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<br />e <br /> <br />. <br /> <br />. <br /> <br />b~ <br /> <br />Profit; At the partnership level, looking at return vs. profit. (Internal Rate '..</1:",.. <br />ofInvestment or IRR desired is 24% return) For a project with this amount , <br />of risk many developers would ask for a 30AO% range. S.R.: For housing, <br />look for approximately a 13% margin before interest and taxes; so net <br />margin 6-7%, C.B.; Expect 5-10% gross margins; 4% range for net <br />margins. B.R.: Same general range for net profit. CRR feels that, based on <br />what we know today, they're about at that level. <br /> <br />8) <br /> <br />With the limited CRR characterization that has been done, are you concerned that <br />the insurance is either going to be too costly or not be offered due to limited <br />characterization? <br /> <br />There is a need for additional characterization and also to see the results of <br />the Phase III Planning process. <br /> <br />9) Council asked that the development team meeting minutes be more informative. <br />To date there has been little to no improvement, why? <br /> <br />NOTE: This was not specifically discussed at the May 10 meeting but the <br />reque.st was passed on to the development team and there have been some <br />positive comments about the improvement in level of detail since then. <br /> <br />10) <br /> <br />Which is more profitable from a developer perspective, high density housing or <br />lot (single family) development housing? Does CRR have a preference? <br /> <br />It depends where lots are located. What are they near (for example, near the <br />border with National Guard property,) S.R.: Using some assumptions based <br />on the Vento Plan; assume range of2/acre to 10/acre in the Perform a, with <br />an average density of 5/acre. Single family average price $450,000 for 21acre, <br />with the range $200,000 - _? ($_10/acre) <br /> <br />II) How do you plan to regain the trust of the congressional delegation? <br /> <br />Work as a team with the City, as we did with the Post Office. <br /> <br />When the development team has ideas to take to the congressional delegation, <br />they should talk with someone at the City (CA, CD Director, and the Mayor first, <br />at a minimum), Don't trust the team's judgment on these issues. <br /> <br />We acknowledge that there were mistakes make; we will do things differently <br />in the future. <br /> <br />There are going to be times when lobbying efforts are needed. What procedure <br />will CRR use (beyond clearing it with staff) to assure the lobbying message is <br />what the City wants, not necessarily what CRR wants? <br /> <br />\\Earth\Admin\City Administrator\TCAAP\5-10-04 Q&A Responses.doc <br />