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H �L� RS <br /> PUBLIC FINANCE ADVISORS <br /> KiTl "I km mm'irk <br /> Amou nt Pct. Amount Pct. <br /> Developer Financing- 1 st Mortgage 517603000 77.32% 5760,000 77.32% <br /> Developer Financing-Tax Abatement 100,000 1.34% 0 0.00% <br /> Revolving Loan- Ramsey 150,000 2.01% 0 0.00% <br /> Developer Equity 1,440,000 19.33% 1,690,000 22.68% <br /> TOTAL SOURCES 7,4501000 100.00% 714507000 100.00% <br /> Amou nt %of Cost Amount %of Cost <br /> Acquisition Costs 1,895,000 25.44% 1,895,000 25.44% <br /> Construction Costs/Site Work 511751000 69.46% 5,175,000 69.46% <br /> Financing Costs Prof. Services 130,000 1.74% 1301000 1.74% <br /> Site Improvements 100,000 1.34% 1007000 1.34% <br /> Machinery and Equipment 150,000 2.01% 1507000 2.01% <br /> TOTAL USES 794509000 100.00% 79450,000 100.00% <br /> Based on the total development costs and proposed financing for this project, we estimate a <br /> business (like SA Group) would need to pay a blended lease rate of approximately $13.55 per <br /> square foot without any assistance for a developer to achieve an average 10 percent COC return <br /> for this project over 6.5 years (the anticipated term of tax abatement payments). We estimate <br /> that a blended market lease rate for Ramsey is in the $7.50 to $9.50 per square foot range. <br /> This analysis indicates SA Group would need to pay a lease rate that is higher than the market rate <br /> to occupy the property, demonstrating assistance for the project may be warranted. If we assume <br /> a developer received the requested $250,000 in assistance, SA Group would need to pay a lease <br /> rate of approximately $13.40 per square foot for the developer to achieve an average 10 percent <br /> COC return for this project within 6.5 years. This is still above the assumed market lease rate. <br /> Therefore, if the City chooses to provide the requested assistance, we believe it will help facilitate <br /> the project and not unduly enrich the applicant. <br /> Please contact me at 651-697-8512 if you have any questions or require further information. <br /> BUILDING COMMUNITIES. IT'S WHAT WE DO. E] infoCehlers-inc.com 1 (800)552-1171 ;+ www.ehiers-inc.com <br />