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<br /> The most significant assumptions re I ,de to the \Ja 1 ue of mon e >' and <br /> . the size of the building. The financial pro,j ec.t i on~. do not <br /> provide a time value for money or comparison 1",1 i th al ternative <br /> investments. I t is assumed th a t funding ,,'ould be a'Ja j 1 ~.bl e for <br /> t his project only. The entire proj ec t is pro.j ec ted to be <br /> financed by bonds which would represent a. fAlorSI? Cd-.S€' scenariD. <br /> In real i ty the ci ty vJould receive some income fr om canse,1 i d2 t; on <br /> and di spos.~1 of properties. Addition?1 sources. of f j n .:",0 c j n 9 <br /> might also be ?\Ja i 1 abl e to r e du c e bonding requ i rements-, :3c,me <br /> type of turnkey development proposa.1 m i gh t e1 iminate deb t <br /> financing altogether. ~[i thou t a time ~J 3.. 1 u e for moo ~ >' <br /> requ i remen t.. the fixed debt payment prol)ides an adv.~.n ta.ge C,\Jer <br /> inflation pegged lease arra.rrgemen ts over the 1 onl~ term. <br /> The secolld mcd or a.s5ump t i on is that a leased fac i 1 i ty (i,IOu1 d not <br /> provide th e special ized common areas and commun i ty 5paces and <br /> vJOu I d therefore re =.IJ 1 t is less office area. . For plJrpc<s.E';:. of <br /> analysis, those reductions liJere common are .:<. <;:.pace at 4,930 '.::.. f <br /> and parl<ing at 1 ',200 s. f . The leased office <;:.pace lJJ3.S a 1 <'::.0 <br /> consi dered to be existing, not nelJJ office =.p ac e and at the sa.me <br /> 1 eve 1 of quality and cost as the existing lease arrangemen t. A <br /> nelAI or special ized fac i 1 i ty cou 1 d be expected to reo <;:.u 1 t in hi ';lhe r <br /> occupancy cos.ts. . Consequen t 1 y, th i " analysis represents 3, be~, t <br /> case picture in terms of private lease costs. <br /> The e val '1 at i on contains a number of vari2.bles and 2,ssump t ions. <br /> . They, are summar i zed here and are -::.ubject to ch2,nge to E I.,) 3. lua te <br /> di fferen.t assumptions or concerns. <br /> Variable A-:::.sump t j on <br /> 1. Amount of Bu i I din g Sp-3,ce <br /> 0 Ownersh i p-net/J building 18,440 s.f. <br /> 0 Lease-existing bu i 1 din g 11,110 s.f. <br /> 2. Annual Expansion l-leeds 0 5.. f. <br /> 3, Quality of Space A, B, C Al terna t i ves <br /> 4. Construction Cost $60 -$ 70/5.. f . <br /> 5. Land Area 90,000 So. f . <br /> 6. Land Cost (w i th services) $.30-1 .25/-::..f. <br /> 7. Amount Financed 100 /, <br /> 8. Bond Term 20 years. <br /> 9. Bond Interest Rate 8.25 /, <br /> 10. Bond Coverage 1.00 <br /> 11. Lease Rate Current Lea,::.e <br /> $10.50/s.f. gr 0'=.5 <br /> 12. Led-se Ra. te Increase 5.00 :I. <br /> 13. Util j ties $1.12/5.f. <br /> 14. Uti 1 it i es Increase 6.00 '/ <br /> /, <br /> 15. t"1.;:>. in tenanee Services .t 1 .30/<.::'.. f . <br /> 16, tvla in tenance I ncrea.-=.e 4.00 '/ <br /> " <br /> 17. Property Tax I ncrea-::.J? 3.00 '/ <br /> 10 <br /> i 8. Replacement AllQI;,lanCe $ .35/':::..+. <br /> 19. Sale Price 1'1. F ,S. <br /> . 20. I n\Jestmen t Return Obj ec t i I,J!?=. 0.00 :I. <br /> 21. Insurance $ . 03/s. f. <br /> 22. Insurance Increase 3.00 /. <br /> D-3 <br />