MSU INNOVATION CAMPUS

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1 ANCHORED BY NOW UNDER CONSTRUCTION NOW PART OF THE OPPORTUNITY ZONE (see pages 11-13) Office of Research and Economic Development College of Business & Entrepreneurship College of Engineering Land owned by Montana State University Department of Microbiology and Immunology - Center for Biofilm Engineering - Department of Gravitational Physics/NASA Space Consortium - Optical Technology Center - Technology Transfer Office FOR MORE INFORMATION CONTACT: DAN ZELSON dan@chartweb.com ADAM FRIEDMAN adam@chartweb.com

2 PROPERTY INFORMATION - ADJACENT TO MONTANA STATE S INNOVATION CAMPUS - State-of-the-art facilities for companies to locate - Where MSU s faculty, researchers, and scientists work with private and government researchers and scientists LEASE OUT - These companies push forward cutting-edge science and advance technologies - MSU students gain hands-on learning experiences - Collaboration with Montana State University is on daily basis - 45 Acres development - 3+ Employees projected - Impact on Bozeman Gateway is substantial - Benefits the Restaurants & Retailers - Will be an added benefit to a Hotel operation with proximity to both Innovation and MSU campuses - Montana State University has grown into a comprehensive university: full-time faculty - Almost 17, students and growing for 1 straight years - Research and contract expenditures from state, private and federal funding sources topped $13.8 million for Applied Research Lab ARL Under Construction 2, Square Feet AREA DEMOGRAPHICS 217 DEMOSGRAPHICS 3 MILE 5 MILE 7 MILE POPULTAION 44,67 55,621 66,235 MEDIAN HH INC $54,867 $57,886 $62,188 AVERAGE HH INC $67,73 $71,3 $77,79 Montana Water Courts

3 MSU Innovation Campus includes more than a dozen potential buildings, including specialized labs, research offices and manufacturing spaces. The goal of the campus is to support the research, technology transfer, entrepreneurial, and economic development activities of the university, the region and the state. - Opportunity to locate lab, medical, high tech businesses in fast growing Bozeman, Montana - Spaces and build to suit opportunities from 1,sf - 15,sf - Fantastic campus environment with shopping, transportation, and close proximity to Montana State University - Opportunity to have access to MSU student population as well as state of the art research and world class professors

4 #1 - Bozeman, Montana It doesn t get much more scenic than Bozeman, Mont., a picturesque college town nestled between four mountain ranges and located just 9 minutes from Yellowstone National Park. A paradise for outdoor enthusiasts, Bozeman boasts easy access to world-class skiing, fishing, hiking, rafting, and more. It also offers a charming downtown area and a surprisingly vibrant cultural scene, thanks to the presence of Montana State University and a number of art and music events like the annual Sweet Pea Festival. But it s also a destination for urban refugees seeking a higher quality of life some 14% of residents walk or bike to work, and the average commute time is just 13 minutes with access to great jobs. In the past two decades, the city of (now) 42, has become a booming hub for high-tech companies and entrepreneurs. Oracle bought local tech giant RightNow Technologies for $1.5 billion in 211, enabling many former employees (and newly minted millionaires) to launch their own startups. The Bozeman Technology Incubator offers free mentoring to all local tech and manufacturing businesses. The economy is expected to keep expanding; Moody s Analytics predicts 11.4% job growth over the next five years. - Ismat Sarah Mangla Bozeman has long been a magnet for outdoor enthusiasts...but the small city has also earned another reputation as a boomtown for entrepreneurs, many in high technology. Thanks in part to its natural amenities, the presence of a university, and an embrace of the digital economy, Bozeman is turning into a startup hub in the middle of nowhere. The place is incomprehensibly scenic, even by Montana standards, situated in a spot where four mountain ranges decide enough is enough and relax into a fertile valley. Yellowstone National Park is a 9-minute drive. A River Runs Through It was filmed on the nearby Gallatin River, so trout fishing is a given. - FastCompany.com Time.com - Money Magazine - Best Places to Live 217

5 Multi-Family Area Montana Water Courts Applied Research Lab ARL Building Elevation - Under construction - 2,sf

6 New Campus Expansion Area - 1 Year Existing Buildings and Proposed Buildings from 1 year Build-out New Buildings Agricultural Research and Teaching Facilities

7 New Campus Expansion Area - 25 Year Existing Buildings and Proposed Buildings from 1 year Build-out New Buildings Agricultural Research and Teaching Facilities

8 ARL Building

9 Land owned by Montana State University

10 Office of Research and Economic Development College of Business & Entrepreneurship College of Engineering Land owned by Montana State University - Center for Biofilm Engineering - Department of Gravitational Physics/NASA Space Consortium Department of Microbiology and Immunology - Optical Technology Center - Technology Transfer Office

11 Opportunity Zone Basics What are the Benefits? A taxpayer who timely reinvests gains from a sale of any asset or property (not just real estate) into a Qualified Opportunity Fund ( Fund ) can enjoy the following tax benefits: (1) Deferral: Gain on the asset/property sale is deferred until the earlier of the date that the taxpayer sells its interest in the Fund or December 31, 226. (2) Capital Gain Reduction: If the taxpayer invests in the Fund for at least 5 years, 1% of the original deferred gain is excluded from tax; if the taxpayer invests in the Fund for at least 7 years, an additional 5% (for a total of 15%) of the original deferred gain is excluded from tax. (3) Appreciation Exclusion: If the taxpayer invests in the Qualified Opportunity Fund for at least 1 years, all appreciation in the investment will be tax-free. Investment Example: In 218, an individual investor sells 1, shares of Amazon stock that they purchased in 213 for $25,. The sale at $1,25 per share results in a $1 million capital gain. Instead of paying the $238, in federal capital gains tax on this sale, the investor rolls their $1 million gain into a Qualified Opportunity Fund that invests the capital in newly issued preferred stock shares of various operating businesses located in Opportunity Zones with a plan to liquidate the fund in 228. The assumed value of this investment in 228 is $2 million. The benefits received by this investor include: Investing $1 million instead of the $762, (after tax) that would be remaining if the capital was not re-invested into an Opportunity Fund. Paying $22,3 in taxes in 226 instead of paying $238, in 218. Owing no additional tax on any gains accrued within the Opportunity Fund from the original $1 million investment if held for 1 years. Opportunity Zone FAQs: 1. What s the process? Clients who are realizing a capital gain across all asset classes can invest those monies on a tax deferred basis, as long their gain is invested in a qualified opportunity fund within 18 days of the sale or exchange. 2.What are the investment restrictions? The capital gains must be invested in qualified opportunity funds that have 9% of their assets invested in qualified opportunity zones. 3.How do I qualify? All capital gains on the sale or or exchange of any property to an unrelated party invested within 18 days are eligible for the tax benefits. 4. Can I put my 131 money in and how is this different from a 131? Yes you can put 131 money in. It differs from a 131 in that you can only invest real estate gains into new real estate investments in a 131. With an Opportunity Zone investment you can take a gain in any asset (i.e.- not just real estate). Additionally, while investments in OZ Funds may appear similar to Section 131 like-kind exchanges, another key difference is that only the gain needs to be reinvested in an OZ Fund. The principal of the original investment can be invested on an unrestricted basis. That is not true in 131 exchanges. 5. What can I invest in? Opportunity Fund investments can include equity investments in businesses, real estate, and business assets that are located in a Qualified Opportunity Zone. This can occur through Qualified opportunity stock, as well as partnership interest. 6. How do I invest? Investors can invest in opportunity funds by selling an asset and triggering a capital gain, then subsequently placing that gain in a qualified opportunity fund with 18 days of the original sale. 7. How long is the investment period? The program allows for a stepped up basis depending on the holding period. A 5-year hold will grant the investment a 1% stepped up basis. A 7-year hold grants the investment an additional 5% of stepped up basis, totaling 15% on the original basis. Finally, after 1 years, investors permanently avoid any capital gains tax on the post-acquisition/investment gains that take place within the Opportunity Zone. 8. What is the investment rollover period? Investors have 18 days to invest realized capital gains. 9. Do I have to use an intermediary, like I would in a 131? No. You can take receipt of the gains, as long as you reinvest within 18 days. 1. Do I have to pay the original deferred taxed? In part. The original taxes are deferred until December 31, 226. Investors will have to recognize a portion of the deferred gains that year; however, the new gains are not taxed if the investment is held 1 years.

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13 How does a capital gain of $1, reinvested in an Opportunity Fund and a traditional portfolio perform over time?

14 Montana Airport Comparison 1,2, 1,, 1% 5% 1% 29% 8, 13% 6, 19% 23% 4, 2, Bozeman Billings Missoula Kalispell Great Falls Helena Butte

15 Consistent Growth For Over 4 Years 6, 5, Bozeman Yellowstone International Airport Enplanements , 3, 2, 1, Passengers

16 Gallatin County Population , 1, 8, 6, 4, 2, , 5, 4, BZN Enplanements 3, 2, 1,

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18 Montana State University Enrollment , 16, 14, 12, 1, 8, 6, 4, 2, 6, 5, 4, MSU Enrollment BZN Enplanements 3, 2, 1,

19 Yellowstone National Park Visitation ,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 6, YNP Visitation , 4, BZN Enplanements 3, 2, 1,

20 Bridger Bowl Skier Days 199 (Skier Year Ended) 3, 25, Bridger Bowl Skier Days 2, 15, 1, 5, 6, 5, 4, BZN Enplanements 3, 2, 1,

21 Big Sky Skier Days 199 (Skier Year Ended) 6, 5, Big Sky Skier Days 4, 3, 2, 1, 6, 5, 4, BZN Enplanements 3, 2, 1,

22 CONTACT INFORMATION DAN ZELSON ADAM FRIEDMAN