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<br />VIII. SAMPLE BUT-FOR ANALYSIS
<br /> WITH NO WITH
<br /> TAX ABATEMENT TAX ABATEMENT
<br /> SOURCES AND USESSOURCES AND USES
<br />
<br />SOURCESSOURCES
<br />Mortgage9,600,000 8,667,000
<br />Equity2,400,0002,400,00
<br />Tax Abatement0 933,000
<br /> TOTAL SOURCES 12,000,000 12,000,000
<br /> USES USES
<br />Land1,500,000 1,500,000
<br />Site Work300,000300,000
<br />Soil Correction468,000 468,000
<br />Demolition100,000 100,000
<br />Relocation65,000 65,000
<br />Subtotal Land Costs2,433,0002,433,000
<br />
<br />Construction6,750,000 6,750,000
<br />Finish Manufacturing250,000 250,000
<br />Subtotal Construction Costs7,000,000 7,000,000
<br />
<br />Soft Costs350,000 350,000
<br />Taxes35,000 35,000
<br />Finance Fees850,000 850,000
<br />Project Manager542,000 542,000
<br />Developer Fee540,000 540,000
<br />Contingency250,000 250,000
<br />Subtotal Soft Costs2,567,000 2,567,000
<br />
<br /> TOTAL USES12,000,000 12,000,000
<br />
<br />Income StatementIncome Statement
<br />Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft.
<br />Rent-Space 1100,000 $8.00 800,000 100,000 $8.00 800,000
<br />Rent-Space 225,000 $8.50 212,500 25,000 $8.50 212,500
<br />Rent-Space 325,000 $9.00 225,000 25,000 $9.00 225,000
<br />Other0$0.00 0 0 $0.00 0
<br />1,237,500 1,237,500
<br />
<br />Mortgage 20 Term 1,051,646 20 Term 949,439
<br /> 9.00% Interest9.00% Interest
<br />9,600,000 Principal 8,667,000 Principal
<br />
<br />Net Income185,854 288,061
<br />Total Return on Equity7.74% 12.00%
<br />City of Elk River Tax Increment Financing Policy & Application- Housing
<br />Amended April 8 2015
<br />Page 8 of 14
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