Kinetic Opportunities At PuebloPlex

2. Kinetic Opportunities At PuebloPlex Can LRAs Benefit from Energy Development? September 26, 2013

3. PuebloPlex Background • Established as the Pueblo Army Depot in 1942 • Originally for the storage and supply of ammunition • Employment fluctuated between 1,400 and 1,800 during WWII • At the end of WWII, the facilities were expanded to intake war materiel • Mission Change in 1951 – Mission Migration • Regional storage facility for strategic and critical materials • Calibration and maintenance of multiple platforms • Peak employment on April 3, 1953 with 7,791 people on payroll • 15% of Pueblo’s population worked at the Pueblo Army Depot • Nearly 2 of 5 workers in Pueblo, worked at the Pueblo Army Depot; so this location has a history and a LORE

4. PuebloPlex Background • Chemical weapons arrive in 1952 • Pershing Missile Destruction • Intermediate-Range Nuclear Forces Treaty (INF) • War Memorabilia • Nazi art and relics held for repatriation to (West) Germany into the late-1990’s • Base Re-Alignment and Closure (BRAC) 1988 Round • Mission consolidation of 1951 reversed; mission dispersed • Chemical Weapons Destruction • Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction • Sole remaining mission: Safely Store Chemical Weapons Awaiting Final Destruction Miami Vice – c. 1988

5. PuebloPlex Facts • Assets to be developed: • 22,847.5 acres of land – 7,000.5 acres reserved for chemical destruction (2021); 15,847 acres for immediate development • 1,136 structures – 6.5m sf; 3.1m sf under current master lease • 160 miles of paved road • 48 miles of rail • Master lease terminates February 29, 2016; negotiating extension presently • Largest economic development by land size in the BRAC process – equivalent to Cheyenne; 1/3 larger than Longmont, CO; 10% larger than Boulder, CO; 68% larger than Portland, ME’s land area of 21.31 sq mi.

6. PuebloPlex – Site Re-Use Plan(Subject to reconfiguration in 2014)

7. Opportunity Continuum Renewable Energy Urban LRA Rural LRA Conventional Energy PuebloPlex seeks to attract utility-scale projects that fully utilize the space available, contribute to energy independence and attract high-paying, skilled positions.

8. PuebloPlex Preparedness • Impediments • Master Lease through 2/19/2016 • Staggered conveyances anticipated • 60 SWMUs on site – working on curtailing land-use restrictions • Re-doing re-use plan in 2014 • Highly sensitive mission on site until 2021 • Toxic mission may cause trepidation

9. PuebloPlex Preparedness • Positives • Wide O P E Nspaces; ~ 23,000 acres • Suitable for utility scale (solar) projects • NREL studied – January 2012 • Utility infrastructure surrounding PuebloPlex • Renewable content legislation in Colorado • Politically supported; statutorially supported • Large tracts of undeveloped land

10. PuebloPlex Map

11. NREL Study – January 2012

12. Colorado Renewable Energy Requirements

13. PuebloPlex Projects • No active projects • Legal restrictions – predicated on modified (updated) land use plan (2014) • Utility size projects only • Potential off-takers: Xcel, Black Hills, Tri-State • Part of a privatization of electrical infrastructure • Seeking projects creating net-value • Not seeking to throw money away • Positive return and long term growth

14. Michael Clarkson • Analyst & Project Manager PO Box 11467 Pueblo, CO 81001 • +1.719.947.3770 • HQ@PuebloPlex.com