Community Update

President’s Message Despite the down economy, there were bright spots in the Shock Hill community! Our largest project was the defensible space initiative for our private open space in the center of Shock Hill. In addition, the owners of various lots joined together to create defensible space on private property, primarily around Penn Lode Drive. These efforts culminate four years of collaborative efforts to create and maintain a Firewise Community. As with previous efforts, the private owners and the Association received matching grants that covered 50% of our expenses. The private open space project covered not only reduction of fuels, but also included modifications to our trails to allow brush firefighting equipment to defend our property should a wildfire start in this area. This project is now complete for common areas within Shock Hill and ends the Board initiative that has received national recognition in the Firewise community program. Our ongoing efforts in maintaining the common areas will focus on spraying for mountain pine beetle (MPB) and removal of infested and standing dead trees per Town ordinance. Assuming continuation of this program in future years, owners who have not participated in the program will be able to band together to seek grant funding. The Board has decided to contract Giving Tree Care, Inc. for another year to manage our MPB mitigation efforts for Association property. GTC has provided exceptional services and will continue to offer services to owners as well. We changed the proforma of the annual meeting to include our key stakeholders with presentations to our owners from Pat Campbell, SVP of Vail Resorts and COO of Breckenridge Ski Resort and Gary Shimanowitz, Director of Breckenridge Mountain Operations, Matt Dayton, Manager of the Breckenridge Nordic Center and Kim Scott, Battalion Chief of Red, White and Blue Fire Department. Our stakeholders who also have updated info in this newsletter, briefed the Shock Hill community on the proposed Peak 6 Project, our shared commitment for the Nordic and snowshoe trails in Shock Hill and our dedication to the Firewise Community efforts. Of particular note to our owners is the departure of Kim Scott from RWB Fire to the Boulder Fire Department. Kim was the unwavering leader of defensible space and Firewise efforts in Breckenridge and we are the only community of our size with so many subdivisions achieving national Firewise recognition. Her day-to-day involvement will be missed! RWB Chief Lori Miller has advised that she will return under contract to RWB Fire to continue her efforts. We continued our involvement with Breckenridge Ski Resort (BSR) and Breckenridge Nordic Center (BNC) with their operations within Shock Hill. Several improvements were made around the gondola station to improve communications with improved signage and plans are in place for landscaping improvements in 2012. Our most significant involvement with BSR was our support for the Peak 6 project. In addition to a Board resolution supporting Peak 6, several individual owners sent letters of support to the US Forest Service. BNC made several improvements to our trail systems and several trails were relocated from private property to dedicated easements. Improved, permanent signage was installed to guide our guests (and our owners) through the trail system. Little Red’s Run snowshoe trail, which is “Pet Friendly”, was enhanced and is available for Shock Hill residents and their guests to use free of charge. Our Board has attended various Town Council, Planning Commission and Coffee Talk Meetings with the Mayor and Town Manager on issues of concern to Shock Hill. We have voiced our support for Peak 6 and the proposed new facility for the Nordic Center. We have also challenged issues with our streetlights on the second island on Shock Hill Drive and the “abandonment of our Town mandated sidewalks” with respect to snow removal and taxpayer provided daycare to non-residents. • Through the persistent efforts of Board Vice President Hugh Horne, the streetlight issues were resolved after one year of non-operation. • The sidewalk snow removal issue however, has been an upward battle which defies rational thinking since other sidewalks are maintained and so was Shock Hill until last year. I attended a Coffee Talk, was invited to the Town Budget Retreat to review the budget priorities and attended a Council Worksession and Town Council Meeting. None of these efforts has produced the desired result, however, the Town has agreed to review our request. James Phelps, Assistant Director of Public Works called earlier this week and informed me that they will bring forth a proposal at the January Council Meeting to restore snow removal on our sidewalks from the gondola station to Peerless Road. We will update you after the meeting. • We were stunned to find that 66% of the daycare scholarship recipients were not residents of Breckenridge. It appears that over $350,000 of our tax dollars on an annual basis are supporting people who do not live in Breckenridge while we do not receive basic services from the Town. This is becoming a significant issue and we will update this as more information is available. We have been working with the Breckenridge Police Department (BreckPD) on drop off, pick up and illegal parking around the gondola station. Shock Hill Drive is a public road and is being patrolled by the BreckPD for violations. Last year there were numerous vehicles illegally waiting in the traffic circle which resulted in the road being blocked. Breck PD will inform first and ticket repeat violators, including Shock Hill residents. The Shock Hill Association remains under the control of the developer, Breckenridge Lands. Tom Begley, President of Breckenridge Lands, has appointed the following 2012 Board positions: President John Quigley Vice President Hugh Horne Treasurer John Mack Secretary Tom Begley Best wishes for a Merry Christmas and Happy and Healthy New Year! John Quigley

Financial Update The Association has stayed on budget through 2011 and the Board is pleased to announce that all owners are current with their 2011 dues. Currently there are 93 properties within the association paying the annual dues. This number will increase as the Cottages sell and with the development of the Lodge and Spa. The next annual assessment will be mailed in July 2012 and the dues will remain at $400. Nordic Center Update Another exciting Cross Country Ski Season at the Breckenridge Nordic Center is underway. We are making strides to provide quality Cross Country Ski & Snowshoe mapped, marked and groomed trails and offer an experience our guests will treasure. Thank you for the use of the Nordic Trail Easements in your HOA open space and for your continued support of the Breckenridge Nordic Center. Providing this amenity for our town residents and visiting guests has been a passion of the Dayton family in Breckenridge for over 40 years. We realize that you are valuable stakeholders and your support of our operations is vital to our success. Please join us for a complimentary "Best Nordic Ski" lesson with trail pass and ski rentals. This introductory program is offered four times daily all ski season. Please visit our lodge at 1200 Ski Hill Road and/or call us at 453-6855 to confirm your Best Nordic Ski reservation in advance. Looking forward to meeting you soon, Gene & Therese Dayton - Operators Josh and Matthew Dayton - Managers www.BreckenridgeNordic.com E-mail: BestNordicSki@gmail.com 970-453-6855

Architectural Design Review Update Home construction activity in the Shock Hill Neighborhood appears to be picking up nominally for 2012. The Shock Hill Design Review Board (DRB) has received and approved two single family applications for late 2011/2012 construction starts as opposed to one single family construction start for all of 2011 (a construction start after the calendar fourth quarter is considered to be a start for the following year). The 2011 construction start, The Murphy Residence, will be completed by the end of 2011 and will deliver approximately 5,293 total square feet on Lot 60. In addition to the single family activity, the DRB has also approved two Shock Hill Cottage starts and one plan for exterior landscape improvements. As a reminder, any exterior improvements to a lot or residence within Shock Hill must be submitted to the DRB for review and approval. In accordance with the Shock Hill Design Guideline, the DRB meets once a month or as required by applications submitted. Repairs or maintenance to existing residential improvements do not need DRB approval.

Subdivision Construction Update Shock Hill Development is nearing completion of the final Shock Hill Subdivision improvements. A concrete curb and gutter was installed on the third and final traffic island along Shock Hill Drive. The extension of water for landscaping and power for streetlights to this third traffic island will be completed in the summer of 2011 along with the installation of landscape materials. Completion of this third traffic island will complete the Town approved subdivision improvements for Shock Hill.

Real Estate Update The Summit County Market is on a rebound this year. As of the end of September and the end of the 3rd quarter the number of properties sold has increased 14% over 2010 sales in the same time period and a 30% increase over 2009 sales. The Shock Hill market is improving as well. There has been a 75% increase in the number of sold residential transactions in 2011 over the same time in 2010. Land sales are also following the same trend as the end of the third quarter 2011. The number of Breckenridge land sales has increased 18% over the same period in 2010. In 2011 Shock Hill had one land sale vs. zero sales in 2010. Breckenridge Ski Area Update Breckenridge Ski Resort is making it a weekend to remember with a huge series of events planned to coincide with the resort’s 50th birthday weekend, Dec. 16-18, 2011. Breck’s actual 50th birthday falls on Friday, Dec. 16, 50 years to the day since the resort was inaugurated back in 1961. A series of events will take place on the mountain, and will culminate with a special “Breck Birthday Bash”, presented by the Town of Breckenridge, which will involve a Ski Legends procession, free concert by Los Lobos, champagne toast, fireworks and more on Friday night. The 2011 Winter Dew Tour also kicks off its national tour during Breck’s Birthday weekend, and the series of events both on and off the mountain are listed below! The complete Dew Tour Schedule is posted at breckenridge.com. Stay connected all season long and learn more about Breckenridge Ski Resort’s 50th Anniversary Season, including the “50 Wishes” campaign, at www.facebook.com/Breckenridge or @breckenridgemtn on Twitter. The Peak 6 process is moving forward as the Forest Service is analyzing comments and finalizing the EIS document. US Fish and Wildlife will work on its biological opinion over the next few months putting us on target for a Record of Decision in the Spring of 2012. Thank you for your continued support with the Peak 6 permitting process.