Kinetic Opportunities At PuebloPlex Can LRAs Benefit from Energy Development? September 26, 2013

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 3 3 PuebloPlex Background  Established as the Pueblo Army Depot in 1942  Originally for the storage and supply of ammunition  Employment fluctuated between 1,400 and 1,800 during WWII  At the end of WWII, the facilities were expanded to intake war materiel  Mission Change in 1951 – Mission Migration  Regional storage facility for strategic and critical materials  Calibration and maintenance of multiple platforms  Peak employment on April 3, 1953 with 7,791 people on payroll  15% of Pueblo’s population worked at the Pueblo Army Depot  Nearly 2 of 5 workers in Pueblo, worked at the Pueblo Army Depot; so this location has a history and a LORE

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 4 4 PuebloPlex Background  Chemical weapons arrive in 1952  Pershing Missile Destruction  Intermediate-Range Nuclear Forces Treaty (INF)  War Memorabilia  Nazi art and relics held for repatriation to (West) Germany into the late- 1990’s  Base Re-Alignment and Closure (BRAC) 1988 Round  Mission consolidation of 1951 reversed; mission dispersed  Chemical Weapons Destruction  Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction  Sole remaining mission: Safely Store Chemical Weapons Awaiting Final Destruction Miami Vice – c. 1988

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 5 5 PuebloPlex Facts  Assets to be developed:  22,847.5 acres of land – 7,000.5 acres reserved for chemical destruction (2021); 15,847 acres for immediate development  1,136 structures – 6.5m sf; 3.1m sf under current master lease  160 miles of paved road  48 miles of rail  Master lease terminates February 29, 2016; negotiating extension presently  Largest economic development by land size in the BRAC process – equivalent to Cheyenne; 1/3 larger than Longmont, CO; 10% larger than Boulder, CO; 68% larger than Portland, ME’s land area of sq mi.

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 6 6 PuebloPlex – Site Re-Use Plan (Subject to reconfiguration in 2014) UseSpace (Acres)Percent Usage Recreational % Industrial8, % Residential % Wildlife Management Area 14, % Total22, %

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 7 7 Opportunity Continuum Urban LRARural LRA Renewable Energy Conventional Energy PuebloPlex seeks to attract utility-scale projects that fully utilize the space available, contribute to energy independence and attract high-paying, skilled positions.

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 8 8 PuebloPlex Preparedness  Impediments  Master Lease through 2/19/2016  Staggered conveyances anticipated  60 SWMUs on site – working on curtailing land-use restrictions  Re-doing re-use plan in 2014  Highly sensitive mission on site until 2021  Toxic mission may cause trepidation

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 9 9 PuebloPlex Preparedness  Positives  Wide O P E N spaces; ~ 23,000 acres  Suitable for utility scale (solar) projects  NREL studied – January 2012  Utility infrastructure surrounding PuebloPlex  Renewable content legislation in Colorado  Politically supported; statutorially supported  Large tracts of undeveloped land

2013 ADC BASE REDEVELOPMENT FORUM | PAGE PuebloPlex Map

2013 ADC BASE REDEVELOPMENT FORUM | PAGE NREL Study – January 2012 LocationGlobal Insolation (kWh/m 2 /Day) Resource Classification Pueblo Chemical Depot 5.97 to 6.01Excellent 30 MW PV30 MW CPV100 MW CSP Land Use (acres/MW) 767 Total Land Required (acres)

2013 ADC BASE REDEVELOPMENT FORUM | PAGE Colorado Renewable Energy Requirements

2013 ADC BASE REDEVELOPMENT FORUM | PAGE PuebloPlex Projects  No active projects  Legal restrictions – predicated on modified (updated) land use plan (2014)  Utility size projects only  Potential off-takers: Xcel, Black Hills, Tri-State  Part of a privatization of electrical infrastructure  Seeking projects creating net-value  Not seeking to throw money away  Positive return and long term growth

2013 ADC BASE REDEVELOPMENT FORUM | PAGE  Michael Clarkson  Analyst & Project Manager PO Box Pueblo, CO  