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<br />Independent School District 623, Roseville, Minnesota <br /> <br />ALTERNATIVE 2: <br />DEVELOPMENT OF THE SITE BY THE DISTRICT <br /> <br />Potential Gross Revenue <br /> <br />The District determined that revised development concept 82 (100 single family homes and 97 <br />townhouses) would be used to establish the parameters of Springsted's analysis. In addition, <br />Dahlgren, Shardlow, and Uban, Inc. established the average cost per lot at $68,750 for single <br />family homes and $31,500 per lot for townhouses. These parameters established the potential <br />gross revenues at $9,930,500. <br /> <br /> #of Average Cost <br />Type of Home .uo.im Per Lot J:Qtali <br />Single Family Homes 100 $68,750 $6,675,000 <br />Townhouses ~ 31,500 3,055.500 <br />Total ill $50.409 $9.930.50Q <br /> <br />SOURCE: Assumptions are based on information provided by the School District per their <br />March 16, 1994 correspondence (rom Mr. John Thein and revised based on discussions with <br />Mr. Thein on July 14, 1994. <br /> <br />Unsold Lots <br /> <br />A second element needed to determine the potential revenues to the District is the "yield" <br />(percent of total potential lots sold) of the subdivision layout. While most projects eventually sell <br />all of their lots, there are typically lots which will not command the market price. For the <br />purposes of this analysis, a "yield" of 90% was selected. This means that 10 lots (10% of the <br />single family lots) will have to be sold at a discount. The discount in price used for this analysis <br />was 50%. This equates to a potential loss of $343,750. <br /> <br /> #of Average Cost <br />Type of Home .u.o.im Per Lot ImaI.a <br />Single Family Homes 10 $34,375 $343,750 <br />Townhouses ..Q 0 .----..Q <br />Total .1.Q $34.375 $343.750 <br /> <br />NOTE: Assumes 10% of the lots will be sold at an average discount of 50%. <br />Tbe gross revenue expected after the adiusfment for unsold lots is $9.586,750. <br /> <br />Development Costs <br /> <br />When developing a piece of property, the developer will incur costs associated with the <br />construction, marketing, financing, legal and organizational aspects of the project. For the <br />purposes of this analysis, Springsted has separated these costs into private costs and public <br />costs. <br /> <br />~ SPRINGSTED <br /> <br />Page 4 <br />