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VI11. SAMPLE BUT-FOR ANALYSIS
<br />City of Elk River Tax Increment Financing Policy & Application- Housing P 0 E 0 E 0 1 1
<br />Amended DATE INATURE
<br />Page 8 of 16
<br />WITH NO
<br />WITH
<br />TAX ABATEMENT
<br />TAX ABATEMENT
<br />SOURCES AND USES
<br />SOURCES AND USES
<br />SOURCES
<br />SOURCES
<br />Mortgage
<br />9,600,000
<br />8,667,000
<br />Equity
<br />2,400,000
<br />2,400,00
<br />Tax Abatement
<br />0
<br />933,000
<br />TOTAL SOURCES
<br />12,000,000
<br />12,000,000
<br />USES
<br />USES
<br />Land
<br />1,500,000
<br />1,500,000
<br />Site Work
<br />300,000
<br />300,000
<br />Soil Correction
<br />468,000
<br />468,000
<br />Demolition
<br />100,000
<br />100,000
<br />Relocation
<br />65,000
<br />65,000
<br />Subtotal Land Costs
<br />2,433,000
<br />2,433,000
<br />Construction
<br />6,750,000
<br />6,750,000
<br />Finish Manufacturing
<br />250,000
<br />250,000
<br />Subtotal Construction Costs
<br />7,000,000
<br />7,000,000
<br />Soft Costs
<br />350,000
<br />350,000
<br />Taxes
<br />35,000
<br />35,000
<br />Finance Fees
<br />850,000
<br />850,000
<br />Project Manager
<br />542,000
<br />542,000
<br />Developer Fee
<br />540,000
<br />540,000
<br />Contingency
<br />250,000
<br />250,000
<br />Subtotal Soft Costs
<br />2,567,000
<br />2,567,000
<br />TOTAL USES
<br />12,000,000
<br />12,000,000
<br />Income Statement
<br />Income Statement
<br />Sq. Ft.
<br />Per Sq. Ft.
<br />Sq. Ft.
<br />Per Sq. Ft.
<br />Rent -Space 1
<br />100,000 $8.00
<br />800,000
<br />100,000 $8.00
<br />800,000
<br />Rent -Space 2
<br />25,000 $8.50
<br />212,500
<br />25,000 $8.50
<br />212,500
<br />Rent -Space 3
<br />25,000 $9.00
<br />225,000
<br />25,000 $9.00
<br />225,000
<br />Other
<br />0 $0.00
<br />0
<br />0 $0.00
<br />0
<br />1,237,500
<br />1,237,500
<br />Mortgage
<br />20 Term
<br />1,051,646
<br />20 Term
<br />949,439
<br />9.00% Interest
<br />9.00% Interest
<br />9,600,000 Principal
<br />8,667,000 Principal
<br />Net Income
<br />185,854
<br />288,061
<br />Total Return on Equity
<br />7.74%1
<br />12.00%
<br />City of Elk River Tax Increment Financing Policy & Application- Housing P 0 E 0 E 0 1 1
<br />Amended DATE INATURE
<br />Page 8 of 16
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