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~]003 <br /> <br />March 9,1999 <br />Page 2 <br /> <br />due to the need to alter the existing contours to allow for a single level facility, site drainage, and <br />retaining of earth. <br /> <br />Another important consideration regarding this site is availability. Jim Norman indicated that the <br />153 Ave N.W. project would not likely be started until the fall of the year 2000 due to land <br />incumbrance issues. The cost of construction due to inflation is increasing at a rate of 5% each <br />year, with no indications of decreasing. This is ha part due to a healthy economy we are currently <br />experiencing. The longer projects get put on hold the more difficult they become to finance. <br />Using an estimate of 1 million dollars for the construction of this project, a delay of another year <br />will likely cost the project $50,000 in loss of porchase potential. If the project needs to be <br />designed after the new road is in place, a $100,000 in loss of purchase potential is a more likely <br />scenario. <br /> <br />Our original estimate of the project budget was based on beginning construction in the spring of <br />1999. You should allow approximately 6 months for design and development of this facility. If <br />you make a site selection within the next month you will likely be able to bid and begin this project <br />in the 1999 construction season. <br /> <br />In summary, thc building can fit on this site and can allow for some future expansion capabilities; <br />however, we feel the critical issue regarding this site is the timing of acquisition and costs <br />associated with delay of the project. <br /> <br />We hope this helps you in your decision making process and should you have auy other questions <br />regarding this issue please do not hesitate to call me at 651-490-2087. <br /> <br />Sincerely, <br /> <br />Nancy Schultz, AIA <br /> <br />ngs <br />Enclosure <br /> <br /> <br />