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R
<br />CASH
<br />$ 40,000 = 12 homeowners
<br />$ 157,000 = Hart
<br />TOTAL DOWN
<br />Original Price
<br />Less Down Payments
<br />BALANCE TO LAND OWNERS
<br />Year
<br />2 =
<br />7.5
<br />reduction
<br />Year
<br />3 =
<br />7.5
<br />reduction
<br />Year
<br />4
<br />= 7.5
<br />reduction
<br />Year
<br />5
<br />= 7.5
<br />reduction
<br />Year
<br />6
<br />= 7.5
<br />reduction
<br />C_
<br />$ 480,000
<br />$ 157,000
<br />$ 637,000
<br />$5,358,406
<br />- $ 637,000
<br />ANNUAL PAYMENTS
<br />Rosewood
<br />90,000
<br />90,000
<br />90,000
<br />90,000
<br />90,000
<br />540,000
<br />Land
<br />354,105
<br />327,547
<br />303,013
<br />280,297
<br />259,266
<br />$4,721,406
<br />Total
<br />444,105
<br />417,547
<br />393,013
<br />370,287
<br />3491266
<br />$4,367,730
<br />$4,040,183
<br />$3,737,170
<br />$3,456,883
<br />$3,197,590
<br />Balloon $2,938,324.
<br />Final buyout in 7 years is $2,938,324 (this is $1,659,936 in today's money).
<br />Thus, City outlay would be as follows:
<br />1. Cash Upfront - $637,000 (Hart & homeowner) + $1,659,936 (7 y
<br />buyout - present value) = $2,296,936.
<br />2. Annual Payments - $349,000 - $444,000.
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