SOUTH MOUNTAIN RESORT SOUTH MOUNTAIN, NC March 2015 EXECUTIVE SUMMARY History The South Mountains are considered a remnant of the oldest mountain range in the world, The Appalachians. This isolated remnant of the Appalachian Mountains located in western North Carolina near Morganton and is comprised of 100,000 acres of an ancient, deeply eroded mountain range primarily scattered over Burke, Cleveland and Rutherford Counties. The South Mountains are the highest and most rugged chain in the North Carolina Piedmont region. It is the closest and most significant mountain range to Charlotte, NC. The Bank of America headquarters building and the former Wachovia Corporate Center buildings are easily visible (52 miles) on a clear day from the peaks and ridges of The South Mountain Resort. The South Mountains are heavily forested plus water erosion from numerous rivers over the span of thousands of years has subsequently carved out an unusually extraordinary number of lots with narrow ridges and valleys resulting in spectacular views. While located in an isolated area The South Mountain Resort is one hour and 10 minutes away from Charlotte, N.C., one hour and thirty minutes from Asheville, N.C. and one hour from Greenville-Spartanburg S.C. These cities are easily four of the most dynamic cities in the Southeast. The South Mountain Resort is also located one hour and 20 minutes from Winston-Salem and Greensboro, N.C., and two and one-half hours from the Raleigh-Durham area. Within a 100 mile radius of Charlotte 7,000,000+ people reside and within 125 miles of Charlotte the current population is 11,000,000+. Adjacent and contiguous to the North and West sections of The South Mountain Resort is the largest of North Carolina s State Parks (20,000+ acres), The South Mountain. Contiguous to The South Mountain Resort on the West and South is the North Carolina Wildlife Preserve comprising 17,000 acres. Consequently 85% of the community is surrounded by the North Carolina state owned property and is isolated from contiguous development activity for and in perpetuity. The State Park is an incredible amenity with 200,000+ annual visitors and has recently made $8,000,000 in facility upgrades and is earmarked to receive an additional $40,000,000 (subject to available funding) for future park improvements. The two parks, like most of the South Mountains, are largely underdeveloped and remain in a state of wilderness.
The Resort South Mountain Resort is a 48 acre mixed use resort imbedded in a Planned Unit Development (PUD) like community called Pine Mountain Resort in the South Mountains Range. The Pine Mountain Resort PUD is planned for: 1,400+ single family lots 300+ multi-family town house building pads 18 holes of championship golf The South Mountain Resort Consists of the following existing facilities: A tennis complex 10 miles of hiking trails that tie into the South Mountains State Park A 48 acre mixed use development An 84 room hotel A 12,299 square foot conference center/restaurant/spa The resort was originally developed in the 1970 s as the Pine Hills Plantation Resort by entertainer Art Linkletter and currently contains the following existing development: A 400 member homeowner association (lots, single family homes and town houses sold in the initial phase of development) 700 existing developed single family lots 300 multi-family town house building pads 800 raw acres of land with the capacity for 600+ lots 18 holes of championship golf (controlled by the homeowners association) A tennis complex 10 miles of hiking trails that tie into the South Mountains State Park A 48 acre mixed use development An 84 room hotel A 12,299 square foot conference center/restaurant/spa with the only mixed beverage license in Burke County 25 miles of roads Water and Sewer systems serving the multi-family land
Proposed Redevelopment From the inventory listed above South Mountains Resort, Inc. proposes to redevelop a sustainable green community featuring the following: Phase I - The 48 acre live/work mixed use development with be anchored by the existing hotel and conference center that will be redeveloped and marketed as a premier resort offering services such as Inspirational Conferences, Holistic Healing Retreats, Natural Healing Food Therapy and Life Force Hydrotherapy Suites with Certified Nurses Assistant Attendants. Phase II - In addition, the development will contain solar farms to supply off grid power for future homes, aquaponics farm producing fresh fish and a fresh market supported by our own Certified Organic Production Farm supplying vegetables, meat and poultry to the restaurant, conference center and hotel clients as well as the South Mountain Resort Community. Phase III Will Contain the development and sale of home and lot packages for single family homes on the 48 acres as the market dictates. Financial Summary Phase I See the following five year projected Income Statement for The Hotel/Conference Center/Spa and the expected annual cash flow after 25% investor return and debt service: (This Space Left Intentionally Blank)
Capital Investment Needs