Tellico Reservoir Land Management Plan - Summary of Allocation Changes

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Tellico Reservoir Land Management Plan - Summary of Allocation Changes Land use allocation changes on Tellico Reservoir that have occurred since the 2000 Tellico Reservoir Land Management Plan (RLMP) was completed are summarized below: Parcel & Tract No. 2000 Tellico RLMP Allocation 1 Acres Allocation Change Description 2 Justification 3 Parcel 6 (XTELR-6PT) Zone 4 41.9 17.6 acres (new Parcel 6a) changed to Zone 6 Parcel 6 is now 24.3 acres and remains Zone 4 Prior to 2006 Land Policy Parcel 8 (XTELR-8PT) Zone 6 45.4 40.8 acres changed to Zone 1 to reflect land sale in 2003 Parcel 8 is now 4.6 acres and changed to Zone 6 Prior to 2006 Land Policy Parcel 9 (XTELR-9PT) Zone 4 339.8 69.6 acres changed to Zone 1 to reflect land sale in 2003 Parcel 9 changed to 270.2 acres and remains Zone 4 Prior to 2006 Land Policy TELR-1426 (New Parcels 140a & 141a) Zone 1 256.0 256.0 acres newly allocated to reflect acquisition in 2003 139.0 acres (new Parcel 140a) allocated as Zone 4 117.0 acres (new Parcel 141a) allocated as Zone 6 Prior to 2006 Land Policy Parcel 9a (XTELR-9PT) Zone 4 270.2 This is a second allocation change on Parcel 9 0.45 acre (new Parcel 9a) changed to Zone 7 Parcel 9 is now 269.7 acres and remains Zone 4 Implement Shoreline Management Policy Parcel 9 (XTELR-9PT) Zone 4 269.7 This is a third allocation change on Parcel 9 0.33 acre (new Parcel 9b) changed to Zone 7 Parcel 9 is now 269.4 acres and remains Zone 4 Implement Shoreline Management Policy Parcel 52 (XTELR -52PT) Zone 5 129.8 1.0 acre changed to Zone 1 to reflect land sale for industrial purposes to resolve an encroachment Parcel 52 is now 128.8 acres and remains Zone 5 Land Policy 1 See definitions of the land planning zones 2 More information is available below - the fact sheets for the allocation changes described in the table above are considered a supplement to the 2000 Tellico RLMP. Land Use Allocation Changes After approval of a reservoir land management plan by TVA, all future uses of TVA-managed lands on that reservoir must then be consistent with the allocations within that RLMP. Reservoir property that is sold by TVA reverts to Zone 1 Non-TVA Shoreland. 3 In accordance with TVA policies and guidelines, allocation changes after approval of an RLMP are only allowable under limited circumstances described below: (1) To correct administrative errors that occurred during the planning process (2) To implement TVA s Shoreline Management Policy, consistent with the TVA Land Policy (3) To allow water-access for industrial or commercial recreation operations on private backlying property, consistent with the TVA Land Policy

Tellico Reservoir Land Management Plan Allocation Changes XTELR-6PT, XTELR-8PT, XTELR-9PT, and TELR-1426 Reservoir Lands Planning Allocation Changes After approval of a reservoir land management plan (RLMP) by TVA, all future uses of TVA-managed lands on that reservoir must then be consistent with the allocations within that RLMP. This document addresses the reallocation of portions of Tellico RLMP Tracts XTELR-6PT (Parcel 6), XTELR-8PT (Parcel 8), XTELR-9PT (Parcel 9), and designating allocations to TELR-1426 (New Parcels 140a and 141a). This document is considered a supplement to the 2000 Tellico RLMP. Definitions of TVA s land planning allocations are available at www.tva.com\landplanzones. General Information about Tellico Reservoir Tellico Reservoir is an impoundment of the Little Tennessee River formed by Tellico Dam, which is located at Little Tennessee River (LTR) Mile 0.0 and diverts the flow from LTR through a short canal into Fort Loudoun Reservoir. Tellico Reservoir is located in Loudon and Monroe counties in Tennessee. TVA originally acquired 37,737 acres of land for construction of the reservoir, which was completed in 1979. TVA has retained 12,643 acres of land lying above full pool elevation. At full pool, the reservoir is 33 miles long; mainland shoreline length is 360.8 miles; and surface area is 15,560 acres. Tellico RLMP Tracts XTELR-6PT, XTELR-8PT, XTELR-9PT, and TELR-1426 In 2003, TVA approved a request from the LTR Properties (Rarity Communities) to sale 110.2 acres and modify the following land use allocations for Tracts XTELR-6PT, XTELR-8PT, and XTELR-9PT for the purpose of residential and commercial recreation development. In addition, TVA would acquire approximately 256 acres (TELR-1426) with land use allocations of Natural Resource Conservation and Recreation. Maps of the Rarity Communities request are located on the next page. Tract 2000 Tellico RLMP 2003 Modifications Number Allocation Acres Allocation Acres XTELR-6PT Natural Resource Conservation 41.9 Natural Resource Conservation 24.3 Recreation 17.6 XTELR-8PT Recreation 45.4 Non-TVA Shoreland 40.8 Natural Resource Conservation 4.6 XTELR-9PT Natural Resource Conservation 339.6 Non-TVA Shoreland 69.6 Natural Resource Conservation 270.0 TELR-1426 Non-TVA Shoreland 256.0 Natural Resource Conservation 139.0 Recreation 117.0 07/2013

Figure 1. Allocation Change Areas For Parcels 6, 8, 9, and new Parcels 140a and 141a Parcels 140a and 141a TVA Land Acquisition Approximately 256 Acres Rarity Pointe Development Interior Forest Approx. 18 Acres RM 18 Approx. 2.45 Miles of Shoreline TVA Parcel 6 TVA Parcel 8 +/-110 Acres TVA Parcel 9 Acquisition Rarity Pointe Ownership PRIVATE TVA TVA Conveys to LTR Conceptual GW Trail Route Trail Easement on Rarity Pointe Trail Terminal Developed by LTR 0 500 1,000 2,000 3,000 4,000 5,000 Feet \\knxknxgfp6t\gieprojects\rarity_pointe\rarity_final-8x11-alte.mxd To Davis Ferry Trail Terminal

Figure 2. Tellico Reservoir and Vicinity Lenior City U.S. 321 U.S. 11 Tennessee River Fort Loudoun Dam Tellico ParkwayTellico Dam Fort Loudoun Reservoir Tellico Reservoir U.S. 321 N Antioch Church Road Map Not To Scale Tellico Parkway Tellico Village TVA Property ± 110 ac. Proposed Rarity Pointe Development Rarity Pointe Proposed Development Project Legend: Tennessee River Watershed

U U 27TU U27T Tellico Reservoir Land Management Plan Allocation Change XTELR-9PT (XTELR-9aPT) Reservoir Lands Planning Allocation Change After approval of a reservoir land management plan (RLMP) by the Tennessee Valley Authority (TVA), future uses of TVA-managed lands on that reservoir must then be consistent with the land use allocations within that RLMP. TVA has determined that a portion of Parcel 9 (Plan Tract No. XTELR-9PT) qualifies for an allocation change. In August 2000, the TVA Board of Directors (Board) approved the Tellico RLMP. Unique to Tellico, certain parcels that are not allocated as Shoreline Access (Zone 7), known as Residential Access in this RLMP, qualify for private water use facilities pursuant to a 1982 Contract (TV-60000A) between TVA and the Tellico Reservoir Development Agency. Pursuant to the Contract, TVA grants nonexclusive recreational easements to allow private water use facilities if the backlying landowner s property meets qualification criteria for the recreational easement. Upon grant of the recreational easement, the landowners would have qualifying legal access rights sufficient to deem the property TVA-Owned Residential Access Shoreland under TVA s Shoreline Management Policy. This document addresses the reallocation of a 0.45-acre portion of XTELR-9PT to Residential Access and is considered a supplement to the Tellico RLMP. Definitions of TVA s land use allocation zones are available at www.tva.com/landplanzones. General Information about Tellico Reservoir Tellico Reservoir is an impoundment of the Little Tennessee River formed by Tellico Dam, which is located at Little Tennessee River mile 0 and diverts the flow through a short canal into Fort Loudoun Reservoir. Tellico Reservoir is located in Loudon and Monroe counties in east Tennessee. TVA originally acquired 37,737 acres of land for construction of the reservoir, which was completed in 1979. TVA has retained 12,643 acres of land lying above full pool elevation. At full pool, the reservoir is 33 miles long; mainland shoreline length is 360.8 miles; and surface area is 15,560 acres. U Tellico Parcel 9PT (XTELR-9PT) and Parcel 9a (XTELR-9aPT) XTELR-9PT (339.6 acres) is located in Loudon County along the right descending bank at Little Tennessee River miles 5.0 to 6.2 on Tellico Reservoir. In the 2000 Tellico RLMP, XTELR-9PT is allocated as Natural Resource Conservation (Zone 4) and is described as predominantly wooded. Since 2000, XTELR-9PT acreage has changed from 339.6 acres to 269.6 acres due to a sale of 69.6 acres in 2003. A 0.45-acre portion of XTELR-9PT that fronts a tract of private land, TELR-314, qualifies for a nonexclusive recreational easement and an allocation change to Residential Access. This 0.45-acre area has been re-designated as Parcel 9a (XTELR-9aPT) and allocated as Residential Access to properly recognize access rights in accordance with the Contract and the Shoreline Management Policy. Requests for private water use facilities will be considered on XTELR-9aPT. The remaining 269.6 acres of XTELR-9PT (Parcel 9) continues to be allocated as Natural Resource Conservation. 04/2017

Farragut 70 75 75 Lenoir City 321 QR324 11 TN 321 Loudon Allocation Change Friendsville QR72 QR 95 Legend: Interstate Highways US Highways State Highways Major Highways Major Roads State Boundary County Boundary City Boundary Lakes Vicinity Map Tellico Reservoir Land Use Allocation Change Loudon County, Tennessee XTELR-9PT and XTELR-9aPT 1.5 0.75 0 1.5 Miles Map Reference: C/D Stage: 3D Quad: 139NW ± Natural Resources April 21, 2017

Easement Location (Approx. 0.45 acre) XTELR-9aPT- Area Reallocated as Zone 7 (Approx. 0.45 acre) Tellico Reservoir Exhibit Map Land Use Allocation Change Loudon County, Tennessee XTELR-9PT and XTELR-9aPT Tennessee River Mile 5.4R 200 100 0 200 Feet ± Map Reference: C/D Stage: 3D Quad: 139NW Natural Resources April 21, 2017

U 27TU U27T Tellico Reservoir Land Management Plan Allocation Change XTELR-9PT (XTELR-9bPT) Reservoir Lands Planning Allocation Change After approval of a reservoir land management plan (RLMP) by the Tennessee Valley Authority (TVA), future uses of TVA-managed lands on that reservoir must then be consistent with the land use allocations within that RLMP. TVA has determined that a portion of Parcel 9 (Plan Tract No. XTELR-9PT) qualifies for an allocation change. In August 2000, the TVA Board of Directors (Board) approved the Tellico RLMP. Unique to Tellico, certain parcels that are not allocated as Zone 7 (Shoreline Access), known as Residential Access in this RLMP, qualify for private water use facilities pursuant to a 1982 Contract (TV-60000A) between TVA and the Tellico Reservoir Development Agency. Pursuant to the Contract, TVA grants nonexclusive recreational easements to allow private water use facilities if the backlying landowner s property meets qualification criteria for the recreational easement. Upon grant of the recreational easement, the landowners would have qualifying legal access rights sufficient to deem the property TVA-Owned Residential Access Shoreland under TVA s Shoreline Management Policy. This document addresses the reallocation of a 0.33-acre portion of XTELR-9PT to Residential Access and is considered a supplement to the Tellico RLMP. Definitions of TVA s land use allocation zones are available at www.tva.com/landplanzones. General Information about Tellico Reservoir Tellico Reservoir is an impoundment of the Little Tennessee River formed by Tellico Dam, which is located at Little Tennessee River mile 0 and diverts the flow through a short canal into Fort Loudoun Reservoir. Tellico Reservoir is located in Loudon and Monroe counties in east Tennessee. TVA originally acquired 37,737 acres of land for construction of the reservoir, which was completed in 1979. TVA has retained 12,643 acres of land lying above full pool elevation. At full pool, the reservoir is 33 miles long; mainland shoreline length is 360.8 miles; and surface area is 15,560 acres. U Tellico Parcel 9PT (XTELR-9PT) and Parcel 9b (XTELR-9bPT) XTELR-9PT (339.6 acres) is located in Loudon County along the right descending bank at Little Tennessee River miles 5.0 to 6.2 on Tellico Reservoir. In the 2000 Tellico RLMP, XTELR-9PT is allocated as Zone 4 (Natural Resource Conservation) and is described as predominantly wooded. Since 2000, XTELR-9PT acreage has changed from 339.6 acres to 270.0 acres due to a sale of 69.6 acres in 2003 and a land use allocation change to Residential Access on a 0.45-acre portion in 2017 (XTELR-9aPT). A 0.33-acre portion of XTELR-9PT that fronts a tract of former TVA land (TELR-314) qualifies for a nonexclusive recreational easement and an allocation change to Residential Access. This 0.33-acre area has been re-designated as Parcel 9b (XTELR-9bPT) and allocated as Residential Access to properly recognize access rights in accordance with the Contract and the Shoreline Management Policy. Requests for private water use facilities will be considered on XTELR-9bPT. The remaining 269.3 acres of XTELR-9PT (Parcel 9) continues to be allocated as Natural Resource Conservation. 11/2018

5! O! 6 XTELR-9bPT- Area Reallocated as Zone 7 (Approx. 0.33 acre) XTELR-9PT- Area To Remain Allocated as Zone 4 (Approx. 269.3 acres) Exhibit Map Land Use Allocation Change Loudon County, Tennessee XTELR-9PT and XTELR-9bPT Little Tennessee River 5.4R Map Reference: D-Stage: 3 Quad: 139 NW Natural Resources 0 1,000 2,000 4,000 Tellico Reservoir Feet August 15, 2018 ±

Tellico Reservoir Land Management Plan Allocation Change XTELR-52PT Reservoir Lands Planning Allocation Change After approval of a reservoir land management plan (RLMP) by the Tennessee Valley Authority (TVA), future uses of TVA-managed lands on that reservoir must then be consistent with the land use allocations within that RLMP. In 2015, TVA declared surplus and sold at public auction pursuant to Section 31 of the TVA Act, a 1.0- acre portion of Plan Tract No. XTELR-52PT (TVA Tract No. XTELR-270) for industrial purposes to resolve an existing encroachment of an adjacent watercraft manufacturing facility in an industrial park. The sale allowed the building encroaching on TVA fee property to remain. Former reservoir property reverts to Zone 1 Non- TVA Shoreland, therefore the sale of the 1.0-acre portion of XTELR-52PT (Parcel 52) warrants an allocation change. This document addresses the reallocation of the 1.0-acre portion of XTELR-52PT from Zone 5 (Industrial/Commercial) to Non-TVA Shoreland and is considered a supplement to the Tellico RLMP. Definitions of TVA s land use allocation zones are available at www.tva.com\landplanzones. General Information about Tellico Reservoir Tellico Reservoir is an impoundment of the Little Tennessee River formed by Tellico Dam, which is located at Little Tennessee River mile 0.0 and diverts the flow through a short canal into Fort Loudoun Reservoir. Tellico Reservoir is located in Loudon and Monroe counties in east Tennessee. TVA originally acquired 37,737 acres of land for construction of the reservoir, which was completed in 1979. TVA has retained 12,643 acres of land lying above full pool elevation. At full pool, the reservoir is 33 miles long; mainland shoreline length is 360.8 miles; and surface area is 15,560 acres. Tellico Parcel 52 (XTELR-52PT) XTELR-52PT (129.8 acres) is located in Monroe County along the left descending bank at Little Tennessee River mile 16.2 on Tellico Reservoir. In the 2000 Tellico RLMP, XTELR-52PT is allocated as Industrial/Commercial and is described as a narrow strip of property between the waters of Tellico Reservoir and backlying former TVA property that was conveyed to the Tellico Reservoir Development Agency for industrial development (Tellico West Industrial Park). The 1.0-acre area was sold at public auction pursuant to the Land Policy, which describes that TVA shall consider disposing of reservoir lands or land rights for industrial purposes if the TVA property is located in an existing industrial park or is designated for such purposes in a current reservoir land management plan and verified as suitable for such use by TVA staff in a property survey. In this instance, the property is located in the Tellico West Industrial Park, the land use allocation for the requested sale area is Industrial/Commercial in the 2000 Tellico RLMP, and the property was identified as suitable for industrial development in the 2007 land assessment compiled by TVA staff. The remaining 128.8 acres of Parcel 52 remains allocated as Industrial/Commercial. 08/2015

11 Loudon QR 95 QR 72 Greenback Allocation Change QR 322 TN 411 Vonore QR 72 Madisonville 411 QR 360 QR 68 Legend: Interstate Highways US Highways State Highways Major Highways Major Roads State Boundary County Boundary City Boundary Lakes Vicinity Map Tellico Reservoir XTELR-52PT Land Use Allocation Change Monroe County, Tennessee 2 1 0 2 Miles Map Reference: C/D Stage: 12D Quad: 131SE ± Natural Resources and Real Property Services November 23, 2015

Area Reallocated to Zone 1 (Approx. 1.0 acre) Tellico Reservoir Exhibit Map Land Use Allocation Change XTELR-52PT Monroe County, Tennessee Little Tennessee River Mile 16.2L 200 100 0 200 Feet Map Reference: C/D Stage: 12D Quad: 131SE ± Natural Resources and Real Property Services November 23, 2015