Ski Lifts

• 2007 Poma Quad Chair
• Mueller Double Chair rebuilt in 1998
• T-Bar lift
• 2006 Magic Carpet beginner lift

Equipment

• 4 snow cats including a 2003 PB Edge and snow grooming equipment
• 3 4x4 pickup trucks
• 4 snowmobiles
• 2 all-wheel drive vans
• Complete ski and snowboard rental shop (updated annually)
• Kitchen and lounge equipment to serve 200 guests.

Water Utility
Mt. Baldy Waterwork Inc- This utility collects, treats, maintains, and distributes water for the resort and all deeded land at the mountain and charges provincially monitored fees for doing so. This is a new state of the art facility and meets present and immediate future use requirements. Includes surface water and storage licenses.

Mt. Baldy holds an attractive position being located in the extreme south of the Okanagan, an area universally known by winter enthusiasts for sunny skies and dry powder. Mt. Baldy is well positioned in the Okanagan, Canada’s third largest ski destination and home to the second largest resort in the country, Big White. Big White is just 60 miles north of Mt. Baldy and receives over 600,000 annual visits. Mt. Baldy is also the closest ski area to the US border and one of the closest resorts to the Vancouver metropolitan area.

The Resort is marketed to families that desire a friendly, un-crowded, and affordable vacation and to homebuyers seeking a four-season resort home.

Due to the Resort’s proximity to the South Okanagan and its base elevation of nearly 5,700 feet above sea level, the highest in British Columbia, Mt. Baldy’s winter season enjoys light dry powder skiing with abundant snowfall, mild temperatures and over 2,000 hours of sunshine per year. In summer, this high elevation and southern exposure combine to create an ideal climate for summer recreation opportunities. Due to its unique geography, Mt. Baldy has the potential to be a true four season playground offering winter activities such as skiing, snowboarding, and Nordic skiing and summer activities including mountain biking, hiking, horseback riding, a mountain spa/water park, and an 18-hole championship golf course.

Currently Mt. Baldy offers only winter activities and operates on two mountain faces, the southeast face of Mt. Baldy and the west face of Mt. McKinney. All of the ski terrain is located within Mt. Baldy’s CRA on Provincial Crown land and is subject to an operating lease providing the current ski area with approximately 700 acres of terrain. In addition to alpine skiing, Mt. Baldy offers cross-country skiing and snow shoeing.

The ski area includes two chairlifts, including the new Poma Quad Chair, one T-bar lift and one Magic Carpet beginner lift, providing access to over 30 runs with nearly 1,300 vertical feet. Recently Mt. Baldy opened the Sugarlump terrain completing a $2.8 million investment, the first new terrain expansion at Mt. Baldy in thirty years. Other facilities at Mt. Baldy include a day lodge complete with a C.S.I.A (Canadian Ski Instructors' Alliance) ski school, rental shop, cafeteria, and lounge.

The existing comfortable carrying capacity at Mt. Baldy is over 1,200 skiers/day. The area’s capacity is currently limited by day lodge facilities and overnight accommodations. The first phase of expansion, the Sugarlump, focused on adding more beginner and low intermediate terrain on a mountain face that will allow the resort to begin winter operations earlier than previously enjoyed.

Thanks to the undertaking of improvements on the existing amenities and the implementation of the Master Plan beginning in 2006, Mt. Baldy has seen a substantial increase in skier visits. The mountain currently averages approximately 25,000 skier visits during the annual season, which lasts from early December through mid April.

Located at the base of the mountain is a 6,500 square foot Day Lodge and a 2,400 square foot “Sprung” structure that house the ski rental shop, ski ticket office, ski school office, cafeteria, and a fully serviced lounge. Currently, Mt. Baldy has a significant lack of skier service space.

With the recent land acquisitions and development of the McKinney subdivision and Upper Base area, the resort now has the real estate to allow it to develop into a regional destination resort. Currently at Mt. Baldy there are approximately 110 privately owned single-family residences, two condominium complexes consisting of 20 units, and one managed bed and breakfast. With the completion of the McKinney Subdivision (Phase One), an additional 22 single-family home lots, 4 duplex lots and 4 high-density multi-family lots are becoming available. This is the largest real estate development in recent history and is the first time in Mt. Baldy’s history that zoned high-density development pads are available. These four development pads are located immediately adjacent to the existing ski trails and have become the upper base area, accommodating over 130 units.

For more information on the mountain, here is a link to Mt. Baldy’s website: www.skibaldy.com.

MASTER DEVELOPMENT PLAN
The Resort has received all Provincial and Regional approvals to support its all season master-planned development consisting of over 9,000 acres of recreational land use and has the potential of over 250 acres of residential and commercial village development.

The Master Plan was created for the development and resort expansion of the Mt. Baldy and was approved and signed in 2006 giving Mt. Baldy the exclusive use to develop a four-season resort on nearly 10,000 acres surrounding the mountain.

Mt. Baldy’s Controlled Recreation Area (“CRA”) is one of British Columbia’s largest resort tenures. Under the Master Development Agreement (“MDA”), dated May 19, 2006, Mount Baldy Ski Corporation (“MBSC”) is granted the exclusive right to purchase deeded acreage from the Crown for base area development at a substantial discount to fair market value. During the first ten-year period on the MDA, MBSC has the right to purchase land at $5,000 per acre plus appraised timber value, which is substantially below current fair market value (current fair market value is $240,000 per acre as estimated in the December 2006 Appraisal Report). In essence, the MDA contractually obligates the Crown to sell MBSC land at a substantial discount predicated on MBSC achieving benchmarks in the resort area expansion capacity (increase in the resort’s comfortable carrying capacity). The resort’s lease period with the Province is for effectively 90 years, commencing in 2006. Like all resorts in B.C, the lease rate is set at 2% of gross resort revenue derived from recreational ticket sales and does not include accommodations, food & beverage sales or real estate.

In 2006 The Osoyoos Indian Band (OIB), the Province of British Columbia, and MBSC entered into a historic mutually agreeable profit sharing agreement that ensured expedited approval of the Mt. Baldy Master Plan.

For specific details on the Master Plan please click here.

INVESTMENT POTENTIAL
With the Master Plan implemented, Mt. Baldy becomes a regional four-season destination, capable of easily accommodating over 100,000 annual resort visits. At this stage of development, Mt. Baldy ski resort would compare favourably with its direct competitor, Apex Resort and would easily handle over 60,000 annual ski visits. Mt. Baldy’s summer activities would provide a unique destination to the Okanagan and complement the existing summer destinations of Osoyoos and Oliver. Currently, only Silver Star in Vernon and Sun peaks in Kamloops offer summer recreation, leaving the central and South Okanagan summer recreational opportunities to Mt. Baldy.

Due to Mt. Baldy’s unique location, the potential summer visitation could be as large as 200,000 annual skier visits at full build out. In addition to providing a four-season business model, summer operations will provide increased marketing and exposure for Mt. Baldy’s winter operations and for real estate buyers, providing Mt. Baldy with a competitive advantage over two of its closest competitors, Apex and Big White.

Investment Highlights:

• Mt. Baldy is an existing resort with existing revenue and real estate sales.
• Mt. Baldy has a long-term agreement with the Crown to purchase land at very advantageous terms.
• Mt. Baldy has all licenses and approvals in place.
• Mt. Baldy is in one of Canada’s fastest growing regions and the real estate market remains strong, as evidenced by recent successes in Osoyoos.
• Mt. Baldy is in a growth industry and is in a geographic region that has become one of Canada’s true resort destinations with internationally known resorts such as Big White, Silver Star and Sun Peaks.
• B.C. economics, real estate market, 2010 winter Olympics, strong currency, political climate, and oil and gas industry are all indications of a growing market.
• Increased exposure for B.C winter sports due to 2010 Winter Olympics.
• No new ski resorts have been built in B.C. for over 20 years – existing resorts have expanded to fill void.
• Mt. Baldy provides a unique “Green Field” opportunity.
• Mt. Baldy’s real estate market did not overheat or overbuild in the last decade.
• Strong merger and acquisition market exists in the ski industry.
• The Okanagan is one of Canada’s fastest growing and most desirable places to live.
• Improved transportation to the region via Kelowan and Penticton Airports and major improvements to Hwy 97 and Hwy 3

COSTS OF DEVELOPMENT
The MDA allows for land to be purchased at $5,000 per acre plus appraised timber value for the first 10 years.