To: Flying Horse Residents From: Doug Stimple, CEO Classic Companies Date: December 22, 2023 As many of you know, on May 2, 2023, after being duly authorized and approved by all of the boards of FHMD 1-3, the El Paso County District Court approved the petition for exclusion of the property to be known as Downtown Flying Horse from the boundaries of FHMD 2 & 3 and included into the boundaries of FHMD 1. On May 26, 2023, the newly elected board of FHMD 3 filed a challenge to the Court’s previous approval of that exclusion. For those of you who attended our open houses, you heard me refer to this proceeding as “baseless”, “without merit or any negative impact to FHMD 2 or 3” and an “utter waste of precious resources”. The action of FHMD 3 led to a three-day hearing in November, which resulted in hundreds of thousands of taxpayer dollars being spent on attorney’s fees. District Court Judge Kane ruled on December 19, 2023 that FHMD 3’s Motion to Revoke the exclusion must be DENIED. A copy of the order is available by following this link. (Links to the other two orders are also included at the end of this post. ) The ruling is clearly a win for the Downtown Flying Horse, FHMD 1, and ultimately, the taxpayers of FHMD 2 & 3. If Downtown Flying Horse were to remain in the boundaries of FHMD 2 & 3, there are doubts if the project could move forward given that the anti-developer and inexperienced Boards of FHMD 2 & 3 would have control over the O&M funds produced and to be used to maintain Downtown Flying Horse. This ruling is a win for the taxpayers of FHMD 2 & 3 because although the Downtown Flying Horse property will now be in the boundaries of FHMD 1, the current and future owners of property in Downtown Flying Horse are not relieved from paying their share of the outstanding bond indebtedness in FHMD 2 & 3. As the estimated $500MM - $1BB mixed use project is eventually built out, the assessed value will increase exponentially and thus the debts of FHMD 2 & 3 may be retired faster. Given the interest rate and cost environment we currently find ourselves in, there is no definitive start date for the Downtown Flying Horse project, but this ruling certainly removes a difficult obstacle to commencement. Judge Kane’s order confirms the above and his concise findings highlight the fact that this lawsuit was utterly without merit. Additionally, there were some factual findings from Judge Kane’s order which highlight the anti-developer sentiment of the FHMD 2 & 3’s Boards and their management, as well as their collective incompetency. The quotes below are directly from the Judge’s findings: Anti-Developer Sentiment and Findings: • “From the time of his election in May 2022, there were significant tensions between [Dan] Mulloy and the other board members of District 2. Mulloy challenged reimbursements to the Developer and despite being provided a significant amount of information by the Districts’ attorney and accounting consultants, was not satisfied with the answers he received. He persisted in objections to the reimbursement of certain items, such as entryway improvements” that the Judge determined were “clearly authorized under the Service Plan.” • “Mulloy testified at the Hearing. He acknowledged that he has no experience in real estate development. Mulloy rejected the notion that he was anti-developer. The Court finds that Mulloy was not credible. He was evasive on the issues when answering questions. His hostility toward the Developer was clear based on the totality of the evidence and testimony.” • “Leading up to the May 2023 elections, additional residents began to run for the District 2 and 3 boards. Their animosity toward the Developer was also apparent, with campaign materials making false statements about the Developer, and running on a platform of limiting additional debt.” • “It was clear to the Developer that the May 2023 election would result in new board majorities for District 2 and 3 that would be hostile to the Developer and resistant to the kind of continued cooperation between the Developer and the Districts that had existed from the start of the Project that allowed it to thrive.” • “[Wolfersberger] has experience working with metro districts, but he clearly has beliefs about what the law should be that are different from what the law is. He acknowledged that there are a number of significant reforms he believes that the legislature should adopt, and that the legislature has already expressly rejected, in some cases, despite Wolfersberger’s legislative testimony.” • “[James] Patchen, a retired police officer and resident of District 3 with no affiliation with the Developer was elected to the District 3 board in May 2022. The Court finds that his testimony at the Hearing was credible. He and Dan Reifschneider, who also had no affiliation with the Developer, voted to approve the [Inclusion/Exclusion] Petitions at the April 28 meeting. He confirmed the adversarial direction Mulloy, and others were taking, which was, in his view, not about advancing the community, but rather was about going after the Developer.” • “The loss of O&M revenues is irrelevant, as the Service Plan and IGA require that District 3 provides no services, and all O&M revenues must be paid to District 1. Thus, exclusion has no adverse impact on services or costs to be levied on the remaining property in District 3.” Incompetency Findings: • “The Court finds that the meeting (of FHMD 2 & 3) on May 2nd, 2023, was invalid.” (e.g., the first meeting the newly elected Boards attempted to hold but failed to comply with basic open meeting laws). • “At the May 5 meeting, the new District 3 board members purported to hire Wolfersberger as manager and accountant, and Rufien as legal counsel. Like the May 4 meeting, this meeting (May 5, 2023) was not validly called, noticed or conducted.” • “The District 3 board purported to hold another meeting on May 26, 2023, again at the Hampton Inn, and again leaving out board members Patchen and Reifschneider. […] Recognizing that the May 4 and May 5 meetings were not validly held or conducted, the District 3 board voted to ratify the actions taken at those meetings and voted again to engage Wolfersberger and Rufien. Notice of the Agenda was posted on Wolfersberger’s new District 3 website, but he acknowledged that the new website was not the designated location for posting meeting notices until July 2023. The Court finds that the May 26 meeting was also invalid.” In the other lawsuit which was initiated by FHMD 1 to enforce the provisions of the IGA (due to the fact that FHMD 2 & 3 refuse to provide FHMD 1 the full amount of O&M funds in order for FHMD 1 to properly operate and maintain the community, all of which is in violation of the Service Plan and IGA) Judge Kane issued a very simple order. In short, Judge Kane was unwilling to appoint a Receiver to oversee the management of FHMD 2 & 3 funds. Judge Kane did dismiss FHMD 2 & 3’s partial motion to dismiss and stated that FHMD 1 has a “plausible showing of an entitlement to relief” so that means the lawsuit to enforce the validity of the IGA continues to move forward. Based upon the findings of the Inclusion/Exclusion Order and Judge Kane acknowledging the terms and conditions of the IGA and Service Plan are done in order to avoid duplicative services being incurred, I would hope that FHMD 2 & 3 Board members would work cooperatively with FHMD 1 in order to develop an appropriate budget for 2024. But as we sit here today, they are only willing to remit partial amounts of the required funds, in amounts insufficient to allow FHMD 1 to properly operate our community and instead have proposed something ridiculous like a $500,000 contingency. We can only presume that is to cover additional wasted attorneys fees. I hope more of you will continue to pressure FHMD 2 & 3 to act responsibly. There is a logical and relatively painless path forward to homeowner transition of control but we need your help to get FHMD 2 & 3 Board members to engage in constructive dialogue. Links to downloadable PDFs of Judge Kane's Orders: Findings of Fact - Conclusions of Law and Order (Motion to Revoke Denied) Order Re: Receivership Order Order Re: Defendants' Partial Motion to Dismiss

SIP. SAVOR. SWIRL. Mark your calendar for VIN Wine Festival. A wine festival that is a first of its kind in Flying Horse and sure to be an event to remember…featuring 100+ wines, local artists and musicians, and food trucks will be onsite. Date: Sunday, September, 17th 2017 Cost: Tickets start at $56.00 Location: The Club at Flying Horse, 1880 Weiskopf Point, Colorado Springs, 80921 Not a Club Member? Not a Problem! Membership in The Club at Flying Horse is not required to indulge in this one-of-a-kind wine tasting event. However, a limited number of tickets are available and may purchased online at https://www.eventbrite.com/o/flying-horse-14314538231 . ​ *A valid ID must be presented the day of the event for age verification.

If you love fine living and fine dining, then come over to The Steakhouse at Flying Horse for a meal that cannot be beat. The breathtaking panoramic views of the beautiful Colorado mountains surround you as you settle in for the best meal of your life. Fine dining at The Steakhouse at Flying Horse is as good as it gets. Enjoy a meal like no other when you dine at The Steakhouse at Flying Horse. The culinary master pieces served at the restaurant earned the Diners’ Choice award from Open Table in 2016. Our award-winning food is crafted by chefs who serve up delectable dishes, creating a new twist on old favorites by introducing innovative ingredients from around the world, as well as steakhouse classics. You can never choose wrong when making a selection from our menu . Whether you are in the mood for a world class cocktail, a steak and shrimp surf and turf combo, or Sunday brunch, you will be served only the best at The Steakhouse at Flying Horse. Our extensive menu has a meal for every time of day and every taste. If you want to have a romantic dinner, a one-of-a-kind happy hour, a fun lunch, or a great breakfast, The Steakhouse at Flying Horse is ready to delight your taste buds. The Steakhouse at Flying Horse is open to the public and ready to host your next visit. For reservations call (719) 487-2635. Breakfast is served from 6:30 AM to 11:00 AM, lunch from 11:00 AM to 1:00 PM, and dinner from 5:00 PM to 10:00 PM. Sunday Brunch is served from 10:00 AM to 2:00 PM, and the bar opens at 4:00 PM. Enjoy great food, amazing drinks, and good company at The Steakhouse at Flying Horse.

This chilly weather makes us reminiscent of these blue skies, purple mountains and lush green course! Devin Mergl, who works for Flying Horse takes GORGEOUS pictures and is letting us share them with you! Take a look at how he describes his dedication for photography, "I've always had a passion for photography and I'm lucky enough my career allows me to take some amazing photographs. I got into photography when I started working at my first golf course, Saddle Rock in 2007 and continued with it when I took photography classes while attending Colorado State University. I think the most rewarding part about capturing great photos at the course, is being able to stop and really appreciate all the hard work our maintenance crew does and just being able to appreciate the small details that pull it all together. Just being able to enjoy a job well done!" We will keep posting his pictures so stay tuned.

4-time Hall of Fame Coach Dan McKiernan will run this Big Man Clinic. The Big Man Clinic is for all post players, with a concentration on footwork, from the low post, high post, short post, new screen offenses, (roll, slip, and pop), postman shots, defense and passing .Who: Jr. High & High School boys at the Intermediate/ Advanced playing leve When: Saturday, September 17th Time: 12:00 - 3:00 pm Where: Flying Horse Athletic Club Gym Cost: Members - $45.00/ Non - Members - $60.00 Maximum Number: 10 players Call 494-1222 to sign upl

Emily Smith works at The Athletic Club front desk and is such a joy to both employees and members. She was born in Ohio and lived overseas for a few years. When her father retired from the Air Force her family moved to Colorado Springs to be close to her mother’s family. She has been living in Colorado for the past 17 years and loving every minute of it. She comes from a large family, she is the oldest of 13! We have had the pleasure of Emily being an employee here for four years. In her free time, she loves to read, hang out with friends, go for walks & playing pranks on her roommates. Emily is an avid coffee drinker, loves Harry Potter (who doesn’t) and is terrified of sharks! Make sure you say hello, she will absolutely brighten up your day!

Flying Horse is proud to announce that our community has once again been named a Main Site in the annual Parade of Homes . This year's Parade will feature a total 27 Parade homes with six of those stunning new homes located right here in Flying Horse. Each home in the Parade is professionally judged for a multitude of features including landscaping, floor plan, architectural exterior, interior decorating etc. and every year the HBA includes the People’s Choice Award. The People’s Choice Award is voted on by those who attend the Parade and is the most coveted award by the builders. The People’s Choice awards, as well as other awards, are broken out into six categories divided by price points. The Parade runs from August 3-21. For 15 days, Parade goers will have the opportunity to explore new trends in home design. This is your chance to visit the area's most respected builders to experience what they have to offer in person. Now in it's 62nd year, this annual event is one of the Housing & Building Associations' flagship events and we are honored to be a part of this Colorado Springs tradition. Parade Homes Featured in Flying Horse include: The San Isabel by Classic Homes - 2186 Villa Creek Circle - Model Home in The Village of Molise at Flying Horse The Buena Vista II by Saddletree Homes - 12590 Chianti Court - Model Home in The Village of Milan at Flying Horse The Milan by Tuscany Homes - 13036 Fisheye Dr in The Village of Messina at Flying Horse The Beaumont by Alliance Builders - 1917 Redbank Dr - Model Home in The Village of Verona at Flying Horse La Visiere by Galiant Homes - 1797 Redbank Dr in The Village of Verona at Flying Horse The Retreat by Hammer Homes - 1887 Redbank Dr in the Village of Verona at Flying Horse Parade Tickets: Tickets are $10 for adults 18 and over and may be purchased at all local Safeway and Albertsons stores and at the Parade homes during the Parade.

Two Days To Buy, Sell and Trade with Your Neighbors. This is it! The Flying Horse Community Garage Sale is your one opportunity this summer to de-clutter, clean-up, and get your house in order for back-to-school time. Share your “treasures” with your neighbors and people visiting Flying Horse during the first two days of Parade of Homes. Two Days Only! August 7th & 8th 8:00am – 2:00pm For more information about the Flying Horse Community Garage Sale, please contact your HOA office at 719-389-0700 or email clientservices@ehammersmith.com .