Gateway Canyons and Hendricks Ranch Headquarters Second Amended PUD Concept Plan NARRATIVE

Gateway Canyons and Hendricks Ranch Headquarters Second Amended PUD Concept Plan NARRATIVE 1. OVERVIEW OF PROJECT In October, 2005, the Board of Mesa County Commissioners approved a Planned Unit Development Concept Plan and Zoning for the Gateway Canyons and Hendricks Ranch Headquarters, Resolution No. MCM 2005-175, Planning Department No. 2005-142 PUD1. The Resolution and Concept Plan were recorded in Book 4021 at Page 948 of the records of Mesa County, Colorado. In February, 2010, the Board of Mesa County Commissioners approved an amendment to the Gateway Canyons and Hendricks Ranch Headquarters Planned Unit Development, Resolution No. MCM 2010-050, Planning Department No. 2008-0787CP1. The Resolution and Amended Concept Plan were recorded in Book 5002 at Page 369 of the records of Mesa County, Colorado. The resulting Planned Unit Development (which will be referred to in this Narrative and other application documents as the Gateway Canyons Planned Unit Development or the Gateway Canyons PUD ) has four use zones: Area A Traditional commercial and business area zoned for the resort business facilities including lodging units, employee housing units, business facilities and support services. Area B Single family and/or multi-family housing to be sold to third parties. Area C Recreation and open space. Area D No-build area. This application is to amend the Gateway Canyons Planned Unit Development Concept Plan and zoning to change a portion of Area A to an Area B designation so that residential housing can be constructed in an area now zoned only for resort and lodging use. The area to be changed is that portion of the Gateway Canyons Resort where the old casita duplex buildings are located. The goal is to subdivide this parcel into residential lots and then construct single family housing units. The area will be developed and sold as a fractional ownership community called Sundial at Gateway Canyons. Page 1 of 14

The applicants are Western Sky Investments, LLC, ( WSI ) and Hendricks Real Estate Holdings, LLC ( HREH ), owners of the property and improvements that make up the Gateway Canyons Resort property. WSI and HREH will be referred to in this Narrative as the Applicant. WSI owns the land and improvements used by Gateway Canyons Resort for its resort operations. HREH owns two parcels within the PUD-zoned area. The first parcel is the current Area B parcel slated for housing in Phase 2 of development. The second HREH parcel is the land that the Applicant desires to change to an Area B designation to be developed into residential housing as part of Phase I. The purpose of this application is to amend the PUD to establish residential housing as an allowed use in a portion of Gateway Canyons that is now zoned for resort use. Applicant also requests an extension of the time to complete Phase 2 of the Gateway Canyons PUD from 2020 to 2025. Applicant also seeks to provide for certain standards that differ from the standards of the Mesa County Land Use Code. Except as amended for the Sundial community and Phase II, Applicant seeks to maintain all of the benefits and obligations of the current PUD Concept Plan and zoning. 2. PROPERTY SUBJECT TO THE GATEWAY CANYONS AND HENDRICKS RANCH HEADQUARTERS SECOND AMENDED PUD CONCEPT PLAN The land within the Gateway Canyons PUD is currently subject to a separate application with Mesa County Planning Department, Planning Department No. 2012-0045, to re-plat the Gateway Canyons Resort property into nine distinct parcels. The necessary re-plat engineering is expected to be completed and filed with the County within thirty days. Upon approval, the parcel to be subdivided into the Sundial community will be known as Lot 8 of the Gateway Canyons Resort Re-plat. A simple example of the intended re-plat is attached to this Narrative as Attachment 1. 3. USE AREAS There shall be four use areas within the PUD. Each use area is shown on the Amended PUD Concept Plan Map included with this filing. These use areas are: Area A: Area A is the area for all resort facilities including lodging units, employee residential units, and commercial and support buildings (retail, food and alcohol service, meeting rooms, museum, administrative offices, shops, laundry, storage). Applicant will be able to construct any needed resort improvement within this Area A as dictated by market demand and good land planning, subject to Mesa County Site Plan approval. The number, type and density of improvements in Area A will be controlled by the following maximum build-out limits. Lodging Units: Employee Housing Units: up to 200 units up to 50 multifamily units Page 2 of 14

up to 20 dorm units up to 8 single family detached units Commercial and Support Buildings: up to 300,000 total square feet To date, Applicant has constructed 72 lodging units and a total of 126,280 square feet of resort business and support buildings including restaurants, retail shops, an auto museum, an event center, swimming pool, administrative offices, employee housing and outdoor recreational facilities. WSI is currently building additional employee housing units, a clubhouse and a pool at the west end of the property. Uses that are allowed in Area A shall include the following: Museum Medical/Dental Clinic Parking Areas All Utilities Major Event Indoor and Outdoor Hotel General Offices Swimming Pool Alcohol Sales By the drink Alcohol Sales Retail Food Service Catering Food Service Restaurant General Retail Sales (5.2.12) Personal Services All Other Retail Sales and Services Gasoline Service Station Wine Tasting Room Helipad including the operation of a commercial air tours business Telecommunications Support Structure (5.2.18) Telecommunications Facilities (5.2.18) Outdoor Recreation Pasture including equestrian facilities Single Family Dwellings (6 units to the acre density) Multifamily Housing Mini Storage and Outdoor Storage Area B: Area B is for residential development for housing product to be sold to third parties. Area B-2 is in Phase II and will require a Major Subdivision approval from Mesa County before development can occur. Area B-2 is zoned RMF 5. Area B-1 is in Phase 1 and is discussed in depth in Section 4 of this Narrative and accompanying documents. Proposed Area B-1 is currently within the Area A land use. Applicant is seeking a change in zoning of this area Page 3 of 14

to Area B with a designation for single family detached homes with a density of one housing unit per acre. This area B-1 will be subdivided into eight building lots and 5 out-lots. The subdivision is expected to be called Sundial at Gateway Canyons. After approval of the Second Amended Concept Plan, Applicant will be required to file and get approval of a Final Plan and Final Plat prior to development. Uses allowed in Area B are: In B-1, Single Family RSF 1 In B-2, Single Family RMF 5 Rental of housing as lodging units to guests at Gateway Canyons Resort Recreation Facilities and Swimming Pools and Hot Tubs Utilities Telecommunications Equestrian Outdoor retreat Food service catering Area C: Area C is an area for recreational and open space. The structures allowed in this area will be limited to small support facilities that enhance recreational activity. The uses allowed in Area C are: Primitive Campground Non-primitive Campground Parks/Lakes Utilities/Underground Utilities Basic Equestrian Area Outdoor Recreation Food Service Catering Telecommunication Facilities Telecommunication Structures Pasture Area D: Area D is a no-build, ridgeline area. Uses allowed in Area D include: Outdoor Recreation Utilities Underground Utilities Basic Telecommunication Facilities The architectural design for all facilities to be built at Gateway Canyons Resort will be harmonious with the Santa Fe adobe style of existing buildings. Page 4 of 14

4. SUNDIAL AT GATEWAY CANYONS The area labeled B-1 in the Second Amended Concept Plan will be developed into a whole and fractional ownership residential community expected to be called Sundial at Gateway Canyons. A. Subdivision of land into residential community. HREH is the owner of the property labeled B-1 on the Concept Plan. HREH desires to subdivide this land into eight residential lots and five out-lots. HREH will construct a single family house on each residential lot to sell as a vacation home. It is anticipated that each home will be fractionally owned by up to ten owners. Gateway Canyons Resort will also place the home(s) into a rental pool to be nted to Gateway Canyons Resort guests when not occupied by an owner. B. Concept Plan Sheets. The Second Amended PUD Concept Plan (filed herewith) includes four sheets. Sheet 1 is the overall Concept Plan for the Gateway Canyons PUD. Sheets 2-4 contain the detail of the proposed Sundial community. It should be noted that nothing outside of the Sundial community area will change as the result of this amendment to the Gateway Canyons PUD. The focus of Mesa County review should, therefore, be primarily on the Sundial community and the resulting subdivision. This parcel is to be divided into eight residential lots of approximately one acre each. Out-lots will be used for roadway, storm drainage and recreational purposes. Setbacks will be a. To PUD Property Boundary 15 feet b. Front to Architecture - 15 feet c. Front to Garage for Apron - 18 feet d. Rear setback - 15 feet e. Side Setback - 10 feet Patio walls, patios, fences, and fireplaces shall be allowed within building setback. All setbacks shall be measured from road ROW, property boundaries and lot lines. C. Description of Sundial Homes. The homes in the Sundial community will contain between 3500 to 4000 square feet. Architecture will be similar to the existing architecture at Gateway Canyons Resort stucco with wood and stone. Landscaping will be consistent with the existing landscaping at Gateway Canyons Resort. A general Landscape Plan is included with this application. Each home will have a generous patio area with features such as a plunge pool, hot tub, fire pit, grill and sitting area. D. Services and Utilities. Utilities and services to the Sundial homes will be provided by the same entities that service Gateway Canyons Resort, which are described later in this Narrative. Gateway Canyons Resort staff will provide daily (or as needed) support to the owners of the Sundial homes for such things as cleaning and yard service, deliveries, trash, security and technology. Page 5 of 14

E. Parking. Parking spaces within the Sundial community will be in accordance with Mesa County Land Use. There will be room to park three vehicles on each of the Sundial lots in the garage or driveway. F. Access. Access to the Sundial community gated entry will be through Gateway Canyon Resort. Owners will travel through the main entrance off of Colorado Highway 141 and follow the main Resort roadway to the entrance of Sundial. A permanent easement for access will be provided by WSI and HREH to the future homeowners of Sundial homes. Anticipated traffic volumes to the Sundial homes are within the volume allowed by the existing CODT permit for the Resort entrance. G. Homeowners Association. As part of the Final Plan and Final Plat process, Applicant will draft and record covenants providing for a Homeowners Association to manage and oversee the streets, paths, trails, yards, out-lots and common areas of the Sundial community. It is likely that the HOA will contract with Gateway Canyons Resort for the provision of these maintenance and repair services. 5. DEPARTURE FROM STANDARDS OF THE MESA COUNTY LAND USE CODE A. Major Events. Within Area A of the PUD, major events may occur at the discretion of the owners and operators of the facilities and will be limited to events sponsored or hosted by the owners or operators of the facilities. A major event may be indoor or outdoor and will not require issuance of a Mesa County temporary use permit unless the anticipated number of guests (not inclusive of staff or support personnel) exceeds 500. All major events will comply with the following requirements. 1. Event with <500 guests. If the anticipated number of guests for an event is less than 500, the following shall apply: Number of yearly events: Location: Parking: Duration: Unlimited The site is adequate to accommodate this particular event. Permanent facilities for such events include the general grounds, the Palisade Event Center and Mission Bell Amphitheater. All temporary buildings, tents or other items will be removed within two days of the conclusion of the event. Adequate parking will be provided. Each event will not extend more than three consecutive days and will be limited to the hours of 8 a.m. to 12 Page 6 of 14

midnight. Control of Nuisance factors: Other requirements: Adequate provisions will be made for each event to control event specific light, noise, vibration, smoke, dust, dirt, odors, gases and heat. In no event shall noise exceed the noise limitations set forth in the Mesa County Code. Any lighting necessary for the event will be allowed. Every effort will be made to prevent glare or illumination from temporary lighting to adjacent properties. All event-related noise and lights (not including those necessary for cleanup or security) shall be shut off by 12 midnight. Adequate provision shall be made for waste collection and disposal and for sanitary, medical and security facilities. All such provisions shall be specific to the needs of the event, as determined by the owners or operators. 2. Event with >500 guests. If the anticipated number of guests for an event exceeds 500, the following shall apply: Application for permit: Number of yearly events: Location: Parking: Security: Pursuant to 5.4.2.F of the Mesa County Code, an application for temporary use permit shall be submitted for the specific event. The permit shall not be unreasonably withheld. 10 The site is adequate to accommodate the particular event. Permanent facilities for such events will include the Palisade Events Center, Mission Bell Amphitheater and the resort grounds. All temporary buildings, tents or other items will be removed within two days of the conclusion of the event. Adequate parking shall be provided. Ushers, including valet parking, if applicable, will be provided. At the conclusion of the event, ushers will direct and provide for the orderly departure of guests. Adequate security shall be provided and shall be specific to the needs of the event, as determined by the Page 7 of 14

owners or operators. Duration: Control of Nuisance factors: Other requirements: Each event will not extend more than three consecutive days and will be limited to the hours of 8 a.m. to 12 midnight. Adequate provisions will be made for each event to control event specific light, noise, vibration, smoke, dust, dirt, odors, gases and heat. In no event shall noise exceed the noise limitations set forth in the Mesa County Code. Any lighting necessary for the event will be allowed and every effort will be made to prevent glare or illumination of adjacent properties. All eventrelated noise and lights (not including those necessary for cleanup or security) shall be shut off by 12 midnight. Adequate provision shall be made for waste collection and disposal and for sanitary, medical and security facilities. All such provision shall be specific to the needs of the event, as determined by the owners or operators. B. Signs within the PUD. Pursuant to BOCC Resolution No. MCM 2010-050, signage will generally follow the Gateway Overlay District Standards. The applicants may develop a project specific signage plan for areas of the Resort along Highway 141 and John Brown Road for Planning Director approval. The limitations of the Gateway Overlay District Plan do not apply to signs that are internal to the Resort and that are not visible from Highway 141 and John Brown Road. C. Density / Dimensional Standards. The listed setback standards and lot size requirements set forth in the Code will be ignored relative to existing parcel boundary lines found within the PUD property. In the event of the conveyance of a parcel(s) from the whole, the setback standards found herein and the lot size requirements of the Code will control as necessary. a. Lot Lines. Except in Area B parcels, property line boundaries within the PUD shall not have any effect upon, nor dictate the location of, building sites. b. Setbacks. Setbacks for construction within Areas A, C and D of the PUD shall be a minimum of: 1. 15 feet from the PUD Property boundary (depicted in bold black on the PUD Concept Plan); Page 8 of 14

2. 15 feet from Colorado State and Mesa County highways and roads; 3. -0- between buildings. Setbacks in Area B shall be as stated in Section 4B above. D. Fire. Pursuant to Mesa County Resolution No. MCM 2005-175, the Gateway Canyons PUD Fire Protection Plan is subject to the review and approval by an expert in fire protection. This expert is to be approved by the Mesa County Planning and Economic Development Department. Debra Shaner is the approved fire expert at this time. The Fire Chief of the Gateway/Unaweep Volunteer Fire Department does not have jurisdiction to approve an alternate Fire Protection Plan. Such review and departure from Section 7.9.b.2 shall continue. E. Parking Plan. Except for Area B, parking spaces within the Gateway Canyons PUD shall be calculated at the ratio of 3.8 parking spaces per lodging unit and shall be applied to Gateway Canyons Resort as a single entity. Parking requirements for area B shall be according to the Mesa County Land Use Code. There will be sufficient area within each lot of Sundial to park three vehicles. 6. PHASING PLAN The PUD will be developed in two phases. The first phase is the resort property that includes Areas A, B-1, C and D. The infrastructure to Phase I is complete. Applicant shall be allowed to continue to build within this Phase I (Areas A, B-1, C and D) to the maximum unit and density limits stated in Section 3, 4 and 5 above. A Site Plan approval is required for all Area A improvements. The Final Plan and Final Plat for Sundial community (B-1) shall be in accordance with the Mesa County Land Use Code. Otherwise, there shall be no completion deadline or lapse provision concerning Phase I. Phase II encompasses Area B-2, a planned future residential community. If a plat for Phase II area (Area B-2) is not filed of record by January 1, 2025, then Phase II shall lapse and the use designation for this Area B-2 shall become recreation/open space with the same land use designations as found in this Narrative for Area C. 7. WAIVER OF SECTIONS OF THE MESA COUNTY LAND USE CODE As contemplated by the PUD zone designation, the Applicant will mix uses in various areas that would not otherwise be permitted by straight zoning designations. Except as stated immediately below, Applicant does not wish to waive sections of the Mesa County Land Use Code. Applicant requests the following waivers: Section 5.4: Applicant has developed a procedure for major events and the use of the PUD for such events (see Section 5A above). Applicant requests a waiver of Section 5.4 relative to temporary use of the PUD for major events. Page 9 of 14

Section 6: Applicant has developed density and dimensional standards for the PUD (see Section 4B and 5C above). Applicant requests a waiver of density and dimensional standards, including setbacks, of Section 6 of the Mesa County Land Use Code. Section 8.1: Applicant has developed a procedure for signs within the PUD (see Section 5B above). To the extent necessary, and to conform to the sign standards stated herein, Applicant requests a waiver of the sign requirements of the Mesa County Land Use Code. Section 7.8.2: Applicant has developed and installed a private community water system for the PUD Property which has been reviewed and approved by the Colorado Department of Public Health and Environment. The water system will continue to be subject to the jurisdiction and approval of the Colorado Department of Public Health and Environment. The water system will likely be conveyed to the Dolores Canyon Metro District 1 in the future. Section 7.9.3: Except for certain service and storage buildings, all of the buildings within Gateway Canyons Resort have sprinkler systems for fire suppression. All completed buildings have either been inspected by the Gateway/Unaweep Volunteer Fire Department or by the current fire protection expert. Such inspections were required to obtain Certificates of Occupancy for each building. Fire hydrants are provided at the apartments, at the commercial areas, at all lodging locations, and at the Palisade Event Center. Applicant requests the continued waiver of Section 7.9.b.2 of the Mesa County Land Use Code and the approval to use a fire protection expert. In addition, Applicants request approval of the alternative fire plan developed by the fire protection expert. Section 7.9.4: Applicant is in compliance with Section 7.9.4. In addition to the main entrance to the development, there is an emergency entrance available to the Gateway Canyons employees onto 4.1 Road near the employee apartments. All buildings contain sprinklers and there are adequate fire hydrants. To the extent necessary, Applicant seeks the waiver of 7.9.4. Section 7.1: To the extent necessary to support the parking space ratio of 3.8 parking spaces for each lodging unit, applicant seeks the waiver off street parking requirements found in Section 7.1 of the Mesa County Land Use Code. 8. SITE PLAN EXPLANATION Applicant provides the following explanations concerning the Second Amended PUD Concept Plan filed herewith: A. Landscape Plans. Page 10 of 14

Landscaping is not shown on the Second Amended Concept Plan. Historically, a specific landscaping plan was filed with each Site Plan Application for each new facility in Gateway Canyons. Substantial landscaping has been installed at the Resort per these plans. Applicant has also filed a landscape plan for the Sundial community with this application. Specific landscaping plans will be included in the Final Plan for Sundial and for all future Site Plan applications for each future Gateway Canyons facility, which landscape plans will appropriately integrate into the overall landscaping and conform to the Gateway Rural Community Plan. B. Irrigation Plan. The Gateway Canyons Resort property is serviced by an underground irrigation system. This irrigation system is not shown on the Second Amended Concept Plan. Irrigation water is conveyed by siphon from West Creek under the Dolores River and Highway 141 to irrigation ponds on the Gateway Canyons property. In times of draught, irrigation water can be pumped from an alternative point of diversion on the Dolores River. The irrigation water is then pumped from the ponds to turf and planted areas as needed throughout the resort. As each new area is developed and landscaping is installed, this underground system will be extended to service such areas, including the Sundial community (Area B-1). C. Internal Roads. Alignment of interior roads is shown on the Concept Plan. No dimensions or grades are provided. Major roads within the interior are built pursuant to Mesa County Road Standards. Residential neighborhood roadways to provide 50 ft. ROW with 14 ft. travel lanes and 2-3 ft. shoulders for a total of up to 20 feet. Sidewalks and curb/gutters are optional. Sundial residents are expected to walk and bike the travel lanes of the road because of the low volume of vehicular traffic. D. Storm Drain: Rolland Engineering previously designed a storm drainage system for the resort property. That system has been installed and is in operation. Each new facility, including the Sundial Community, will be tied into the system when built. The storm drain system is not shown on the Concept Plan Map. 8. SECTION 3.7.2F CONCEPT PLAN AND PUD REZONING CRITERIA A. The Concept Plan is Consistent with the Gateway Rural Community Plan. The Gateway Canyons Planned Unit Development, as amended by this application, is consistent with the policies of the Gateway Rural Community Plan, including applicable special area, neighborhood and corridor plans. All Area A commercial uses and Area B residential uses are uses found in the matrix of the Gateway Rural Community Plan and the Gateway Overlay District. Page 11 of 14

B. The Concept Plan is necessary to address unique situations and represents a substantial benefit compared to strict zoning district standards. At the time of Applicant s first application for PUD zoning in 2005, it was apparent to the Applicant and to Mesa County that the land use needs at Gateway Canyons Resort presented a unique situation in Mesa County. Gateway Canyons required a wide variety of land uses on a single property, ranging from agricultural to recreational to commercial. It would have been difficult, and it would still be difficult today, for Applicant to obtain a similar result through traditional zoning techniques. The same outcome would require overlapping zones, conditional use permits and variances. This application is to amend the Gateway Canyons PUD to now include residential ownership within the Resort property. The PUD zoning is a logical outcome and will benefit both the Applicant and Mesa County to continue to utilize a PUD zoning model rather than add the new housing by some other traditional zoning means. The requested amendment to the PUD Concept Plan and the desired land use needs of Applicant present a unique situation in Mesa County. The Applicant desires to combine land uses ranging from AFT (agriculture) to C-2 (high use commercial) within the same parcel. The combination of all such uses within the same property will provide an exceptional experience for the guest/traveler and Sundial residents alike. The requested uses will preserve much of the natural elements of Gateway in combination with this resort experience. It would be difficult for the same result to be accomplished through traditional techniques because of the overlap of zones and the need for multiple conditional use permits and zoning changes. C. Compliance with Section 4.4.1 of the Mesa County Development Code. The proposed Concept Plan complies with Section 4.4.1. Specifically, the Gateway Canyons PUD will be in compliance with the Gateway Master Plan and the Mesa County Land Use Code. D. The Concept Plan is not significantly different from surrounding land uses. The requested land uses are not significantly different from surrounding and nearby uses and/or allowed uses in terms of density, intensity and impacts and will not result in adverse impacts on surrounding properties or the natural environment, including air, water, noise, storm water management, wildlife and vegetation. Upon approval of the Second Amended PUD Concept Plan and build-out of the Property, much of the PUD will remain open space with irrigation, ponds, pasture, landscaping and outdoor recreation. It is Applicant s strong desire that the entire property, as a single resort, has an aesthetically pleasing mix of structures and open space that will be complimentary and consistent with surrounding scenery, agriculture use and the existing commercial and residential uses within the PUD, the town of Gateway and the surrounding area. Page 12 of 14

All surrounding property is zoned AFT with varying nonconforming uses and densities. Until recently, the town of Gateway has been AFT, yet it has historically functioned as a mixture of residential, commercial and industrial uses, supporting mining and ranching industries. The town s character was recognized and supported in the Gateway Rural Community Plan and Overlay Zoning which calls for commercial, business, industrial and residential mixture of uses throughout Area A. Applicant can foresee no adverse impact upon the surrounding area by approval of the Second Amended PUD Concept Plan. The requested amendments to the existing PUD do not significantly change the density or the intended use of the Gateway Canyons Resort Property. Use of the land is consistent with the Gateway Rural Community Plan as the subject parcel will simply reflect the overall scheme of present practices. E. Facilities and services including sewage and waste disposal, domestic water, irrigation water (where available), gas, electricity, police and fire protection, and roads and transportation, as applicable, are available to serve the subject property while maintaining adequate levels of service to existing development. The site is currently served by the following service providers: (1) irrigation water is from water rights owned by John S. Hendricks; (2) electricity is from Grand Valley Power; (3) police protection is from Mesa County Sheriff s Department; (4) fire protection is from Gateway/Unaweep Fire Department; and (5) telephone service is from Nucla-Naturita Telephone Company. The Property is also served by a sanitary sewer facility built by John S. Hendricks and donated to the Southwest Mesa County Rural Public Improvement District. A private domestic water system, certified by the Colorado Department of Public Health Environment ( CDPHE ) will continue to supply good quality drinking water and fire flow to operate internal sprinklers and fire hydrants. There will not be a deficiency of service level resulting from the requested rezone. (1) Grand Valley Power: Electricity is provided by a modern three phase transmission system that is owned by Grand Valley Power. There is sufficient capacity in the Grand Valley Power system to supply all of Applicant s planned improvements. (2) Sewer: Pursuant to a sewer agreement between John S. Hendricks and Mesa County, Applicant built a wastewater treatment facility that was completed in 2005. The plant capacity is adequate for all current structures and the improvements that are currently under construction, including the new homes in the Sundial community. The wastewater treatment facility may need to be expanded for the residential homes planned in Area B-2. The Applicant has informally agreed with the Southwest Mesa County Rural Public Improvement District that it may pre-purchase taps, if necessary, to provide funding to allow the District to expand the current wastewater treatment system in the event expansion is needed for the housing in Area B-2. Applicant will construct collection lines within the Property at Applicant s cost. (3) Domestic Water: Applicant built a domestic water system to serve the facilities at Gateway Canyons Resort. This water system was completed and approved Page 13 of 14

by CDPHE in June, 2005. This water system was expanded by the addition of a third 40,000-gallon chamber adjacent to the current storage tank to provide the necessary fire flow of 1,500 gallons per minute for two hours duration. The water system is adequate for fire flow and potable water distribution for all of Gateway Canyons Resort, including the Sundial community. Applicant anticipates that the water system will be conveyed to the Dolores Canyon Metro District 1 in the future. (4) Fire Protection: Applicant has enlisted the skills of Debra Shaner, the current fire protection authority for Gateway Canyons Resort, to establish an Alternative Fire Protection Plan for the resort. Ms. Shaner is authorized by the Mesa County Planning Department to approve all fire protection issues at Gateway Canyons Resort. A copy of Ms. Shaner s Plan is included with this application. Among other things, the Plan establishes criteria for a water distribution system, water storage, fire hydrants and sprinklers in each living unit. In addition to the sprinkler system, fire protection is provided by the Gateway Unaweep Fire Department. Although a volunteer department, the Gateway Unaweep Fire Department is operated by a responsible Board of Directors and Fire Chief David Anderson. (5) Security: The Mesa County Sheriff s Department provides security to the Gateway area. To date, however, a sheriff s officer is in Gateway only occasionally or when there is an issue. Applicant and Mesa County recently entered into an agreement whereby tax revenues and PIF collections from Gateway Canyons are dedicated to the County and will be initially directed to the provision of a sheriff s officer assigned to Gateway for a portion of each week beginning in 2015. The goal is to someday have regular police services provided to the area by the Mesa County Sheriff s office. F. The same development could not be accomplished through use of other techniques, such as rezoning to a non PUD District, variances or administrative adjustments. In reality, the same development might be accomplished through means of traditional zoning, conditional use permits and variance techniques. It would, however, take a number of overlapping applications which still might not get to the same desired result of the Gateway Canyons Resort. From the beginning, both the Applicant and Mesa County Planning Department believed the best zoning vehicle for the multiple uses within the Gateway Canyons Resort was the PUD. The purpose of this application is simply to amend that PUD to allow for residential housing as an additional use at Gateway Canyons Resort. 10. CONCLUSION Applicant requests that Mesa County approve the Second Amended Gateway Canyons Planned Unit Development. Please direct questions and comments to John Williams at 817 Falcon Way, Suite 202, Grand Junction, Co 81506, 970-241-2838, John@johnwilliamslegal.com. Page 14 of 14