United Park City Mines Company Signs Letter of Intent With Joint Venture Partner for Major Resort Project in Park City

Press Release: United Park City Mines Company

July 26, 1999
PARK CITY, Utah-- United Park City Mines Company (NYSE: UPK) announced Thursday that it has signed a letter of intent with DMB Inc., based in Scottsdale, Az., to become joint venture partners on UPK's 4,000-acre resort development known as Flagstaff Mountain Resort in Park City and Bonanza Mountain Resort in Wasatch County, Utah.

The announcement comes on the heels of the Park City Council's approval of the annexation and master plan for the Flagstaff development received by UPK in late June. As approved, Flagstaff Mountain Resort will serve as a vital expansion to the Deer Valley Resort community adjacent to Park City and will feature the following amenities:

• A European-style mountain village with a high-speed gondola, a 200-room hotel, 75,000 feet of retail space, and a total of 470 multi-family units, including a mix of town homes and condominiums
• A total of 54 single-family dwellings with ski-in, ski-out accessibility
• New ski runs on approximately 337 acres
• A high-speed gondola which will connect Flagstaff's Mountain Village with Main Street in Park City and will also tie Deer Valley Resort and Park City Mountain Resort for the first time
• More than 10 miles of hiking and biking trails

Hank Rothwell, UPK Chief Executive Officer, said UPK has sought a joint venture partner for some time because of the size and scope of the proposed development. He said the Flagstaff project is one of the last significant mountain resort development opportunities left in North America, and the company is committed to developing a world-class resort that will become a lasting legacy for the company and the community of Park City.

He noted that as UPK searched for a partner, the primary criteria was to identify a firm with ``substantial capital resources and experience in high quality and environmentally sensitive development.'' He said UPK believes the Scottsdale-based DMB is such a company and cites their reputation as a major player in resort-style developments in Arizona -- projects such as the 8,300- acre DC Ranch in Scottsdale that DMB has been involved with for many years.

Although the details of the partnership are yet to be finalized, Rothwell said that UPK will retain majority ownership in the venture, while DMB will take the lead in the development and marketing of the project.

DMB President Drew Brown said his company has been searching some time for a mountain development opportunity and focused on the Park City area last year. "We're excited at the prospect of being involved in a project of this magnitude and look forward to finalizing our agreement with United Park City Mines Company in the near future," he said.

Rothwell said that both parties are working towards the final agreement, while project planning proceeds.

United Park City Mines Company, founded in 1953, leases, develops and sells real estate property located in or near Park City, Utah. The Company also owns the mineral rights to more than 13,400 acres of land and several underground mines. In addition, the Company's subsidiary, Park City Silver Mine Adventure, Inc., provides education and entertainment for all ages through underground and mines tours and exhibits.