At the heart of Nevada, a working capital.

1. Nugget Economic Development Project At the heart of Nevada, a working capital. Board of Supervisors Jan. 7, 2010Nugget Economic Development Update

2. Nugget Economic Development Project Current Economic Climate is Challenged. Meridian Business Advisors Report_2009 • Carson City’s economy is highly concentrated • 42% of payroll in Carson City is from government jobs. • 31% of payroll in Carson City is from manufacturing, trade and educational/health services. Note: in 2008, retail made almost 12% of payroll in Carson City • Payday dollars are earned by commuters • Over 40% of government employees don’t live in Carson City and spend elsewhere. • Over 50% of Carson Tahoe Regional Healthcare employees don’t live in Carson City and spend elsewhere. • Sales tax is in decline • Lack of local spending • Lack of visitor spending • Fiscal year 2008-2009 sales tax reduced by 17.2% • Unemployment is very high • September 2009 unemployment was at 11.5% (almost double the historic high in 1998) • Adverse impact on business • 20.4% of current commercial space is vacant • 21.5% vacant industrial • 19.7% vacant retail • 29.2% vacant medical • 17.2% vacant general office

3. Nugget Economic Development Project Mission: • To achieve long-term sustainable and focused economic growth by building a diverse, innovative local economy with high-wage, high-impact jobs in industries not currently in the community. • To provide new opportunities for prosperity for the City’s residents, businesses and entrepreneurs. • To foster a skilled and competitive workforce to include creating accessible career paths for local youth, pre K through college. • To celebrate the success of a great local institution, the Carson City Public Library, and use it as a catalyst to drive development of the community, entrepreneurism and to create opportunity for today and tomorrow’s youth.

4. What Mae is doing to achieve the mission: A transaction between the Mae B. Adams Trust and Mr. Alan Adams for 100% ownership of the Carson Nugget, Inc. has been executed and is now subject to the approval of the Nevada Gaming Commission. The Nevada Gaming Commission will consider transfer of Alan Adam’s ownership to the Mae B. Adams Trust. Upon approval, the Mae B. Adams Trust will be the sole owner and operator of the Carson Nugget, Inc.

6. Project Status December 10, 2009, the Board of Supervisors directed staff to return with specific business terms on Feb. 18, 2010, to consider relative to a public/private partnership between the City, the Nugget and a master developer. These terms will form the basis for the execution of a “Disposition, Development Agreement (DDA) between the three parties. Further, the Board approved a draft project schedule, including a schedule of future Board actions.

7. Project Status To ensure constant communication between the Board and the Nugget Economic Development team, Carson City Manager, Larry Werner, has requested a project status update from the Office of Business Development as a standing Board of Supervisors agenda item, which is what we’re beginning today. This report is in addition to the conceptually approved schedule, which follows:

8. Approved Draft Schedule Jan. 21, 2010: • Status Report Action: approve financial plan & approve schedule February 18, 2010: • Complete business impact statement for 1/8th cent sales tax increase ordinance • Consideration of business terms

9. Approved Draft Schedule March 4, 2010: Action: • 1st reading of sales tax increase ordinance • Review of draft business terms of development agreements March 18, 2010: Action: • 2nd reading of sales tax increase ordinance • Approval of agreements w/ • Developer • Digital lab • Business incubator • Approval of management plan between Developer/Nugget/City • Final authority to proceed

10. Approved Draft Schedule March 19, 2010: • Begin implementation of development agreements • Implement contract management plan • Begin land use entitlement process, complete within 120 days April 1, 2010: • Board approval of Master Developer Project Design and Plan June 1, 2010: • Land Use Entitlement Process Complete October 1, 2010: • Project Design Complete November 30, 2010: • Groundbreaking November 1, 2013: • PROJECT PHASE 1a COMPLETE

11. Board of Supervisors Jan. 7, 2010Nugget Economic Development Update Today’s updates include progress related to: • Business Incubator • Developer Interest • Parking Questions • Grants

12. Business Incubator The purpose of getting started early is to demonstrate good faith to the community and Board of Supervisors to begin bringing jobs now to start the economic recovery and to be fully operational when the project is complete. C4Cube • Private/Public Partners • Hop and Mae B. Adams Foundation • Northern Nevada Development Authority • Western Nevada Development District • Carson City • Getting Started • Currently in the process of setting up in Carson City within the offices of NNDA • Timeline goal • Begin operations as soon as possible in 2010

13. Developer Interest • Strong interest to committing resources to this project • visiting this week in Carson City

14. Parking Fehr & Peers has been retained to complete a parking analysis and strategy update - funded by Mr. Neighbors.

15. Grants Broadband Stimulus Funds Update • Conference call w/ Senator Reid’s office complete • Sent full packets to all staff in Senator Reid’s office • 1st round of Broadband Funds awarded • Any day announcement for 2nd round of Broadband Funds, waiting for new regulations, applications due (approximately) by April • Awards will be made by late 2010, spend required within 18 months

16. Closing • Project is on schedule. • Partners are working hard. • A 1/8th cent sales tax investment of $12.4m leverages nearly $88m direct private investment.