1. BRICA Update
Lou Herman President

2. BR Conference Center Acquisition
After Condos Sold, Developer (BRD) Retained Ownership
Negotiations Between BR HOA & BRD Started in 2009
Agreed Upon Price: $24,000,000
BRD Carryback Second Note: $6,500,000 at 7% for 15 Years
Condition: Eventually Center Must Be Owned by BR HOA

3. BR Conference Center Acquisition
Condo Declarations Would Not Allow a Special Assessment for Purchase
Voluntary Investment by BR Condo Owners
Formed LLC – Named BRICA
Beaver Run Interim Center Acquisition, LLC
Eventually Will Be Owned by BR HOA
Has Class A, B, & C Members

4. Class B Members BR Homeowners Voluntarily Invested
Approximately 60% of Owners Participated
Class B Invested $3,983,808
Should Return 4.85 Times Original Investment
Most of Return Paid After 15 Years
Can Retain or Sell Class B Shares

5. Class A Members
BR Homeowners Who Purchased Class B Shares Could Also Purchase Class A Shares
Class A Invested $1,462,149
Return of Principal & Interest Similar to Bank Loans
7.0% Interest, 15-Year Term
Can Retain or Sell Class A Shares

6. Class C Member (BR HOA)
After the Class A & B Investors Have Received Their Assigned Returns, They Will Have No Further Rights or Interest in BRICA
The Class C Member (the Beaver Run HOA) Will Become the Sole Member of BRICA

7. Acquired Additional Financing
Vectra Bank in Denver
Provided First Note
$12,375,000 at 5.79%
15-Year Term, All Due & Payable in 10 Years

8. Purchased Conference Center & Commercial Building – Sept 1, 2010
Beaver Run Homeowners
Funding ($)
Class A BRICA Members
1,462,149
Class B BRICA Members
3,983,808
Owner (BRD) 2nd Note
6,500,000
Vectra Bank 1st Note
12,375,000
Total Funding
24,320,957
Mortgage Payments ($/yr)
1st Note Vectra Bank
1,241,756
2nd Note Seller Carryback
701,086
Total Mortgage Early Payments
1,942,842

9. Greg Paschke – Treasurer
A Typical BRICA Year Where Does the Revenue Come From? (NOI) What is Left After the Yearly Operating Expenses are Paid?

10. Greg Paschke, CPA Treasurer
BRICA Financials
Greg Paschke, CPA Treasurer

11. Casino Night – Grand Prize

12. BRICA Financing History
2010 – $12.4M Vectra – 5.79%, $6.5M BRD – 7.0%, Original Loans 2012 – $15.0M Vectra – 5.15%, $1.4M BRD – 7.0%, Paid Down Principal by Additional $1M, Added Interest Rate Swap Agreement 2014 – $13.9M Vectra – 5.15%, $1.3M Vectra – 5.0%, Paid Off BRD Loan Completely 2016 – $11.75M Vectra – 3.8% Original Projected Interest Expense – $11.7M Projected Refinanced Interest Expense – $7.0M

13. 2016 Accomplishments Refinanced Bank Debt to a 3.8% Fixed Rate
Removed Restricted Cash Covenant ($1.6M)
Lowered Debt Service Coverage Ratio Allowing for Larger Investor Distributions
Removed Interest Rate Swap Instrument
Reduced Principal by an Additional $1.6M

14. 2016 BRICA Financials Income Statement Cash Flow Statement
Balance Sheet

15. Related Party Lease Income
2016
2015
Var. $
Var. %
Conference Center (4% Rental Revenue)
$ ,852
$ ,992
$ ,860
4.6%
Rental Supplement
700,000
600,000
100,000
16.7%
Food & Beverage/Deli
745,740
704,056
41,684
5.9%
Coppertop (Recovery)
200,000
216,000
(16,000)
(7.4%)
Front Desk, Lobby, 3rd & 4th Floor Offices
165,172
162,468
3,562
2.2%
Total Related Rents
$ 2,519,764
$ 2,360,516
$ 159,248
6.7%

16. Unrelated Party & Total Lease Income
2016
2015
Var. $
Var. %
Fixed Rents
Ticket Windows, Ski School, Childcare, Instructors’ Room, Real Estate Office
$ ,412
$ ,546 $
0.2%
Percentage Rents
Ski & Snowboard Shops, Lobby Store, Winter Parking
650,295
680,536
(30,241)
(4.4%)
Total Unrelated Rents
1,083,707
1,113,082
(29,375)
(2.6%)
Total Lease Income
$ 3,603,471
$ 3,473,598
$ ,819
3.7%

17. Other Income & Total Revenues
2016
2015
Var. $
Var. %
Food & Beverage Resort Fee $
$ ,808
$ (264,808)
(100.0%)
Management Fee
30,000
0.0%
Interest/Other Income
2,464
4,158
(1,694)
(40.7%)
Total Other Income
32,464
298,966
(266,502)
(89.1%)
Total Revenues
$ 3,635,935
$ 3,772,564
$ (136,629)
(3.6%)

18. Operating Expenses & Profit
2016
2015
Var. $
Var. %
Maintenance
$ ,446
$ ,588
$ ,858
4.6%
Real Estate Taxes
167,281
162,539
4,742
2.9%
Utilities & Energy
154,610
166,466
(11,856)
(7.1%)
Accounting & Legal
111,523
102,828
8,695
8.5%
Insurance
66,669
57,110
9,559
16.7%
Management Fees
30,000 0%
Other
23,276
26,209
(2,933)
(11.2%)
Total Operating Expenses
889,805
866,740
23,065
2.7%
Operating Profit
$ 2,746,130
$ 2,905,824
$ (159,694)
(5.5%)

19. Other Expenses & Net Income
2016
2015
Var. $
Var. %
Interest Expense
$ ,204
$ ,063
$ (259,859)
(3.7%)
Swap Termination Fee
247,950
100.0
Depreciation
428,480
793,412
(364,932)
(46.0%)
Amortization
112,836
137,284
(24,448)
(17.8%)
Total Other Expenses
1,240,470
1,641,759
(429,577)
(20.7%)
Net Taxable Income
$ 1,505,660
$ 1,264,065
$ ,595
19.1%

20. Operating Activities Net Cash Flow
Cash Flow Statement
2016
2015
Var. $
Operating Profit (Gross Cash Flow)
$ 2,746,130
$ 2,905,824
$ (159,694)
Interest Expense
(451,204)
(711,063)
259,859
Swap Termination Fees
(247,950)
Changes in Assets & Liabilities
Accounts Receivable
(34,385)
(26,688)
(7,697)
Prepaid Expenses & Other
5,498
(4,448)
9,946
Payables & Accruals
32,377
4,407
27,970
Due to/from HOA
(19,234)
5,383
(24,617)
Due to/from HOA (Rental)
114,145
162,660
(48,515)
Operating Activities Net Cash Flow
$ 2,145,377
$ 2,336,075
$ (190,698)

21. Net Operating Income (NOI)

22. Investing Activities Net Cash Flow Financing Activities Net Cash Flow
Cash Flow Statement
2016
2015
Var. $
Transfers (To)/From Reserve Fund
$ 1,617,382
$ (481,998)
$ 2,099,380
Investing Activities Net Cash Flow
1,617,382
(481,998)
2,099,380
Long-Term Debt Payments
(2,483,166)
(1,037,400)
(1,445,766)
Note Payable – Rental Payments
(100,000)
Loan Modification Payments
(2,816)
Class A Member Distributions
(160,693)
Class B Member Distributions
(179,272)
Financing Activities Net Cash Flow
(2,925,947)
(1,377,365)
(1,548,582)
Net Increase in Cash
836,812
476,712
$ ,100
Cash – Beginning of Year
597,939
121,227
Cash – End of Year
$ 1,434,751
$ ,939

23. Balance Sheet Current Assets
2016
2015
Var. $
Cash & Cash Equivalents
$ 1,434,751
$ ,939
$ ,812
Cash – Vectra Reserve
1,617,382
(1,617,382)
Accounts Receivable
216,929
182,544
34,385
Prepaid Expenses & Other
38,324
43,822
(5,498)
Due from HOA - Rental
183,284
297,429
(114,145)
Due from HOA
(13,017)
(32,251)
19,234
Total Current Assets
$ 1,860,271
$ 2,706,865
$ (846,594)

24. Balance Sheet Non-Current & Total Assets
2016
2015
Var. $
Property & Equipment, Net
$ 17,274,951
$ 17,703,431
$ (428,480)
Start-up Costs, Net
456,850
510,870
(54,020)
Goodwill, Net
480,667
536,667
(56,000)
Syndication Costs
35,000
Total Non-Current Assets
18,247,468
18,785,968
(538,500)
Total Assets
$ 20,107,739
$ 21,492,833
$ (1,385,094)

25. Balance Sheet Current Liabilities
2016
2015
Var. $
Accounts Payable & Accrued Liabilities
$ ,324
$ ,330
$ ,994
Property Taxes Payable
380,156
369,475
10,681
Accrued Interest
34,976
58,274
(23,298)
Current Portion of Long-term Debt – Vectra Bank
1,175,000
1,089,200
85,800
Total Current Liabilities
$ 1,648,456
$ 1,530,279
$ ,177

26. Balance Sheet Non-Current & Total Liabilities
2016
2015
Var. $
Long-term Debt – Vectra Bank, Less Current Portion
$ 9,514,034
$ 12,083,000
$ (2,568,966)
Note Payable – Rental
272,202
372,202
(100,000)
Due to Class A Members
160,693
Total Non-Current Liabilities
9,946,929
12,615,895
(2,668,966)
Total Liabilities
$ 11,595,385
$ 14,146,174
$ (2,550,789)

27. Balance Sheet Members’ Equity
2016
2015
Var. $
Class A Member Interests
$ 1,015,701
$ 1,099,434
$ (83,733)
Class B Member Interests
3,983,808
Class C Member Interests
3,512,845
2,263,417
1,249,428
Total Members’ Equity
8,512,354
7,346,659
1,165,695
Total Liabilities & Members’ Equity
$ 20,107,739
$ 21,492,833
$ (1,385,094)

28. The Future of BRICA

29. Original PRINCIPAL Balance

30. Original PRINCIPAL Balance
Actual PRINCIPAL Balance

31. Original PRINCIPAL Balance
Actual PRINCIPAL Balance
Yearly PRINCIPAL Payment

32. Net Operating Income (NOI)