Village of Taos Ski Valley Tax Increment Development District December 2, 2014

Public Infrastructure Plan Goals Address current and proposed infrastructure needs Support development Enhance experience for residents and visitors with new and/or improved public spaces Properly position VTSV as a world-class year- round destination Minimize the financial impact on residents

VTSV SCHEDULE OF IMPROVEMENTS ImprovementEstimated CostSpecifics Up-Valley Utility Trench$9.0mUnderground electric, natural gas & fiber optic up Route 150 ( ) Core Village – Public Spaces$5.5mPublic plaza space, Riverwalk and Parking/RV upgrades (2016 – 2019) Core Village – Utilities$9.2mWater & Sewer (2015) and WWTF replacement (2018) Core Village – Roads & Crossings $11.0mRiver crossings, Core Village bridge, road upgrades (2015 – 2018) Kachina Infrastructure$6.6mPaving of road to Kachina, underground gas & fiber, water tank ( ) Other Costs$7.7mVisitor Drop-off ( ), PID/TIDD setup costs & interest costs TOTAL$49.0m

Finance Sources Utility Companies (Up-valley Trench) State & Federal Programs Private Developers Infrastructure Financing Mechanisms Public Improvement District (“PID”)* Tax Increment Development District (“TIDD”)* Village Contribution *mechanisms to reimburse upfront outlays – typically made by the developer

TIDD Basics Definition Special, limited purpose government entity that would be authorized by the VTSV for the purpose of financing certain public improvements that would be owned by the VTSV. The TIDD’s operations would be subject to VTSV regulations and state law. Bond Issuance The TIDD can issue bonds to raise capital to support public improvements. The bond proceeds are used to reimburse up-front outlays. Source of Debt Service Payment Growth in GRT and property tax revenue resulting from the project* NO ADDITIONAL ASSESSMENT, LEVY or TAX *Dedications by the State (GRT) and Village (GRT & Property Taxes)

TIDD Basics (cont’d) “Growth paying for Growth” - no additional assessments or taxes Captures increased GRT and property tax revenue as a result of rising land values, construction activity and growth of business activity Option to collect minimal property tax not to be utilized Formation requires vote by 50%+ of land owners 25 year life from first bond issuance Managed by a Board of Directors *With the Village & State dedications in hand the overall the TIDD can finance $30-35m of the infrastructure costs

TIDD Boundary = VTSV Boundary – Ag Land

Formation Timeline 12/2: a. Authorize the resolution of intent to form the TIDD b. Schedule hearing on TIDD formation for 1/6/14 c. Ratify the TIDD’s application to the State Board of Finance for a dedication of its incremental GRT 12/12: Special meeting on operating plan and SBOF waiver requests 12/18: VTSV Overall Finance Plan workshop 1/6: VTSV holds hearing to determine whether TIDD should be formed; if formation is approved by Village Council, formation must be approved by majority vote of landowners and qualified voters residing within TIDD boundaries 1/30: Vote by land owners and qualified resident voters 2/3: Results of vote announced

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