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PHASES

The Bavarian Chalets are being developed in full cooperation and compliance with the staff and Planning & Zoning Commission of the Village of Taos Ski Valley ("VTSV").

This expansion of the Bavarian as the initial keystone in the development of Kachina Village pursuant to a Master Plan adopted by the VTSV. This plan positions Kachina as a small wilderness village at mid-mountain that complements the core village of Taos Ski Valley and completes "the vision of the Village of Taos Ski Valley to create a year-round economy based upon a resort related commerce by improving infrastructure, preserving our environment, and improving amenities for ourselves and our visitors".

The Bavarian Chalets are to be developed in four or more distinct phases to minimize the construction impact on the roadways and utility systems in the Kachina Basin. Over time, a total of 75,500 square feet of space is proposed in five or six separate structures.

SITE PLAN

PHASE ONE

Phase One (Buildings 'E') consist of three (3) two story duplex condominiums, each containing two full hotel-service Chalets, each with three bedrooms. The footprints are approximately 38' x 38' each. Together, the three 'E' buildings total approximately 11,700 square feet of floor space. Each Chalet has been carefully sited to preserve as much of the existing spruce forest and other natural elements as possible, and the construction process has minimized adverse environmental effects. The surrounding grades and natural drainage paths have not been materially disturbed. The buildings are of Type V B construction and have an automatic sprinkler system and fire alarm system throughout.

PHASE TWO

Phase Two, building 'F' will consist of a single, 2 1/2 story residential building, designed to accommodate up to thirteen condominium residences (each containing one to three bedrooms). Building 'F' footprint will be approximately 55' x 110' and contain 12,000 square feet. The building is proposed to be of Type V B construction and will have an automatic sprinkler system and fire alarm system throughout. Contingent on building permits, other approvals and pre-sales it is anticipated that construction will commence on these units in June 2010.

PHASE THREE & FOUR

Phases Three and Four will comprise the Bavarian Inn, be a full service condominium hotel. The Inn will be built in phases, based on building permits and market demand. These three-story buildings will contain a main lobby, meeting space, lounge, serving kitchen, offices and residences. Depending on the number of two-bedroom "units" sold in Phases One and Two, the Inn may contain a total of up to 34 two bedroom residences. These buildings will contain approximately 54,800 square feet of total space and be of Type III A construction designed to meet requirements of the International Building Code for R-1 occupancies. They will have an automatic fire sprinkler system and fire alarm system throughout.

LANDSCAPE / AESTHETICS

The exterior design of BI&C will include elements that are reminiscent of old Western mining camps as well as inns common to the Alps, especially Bavaria. The exterior architecture will feature a stone base, rustic wood siding, sloping metal roofs, and wood windows with painted shutters and flower boxes. Balconies and trim will echo the design motifs of the existing Bavarian Lodge and Restaurant. All exterior colors will be dark or natural, in keeping with the wilderness that surrounds Kachina Village.

Landscaped areas will be introduced along the perimeter of the parking areas and adjacent to the new facilities. Indigenous plant materials will be used, including diamond lead / plane leaf willow, small-wing sedge, water sedge, shrubby cinquefoil, and other shrubs and herbs native to the region. All other areas that have been disturbed by construction will be reseeded with native grass and wildflower mixes.

All development will conform to the recently adopted Urban Wildfire Interface Code.

SITE IMPROVEMENTS

Site improvements will include new electric service and transformers, new domestic water hookup, fire lines, tie-in and replacement of the onsite sanitary sewage system which is connected to the Village forced main system, separate (screened) propane gas tank(s) for heating fuel source, a new entrance drive, expanded parking areas, and landscaped walks and trails.

The terrain management plan will minimize the need cut and fill. Existing grades and drainage ways will be maintained. Increased storm drainage flows from new impervious areas, consisting of new roofs, will be directed to planting areas and storm water catch basins and pipes that daylight into the wetland at the north portion of the property. Construction storm water management plans will be developed and filed in compliance with EPA requirements. Soil and water table investigations will be undertaken to determine the need (if any) for dewatering and surface water protection during construction.

Relocation of the sewer main along the southern boundary of the property will be coordinated with the Taos Ski Valley Company to accommodate the existing lines from the Phoenix Restaurant, and will include consideration of the location of a central pump/grinder station that will eventually serve all buildings in the development as well as the Phoenix.