TERRANEA RESORT - CONNECTION TO THE ENVIRONMENT

Protecting Earth's Resources, Planning and Educating for a Greener Future

The Place
If there was ever a setting that retains the essence of the unspoiled beauty of California's coast, Terranea is it. In reverence to this unmarred setting, Terranea Resort is being created with the utmost sensitivity to its native environment and a guiding philosophy of ecological sustainability. The existing contours of the land and varied microclimates create diverse natural habitats and every effort has been made to blend the ecological and aesthetic characteristics of the surrounding landscape into the resort. Naturally, all elements of Terranea Resort will embrace radiant ocean views, while encouraging a continuous andimaginative interplay between indoor and outdoor spaces.

The Mission
In recognition of the need to preserve the world in which we live, and protect this unique Rancho Palos Verdes location, Terranea Resort is dedicated to practices and programs that pay respect to, lessen our footprint on, and protect this invaluable coastal setting.

The Steps
Terranea is committed to protecting the valuable coastal resources that define the Palos Verdes peninsula and make Terranea one of the most valued natural locations in the world. No land mass is being removed from the area during the development of Terranea, and 40% of the materials from abandoned structures left behind by previous tenants are being recycled and used in the site preparation of the new resort and 65,000 tons of onsite rock was crushed to utilize under roads and walkways.

Terranea's relationship to the surrounding natural environment offers great opportunities to watch various natural systems including whale migration, diverse intertidal marine habitat and endangered species. Careful attention has been paid to positioning the architectural elements of the resort to fit within this context.

Terranea's environmental plan calls for sustainable measures to protect open space, improve wildlife habitat and treat storm water. To protect and enhance local water quality, Terranea is implementing a series of environmental best management practices that include wet ponds, Bioswales and storm filters. Bioswales are vegetated channels, essentially created wetlands, which enhance water quality and provide a habitat for many avian species.

Terranea offers over 631, 800 square feet of native habitat areas. One of the defining characteristics of the Peninsula is the striking contrast between the texture of the native plants found on the hillsides and refined planting palette of the homes that abut these places. Plants such as Island Green Dudleya and other coastal plant species found on the Peninsula are specific to Palos Verdes and the Channel Island group. Strict attention has been paid to reinforcing the biodiversity and integrity of this ecosystem through our native plant pallet. This native plant material is being locally cultivated from a Palos Verdes seed bank and grown bythe Palos Verdes Land Conservancy. In contrast to the native plant material, a more refined palette of plant material provides a transition from the native areas to the various buildings on the site. Together, the plants create a variety of intimate and social spaces that transition seamlessly from the interior to the exterior of the space.

Of the 102 acres of the site only 25% is covered by impervious surfaces, either building or paving, leaving roughly 75 acres of "green space."

Approximately 45 mature trees, legacies of Marineland and dating over 50 years, have been boxed and will be replanted throughout the site as a tribute to the history of this location. Species include New Zealand Christmas, coral, pine and ficus trees whose stately quality will add to the sense of being "built over time."

By marrying advanced technological solutions for managing storm water with a strong commitment to the land, Terranea is committed to protecting the valuable coastal resources that define the Palos Verdes coastline and make the area one of the most valued scuba diving locations in the world. The resort's water quality management goals are to protect and enhance local water quality by reducing storm water pollutants to limit storm water flows and to conserve the natural areas of the site. This is accomplished through a series of best management practices that capture and treat the "first-flush" runoff of rainfall during any storm event. First flush collection systems called Storm Filters are employed to capture and isolate this most polluted runoff and use a variety of sustainable media to remove the most challenging target pollutants.

Onsite stone has been quarried to use for stone veneer on site walls within the landscape. The Boral Clay Pavers made from two of the most abundant natural materials on the planet, clay and shale, will be used throughout the site. They will be sand set to allow for the infiltration of water into the ground. This improves local water quality and further reduces impervious surface paving throughout the project.

All three of Terranea's pools will be treated with salt water in lieu of a fully chlorinated system. This process is both environmentally friendly and healthier for pool users.

On the nine-hole, par three golf course, daily flows from irrigation water will be treated in vegetated channels called Bioswales. These contain plant species known for their ability to remediate contaminants through sedimentation, filtration, absorption and vegetative uptake. The use of pesticides and fertilizerswill be limited to those which are either organic in nature or those which have noresidual effect.

The Details
Throughout the Resort

• Educate and inspire associates and guests to a global cause
• Inspire children to embrace environmental friendly practices through education
• Support and contribute to the Palos Verdes Community in which we serve
• Encourage associates to build upon personal practices and take ownership for the environment
• Embrace the ultimate goal of zero-waste
• In year 1-3, attain at least 70% of waste not going to landfill
• Work in concert with Waste Management Service to measure and record all progress in total resort recycling
• Follow 3 R's: Reduce, Reuse, and Recycle
• Recycling program that includes paper, glass, plastic, metals and organic waste
• Use live, edible and/or reusable decorations
• Bio-degradable golf tees
• Provide reusable china, utensils, napkins and tablecloths at every opportunity
• Provide reusable water bottles for associates, guests and meeting attendees
• Provide condiments in bulk and juices, water and ice tea in pitchers instead of individual containers for meeting breaks
• Adopt FLOSS philosophy for food: Fresh, Local, Organic, Seasonal, Sustainable
• Ensure menu selections in all F&B offerings (including staff dining area) include local and organic products and provide vegetarian options
• Organize food donation program and/or composting for any un-served or leftover food
• Establish linen/towel reuse option that is communicated to guests
• Develop amenity donation program for any unfinished toiletries
• Purchase bio-degradable room amenity containers
• Provide organic dry cleaning services
• Create uniforms made of bamboo cotton or chemical free organic cotton, wool or hemp
• Utilize bamboo linens/towels when appropriate
• Purchase from "green" vendors and suppliers
• Utilize certified "green" cleaning products
• Printed materials on 30% PCW (post consumer waster) and made with wind generated electricity
• Print with vegetable ink
• Paperless check-in and check-out
• Utilize Green-Key (recyclable, bio-degradable and produced from paperboard)
• Utilize earth-friendly paper and FSC (Forest Stewardship Council) certified paper
• Paperless meetings - putting all registration materials and meeting handouts online
• Reduce paper waste such as registration forms, handouts, evaluation, and collateral forms, etc
• Train employees on green initiatives/include in orientation
• Incorporate sustainable processes/practices (i.e., recycling, turning off lights/computers, etc.)
• Energy efficiency program
• Turn off lights and HVAC when rooms are not occupied
• High-impact fluorescent light bulbs
• Water conservation program
• Cultivating native plantings
• Bio-based or bio-degradable products
• Provide access to public transportation or shuttle services
• Use of hybrid and low emission vehicles
• Initiate car/van pools for associates
• "Greening" all staff air travel with purchase of carbon & electrical offset credits and offer to clients, customers, media, conference attendees to purchase
• Encourage guests and associates to stay in touch with the environment and to savor the wonderful outdoor options of the site
• Offer wonderful outdoor options
• Utilize natural daylight
• Consider voluntary lights out program to encourage energy conservation to guests
• Embrace DH&R Corporate Destination Earth initiatives

About Terranea
Opening June 2009, and just 20 miles from Los Angeles International Airport, Terranea is magnificently poised above the Pacific Ocean on the Palos Verdes Peninsula. The property boasts a 582-room resort including a 360-room hotel with 20 bungalows and 32 suites. Also available are 50 ocean front casitas and 32 detached ocean view villas tailored specifically to individuals looking for a more intimate setting. Terranea will be home to a nine-hole par three golf course and a world-class, 25,000 square-foot spa with 24 treatments rooms, a salon and a fitness facility. The property includes three unique swimming pools, one with children's play area and a 140-foot waterslide. Three ocean view restaurants will offer a variety of food and beverage experiences including a casual, all-day dining restaurant, a free-standing signature restaurant and a cliff-side bar with spectacular vantage points for whale watching. Other amenities include a children's center with interactive programs and several miles of on-property scenic bluff-top trails that connect to many miles of resort trails. A secluded beach cove also adds to the unique experiences at Terranea Resort.

The Team
Lowe Destination Development:
Los Angeles-based Lowe Enterprises is a leading national real estate development, investment and management firm. Over the past 35 years, it has developed, acquired or managed more than $8 billion of real estate assets nationwide. Through Lowe Destination Development, Lowe's hospitality and resort community development subsidiary, the firm is currently developing inexcess of $1 billion of hospitality properties nationwide, including the 102-acre Terranea Resort in the Los Angeles' area of Palos Verdes, the 1,040-acre Grizzly Ranch in Portola, Calif., the 700-acre Stone Eagle Golf Club in Palm Desert, Calif., the 600-room SilverRock Resort in La Quinta, Calif, the 136-unit Stowe Mountain Lodge in Vermont and the 6,000-acre Suncadia project near Roslyn, Wash. Lowe Enterprises maintains regional offices in Denver, Irvine, Phoenix, San Francisco, Sacramento and Washington D.C. and project offices nationwide. www.LoweDestinationDevelopment.com.

Hotel Management:
Destination Hotels & Resorts is a privately held lodging management company headquartered in suburban Denver, Colo. With more than 30 independent, luxury and upscale hotels, resorts and golf clubs, Destination is the fourth largest independent hospitality management company in the country. The company's portfolio features more than 6,000 guest rooms, 10 golf courses and 12 full-service spas. Destination Hotels & Resorts properties are located in key metropolitan and resort markets including Washington, D.C., Houston, Denver, San Diego, Santa Fe, Aspen, Austin, Phoenix, Portland, Palm Springs, Maui and Lake Tahoe. For more information on the properties in the Destination Hotels &Resorts collection, please visit www.destinationhotels.com.

Both LDD and DH&R are wholly owned subsidiaries of Lowe Enterprises at www.LoweEnterprises.com.

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