Village of Taos Ski Valley Public Improvement Finance Plan November 3, 2014

VTSV SCHEDULE OF IMPROVEMENTS ImprovementEstimated CostSpecifics Up-Valley Utility Trench$8.1mUnderground electric, natural gas & fiber optic up Route 150 ( ) Core Village – Public Spaces$5.0mPublic plaza space, Riverwalk and Parking/RV upgrades (2016 – 2019) Core Village – Utilities$6.9mWater & Sewer (2015) and WWTF replacement (2018) Core Village – Roads & Crossings $10.0mRiver crossings, Core Village bridge, road upgrades (2015 – 2018) Other Improvements$3.5mVisitor Drop-off ( ) and paving of road to Kachina (2018) Other Costs$2.8mPID/TIDD setup costs & overall contingency TOTAL$36.2m

Public Improvement Plan Goals Address current and proposed infrastructure needs Position VTSV to support future development Enhance experience for residents and visitors with new and/or improved public spaces Properly position VTSV as a world-class year- round destination Minimal financial impact on residents

Development Support - Core Village and Beyond

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

PID & TIDD Basics Definition Special, limited purpose government entities that would be authorized by the VTSV for the purpose of financing certain public improvements that would be owned by the VTSV. Each entity would be subject to VTSV regulations. Bond Issuance Each District can issue bonds to raise capital to support public improvements. The bond proceeds are used to reimburse up-front outlays. Source of Debt Service PID – special assessments on benefited property owners within the district TIDD – growth in GRT and property tax revenue resulting from the project – NO ASSESSMENT, LEVY or TAX

TIDD Boundary = VTSV Boundary

Tax Increment Development District (“TIDD”) “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 public bond issuance Managed by a Board of Directors

VTSV Lower Valley Public Improvement District

Public Improvement District (“PID”) Boundary based upon parcels directly benefiting from the improvements No assessment unless a parcel is re-developed from its current use; assessment based on level of re-development Assessments + Property Taxes < 1.95% of assessed market value Formation requires 75% vote by land owners (by acreage) Managed by a Board of Directors

FYI’s Next Steps After addressing questions raised during the 11/3 P&Z workshop applications will be prepared and filed in the near future. That will be followed by public hearings and then eventually a vote by property owners and registered voters within each proposed district on whether to form the Districts. When Will Bonds Be Issued? Bonds issued to the public markets will not occur until each District has the capacity to service the debt. We anticipate that capacity will occur within the next 3-6 years.

Thank you for your time! Questions or Comments?