com/sltrib/money/56759646-79/goldman-lake-salt-office. html.csp

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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 Economic Development (GOED) met today and has extended an incentive offer to The Goldman Sachs Group 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 success Utah has experienced over the last decade can be credited to Goldman Sachs investing in Utah,” said Governor Gary R. Herbert. “The continued growth of Utah’s vibrant financial industry and this internationally respected company in Utah speaks volumes about the business friendly environment the state has created.” Goldman Sachs Group, Inc. is a leading financial services firm providing investment banking, securities and investment management services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm maintains offices in all major financial centers around the world. Goldman Sachs is now approaching 14 years of presence in and partnership with Salt Lake City and Utah. “Goldman Sachs’ growth in Utah is reflective of the quality of our people and our robust business environment,” said Jeff Edwards, president and CEO of Economic Development Corporation of Utah. “We appreciate

“The continued growth of Utah’s vibrant financial industry and this internationally respected company in Utah speaks volumes about the business friendly environment the state has created.” Goldman’s continued commitment to grow their business in the state.” Goldman Sachs has indicated that they plan to create up to 350 new jobs over the next 20 years. The total wages, including medical benefits, in aggregate are expected to exceed 125 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be up to $1.1 billion. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be up to $43.5 million over 20 years. As part of a contract with Goldman Sachs, the GOED Board of Directors has approved up to a maximum tax credit of $13,057,377 in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 30 percent of the new state taxes Goldman Sachs will pay over the 20-year life of the agreement. Each year as Goldman Sachs meets the criteria in its contract with the state, it will earn a portion of the tax credit incentive. Source: business.utah.gov/news/goldman-sachs-expand-presence-utah/

PHOTOS || IX 59