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GAP STRATEGIES <br />N0.8 <br />Hi�her Land Pavments <br />Higher resale value of the land is the most obvious and fairest method to reduce <br />deficits resulting from the redevelopment costs. However, the payment for the <br />land must be competitive for the product being constructed. Attached is a land sale <br />proceeds summary which shows a total land payment of $26,470,800. The prices <br />for retail and office property are calculated on each square foot of building. <br />Commercial/retail ranges from $17.50 per square foot for corporate office to $35 <br />per square foot for a restaurant. The owner-occupied housing is calculated on a per <br />pad or per unit basis ranging from $16,590 to $21,000 per pad. The square foot <br />land costs need additional discussion and analysis, including a mechanism to verify <br />fair market value. <br />A number of factors must be considered when determining the pad prices, such as: <br />• density <br />* sale price of unit <br />* lot finishing costs (utilities, grading, lighting, landscaping, streets, <br />sidewalks, parking, parks, open space and miscellaneous amenities) <br />• market acceptance and timing <br />* adjacentland uses and amenities <br />* carrying costs (construction period interest and capitalized interest) <br />�� of �4 <br />