Telluride & Mountain Village Newsletter from Telluride Real Estate Corporation

TD Smith

Dave Flatt Exclusive Properties

Ed Roufa Real Estate

Telluride's Owl Meadows Townhomes Underway and Available for Purchase

The second phase of the Owl Meadows townhomes is underway with seven Phase II units currently under construction and listed for sale. Located on South Mahoney Drive on the town of Telluride’s western edge, five of the seven units under construction in Phase II face the undeveloped Pearl Property and have rare and unobstructed Down Valley views, as well as ample sun. They are also equipped with granite countertops, vaulted ceilings, in-floor heat, cherry floors, stainless steel appliances, fireplaces, steam showers, balconies and additional upscale features. Each unit has 3 bedrooms and 3.5 bathrooms, and Owl Meadows is located within one block of Lift 7 and the River Trail. Telluride Real Estate Corporation is directly involved with the project, as TREC broker Teddy Errico is the listing agent for all seven of the Phase II units presently under construction. Errico was involved in the sales of Phase I, which contains 16 units, and is now heading up the sales of Phase II. In Phase I, 13 units have been completed and sold, while the last three are in their final construction stages and are under contract. As for Phase II, the first seven units are expected to be completed by December 2006, with another seven units to follow for a total of 14 units. Owl Meadows will consist of only these two phases. “There isn’t anything in the town of Telluride like these units,” says Errico. “It is very difficult to find brand new condominiums with high-end finishes at this price point and so close to the ski lifts. That is why we feel we have been so successful with Phase I and will continue to be as successful with Phase II.” Phase I includes a mix of local families and second homeowners, which Errico expects will continue into Phase II. Many buyers are selecting the Owl Meadows residences as an alternative to buying a singlefamily home because they are brand new, luxury townhomes with attractive footprints and price tags. The seven available units are priced from $1,055,000 to $1,295,000. For more information on Owl Meadows, contact your TREC broker.

San Miguel County Real Estate Sales at Year-to-Date Record High

According to Judi Kiernan of Telluride Consulting, the first two quarters of 2006 witnessed a record high with regard to dollar amounts, as January through June boasted $367 million in total dollar volume. This is a 6% increase over the first two quarters of 2005, which claimed $348 million in total dollar volume and an 18% increase over the first two quarters in 2004, which claimed $311 million in total dollar volume. June 2006 was particularly impressive with a total dollar volume of $68 million, making it the highest June on record. It was 51% higher than June 2005 ($45 million) and 119% higher than June 2004 ($31 million). The third quarter of 2006 also started with flying colors as July 2006 was the highest July on record with $60 million and was 13% higher than July 2005 ($53 million) and 46% higher than July 2004 ($41 million). Year Dollar Volume of Sales YTD ’01 $244 million YTD ’02 $157 million YTD ’03 $187 million YTD ’04 $352 million YTD ’05 $401 million YTD ’06 $427 million Property prices in the region are still appreciating and the average price per real estate transaction in San Miguel County is presently $986,000, compared to $794,000 in 2005 and $759,000 in 2004. Interestingly, prices only increased by a compound annual growth rate of 4.6% between 2004 and 2005, but increased by a compound annual growth rate of 24% between 2005 and 2006. More specifically, the average price for a single- family home in Telluride at this point in 2006 is $2.6 million as opposed to the same time frame in 2005 when the average price for a single-family home in Telluride was $1.6 million. Similarly, the average price for a condominium in Mountain Village right now is $1.5 million compared to $1.1 million in 2005.

TREC’s Contribution to the Local Community

Each year, TREC gives back to the Telluride community by contributing thousands of dollars to its special area of philanthropy: the youth. Through its focus on children, TREC supports a variety of educational, athletic and social programs for students in the Telluride region. We have contributed to everything from soccer clubs to after-prom parties as well as providing college scholarships to local graduates.

Telluride Real Estate Corporation is a committed proponent of the Telluride Adaptive Sports Program, a nonprofit organization dedicated to providing quality ski and outdoor recreational experiences for people with disabilities. These opportunities encourage personal growth and the development of life skills, while building self-esteem and independence. One of the ways TREC shows its continued support for the organization is by sponsoring a team in the Bob Miller Memorial Golf Classic. The 8th annual tournament is on September 14, 2006. The golf tournament is one of TASP’s biggest fundraisers as last year’s event netted $28,000. In order to fuel its program, TASP relies heavily on contributions — both individual and corporate, as well as grants and annual fundraising events like the golf tournament. This year, TREC is also making an additional donation to TASP’s scholarship fund.

Great Outdoors Colorado recently awarded $498,042 to the Town of Telluride for two projects — purchasing 105 acres of open space lands, in partnership with San Miguel County, at the headwaters of the San Miguel River, and acquiring land adjacent to the Telluride Town Park. The open space project will include preserving a large parcel at the base of Bridal Veil Falls, as well as the majority of the Kentucky Placer, a parcel that was part of the Trust for Public Land’s transfer of patented mining claims located in the high country above town to the U.S. Forest Service. By definition, open space is an area of land that is valued for natural processes and wildlife, for agricultural and sylvan production, for active and passive recreation, and/or for providing other public benefits. The Town Park expansion will include acquiring 2.6 acres adjacent to the Telluride Town Park in order to expand the existing size of the park. The new property will be used for walking, camping and cross-country skiing.

Telluride students continue to perform far above the Colorado state average on mandated standardized tests known as the Colorado State Assessment Program (CSAP), which are given to kids in grades 3 through 10. Telluride scored particularly high in the reading, science and math portions of the exams (significantly outweighing the state average) and was drastically ahead of the state average in the writing portion. Telluride’s young, motivated and very creative teaching staff helps frame this strong and successful school system. Local teachers and administration also credit Telluride’s unique system of personalized curriculums, known as the IMAP program, to the high standardized test scores. Educators test students before outlining curriculums, thus allowing teachers and students to maximize the educational experience based on what each child needs. In addition, the intimate size of Telluride’s classrooms allows for ample one-on-one attention and a less intimidating learning environment.

FLIGHT INFO: 888 / 605 / 2578 Nonstop Winter Air Service from Nine Cities The Telluride Montrose Regional Air Organization has secured air service for the winter into the Telluride and Montrose regional airports from nine nonstop destinations on five major U.S. carriers. For schedules see tellurideskiresort.com Atlanta (Delta) Los Angeles (United) Chicago (American) Newark (Continental) Dallas / FW (American) Phoenix (America West) Denver (Untd. Ex. / G. Lakes) Salt Lake City (Delta) Houston (Continental) Airport Runway Project Earns Key Approvals In June, the Telluride Regional Airport Authority received chief approvals from the Federal Aviation Administration for the airport’s Environmental Assessment and Airport Layout Plan. With these approvals, the airport can now move forward with the design/construction of the improved runway. Construction is anticipated to last five to six years and could start as early as April 2007. Two grants from the FAA are being sought for the project, which will fund 95 percent of the estimated $50 million cost of the project. The airport will be responsible for the remaining five percent.