Afton AirPark DIGIBIP · s s p t t-t-t 4000 5000 6300 6300 7100 6500 7300 7300 5800 2500 17

Afton Airpark Estates

AFTON AIRPARK ESTATES – AFTON, WY

MARKET REPORT

April 2007


TABLE OF CONTENTS

i.

General Limiting Conditions………………………………

Introduction…………………………………………………

Project Description………………………………………..

Summary of Findings & Recommendations .....………

Site Location ..…………………………………………………

Afton Airpark Development Features …………………..…

Market Analysis ………………………………….……………

Supply Factors……………. …………………………………..

Demand Influences…….. ……………………………………….

Lot Sales Program……………………………………………..

Appendix ……………………………………………………….

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2

3

5

6

10

12

26

28

30

31


GENERAL LIMITING CONDITIONS

Every reasonable effort has been made to ensure that the data contained in this Market and Financial Analysis Report reflect the most accurate and timely information possible as of the date the primary research was collected. The information contained in this report is based on estimates, assumptions, and other information developed by Norton Consulting and from their independent research and analysis effort and general knowledge of the industry. No responsibility is assumed for inaccuracies in reporting by Norton Consulting’s representatives or by any other data source used in the preparation of this report. No warranty or representation is made that any of the projected values or results contained in this study will be achieved.

This study does not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be any sale of securities in any state or other jurisdiction in which such sale, or any related offer or solicitation, would be unlawful prior to registration or qualification under the securities laws of that state or other jurisdiction. 1


Norton Consulting was retained by Barr/More LLC to produce a market and financial analysis report.

The Afton Airpark Estates project is an airpark residential development located in Afton, Wyoming.

The project originally envisioned Barr/More LLC, has become one the premier airpark residential developments in the US.

This market report and master plan has been created to document the vision for the final phases of Afton Airpark Estates and provide recommendations for lot pricing.

The market research process included visiting the site, collecting data from existing airpark communities in the US and analyzing aviation trends and other market data.

This report was produced by Richard L. Norton and Darrin B. Davis of Norton Consulting’s North Palm Beach, Florida office.

INTRODUCTION

2

Afton Airpark Estates 3

PROJECT DESCRIPTION

Barr/More owns approximately 75 acres of land adjacent to and a part of the Afton, WY regional airport, which land is zoned for approximately 56 lots to be used for private residences, private airplane hangars and other related uses.

The property is located in the town Afton, Wyoming and is approximately 60 miles south of Jackson Hole.

With all the necessary permits and approvals in place, approximately one-half of the lots and hangar properties were sold during 2006.

The project is unique in that it is the first Denver FAA supported private residential project adjacent to a federally maintained airport. The Afton Regional Airport budget for maintenance exceeds $250,000 / year.

A full service Fixed Based Operation (FBO) is owned by a partnership. The FBO provides fuel and other aviation services.


PROJECT DESCRIPTION (continued)

Summer Activities• White water rafting & kayaking on the Snake River

• Drift Boat Trips along the scenic Salt River

• Fly and Bait Fishing

• Hiking, ATVs and Mountain Biking on Extensive US Forest Service lands

• 18-Hole Johnny Miller designed golf course in Afton and 36 holes (Star Valley)

• Water Skiing on the Palisade’s Reservoir

Winter Activities

• World class Elk and Deer Hunting (Fall)

• Snowmobiling

• Cross Country Skiing

• Snowshoeing

• Skiing at Jackson Hole and Grand Targhee

The property is located in the middle of an extensive outdoor recreation paradise (3.4 million acres Bridger-Teton National Forest). Nearby activities include:

4


SUMMARY OF FINDINGS

• The Afton Airpark Estates is a full service TTF (through the fence) supported airpark

• One of only a few FAA supported Airparks in the Rocky Mountain region (Denver)

• Private plane ground storage and hangar access is at a premium in Jackson Hole

• Afton Wyoming is central to thousands of acres of year-round recreational activities

• Real Estate in Jackson Hole is at premium

• 1-acre plus direct access hangar homes are marketable in western Wyoming

• Based on National and Regional comparables and recent sales patterns, pricing in excess of $150,000 to $250,000 per acre is supportable at the Afton Airpark Estates location. 5


SITE LOCATION

The project is

located on State

Highway 89

within the city

limits of Afton,

Wyoming.

6Subject site


SITE IMAGES

Afton Airpark – Images

Located in southwestern Wyoming’s Star Valley, Afton Airpark offers convenient access to majestic mountains, rivers and abundant wildlife habitat

7


Afton Area Images

8


SITE LOCATION

Regional Perspective

The site is, within a 1

hour drive of Jackson

Hole. The drive between

Afton and Jackson Hole

has been enhanced by

the widening of State

Road 89 to

accommodate passing

lanes up the Snake River

Canyon. The Highway is

all weather and regularly

maintained.

Afton

Jackson Hole

9


DEVELOPMENT FEATURES

Development Features• Majority of the lots are at least 1.1 acres

• 34 lots have sold

• 20 lots are still available

• Direct taxi way access to a 7200 foot runway

• Runway maintained both winter and summer• Asphalt

• Lights

• Logistics and Service• Full service FBO (Fixed Based Operation)

• FBO staff will be available to provide full range of services including fuel, oxygen, water etc.

• Home owner will be able to arrange for event catering, home cleaning, aircraft maintenance and other needs through FBO

• Travel needs of home owners and guests will be met including (rental car services, fishing guides, white water rafting tours, hunting guides, etc.)

The property includes 47 available lots.

10


DEVELOPMENT FEATURES (continued)

Development Features• Afton is the home of AVIAT specialty

airplane manufacturer; As a result mechanics are available at a reasonable cost

• Competitive Fees (Especially VS Jackson Hole)

• No landing fees

• No ramp fees

• Market best fuel prices

• Anticipated Covenant, Codes and Restrictions will be reasonable in context with an airpark

• Homes and full hangars allowed• Place to store all winter and summer

recreational vehicles, boats and equipment

• Owner or crew can stay in the home

11


MARKET ANALYSIS

Supply Factors• Overview of National Airpark Supply (US)

• Number of Airparks

• Location

• Airpark characteristics

• Available lots

• Pricing

• Regional Competitive Supply

• Alpine, WY

• Driggs, ID

• Market Implications of Restrictions on Jackson Hole

• Airport restrictions

• Real Estate

Demand Factors• Growth in aircraft handled by the FAA

• Growth in General Aviation Activity

12


MARKET ANALYSIS Supply Factors

There are roughly 250

Airparks in the US.

Florida has the largest

number of airparks

In the US.

In comparison to other

parts of the country,

the Inter-mountain west

has very few airparks

despite the proximity of

World class recreation.

The term airpark means

residential associated

with aviation / air strips.

13



US Airparks by Use

Private57%

Unknown13%

Commercial10%

Public20% Commercial

N/A

Private

Public

The 250 airparks are:•Mostly private

•Very few have commercial services

•Those that are public allow general access

14



• Most US Airparks are small (12 lots or less)

• 75 percent of all airparks have less than 50 total lots

• 75 percent of all airparks have less than 41 lots with direct taxiway access

Direct Access Lots Total Lots Direct Access Homes Total Homes25th Percentile 0 0 0 0Median 12 14 0 075th Percentile 41 50 11 1390th Percentile 81 100 30 45

Residential Composition at US Airparks (n=249)

15



US Airparks - Runway Length Distribution

-

5

10

15

20

25

30

35

40

45

50

< 2,000 2,001-2,500 2,501-3,000 3,001-3,500 3,500-4,000 4,001-5,000 5,000 +

Runway Length

Air

pa

rks

Only six airparks have runways longer than 5,000 feet. Afton Airpark is one of only three airparks in the country with a runway of 7,000+ feet.

16


Runway Length Requirements

Cessna 402 TwinProp

Gates Learjet 35 Jet

Canadair

RJ 200 Jet

Boeing 757-200 Jet

Boeing 737-300/400 Jet

4000

50006300

71006300

73006500

73005800

2500

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MARKET ANALYSIS Selected Air Park Properties

Source: www.airpark.com

In the appendix to this report Norton Consulting has profiled selected airparks in the

US.Although these airparks have been developed and organize somewhat differently than

what is anticipated for Star Valley, they provide a benchmark sense of market parameters.

Conclusions from those tables are as follows:

• The sample set includes upscale airparks in a resort / residential setting

• Runways types and lengths vary considerably; none offer the length and breadth of services promised at Afton.

• The larger developments do not offer direct taxiway service for but a a small proportion of their lots

• Afton, in contrast will offer 100 percent direct taxiway access/egress.

• Lot sizes range from 0.5 to 3 acres; the majority of the Afton Airpark lots will be in the 1.1 acre range, sufficient room for both a hangar and a home.

• Lot pricing ranges from $50,000 to $1.2 million depending on the quality of the development and the

location; the median or central tendency of lot pricing is $250,000 range; current lot pricing at Afton

ranges from $150,000 to $325,000. 18


MARKET ANALYSIS Regional Airparks and Air Strips Supply Factors

There are two airpark

properties that have

limited comparability to

the proposed Afton

Airpark property.

These are located in

nearby Alpine,

Wyoming and Driggs,

Idaho.

19Afton

Driggs

Alpine

Jackson


•Alpine Airpark is located on the north end of Star Valley on the northwest side of the town of Alpine, WY

•Runway is narrower and shorter than Afton (5,600 ft)

•Not maintained during winter

•Can only accommodate smaller aircraft

•Real estate opportunities at Alpine Airpark include a variety of condominiums attached to or adjacent to individual hangars

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Alpine Airpark – Competitive Benchmark


Alpine Airpark

• Lakeview Villas (sold as condominiums)

• Single family villas surrounding a pond; approximately 75-100 yards from hangars

• Building pads 3,000 to 4,000 Sq Ft

• Eight units total; 4 sold at pre-construction prices

• Hangar sizes from 2,000 to 3,200 Sq Ft

• 2 BR / 2 BA villas from $375,000 to $525,000.

Lakeview Villas

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Alpine Airpark

• Executive Hangar Condominiums are 800 Sq Ft multi-level units attached to the individual hangars

• These eight units vary in price from $390,000 to $450,000

• Prices start in this range and only include exterior finishes (interior finishes are additional)

• The included hangars range from 2,500 to 3,000 Sq Ft

22

Executive Hangar Condominiums


Alpine Airpark

Windsock Condominiums

• Four unit condominium; 2 available

• Three bedroom 2.5 bath two level units

• Prices starting at $750,000

• Build to suit interior finishes

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Driggs, Idaho – Additional Regional Residential Airpark

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Summary• Not well executed development plans• Land not being marketed professionally• Lax Covenant Codes & Restrictions• Parcels generally available for $80,000 per acre (unimproved)


DRIGGS Continued

Connected subdivisions include:

Mustang Ranch

Flying Saddle

Flying T

and in the future Sweetwater – roughly $80,000 per acre

(unimproved)

Driggs Fly-In (in planning; Eric Bedford/developer)

Unnamed (in planning; mixed use/hangars and industrial/

south side of airport / Melenes Bros; Alta Construction)

Available Property in TTF Subdivisions

Mustang Ranch; Lot 2 – 2.02 acres for $159,000 ($80,000 per

acre)

Flying Saddle; 6 adjacent lots approx. 1 acre each for $80,000

per acre

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JACKSON HOLE MARKET

The market for airpark and aviation related services in Afton is greatly enhanced by the restricted nature

of the Jackson Hole Airport and the Jackson Hole Real Estate market

Jackson Hole Airport• Foot print cannot grow

• Only have two hangars

• Airport Authority reports over 100 requests for Hangar Space since January of 2004

• With no hangar space there is no place to store recreational vehicles and equipment

• During the summer months planes are allowed to park on the ramps; fees for private jets run from $250 to $725 per night

Jackson Hole Real Estate Market• Specific constraints on future development

• Resale home and land prices at all time highs

• The residential real estate average transaction value was over $800,000 in 2004 as reported through MLS listings and closings

Supply Factors

26


JACKSON HOLE Access/Use Fees

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Type Landing Fee Ramp FeeHangar Rental

Rate/Night

King Air 200 $16.00 $30 $295

CJ's $13.31 $40 $250

Citation 10s $40.70 $70 $625

Gulfstream IV $74.88 $70 $725

Hawker 800 $29.44 $60 $425

Leer 35 $19.58 $40 $250

Westwind $24.32 $45 $295

Access/Use Fees for Common Airplane Types


FACTORS INFLUENCING DEMAND

General aviation continues

to grow.

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Growth Forecasts in Aviation Activity

Aircraft Handled by FAA ARTCC's (Millions)

Actual

FY 2003

Forecast

FY 2007 Change

Air Carrier 22.7 25.8 13.7%

Air Taxi / Commuter 9.1 10.6 16.5%

General Aviation 8 8.6 7.5%

Military 3.9 3.7 -5.1%

43.7 48.7 11.4%

Source: APO-110;

http://www.atctraining.faa.gov/site/library/factbooks/2005/mar05.pdf


FACTORS INFLUENCING DEMAND

Hours flown, jet fuel

and aviation gasoline

are projected to grow

rapidly.

29

Growth Forecasts in Aviation Activity

Actual FY

2003

Forecast FY

2007 Change

General Aviation

Hours Flown (millions) 26.7 28.7 7.5%

Active Aircraft (000s) 211.2 230.6 9.2%

Jet Fuel (millions of gallons) 989.0 1484.0 50.1%

Aviation Gas (millions of gallons) 276.0 290.0 5.1%

Source: APO-110;

http://www.atctraining.faa.gov/site/library/factbooks/2005/mar05.pdf


Lot Sales

Afton Airpark Lot Sales Prices

Afton Airpark Average Sales Price Per Acre

$50,000

$70,000

$90,000

$110,000

$130,000

$150,000

$170,000

$190,000

$210,000

8/05 6/05 9/05 10/05 1/06 2/06 3/06 4/06 6/06 7/06 8/06 9/06

!After an initial period of pre-construction price discounting, per acre lot pricing has climbed through the $150,000 to $200,000 per acre level.

!Afton Airpark lot pricing levels compare favorably with other real estate products in the regional and national market.

!The unique value of whole ownership estate airpark living in the outlying Jackson Hole market suggests continued price escalation. 30


APPENDIXAppendix

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Selected Airparks – General Description


RunwaysFacility Location Type Access Acres Type Length Lighting Add'l Info

Jumbolair Aviation Estates Ocala, FL Residential Private Asphalt 7,5503 intensity radio controlled

Spruce Creek Fly-In Daytona Beach, FL Residential Private 117 Asphalt 4,756Medium/Dusk to Dawn

14 Miles Taxiways

Heaven's Landing (Under Constr) Clayton, GA Residential Private Concrete 5,000 N/A100 LL/Jet A Fuel

Lajuitas-The Ultimate Hideout Lajitas, TX Resort Private 25,000 Asphalt 7,500

Stellar Airpark Estates Chandler, AZ Residential Private 50 Concrete 4,200 Yes - VASI 100 LLA Fuel

Mabel Lake Resort & Airpark Enderby, BC, Canada Resort Private Turf 2,900

Bourland Field Cresson, TX Residential Public Asphalt 4,150Yes-MicrophoneControlled

100LL/ Jet A Fuel, Pilot Lounge, Kitchen

Cannon Creek Airpark Lake City, FL Residential PrivateAsphaltTurf

3,500 2,400 Yes

Madden's on Gull Lake Brainerd, MN Resort Public 7 TurfWater 2,168

Westgate River Ranch Resort Lake Wales, FL Resort Private 5,000 Yes 32


Selected Airparks –Residential Characteristics


Facility Acres Total Lots Type Lot Prices Home Prices

Jumbolair Aviation Estates 550 125Estates/ Phase I $350,000 +

Spruce Creek Fly-In 1,200 Condo, Single Family, Estate

$50,000 - $400,000 +

Condo $135k+Taxiway S.F. $365k+

Heaven's Landing (Under Constr) 500 200 Estate

Lajuitas-The Ultimate Hideout 500 Single Family $250,000-$1.2mm

Stellar Airpark Estates 50 65 Single Family $155,000-$355,000 $360,000-$480,000

Mabel Lake Resort & Airpark 183 S.F. & Condo $130,000 + $500,000 +

Bourland Field 57 Single Family $65,000-$120,000 $300,000 +

Cannon Creek Airpark 500 153 $40,000-$350,000 $350,000(duplex) +

Madden's on Gull Lake

Westgate River Ranch Resort 1,700

CabinsTownhomesVillasAirport HomesCondo Hotel 33


Selected Airparks –Residential Characteristics


AmenitiesFacility Location Clubhouse Swimming Equestrian Golf Tennis Other

Jumbolair Aviation Estates Ocala, FL Jumbolair CC Yes Yes No Yes5-Suite Inn, Fitness Center, Indoor/ Outdoor Dining, 9,000 sq. ft. Ballroom

Spruce Creek Fly-In Daytona Bch, FL

Heaven's Landing (Under Constr) Clayton, GAPlanned amenities: clubhouse, tennis Yes Yes No Yes

Lajuitas-The Ultimate Hideout Lajitas, TXGolf clubhouse, driving range, practice greens Yes Yes Yes Yes

Jeep Tours, River Rafting, Mountain Bbiking, Hunt Club, Shopping, Agavita Spa, Art Gallery

Stellar Airpark Estates Chandler, AZ None No No No No 1 mile from new Chandler Fashion Mall

Mabel Lake Resort & Airpark Enderby, BC Golf clubhouse, Yes No Yes (9-Hole) NoSport fishing, boat launch, resort store, cabin rentals

Bourland Field Cresson, TX Yes Yes-Trails No Yes Bike Trails, Ball Fields, Creeks, Lakes

Cannon Creek Airpark Lake City, FL No No No Yes

Madden's on Gull Lake Brainerd, MNGolf Clubhouse, Restaurant, Yes No

Yes (63 holes) Yes (7 )

Marina, Spa, Trapshooting, Beach, Croquet, Volleyball, Golf School, Mtg. Rooms, Full service resort

Westgate River Ranch Resort Lake Wales, FL Yes Yes9-H (27-H

UC) Yes

Petting Zoo, Video Arcade, Marina, Rodeo, Saloon, Trap & Skeet Range, Restaurant, Basketball Court, Campsites

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Afton AirPark DIGIBIP · s s p t t-t-t 4000 5000 6300 6300 7100 6500 7300 7300 5800 2500 17

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