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<br />Independent School District 623, Roseville, Minnesota
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<br />Private Costs
<br />
<br />A. Soft Costs (Development of Site)
<br />
<br />As with the up front sale of the land, there are certain soft costs which are associated
<br />with the development of the land. That amount is estimated at $825,000.
<br />
<br />Some of these costs are based on the complexity and size of the project (engineering,
<br />legal, development consultant, fiscal advisor, title and recording, insurance). Other
<br />costs (sales & marketing, assessments and',assessment interest) are based on the
<br />development and sales program as is outlined in Exhibit A.
<br />
<br />It.em
<br />
<br />Engineering & Design Related (Private Lots)
<br />Title & Recording
<br />Insurance
<br />Legal
<br />Development Consultant
<br />Fiscal Advisor
<br />Sales & Marketing'"
<br />Assessment Interest During Sell Period
<br />Assessments on Unsold Lots
<br />Working Capital
<br />Miscellaneous Organizational
<br />Contingency
<br />
<br />Total:
<br />
<br /> Targeted
<br />J.QYi ffigh Assumption
<br />$ 50,000 $ 100,000 $ 75,000
<br />15,000 30,000 20,000
<br />12,000 40,000 28,000
<br />30,000 105,000 70,000
<br />100,000 400,000 250,000
<br />10,000 35,000 20,000
<br />10,000 25,000 15,000
<br />120,483 186,632 151,658
<br />76,312 118,160 96,104
<br />5,000 24,000 12,000
<br />5,000 20,000 10,000
<br />36.205 86,208 77.238
<br />$470.000 Sj.170.000 $825.000
<br />
<br />'"
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<br />Assumes lots are sold through the builders and that the District wfll not Incur costs typically related
<br />to the sale of a subdivision.
<br />
<br />SOURCE: Assumptions are based on information provided in the RFP and verified through discussions
<br />with Mr. John Thein and Mr, John Shardlow on April 5, 1994 and July 14, 1994.
<br />
<br />B. Rough Grading (Private Lots)
<br />
<br />In addition to the soft costs, the individual lots will need to be prepared to a certain level
<br />of completion $0 the home builder can move on the site and construct the house. The
<br />current estimate for rough grading of the site is $620,000.
<br />
<br />High
<br />Low
<br />
<br />Targeted Assumption
<br />
<br />$850,000
<br />$480,000
<br />
<br />$620,000
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<br />SOURCE: Assumptions are based on information provided in the RFP, conversations with several
<br />contractors, verification of assumpUons using 1994 Means Building Construction Cost Data
<br />and comparisons with engineering estimates from other projects, and verification by Dahlgren,
<br />Shardlow, and Uban, Inc.
<br />
<br />~ SPRINGSTED
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<br />Page 5
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