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Home My WebLink AboutCRA-R-07-0058 Submittal-Lofty Ideas Presentation0011•••••••••••••••••••••••••••••••••••00000 • • LOFTY I D S Giving entrepreneurs open space to allow their creativity to blossom into a Positive, Uplifting, and Empowering Environment ,a54-36 ••••••••••••••••••••••••••••••••••••••••••• OFFICE RETAIL Lyric Theatre NVi kath S fF.I PARKING PUBLIX Overtown Square -. Outdoor Music and Art Festival Space. Outdoor Dining, Overflow Parking tor Lyric Theatre & Longshoremen Parking Garage, Low Income Rental Apartments Ground Floor, Retail Store, Jazz Club, Restaurant, Etc. NW 9th STREET ••••••••••••••••••••••••••••••••••••••••••• o • •000••••••••••••••••••••••••••••••••••••••• • tii • • • • • • November 14, 2007 • • The attached is our response to your "Request For Proposals" • regarding BLOCK 25 and 36. • We are Lofty Ideas, Inc., a private 501 (c)(3) not -for -profit organization • • which seeks site control of referenced properties to redevelop the area with a mixed -use mixed -income hi -rise loft facility and parking facilities • in adherence to the existing 1982 and 2004 SEOPW Redevelopment • Plan. • • As a Developer and Sponsor, Lofty Ideas, Inc. develop this project in • private/public partnership with a development team that fits your • criteria from start to finish. In addition to our site control proposal, we • are requesting CRA to subsidize the parking facility on Block 36 of ten • million dollars ($10,000,000), and Tax Incremental Fund (TIF) monies • of five million dollars ($5,000,000) to support infrastructure • development cost for Blocks 25 and 36. • We trust the attached proposal will support the critical needs for a • redeveloped and prosperous historic Overtown. • • Sincerely; • • • • • • • • • • • • • • • • Derek Cole ••••••••••••••••••••••••••••••••••••••••••• • RFP COMMUNITY REDEVELOPMENT AGENCY Submitted To: City Clerk of the City of Miami Miami City Hall 3500 Pan American Drive Miami, Florida 33133 Respondent: Lofty Ideas, Inc. 1010 NW 11 th Street #605 Miami, Florida Phone: (305) 545-5434 Contact Name: Derek Cole Property Location: Block 25 and 36 Miami, Florida 33136 ••••••••••••••••••••••••••••••••••••••••••• EXECUTIVE SUMMARY In a community with little benefits of business opportunities and work -force living, there must be a place linking people with elements of different proportions for great prosperity. This proposal has been prepared on behalf of Lofty Ideas, Inc., a private non- profit 501 (c)(3) corporation which seeks to build a mixed -use mixed -income developments named "Lofty Ideas", with the intent to promote affordable residential ownership/rental occupancy in combination with supportive retail, office and service uses that best serve the needs of a community. The is to bid for site control for City of Miami Community Redevelopment Agency's (CRA) sites referred to as Block 25 and Block 36. Block 25: It will be a place of affordable housing valued for purchase by low - middle income families, and a place especially suited for home -based small business owners, who rather save thousands of dollars in office rent while working in a office environment they own. This project will also promote community revitalization and permanent job creation. Block 36: We propose a bid for Block 36 immediately to the south of Block 25 to assist supportive housing valued for rent of government assisted very low income families, and the anticipated parking needs for 200-250 spaces for the Lyric Theater and the International Longshoremen's Association Local1416. Lofty Ideas also request the the CRA to consider subsidizing ten million dollars ($10,000,000) of the costs to develop this structure. Building Components Block 25: It will be a newly constructed energy efficient complex that will create a minimum 300 low -moderate -middle income jobs, comprising 325 work/live loft units or 536,250 square feet of living area, 115,000 square feet of retail/office space for business components, and 105,000 square feet of garage parking for 760 vehicles. Block 36: On the west half of the property, we will develop a parking garage with 48,000 to 80,000 square feet for 60 to 100 supportive apartment housing units on top; 25,000 square feet of ground floor retail space available for a tenant -mix such as retail stores, jazz club, restaurants, etc; and 210,000 square feet of garage parking for 500 vehicles. There will be a connection from the garage to the Lyric Theater for easy access. To place emphasis on architectural design and landscaping that acknowledge the culturally historic Overtown 1 ••••••••••••••••••••••••••••••••••••••••••• neighborhood, The east half of the property will be developed as open space called "Overtown Square" to be utilized for outdoor dining, music and arts festivals. Market Overview There has been a frenzy of condo building nearby to remake a new skyline around downtown Miami. Nonetheless, there is relatively little in this new downtown priced for working families. The missing link here is in creating space that the low to middle class can afford and prosper. While few city residents can afford waterfront condos, moderately -priced condos and rental apartments need to be built in adjacent Overtown, an underdeveloped community located just north and adjacent to downtown Miami. . The Concept To create a critical mass of high energy. The expression of art and self is most obvious when people have the ability to create their future, shape opinions and attitudes. The most powerful and effective tool for shaping attitudes is economic empowerment. Therefore, a work/live environment has been conceptualized to address a critical need for people to empower themselves. The idea is to create an atmosphere that is as self sufficient as possible, enhancing a community visually, artistically, spiritually and economically. It is a vision of holistic virtue, uplifting a community and encouraging appreciation and beauty through usefulness. Objective The big challenge always has been quantifying a community like Overtown in terms of population and purchasing power to justify the business investment. Therefore, persuading grocery stores, banks, chain restaurants, etc. to open in inner city neighborhoods has typically been a tough sell_ Lofty Ideas can dispel these myths attracting a larger population and average household income higher than what traditional data sources have shown. The objective is to attract entrepreneurs and a workforce to create a mixture of homeowners and renters, which together with their talent, passion and attitude - will stimulate business commerce and social activity. Overall, the Lofty Ideas project will symbolize the Model Block concept by helping to stabilize the area and spur growth through providing a visible and concentrated revitalization foundation to: • Improve housing conditions by building 325 newly constructed work/live lofts and 60 to 100 supportive housing apartments, giving people open space to 2 allow their creativity to blossom. • Improve the living condition of residents by providing social service assistance through a tenant mix consisting of a wellness center, child care center, after school program and support vendors. • Make suitable for a Workforce population that is in close proximity to a commercial corridor and public transit. • Improve household income due to a positive, uplifting, empowering entrepreneur environment. Economic Impact "Lofty Ideas" brings the creation of the "Un-Common Market" to people, and Historic Overtown shall be the ideal location for such. Historic Overtown is poised for a sweeping makeover which will transform it into a mixed -income community. In the immediate area, projects consisting of single-family dwellings, retail and office space will increase the immediate area population base and purchasing power. Homeownership will help build this neighborhood's economic stability - and bring in disposable income to support future retail and service industry. Development Team Lofty Ideas development team and partnership network has numerous years of experience, individually and collectively, to make this project a success, and are sensitive to the Community Benefits Agreement (CBA). The team will take actions and make provisions beneficial to residents and organizations located in the Overtown community regarding affordable housing, job training and hiring. Summary People now can choose to live in an empowering, life -affirming and creative place, and look beyond to the underlying hopes, dreams and possibilities that give value to life. It will be a place that can have an enormous impact on lives, steering thoughts away from limitations and direct minds toward thoughts of confidence, abundance and generosity. Our preliminary projection of construction costs estimate initial capital requirements needed for pre -development and development of Block 25 is $188 million and Block 36 is $30.4 million. The construction costs are estimated with a fairly simple but unique design ethic implied, which reflects considerable 3 emphasis on localized cost factors and supply opportunities within the local construction industry. Block 25 Estimate Land Construction/Permanent Financing Equity Funds Subsidies, Donations, Grants Block 36 Estimate Total % of Lofty Equity Project Total Ideas Partner(s) Developer Costs Cost $4,000,000 $3,000,000 $34,100,600 4,000,000 2.13% $150,400,000 150,400,000 80.00% 30,600,000 16.28% 3,000,000 1.60% $188,000,000 100.00% Tota I % of Lofty Equity Project Total Ideas Partner(s) Developer Costs Cost Land Construction/Permanent Financing Equity Funds Subsidies, Donations, Grants $4,000,000 4,000,000 13.11% $24,000,000 24,000,000 78.69% $34,100,600 2,000,000 6.56% $3,000,000 500,000 1.64% $30, 500,000 100.00% 4 ••••••••••••••••••••••••••••••••••••••••••• PROJECT COMPONENTS Its a mixed -use mixed -income center that includes owner occupied and rental housing valued for purchase by low -middle income, and for rent by government subsidized very low income residents. Market Rate and Affordable Hi -Rise Work/Live Lofts for sale Excellent open space energy -efficient environment for home -based entrepreneurs Workforce Housing for low and moderate income homeowners and renters Chain grocery store, office supply, restaurant and business support services on premises at your doorstep On -site garage parking available Panoramic views of Biscayne Bay and the Miami skyline Block 25: Features standard 1,500 square foot 1 bedroom 1 bathroom units with: • 10 foot ceilings • polished concrete floors • large walk-in closets • fully -equipped open kitchen • double compartment sink • dishwasher • emergency call service • full-size washer & dryer • bathtub with shower • 24 hour manned security • 24 hour concierge service • private balconies • unparalleled bay / city views 5 ••••••••••••••••••••••••••••••••••••••••••• int Lofty Ideas building components also include plans for commercial retail, commercial office and parking uses. Retail Space After years of having no large scale retail shopping centers in Miami's urban core, suddenly the market is crowded with projects trying to out- position one another. Miami has been slow to catch onto a trend happening in urban markets across the country, as retailers seek nontraditional locations to meet consumer demand. Adding to the decision -making process has been the skyrocketing cost of Miami's urban real estate, which has translated into average rents increasing from $30.00 per square foot in 2005 to $ 53.00 per square foot in 2006. That number is even higher for premier downtown retail space, where rents can run between $60.00 to $75.00 per square foot. "Lofty Ideas" will gear its facilities to accommodate a market profile for a retail/service customer base. Market penetration of a potential available market that typically visits a location is indicative of the quality characteristics of that location. Thus, we believe the following tenant mix collectively can attract and serve 10,000 people per week for a delineated trade area containing a 40,000 resident population and 160,000 visitor market. • grocery store chain • office supply store • franchised restaurant • fitness center • child care center • dry cleaners • wellness center • exhibition area Office Space Recently, the office market has been ripe since no offices have been built in a while. The new residential buildings are bringing people to South Florida, and some need a workplace. For more than five years, South Florida's "market rate" residential condominium market led an unprecedented building boom that is remaking the region's cities and shorelines. But this market has cooled, and office space is in short supply, leading to rising rents and high sales prices. So office space is the next best thing to build space conducive for. • business services • social services • business resource • conference rooms 6 ••••••••••••••••••••••••••••••••••••••••••• On -Site Garage Parking Lofty Ideas will strive to complete the building within a time limit outlined in a buyers purchase contract, and will promise one parking space per unit. We will implement parking initiatives to encourage convenience and activity for our anchor tenants, and to help revitalize and service the residents, patrons and guest of Lofty Ideas. Sq Ft Spaces Total of Per Spaces Rental Area 1,000 Sq Ft Allocated Anchor Retail Ground Floor Retail/Office Second Floor Retail/Service Third Floor Loft/Apartment Units 45,000 30,000 30,000 5 225 4 120 3 90 325 Total Spaces 760 To encourage convenience and activity for our anchor tenant, Lofty Ideas/MPA will offer parking discounts for all ground floor Retail patrons in one phase of the garage. Patrons can present their sales receipt of $20 or more to the cashier and pay a reduced fee of only $0.50 each half hour. Discounted parking coupons will be sold to other commercial tenants so they can pass parking savings to their customers. There will be special residential parking rates for renters of residential units at Lofty Ideas of $50.00 per month. Total Monthly Total Parking Total Spaces Utilization Spaces Rate Daily Allocated Rate Allocated per 1/2Hr Revenue Anchor Retail Ground Floor Retail/Office Second Floor Retail/Service Third Floor Loft Ownership 225 120 90 325 760 90% 90% 60% 7 203 108 54 $0.50 $1.50 $1.50 $2,436 $3,888 $1,944 458 $8,421 ••••••••••••••••••••••••••••••••••••••••••• Block 36: Features standard 800 square foot 1 bedroom 1 bathroom units with: • 10 foot ceilings • polished concrete floors • large walk-in closets • fully -equipped open kitchen • full-size washer & dryer • bathtub with shower • dishwasher • double compartment sink Retail Space There will be ground floor retail space available for a tenant -mix such as retail stores, jazz club, restaurants, etc. The east half of the property will be developed as open space called "Overtown Square" to be utilized for outdoor dining, music and arts festivals. Parking Garage Lofty Ideas will promise convenience and activity for our retail tenants, and to help revitalize and service the residents, patrons and guest of Lofty Ideas. Sq Ft of Rental Area Spaces Total Per Spaces 1,000 Sq Ft Allocated Anchor Retail Ground Floor Apartment Units 25,000 5 125 60 Total Spaces 185 Total Monthly Spaces Utilization Allocated Rate Total Parking Total Spaces Rate Daily Allocated per 112 Hr Revenue Ground Floor Retail General Parking Apartment Units 125 315 60 500 90% 50% 93% 113 189 56 458 $1.50 $1.50 $4, 068 $5,670 $92 $9,830 ••••••• ••••••••••••••••••••••••••••. BUILDING DESIGN The current zoning designation of the site is SD-16. Therefore, our planning factors will be in accord with the Southeast Overtown-Park West redevelopment plan encouraging a quality residential living and an attractive, secure environment for residents and workers with direct access to shopping, recreation, transportation and employment. It is intended that this development will be high intensity and will provide a variety of housing opportunities, open character, attractive and secure open space, appropriately located residential recreation space serving residential uses, adequate retail and service support facilities, and a safe pedestrian movement system. Lofty Ideas will be planned and built to meet the Florida Building Code, the Section 8 Housing Quality Standards, USGBC LEED certification and the Model Energy Building Code or HUD -accepted equivalent. Therefore, it will offer the greatest possible benefit to the City of Miami's very low to moderate income residents. The final building height and size will primarily be a function of fire code and elevator issues for buildings over twenty stories, while adhering to applicable yard, setback and landscaping standards - taking maximum advantage of potential bay views and prevailing air currents. The site and building structure will be recognizable with the layout and design of "Feng Shui" principals (ie: building green concepts for environmentally friendly standards and a freer flowing Chi). The building will have a contemporary urban style design wired with latest Smart building technology and Garland manufactured plaza deck roof. Building Green Higher energy efficiency standards in new construction is now being mandated by Florida Gov. Charlie Christ as financial savings and profits can come with implementing energy efficiency and recycling programs. We will register our plans with the U.S. Green Building Council (USGBC) based in Washington, D.C., which has set up benchmarks by which developers can win "green" status for buildings, or LEED certification - "Leadership in Energy and Environmental Design." Factors measured include sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality. Developers can win one of four award levels: LEED, LEED Silver, LEED Gold, LEED Platinum. 9 ••••••••••••••••••••••••••••••••••••••••••• Buildings get points for biodegradable carpets or systems that collect raindrops on roofs to irrigate plants and trees, naturally replacing water that evaporates from air conditioning systems. We can also get points for motion sensors that dim interior lights when sunlight floods into rooms, or for locations near mass transit stops. South Florida has the dubious distinction of being without a single LEED -certified building. By building Green, it will provide a high level of indoor living quality like clean air and natural Tight, thus a minimum 50 percent savings in energy use and 50 to 60 percent in water savings compared to a conventional building. Also under LEED principles, some 90 percent of the waste during demolition or construction is recycled rather than trucked to a local landfill. Until only recently, efforts to reduced energy consumption were seen as costly, offering few rewards. The upfront costs for green building are now virtually the same as for conventional construction. Also, green building reduces operating costs and is increasingly sought after by users. Studies have shown that elements like enhanced natural Tight and cleaner air result in reduced absenteeism in offices, better performance in schools and even better sales in retail stores. 10 ••••••••••••••••••••••••••••••••••••••••••• 14 11 Lofty Ideas Block 25 Building Section & Area Location # of fls 1 1 1 open market lofts affordable housing lofts wellness center, fitness center spcial services, non -profits exibition area, classrooms retail, food office supply, grocery store 11 parking parking parking parking amp, loadin. , lower upper fl fl 17 30 6 16 5 1 Typical Floor Diagram Block 25 Tower Loft Floor 331 Ft Floor Area 21,450 sq. Affordable Loft Floor 40ft levator 37 ft st• wl 34ft 44ft 1 bed 1 bath elev. 8 Ft. WI. 331 Ft. Floor Area 29,128 Sq. Ft Retail / Office Floors 2 - 5 Lobby -- --- PARKIN %IMAGE 331 Ft. Retail / Office Floor Area 66,000 Sq. Ft Ground Floor Grocery Store Office Supply Quick Serve Rest 331 Ft. 12 Floor Area 66,000 Sq. Ft 199 Ft. 199 Ft. Block 25 and 36 Situated: In a federal enterprise & empowerment zone where work opportunity tax credits and job creation incentives are available. Nearby: Downtown Miami Business District, Bayside marketplace, Miami Dade College, The Port of Miami and The Performing Arts Center. Schools and Parks down the street. Expressway: 1-95 and 1-395 (836) entrance/exit are only a few blocks away. Major Employers: Within minutes of City, County and Federal offices and courts, Macys, City of Miami Police headquarters and Jackson Memorial Hospital complex. Transportation: Site located nest to bus route, a block from a metro Rail Mass Transit System Station, and 3 blocks from a downtown People Mover System Station. Venues: Right next to the Historic Lyric Theatre and just west of American Airlines Arena. ECONOMIC DEVELOPMENT A sustainable economic approach must focus on making neighborhoods competitive as business locations by developing strong partnerships between neighborhood and local businesses. A Lofty Ideas mixed -use development will provide a vehicle to facilitate the intricacies facing urban areas by attracting money into and keep it within the local community. The new Urbanism movement, which seeks to undo Suburban sprawl and promote walkable, neighborhood -based developments that mix residential and commercial components within close proximity, puts a premium on public spaces and accommodates mass transit. A Resident and Visitor market has been evaluated for this project. It is suspected that the large majority of patronage at this location will be supplied by residents of Lofty Ideas and the immediate Overtown/ParkWest neighborhood. This will be augmented by visitor participation derived from a nearby downtown workforce, Church worshipers and event -goers at nearby entertainment venues. Resident Market The Overtown community is located within the City of Miami, which is defined as fairly concentrated, representing approximately 365,000 people city-wide. The local resident market immediately surrounding the site location is an area that's characterized by modest population growth representing around 13,200 people. This growth is expected to increase faster in upcoming years due to existing and proposed residential construction activities ongoing in the area. The income characteristics of the resident market population consist of 40463 people. Median household income for the resident market, Miami -Dade County and the U.S. are $16,549, $35,960 and $41,994, respectively. Median household income for the resident market will improve with the increase in homeownership. Within a three-mile radius of the proposed site, the area population consisted of 227,000 residents and an average household income of $32,000. Upon considering the following factors, population and households may increase by approximately 48,000 and 19,000 respectively within the next several years due to the explosion of condo developments constructed. Visitor Market As described in more detail below. the visitor market is composed of 163,500 people, of which 126,000 represent the Downtown Miami workforce, of which some travel through this neighborhood access roads to avoid traffic congestion. 14 2005 SELECTED VISITOR CHARACTERISTICS Primary Purpose of Visit % of Total American Airlines Arena 16,000 9.7 Downtown Workforce 126,000 77.2 JMH/UM 20,000 12.2 Church Members 1,500 0.9 Total Visitors 163,500 100.0 The above table reflects the number of visitors that frequent surrounding areas nearby the proposed site and is highly balanced throughout the year. This is a positive factor for the economic performance of the Lofty Ideas development, given the need to plan facilities to accommodate peak crowd loads. The relatively even availability of visitors to support the development will aid in operating efficiency. Economic Factors The planning factors for retail and office space estimate the capacity requirements of 100,000+ square feet for a tenant mix to include a grocery chain store, franchise restaurant operator, office supply store and support service vendors. A general site evaluation has been considered for traffic patterns, ease of ingress and egress, available parking, lease terms, proximity of similar businesses and general suitability of the surrounding area. In this delineated area, there are 40,000 people residing, and it is anticipated that a percentage of patronage will be augmented by a visitor market of another 160,000 people derived from a workforce, event and church goers that may commute through the neighborhood. Market Penetration Market penetration indicates the percentage of an available market that typically visits a location. Penetration rates are indicative of the quality, pricing policy, and other characteristics of a business location. Historical market penetration trends reveals that comparable business locations achieve stable -year penetration rates between 1 and 40 percent of the resident market. I n this case to be conservative, a 20 percent average penetration rate will be expected for this proposed development from the resident and visitor market on a weekly basis. 15 ••••••••••••••••••••••••••••••••••••••••••• Projected Patronage As described above, the resident market is composed of about 40,000 people and the visitor market about 160,000 respectively. These numbers suggest that with a 5% penetration rate for the resident and visitor market (on a weekly basis), a total of 10,000 people weekly. Overall, a Lofty Ideas development responds to an approach communities should use to attract new business investment and reduce barriers to business growth. Our approach to the market covers all the strategies that are often employed to promote local economic development. With stable opportunities made available to encourage consumer spending, small business start-ups and expansion will result in the creation / retention of permanent jobs and property tax revenue to recycle money within this area of Greater Miami and Miami -Dade County, Florida. Job Creation The proposed tenant mix, including but not limited to, a grocery chain, a office supply store, and a franchised restaurant - along with other office tenants and vendors, should create a minimum of 300 jobs for immediate area residents. In addition, entrepreneurs using their loft as a home -based office will also count as jobs created. Assuming an average hourly wage of $9.00 is paid for a full-time employee, a taxable income base of $5.6 million annually can be sustained, creating disposable income to recycle money in this neighborhood. Property Taxes The historical tax assessment for subject property showed a significant increase in value for 2006. Year 2005 2006 Land Value $485,750 $3,400,250 Building Value 121,084 131,979 Market Value 606,834 3,532,229 Assessed Value 606,834 3,532,229 Total Exemptions 606,834 3,532,229 Taxable Value 0 0 Projected Tax Assessment In keeping matters the same until the January 2008 vote, our forecast analysis suggests that the Lofty Ideas retail complex will generate competitive market rents from other tenants in relation to preliminary development costs and 16 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ,• F• capitalization rates. This will allow for real estate appreciation relative to the income produced by the property to impact the value of this location. In this case, a 10°AD cap rate will equate to total value of approximately $124 million and property taxes of $3 million. Building Components Retail/Office Loft/Apartment Rentals Parking Garage Loft Homeownership Improved Land Tax Allocations Price per Size $24.48 per sq ft $8.00 per sq ft $80.00 per space $224.60 avg per sq ft Size of Components Value 105,000 sq ft 116,400 sq ft 750 spaces 10% vacancy rate capitalization rate 2,559,800 931,200 60,000 $3,551,000 (355,100) $3,195,900 10% 31,959,000 487500 109,492, 500 97,150 sq ft 5,000,000 TOTAL VALUE 146,451,500 millage rate 24.6443 TOTAL TAXES $3,609,095 A Lofty Ideas development and its property tax base would generate and contribute almost $1.1 million annually to City of Miami's tax revenue. Taxing Authority School Board School Board Debt Service Florida Inland Navigation District South Florida Water MGMT District Everglades ConstructionProject Children Trust Authority County Wide Operating County Wide Debt Service Library District City of Miami Operating City of Miami Debt Service Millage Rate Per $1,000 7.69100 0.41400 0.03850 0.59700 0.10000 0.42230 5.61500 0.28500 0.48600 8.37450 0.62100 Tax Amount 954,599.23 51, 385.27 4,778.58 74, 099.04 12,411.90 52,415.45 696,928.19 35, 373.92 60,321.83 1,039,434.57 77, 077.90 24.64430 $3,058,825.87 17 ••••••••••••••••••••••••••••••••••••••••••• MARKETING PLAN Like many successful companies before us, the potential for this project and its operation is limited only by the imagination and marketing acumen of management's vision. For years, these qualities have driven new markets and will continue to do so for years to come. Along with implementation of our development plan, Lofty Ideas will take a definitive look at the micro and macro level of marketing to determine the overall role and performance of the entire economic system we will work within. Basic marketing functions such as buying, selling, financing, risk -taking and market information will be helpful to explain and serve as a foundation for our approach to marketing. Target Market The benefits from this project will be for commercial retail/office tenants that seek to provide products and services at a location attracting 10,000 customers per week, and entrepreneurs approximately 22 to 50 years of age seeking homeownership and working space, particularly with income levels that range below 80% of annual median income. Sales Strategy Our open space energy -efficient environment will be conducive for home -based entrepreneurs, simulating the relatively new concept of office -condos where individual units are sold, many to small and mid -size companies whose space needs will not change much. Our goal is to open a sales office on the site and promote the competitive advantages of being located at Lofty Ideas. Affordability and advantages will be highlighted and emphasized in our sales promotions to such persons as, but not limited to; attorneys, accountants, architects, graphic artists, web designers, commercial artists, photographers, consultants, manufacture representatives, import/export brokers, police officers, teachers, nurses, and other essential workforce, etc. With escalating home prices and staggered wages, Miami is among the least affordable cities in the country for home buyers and renters. Many can not find essential workforce housing to buy or rent in their price range. Even businesses see housing as a major problem because the rising cost of housing in Miami -Dade County had affected their ability to recruit employees. Some 18 •••••• •••••••••••••f ••••••••••••••••••• •••• have increased salaries or offered more relocation assistance because of the affordable housing crisis. Lofty Ideas will utilize various programs designed to enhance housing opportunities for low and moderate income individuals, like the Miami -Dade Housing Agency (MDHA) through the Development and Loan Administration Division (DLAD) and City of Miami SHIP funds for permanent financing in the form of soft second mortgages. The Housing Development Assistance component will provide funding to defray the cost of site development and new construction associated with the development of our condominium complex. We will obtain a funding allocation or approval for this project and participating lenders will pre -qualify the applicants. Soft second mortgages will be limited in accordance with the maximum subsidy level for income and family size. Unless limited by the funding source, the maximum purchase price of eligible affordable housing properties is $225,000, or in this case, no more than $150 per square foot of air conditioned living space. Residential Advantages • Purchase a work/live loft unit with open space to allow their creativity to blossom into a positive, uplifting and empowering environment. • Save thousands of dollars in office rent while working in a office environment. • Build your business with less overhead, having the convenience of shopping and support services on premises. • Live in close proximity to business districts, public bus and mass transit systems and a critical mass of high energy people. Retail/Office Advantages • A location with a potential of 325 small business / households on premises to patronize your business. • Locate in a federal enterprise and empowerment zone where work opportunity tax credits and job creation tax incentives are available. • A few minutes from downtown Miami Business District and other major employers, providing a 160,000 employee workforce that could attract 10,000 customers per week to your location. • Good access with ample parking, Interstate 95 and 395 (836) is just a few minutes away. • A worker friendly environment and strategically located with possible landlord concessions. 19 ••!r••!•!i•i•ii•••••i•••••ii•,i•i••i••i•i•• Marketing Strategy Lofty Ideas, Inc. will solicit applications for vacant units from persons in the housing market with special outreach efforts. Advertisement of vacant units will include the equal housing opportunity logo or statement, and media channels / outreach resources such as; community organizations employment centers broker participation brochures / leaflets newspapers housing counseling agencies business resource centers social service centers fair housing groups places of worship Applications will be accepted at pre -construction prices from $225,000 to $425,000 and broker participation is welcomed. As an incentive, Home Owners Association fees may be waived for the first year. HOA fees will benefit Insurance (flood & Hazard), alarm monitoring, landscaping, pest control, cable TV, high speed cable Internet, entry gates, fitness center, fire alarm maintenance, security patrol and trash services. 20 ••••••••••••••••••••••••••••••••••••••••••• MANAGEMENT PLAN Lofty Ideas, Inc. is a private non-profit 501 (c)(3) corporation, and was organized under the laws of the State of Florida in May 2005. Currently, a four member Board of Directors manage and direct the policies and strategies related to the Corporation. Organization's Purpose The purpose, structure and powers of Lofty Ideas, Inc. is to perform as a not -for - profit corporation. This Corporation is organized and shall be operated for the purposes permitted within the meaning under Chapter 617.0202 of the Florida Statues, and Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. We will engage in professional and commercial purposes in accordance with a corporate strategic plan established for designated neighborhoods in Miami -Dade County, Florida. The activities of the Corporation may include, but are not limited to, developing a strategic vision to create economic opportunity, sustainable community development, and community -based partnerships for neighborhood economic development. Lofty Ideas, Inc. will exercise all rights and powers in order to promote affordable housing, charitable, benevolent, scientific, educational, recreational, professional and commercial purposes. All in all, Lofty Ideas, Inc. is organized to leverage commitments and existing initiatives for the maximum impact of transforming a community into a thriving center of economic, social and civic activity. Fiscal Responsibility We will place funds earmarked for this construction project in escrow for the services of an escrow agent to disburse funds subject to inspection, certificate for payment summary, check request transmittal and conditional lien release upon payment documentation approved by applicable parties. The organization's goal will be to operate in an efficient and profitable manner, and build lasting business relationships through exceptional service. In order to effectively monitor the fiscal affairs of Lofty Ideas, Inc., an accounting software will be utilized to track expenditures and accounts such as accounts payable and accounts receivable with alerts when bills need to be paid and receivables are overdue. 21 1110•0•00•00•00••••0000000••••••0011000•••••• • The company will also retain the services of a Certified Public Accountant which provides for interim and annual financial statements validated by Internal Revenue Service Tax Returns. The scope of the work to be performed will ensure that sufficient bookkeeping work is performed and to substantiate that the company's accounting system provides meaningful and reliable accounting/ financial data which is needed for the continuing management and evaluation of the business. Board of Directors Derek Cole, Chairman & Creative Director - brings a new twist through his Indigo traits to a community and economic development ststem using a "total system approach" which will create a major improvement in our world. He has worked as a commercial advertising photographer for 30 years and is the Owner and Principal Photographer of Derek Cole Photography, Inc., a full service commercial photography company providing professional photographic services for large/small business clients, individuals, magazines, advertising agencies, marketing and public relations firms, etc. Courtney R. Thompson, Vice President - is an entrepreneur in business, marketing and management. He has a record of numerous successes, and was also named Entrepreneurial/Business Runner -Up by Forbes/Deloite in 1994. He has participated in several developments, both commercial and residential and is actively involved in several ventures of this nature. Mr. Thompson is a career broadcaster & media innovator with over 30 year's experience in Radio, TV & Cable as well as over 16 year's experience in consulting and building radio and TV stations, Target Marketing, Newspaper, Publishing and On-line Media throughout America, Europe and Australia. His role with Lofty Ideas is to also help oversee the business and marketing aspects of this development as a Development Team member. Daniel Portnoy, Secretary & Treasurer - is the Owner and Principal Photographer of Daniel Portnoy Photographer, Inc., a full service commercial photography and imaging company providing professional level photographic services for corporate clients, editorial magazines, and advertising agencies. His role is to help assist with his talent for Lofty Idea's use regarding media publications, promotion, and archives. George McArdle - is a law partner of McArdle & Perez P.A. Mr. McArdle works in all areas of governmental approvals, real estate and de novo deal structuring and debt and equity financing, but specializes in the solution of complex problems. George is currently working in the areas of land compilation and the development of commercial real estate projects. Mr. McArdle will assist Lofty Ideas with such expertise as a Development Team member. 22 #•••••••••••••••••••••••••••••••••••••••••• DEVELOPMENT TEAM The nuts and bolts of this project fall on the heels of its development team. The development team has analyzed the available market support for this concept, developed the initial concept plan for the project, and is conducting an on -going commercial analysis for its neighborhood economic impact. Collectively, the development team has a history of experience developing and administering the type of project being proposed. Key Members attached resumes include: Derek Cole Courtney Thompson David S. Chiverton George McArdle Clyde Judson, Jr. Bios of development team are included as an attachment to this section. 23 •!i!•••!•i•••••••••••••••••••••••••••••••'• Derek Cole Derek Cole is a visionary fully dedicated to compassionate action in his native city of Miami, Florida, and has worked as a commercial advertising photographer for 30 years. He is the Owner and Principal Photographer of Derek Cole Photography, Inc., a full service commercial photography company providing professional photographic services for large/small business clients, individuals, magazines, advertising agencies, marketing and public relations firms, etc. Derek's client base consists of Pepsi , FPL, Winston Tobacco, Del Monte, Slim Fast, AutoNation, Sony, Carnival Miami, Cedars Hospitals, Baptist Hospital Systems, Entenmann's Bakery, Anne Klein, American Airlines, Univision, University of Miami, Miami Heat, various real estate developers and hotel chains. In order to pursue photography for the last 30 years, Derek Cole turned his living space into a working studio (Loft) where he happened to also live. Hence, he has a vision and inspiration for others to thrive and live well, in spite of personal and societal hardship. Mr. Cole received his private pilots license at age 16 and is a Vietnam Era Veteran who served in the US Airforce as an aircraft mechanic. He is a graduate of Miami Dade Community College and is a General Member ASMP (American Society of Media Photographers). As founder of Lofty Ideas, Inc., he provided in -kind photography services for The Red Velvet Cake Arts Festival at the 9th Street Mall, Special Olympics, City of Miami and Miami -Dade County political functions and ribbon cutting/ground breaking ceremonies. and "Miami Idol", (also a financial sponsor) a city of Miami entertainment event. Cole donated bicycles to the City of Miami Police Department Bicycle giveaway called Winter Wonderland in December 2005, fireworks giveaway in conjunction with Model City Net Office at Hadley Park in July 2005, Mr. Cole has also served as his Condominium Association President for 15 years. Courtney R. Thompson Courtney Thompson is a career broadcaster & media innovator with over 30 year's experience in Radio, TV & Cable as well as over 16 year's experience in consulting and building radio and TV stations, Target Marketing, Newspaper, Publishing and On-line Media throughout America, Europe and Australia. Courtney has also trained hundreds of media salespeople on multi-media/cross- media selling techniques and platforms. Thompson sold Broadcast Direct Marketing (BDM), one of the industry's first and foremost target marketing and consulting firms he founded to Morris Communications for an attractive profit and consulting arrangement. This transaction also included the sale of OpTiMum Research and Consulting, which developed unique, vertical strategies for it's clients. BDM notably won award after award in marketing and promotion categories for virtually every radio format 24 ••••••••••••••••••••••••••••••••••••••••••• and every type of TV station. BDM was the first company to use such unique packaging as Audio Cassettes, Video Cassettes, dimensional packaging and CD's in the highly targeted marketing efforts of hundreds of campaigns for Radio, TV and Cable programming. Additionally BDM provided unique marketing solutions in addressable media for other media including Newspaper, Magazine and on-line media. BDM, which was headquartered in Miami, Florida, also had offices in New York, N.Y., Chicago, II., Denver, CO, and Southern California serving clients in the U.S., Canada, England and Australia. BDM's clients included virtually every major communications license holder, as well as numerous publishing companies in the U.S., Canada, Europe and Australia. To name a few: ABC Disney, Viacom, Clear Channel, Bonneville, Cox, VHI, MTV, Susquehanna, Greater Media, Entercom, Beasley, Infinity, CBS, American Radio Systems, Sillerman, Hicks -Muse, Evergreen, Inner City, Hearst, Lotus, Radio One, Saga, Shamrock, Sandusky , Brown Broadcasting, Jacor, Pyratnid, Rodriguez, Amigo, The Tribune Company, Tichenor Media, Heftel, HBC, Spanish Broadcast System, Telemundo, Univision, ACT III Communications (Norman Lear), Harpo Productions (Oprah), FOX TV, FOX Sports, and Anson Broadcasting. Other clients included IBM (on-line division), Renaissance Cruises, RCCL, J. W Marriott, American Airlines, Benson Music and AOL/Time Warner. Of particular note is Thompson's involvement and experience with Hispanic radio, television and other media serving the Hispanic consumer. Thompson developed unique, high impact solutions for HBC, Rodriguez/Amigo, Entravision, Univision, Telemundo and SBS. He also was a partner in Frontline Communications which owned KCVR AM (a heritage Hispanic station) and KWIN both serving the Hispanic population of the San Joaquin Valley from Sacramento to Modesto, CA. Frontline acquired the stations in 1989 and sold them in 1994 for more than 7 times the purchase price. Thompson also served as Vice President, Station Manager and equity partner of WNWS, Miami. Prior to WNWS he held various equity , management, sales, marketing and other positions in radio and TV in Los Angeles, San Diego, Chicago and Indianapolis. Courtney has been keynote speaker for such events as PBS' annual development convention, The DMA Annual Creative Awards and has been a moderator and/or panelist at the conventions of The Radio Advertising Bureau, The National Broadcasters Association Convention, The Direct marketing Association Convention, The Television Broadcasters Association Convention. The Cable TV Convention and The Public Broadcasters Convention. 25 Mr .Thompson was educated at Loyola University in Chicago, Illinois. He also attended ITT to become knowledgeable in electrical engineering and holds a First Class General Radio Telephone License issued by the FCC. Thompson has served NAB, RAE, NPR, PBS and TVB, as well as Arbitron, Nielsen, Simmons Market Research Bureau by providing source data as well as being a speaker and panelist at each aforementioned organization's national and regional conventions. As a pastime, Thompson has enjoyed actively investing in real estate, building both homes & office facilities and is an avid appreciator of Architecture. Courtney is involved in his local community having served on such charitable interests as Big Brothers/Big Sisters, The Miami -Broward Rescue Missions and Special Olympics. David S. Chiverton: Currently is Executive Director of Miami -Dade Weed and Seed. Has served as President/CEO Martin Luther King Economic Development Corporation (MLKEDC) in Miami, Florida, and was responsible for the implementation of the mission of the agency regarding the redevelopment of the community to improve the quality of life through bringing new business, new development and home ownership. Responsible for writing and implementing grants to facilitate the mission of the agency, supervising staff, managing and providing technical information to New Business Incubators, coordinating and facilitating community meetings of various subject matter, prepare and report progress to the Board of Directors of the various projects, in addition to representing and addressing the matters of the community on behalf of MLKEDC in a public and private setting. Mr. Chiverton's responsibility was also to manage a commercial building with approximately 50,000 square feet, and served as Project Director to facilitate the redevelopment of various commercial sites along MLK Boulevard. and surrounding communities. For six years, David was Director of Operations, MIS and Purchasing for HOPE CENTER where he supervised a working staff of 85 which included direct supervision of Executive Office, Clerical Staff, Environmental Services, Maintenance and Housekeeping. He assisted in acquiring funding for the organization through exploring all available funding sources, i.e., government grants, community funding programs, and private contributions; and provided financial and statistical reports to CEO and Board of Directors. Moreover, Mr. Chiverton was involved in contract negotiations, budget planning, budget allocations by department with the Chief Executive Officer, Board of Directors, and other administrative components of the business community. 26 ••••••••••••••••••••••••••••••••••••••••••• David has held several other positions. As Office Manager and Computer Analyst for Almark Worldwide Corporation in Miami, Florida, his responsibilities consisted of a staff of 26 personnel members, the purchase of basic stock for merchandising, and consulting in the upgrade of company, computer maintenance, overseeing that proper implementation of accounting department procedures. As Manager of Computer Information Systems and Operations for Allied Corporation in Miami, Florida, David was responsible for production of monthly financial reports, on -going communication with other administrative management members regarding the sales and profit margins of company, and the coordination of financial reports with corporate office, while interacting with buyer and vendor representatives. David Chiverton was educated by Lindsey Institute in Business Administration & Computer Programming; IBM School of Computer Science in Computer Science Design & Programming; Florida International University in Business Management; University of the Americas in Business Administration; and Miami Dade Community College in General Studies George McArdle George McArdle is a law partner of McArdle, Perez, Escoto, De Zendegui & Luaces P.A. Mr. McArdle works in all areas of governmental approvals, real estate and de novo deal structuring and debt and equity financing, but specializes in the solution of complex problems. George is currently working in the areas of land compilation and the development of commercial real estate projects. He has been a managing partner in a series of real estate partnerships which have built, sold and closed over 2,500 homes, including condominium apartments, townhomes, cluster homes, zero lot line homes, patio homes, conventional single family residences and custom homes. He has had responsibility for site location, site acquisitions, raw land development, installation of infrastructure, obtaining all government zoning, site plan approvals and permits and environmental permits, shelter design, construction, directing marketing/sales programs and retail and wholesale financing and equity programs. George established and directed a mortgage operation to facilitate the qualification and closing of home loans for qualified buyers in partnership communities. He also established a real estate brokerage operation to oversee the sales and marketing of all subdivisions. In 1979, Mr. McArdle joined Arvida, on a consulting basis, as Project Manager of its then troubled Coco Plum project in Coral Gables. First, Mr. McArdle corrected the environmental infractions that had resulted in an injunction from the State of Florida prohibiting any further work. He then took the project through the various permitting stages (working 27 ••••••••••••••••••••••••••••••••••••••••••• with close to twenty local, county, state, and federal agencies), oversaw the demucking and filling of the property, the completion of all offsite and onsite land improvements, implemented a marketing/sales program and a builder program and developed and sold out the first section of lots. Upon graduation from Georgetown University, George was recruited by the Chase Manhattan Bank and joined its Global Credit Training Program, working in London in the International Department. He was later promoted to Chase Manhattan's New York Headquarters to reorganize the entire Global Credit Training Program, including training manual, basic underwriting guidelines and such. Subsequently, he headed the reorganized program that trained 300 Chase Manhattan bankers under his direction. In 1976, George was sent to Florida as a "trouble shooter" for the President of Chase's mortgage banking subsidiary, Housing Investment Corp. of Florida (HIC-F). There he took the lead role in analyzing the loan portfolio of HIC-F as well as assisting in the analysis of two other bank subsidiaries. Under his guidance, all HIC-F problem loans and "real estate owned", in excess of $10 million per project, were centralized into a "Special Projects Division". George was subsequently selected to head up this loan work-out function. In this capacity with the bank, George completed workouts of the following types: raw land, undeveloped and environmentally sensitive; single family subdivisions and condominium and rental apartment projects, partially and fully completed; golf course/country club communities, partially and fully completed; shopping centers; office buildings; warehouse and "mini -warehouse" (self -storage) projects; and marina developments. As part of his responsibilities to maximize loan recoveries and/or minimize losses, George was a "stand-in" developer whose role was the expeditious completion and/or sale of each of the 15 projects upon which he worked. George obtained extensive experience with regulatory agencies, architects, engineers, environmental experts, designers, and marketing research professions in the design and /or redesign and permitting of residential and commercial sites, single family residences, condominiums, apartment projects and commercial projects. During 1976, George opened a Jacksonville mortgage banking operation for Chase. It functioned as a mortgage brokerage operation wherein local home builders were provided construction loans sufficient to acquire developed lots and construct homes. Loans were automatically convertible into "end -loans" for qualified buyers, who in turn absorbed most of the financing costs. The net result was almost a "doubling" of market penetration for Chase Manhattan. 28 ••••••••••••••••••••••••••••••••••••••••••• Clyde Judson, Jr. Clyde Judson, Jr., President of Judson and Partners, has many years of design experience and serves as the Principal -in -charge. Judson and Partners provides architectural services and has a broad range of experience with housing and urban planning projects. Judson and Partners' sixteen (16) years of business, as well as, Mr. Judson's twenty-eight (28) years of professional experience, affords the insight into critical areas of schedule and budgets. Mr. Judson has extensive experience with affordable housing projects and has had numerous housing development clients. Clyde's extensive experience in architecture, architectural construction management, master plans, urban planning, Charettes, construction documents, AutoCAD, project management, redevelopment planning, site analysis and space -planning. Judson offers a full range of design services required for new construction, historic preservation, renovation and rehabilitation of commercial, governmental and multi -family residential projects. Judson provides conceptual design for the purpose of establishing budget and schedule perimeters and the analysis of zoning allowances, producing conceptual drawings to include site plan, floor plans, building elevations and three (3) dimensional rendering. Projects designed by his firm cover a broad spectrum of building types, budgets, and levels of complexity, and his range of experience includes government facilities, schools, commercial buildings, shopping centers, religious complexes, multi -family residential communities, and aviation projects. Building types include: Airports, Concourse and buildings, single family custom, churches and religious facilities, multi -family, community centers and recreational buildings, retail and shopping centers, hotels, schools and related educational library facilities, office buildings and theaters. 29 ••••••••••••••••,•••••••••••••••••••••••••• 0 DEVELOPMENT PLAN This development plan shows why there is a high probability of success for this project model. There are several critical factors for consideration, including "time". The span of three years is allocated for this real estate project to reach a point of completion and generating cash. The financial forecast will present to the best of management's knowledge and belief, the organization's expected results of the development phase and subsequent operations for a ten-year forecast period. Development Costs The planning factors estimate the capacity requirements for a mixed -use facility. Typically, site preparation includes demolition, if needed, clearing, grading, soil tests, paving, walks and pads, utilities, storm drainage, lighting, retaining walls, fences, landscaping and irrigation. Off -site improvements such as acceleration and deceleration lanes, turn lanes, traffic signals, and other work may or may not be required. Building construction typically includes structure and roofs, exterior finishes, partitions and ceilings, doors and hardware, heating and cooling systems, plumbing and fixtures, electrical and lighting, painting and wall covering, floor covering (excluding carpet), fire prevention and alarm systems. Re -investment -Program The broad goals of this initiative and business concept are to leverage government and private resources to support business commerce and community development activities. Since Lofty Ideas is governed and operated as a non-profit entity, the entire capital surplus in excess of costs generated from loft sales and leasing income will be reinvested back into the community and'this complex_ A yearly capital reinvestment program, along with the receipt of matching funds, is -intended to provide sufficient cash flow to supplement the carrying coats of the -building and resident social programs. 30 ••••••••••••••••••••••••••••••••••••••••••• Block 25 _00•••••••••••••••••••••••0000000 I. Construction and Closing Schedule Block 25 mos. 1 2 3 4 5 6 7 8 9 10 11 12 Pre - Construction Plans Permits Studies Financing Land Lease Sales Mat Model Off Gen Contr Park Loan Workshops 13 14 15 ate 17 18 19 20 21 22 23 25 26 27 28 29 30 31 32 33 34 35 36 Constr Retail Structure Floors 1 2 Constr Ofc/Srvs Structure Fioors 3 thru 5 Floor Finishes RetaiVofc Floor Floor Finishes Finishes Aff Hs Tower Sale Campaign 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 8 7 6 4 325 Constr Constr AH Lofts T Lofts Structure Structure Floors 6 thru 25 Floors 26 thru 28 Gos ing of Sales 35 35 35 35 35 35 35 35 35 10 description Operations of: parking grocery store office supply franchise food exibition area classrooms business center boardrooms wellness center fftness center dry cleaners child care Sales Closing affordable lofts affordable lofts affordable lofts affordable lofts market lofts market units market lofts market lofts market lofts market lofts all units closed I •••••••••••••••••••••••••••••• ••••••••••i II. Saleable and Rentable Areas Breakdown Block 25 descn • ion # of floors area • - r fl. gross area - SF common area - % common area - SF rentable or salable area as % of _ ross area Retail Ground Floor 5.87% a) grocery store 1 30,000 33,000 10.0 3,000 30,000 b) office supply 1 10,000 11,000 10.0 1,000 10,000 c) franchise restr 1 5,000 5,500 10.0 500 5,000 d) garage parking 1 15,000 16,500 10.0 1,500 0 Retail Second Floor 7.82% a) business services 1 24,000 26,400 10.0 2,400 24,000 b) dry cleaning 1 1,000 1,100 10.0 100 1,000 c) child care 1 5,000 5,500 10.0 500 5,000 d) garage parking 1 30,000 33,000 10.0 3,000 30,000 Office Third Floor 7.82% a) wellness center 1 5,000 5,500 10.0 500 5,000 b) fitness center 1 5,000 5,500 10.0 500 5,000 c) classrooms 1 5,000 5,500 10.0 500 5,000 d) exhibition area 1 5,000 5,500 10.0 500 5,000 e) business center 1 6,700 7,370 10.0 670 6,700 f) boardrooms 1 3,300 3,630 10.0 330 3,300 g) garage parking 1 30,000 33,000 10.0 3,000 30,000 Affordable Lofts 31.87% a) ownership 11 214,500 235,950 10.0 21,450 214,500 b) garage parking 1 30,000 33,000 10.0 3,000 30,000 Market Lofts 35.58% a) ownership 14 273,000 300,300 10.0 27,300 273,000 I 767,250I I 682,500 88.96% ESTIMATED COMPLETION SCHEDULE description I floors I floor/mo. month Icompl. mo_ Pre -Construction n/a n/a 12 n/a Construction - retail, support services 2 2 4 16 Construction - wellness/fitness, exhibition, offices 3 1.33 4 20 Construction - affordable housing lofts 11 2.2 5 25 Construction - tower lofts 14 1.56 9 34 Finishes 3 37 Decorations & Closings - sales closing to start mo. 27 3 40 ESTIMATED COMPLETION SCHEDULE 30 40 ••••••••i••••••••••••••• ••••••••••••••••••• III. Net Sales Revenue Block 25 ref. pg. I type of units I units area -SF 'avg. price initial priceltotal rounded Market Rate lofts 65 1,500 $425,000 $425,000 $27,625,000 Market Rate lofts 39 1,500 $400,000 $400,000 $15,600,000 Market Rate lofts 39 1,500 $375,000 $375,000 $14,625,000 Market Rate lofts 39 1,500 $350,000 $350,000 $13,650,000 Affordable Housing lofts 143 1,500 $225,000 $225,000 $32,175,000 325 487,500 $283,000 Gross Sa les Revenue $103,675,000 Sales Commissions 4.00% ($4,136,628) NET SALES REVENUE $271,708 $99,538,372 (Absorption Rate: Estimated at 15 units / mo.) AVERAGE SALES COMMISSION ESTIMATE % of sales % per sa le ' avg.rate total sales Local Brokers In -House Broker 33%I 6.0% 67%, 3.0% 2.00% 2.00% Average Sale Commission 4.00% ••••••••••••••••••••••••••••••••••••••••••• IV. Annual Net -Net Income Summary Block 25 ref. pg. project schedule year 1 2011 year 2 year 3 year 4 2012 2013 2014 year 5 2015 V V V VI VII anchor retail area service retail area wellness / fitness area exhibition facilities office facilities 778,596 627,900 167,440 27,600 119,700 817,526 659,295 175,812 38,600 129,150 858,402 692,260 184,603 50,350 139,031 901,322 726,873 193,833 63,742 149,348 946,388 763,216 203,524 77,970 160,108 Rental Areas Net Income Loan Debt Service Rental Areas Net - Net Income IX Parking Garage Net - Net Income $1,721,236 (1,749, 035) ($27, 799) $604,724 $1,820,383 $1,924,646 $2,035,118 $2,151,206 (1 ,749,035) (1,749,035) (1,749,035) (1,749,035) $71,348 $175,611 $286,083 $402,171 $629,893 $655,063 $680,232 $705,402 Net Revenue Less: 6% Developers' Fees ANNUAL NET -NET INCOME 576,925 (34,616) $542,309 701,241 830,674 966,315 (42, 074) (49,840) (57, 979) $659,167 $780,834 ($115,958) 1,107, 573 (66, 454) $1,041,119 ref. pg. V V V VI VII project schedule anchor retail area service retail area wellness / fitness area exhibition facilities office facilities year 6 2016 993,708 801,377 213,701 94,624 176,099 year 7 year 8 year 9 2017 2018 2019 1,043,393 1,095,563 1,150,341 841,446 883,518 927,694 224,386 235,605 247,385 110,694 128,674 149,752 187,924 200,208 218,237 year 10 2020 1,207,858 974,079 259,754 189,720 231,623 Rental Areas Net Income Loan Debt Service Rental Areas Net - Net Income IX Parking Garage Net - Net Income $2,279,509 (1,749,035) $530,474 $730,571 $2,407,843 $2,543,568 $2,693,409 (1,749,035) (1,749,035) (1,749,035) $658,808 $794,533 $944,374 $755,740 $780,909 $806,079 $2,863, 034 (1,749,035) $1,113, 999 $831, 249 Net Revenue Less: 6% Developers' Fees ANNUAL NET - NET INCOME 1,261,045 1,414,548 (75,663) (84,873 $1,185,382 $1,329,675 1,575,442 (94,527 $1,480,915 1,750,453 1,945,248 105,02 116,715 $1,645,426 $1,828, 533 Rental Area Income Value capitalized @ Estimated Loan @ 80% LTV Rental Areas Equity Parking Garage Income Value capitalized @ Estimated Loan @ 80% LTV Parking Garage Equity $792,756 9% $20,000,000 ($19,207,244) $6, 998, 811 9% $15,721,590 ($8, 722,779) •••••••••••••••.••••••••.•••••.l••••••••••••• V. Retail Areas - Net Income Estimate Block 25 description J 2011 1 2012 I 2013 J 2014 2015 I 2016 _ ! 2017 1 2018 1 2019 1 2020 ANCHOR RETAIL AREA Net Rentable Area 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 Rental Rate -Grocery Str 16.00 16.80 17.64 18.52 19.45 20.42 21.44 22.51 23.64 24.82 Rental Rate -Other $30.00 $31.50 $33.08 $34.73 $36.47 $38.29 $40.20 $42.21 $44.32 $46.54 Retail Area Revenue $930,000 $976,500 $1,025,325 $1,076,591 $1,130,421 $1,186,942 $1,246,289 $1,308,603 $1,374,033 $1,442,735 SERVICE RETAIL AREA Net Rentable Area 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Rental Rate $25.00 $26.25 $27.56 $28.94 $30.39 $31.91 $33.50 $35.18 $36.94 $38.78 Retail Area Revenue $750,000 $787,500 $826,875 $868,219 $911,630 $957,211 $1,005,072 $1,055,325 $1,108,091 $1,163,495 WELLNESS, FITNESS AREA Net Rentable Area 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Rental Rate $20.00 $21.00 $22.05 $23.15 $24.31 $25.53 $26.80 $28.14 $29.55 $31.03 Retail Area Revenue $200,000 $210,000 $220,500 $231,500 $243,100 $255,300 $268,000 $281,400 $295,500 $310,300 Gross Revenue -Retail $1,880,000 $1,974,000 $2,072,700 $2,176,310 $2,285,151 $2,399,453 $2,519,361 $2,645,328 $2,777,624 $2,916,530 Less: Vacancy Rate (131,600) (138,180) (145,089) (152,343) (159,961) 167,962) (176,355) (185,173) (194,434) (204,157) Effective Gross Income $1,748,400 $1,835,820 $1,927,611 $2,023,967 $2,125,190 $2,231,491 $2,343,006 $2,460,155 $2,583,190 $2,712,373 Less: a) Leasing Commission (104,904) (110,149) (115,657) (121,439) (127,511) (133,887) (140,581) (147,610) (154,990) (162,740) b) Operating Expenses (15,910) (16,706) (17,541) (18,418) (19,339) (20,306) (21,322) (22,388) (23,507) (24,682) c) Replacement Reserve (52,452) (55,075) (57,828) (60,720) (63,756) (66,944) (70,291) (73,805) (77,495) (81,370) Retail Net Income Rounded $1,575,134 $1,653,890 $1,736,585 $1,823,390 $1,914,584 $2,010,354 $2,110,812 $2,216,352 $2,327,198 $2,443,581 Rental Rate Annual Increases 5,0% Vacancy Rate -7.0% Leasing Commission -6.0% Operating Expenses -13.0% Replacement Reserve -3.0% • ••••••••••••••••.s••••••••••0o•••••••••••••• VI. Exhibition Facilities Net Income Estimate Block 25 description I 2011 2012 1 2013 1 2014 1 2015 2016 2017 I 2018 2019 2020 EXHIBITION CENTER Annual # of Trade Shows 12 16 20 24 28 32 36 40 44 48 Rentable Space/Trade Area 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Rental Rate /Show per SF $0.21 $0.22 $0.23 $0.24 $0.25 $0.27 $0.28 $0.29 $0.31 $0.32 Operating Ex enses er SF $6.00 $6.30 $6.62 $6.95 __ $7.29 $7.66 $8.04 $8.44 $8.86 $9.31 Exhibition Center Revenue $12,600 $17,600 $23,000 $28,800 $35,000 $43,200 $50,400 $58,000 $68,200 $96,800 Less: Operating Expenses ($30,000) ($31,500) ($33,075) ($34,729) ($36,465) ($38,288) ($40,203) ($42,213) ($44,324) ($46,540) Exhibition Center Net Income ($17,400) ($13,900) ($10,075) ($5,929) ($1,465) $4,912 $10,197 $15,787 $23,876 $50,260 CLASSROOM/TRAINING Annual Number of Sessions 150 160 170 180 190 200 210 220 230 240 Rentable Space per Session 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Rental Rate der Sess per SF $0.100 $0.105 $0,110 $0.116 $0.122 $0.128 $0.134 $0.141 $0.148 $0.155 Class!Train Gross Revenue $75,000 $84,000 $93,500 $104,400 $115,900 $128,000 $140,700 $155,100 $170,200 $186,000 Less:Operating Expenses ($30,000) ($31,500) ($33,075) ($34,729) ($36,465) ($38,288) ($40,203) ($42,213) ($44,324) ($46,540) Class/Train Net Income $45,000 $52,500 $60,425 $69,671 $79,435 $89,712_ $100,497_ $112,887 $125,876 $139,460 Retail Net Income Rounded 1 $27,600 1 $38,600 1 $50,350 1 $63,742 1 $77,970 1 $94,624 1 $110,694 1 $128,674 1 $149,752 1 $189,720 Exh. Oper. Exp. Increase/yr 5.0% Rental Rate Annual Increase Leasing Commission Oper. Exp. Exhibition Area 5.0% -6.0% $6.00/st O.er. Exp. Class/Train $6.00/sf • • ••••••••••••••• OOP d••••o*••••• •••••••••••• VII. Office Facilities Net Income Estimates Block 25 description 1 2011 2012 1 2013 1 2014 2015 I 2016 1 2017 1 2018 I 2019 ( 2020 OFFICE AREA Net Rentable Area 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Plus 10% Common Area 16,500 16,500 16,500 16,500 16,500 16,500 16,500 16,500 16,500 16,500 Rental Rate $25.00 $26.25 $27.56 $28.94 $30.39 $31.91 $33.50 $35.18 $36.94 $38.78 Office Area Revenue $412,500 $433,125 $454,781 $477,520 $501,396 $526,466 $552,789 $580,429 $609,450 $639,929 Less: 7% Vacancy Rate (28,875) (30,319) (31,835) (33,426) (35,098) (36,853) (38,695) (40,631) (42,662) (44,795) Effective Gross Income $383,625 $402,806 $422,946 $444,094 $466,298 $489,613 $514,094 $539,798 $566,788 $595,134 Less: a) Leasing Commission (23,018) (24,169) (25,377) (26,646) (27,979) (29,377) (30,846) (32,389) (34,009) (35,708) b) Operating Expenses (7,219) (7,580) (7,959) (8,357) (8,775) (9,213) (9,674) (10,158) (10,333) (11,199) c) Replacement Reserve (11,509) (12,084) (12,688) (13,323) (13,989) (14,688) (15,423) (16,194) (17,004) (17,854) Office Net Income Rounded $341,879 $358,973 $376,922 $395,768 $415,555 $436,335 $458,151 $481,057 $505,442 $530,373 RESOURCECENTERAREA Net Rentable Area 6,700 6,700 6,700 6,700 6,700 6,700 6,700 6,700 6,700 6,700 Rental Rate $15.00 $15.75 $16.54 $17.36 $18.23 $19.14 $20.10 $21.07 $22.16 $23.27 Resource Centr Revenue $100,500 $105,525 $110,801 $116,341 $122,158 $128,266 $134,680 $141,414 $148,484 $155,938 BOA RDIZOOM AREA Days Utilized Annually 120 125 130 135 140 145 150 155 160 165 Number of Meeting Rooms 8 8 8 8 8 8 8 8 8 8 Net Rentable Area 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 Rental Rate $0.20 $0.21 $0.22 $0.23 $0.24 $0.26 $0.27 $0.28 $0.30 $0.31 N etin• Rm Area Revenue $79,200 $86,625 $94,380 $102,465 $110,880 $124,410 $133,650 $143,220 $158,400 $168,795 Effective Gross Income $179,700 $192,150 $205,181 $218,806 $233,038 $252,676 $268,330 $284,634 $306,884 $324,703 Less: Operating Expenses (60,000) (63,000) (68,150) (69,458) (72,930) (76,577) (80,406) (84,426) (88,647) (93,080) RC/MT Net Income Rounded $119,700 $129,150 $139,031 $149,348 $160,108 $176,099 $187,924 $200,208 $218 237 $231,623 Rental Rate Annual Increas Leasing Commission Replacement Reserve 5.0°,6 -6.0% -3.0% Oper. Exp. Office Oper. Exp. Other Vacancy Rate -15.0% $6.00/sf -7.0% • ••••••••1• A*'+0••••••••••••••••••••••••••••••• VIII. Parking Garage Estimated Value and Net -Net Income Projections Block 25 description 1 2011 1 2012 2013 I 2014 1 2015 2016 2017 1 2018 1 2019 1' 2020 Number of Parking Spaces 760 760 760 760 760 760 760 760 760 760 Monthly Utilization Rate 53% 53% 54% 55% 55% 56% 56% 57% 58% 59% Monthly Parking Spaces 400 405 410 415 420 425 430 435 440 445 Monthly Parking Rate/Space $559.32 $559.32 $559.32 $559.32 $559.32 $559.32 $559.32 $559.32 $559.32 $559.32 Yearly Parking Rate/Space $2,684,736 $2,718,295 $2,751,855 $2,785,414 $2,818,973 $2,852,532 $2,886,091 $2,919,650 $2,953,210 $2,986,769 Less: 25% Operating Exp (671,184) (679,574) (687,964) (696,354) (704,743) (713,133) (721,523) (729,913) (738,303) (746,692) Parking Garage Net Income $2,013,552 $2,038,721 $2,063,891 $2,089,060 $2,114,230 $2,139,399 $2,164,568 $2,189,737 $2,214,907 $2,240,077 Annual Debt Service (P+I) ($1,408,828) ($1,408,828) ($1,408,828) ($1,408,828) ($1,408,828) ($1,408,828) ($1,408,828) ($1,408,828) ($1,408,828) ($1,408,828) Parkin9_Net-Net Income 604,724 629,893 655,063 680,232 705,402 730,571 755,740 780,909 806,079 831,249 Parking Value Cap @ 9% I 6,719,156 1 6,998,811 7,278,478 7,558,133 7,837,800 8,117,456 8,397,111 8,676,767 8,956,433 9,236,100 Loan Amount - 80% L1V (15,866,342) (15,721,590) (15,569,830) (15,395,046) (15,211,177) (15,012,047) (14,796,389) (14,562,832) (14,309,889) (14,035,953)1 Parking Owners Equity ($9,147,186) ($8,722,779) ($8,291,352 ($7,836,913) ($7,373,377) ($6,894,591) ($6,399,278) ($5,886,065) ($5,353,456) ($4,799,853) I I I 1 -- I I L MD, rates annual increase Value Per Space Loan Amount Per Space Loan Debt Service 0% $8,841 $21,053 $117,402.33 per rno. @ 8% over 30 years i••••••••••••••••••• •••••• ••••••••••••••••• IX. Estimated Development Cost Block 25 'mar sq. a. ro',zDu description notes / references area sq.ft. total Price/sf Land Cost_ 97,150 0 $0.00 Hard Cost - _ Site Cost: ' On -Site $200,000 per acre 400,000 0.52 Off Site (curb costs, sewer lines) 0 0.00 Site Lighting 80,000 0.10 Demolition 5,000 0.01 Landscaping & Irrigation 200,000 0.26 Total Site Costs: $685,000 $0.89 Building Cost: Retail / (Ace Areas psfcost @ $200.00 115,500 23,100,000 30.11 Loft Areas (incl. fls / cab. / flxt.) psf cost @ $200.00 536,250 107,250,000 139.78 Parking Garage 750 spaces @ $20,000/spc 105,000 j 15,000,000 19.55 Contingency 5% of building cost 7,267,500 9.47 Total Building Cost 152,617,500 198.91 Total Hard Cost $153,302,500 $199.81 Solt Cost Architects, Engineers & Interiors 3% of hard cost 4,599,075 5.99 Real Estate Taxes 3 years 261,147 0.34 Legal Fees 100,000 0.13 Studies 15,000 0.02 Insurance 3.8% of hard cost 5,825,495 7.59 Permits & Fees 75,000 0.10 Impact Fees 1,047,700 1.37 Developer Fee 6% of hard cost 9,198,150 11.99 Realtor - Commission 6% of sales 2,052,765 2.68 In -House Commission 3% of sales 2,083,868 2.72 Leasing Commission 6% of base rent 227,922 0.30 Loan Costs & Fees 1% of construction loan 1,497,656 1.95 Interest Reserve APR @ 8% over 3 years 5,800,000 7.56 Survey 5,000 0.01 Real Estate Appraisal 5,000 0.01 Phase I Environmental 2,500 0.00 Construction Management Fees 1% of hard cost 1,533,025 2.00 Marketing Materials 15,000 0.02 Consultants 100,000 0.13 Contingency 1% of soft cost 344,443 0.45 Total Soft Cost $34,788,746 $45.34 TOTAL DEVELOPMENT COST $188,091,246 5245.15 ••••••••••••••••••••••••••••••••••• •••••••• • Block 36 • • • I. Rentable Areas Breakdown • Block 36 • • • • • • • • • • • . • • • • • • • • • i • • • • • • • description # of floors area peril. gross area - SF common area - % common area - SF rentable area as % of gross area Retail Ground Floor 11 iciw i r1"zf' _ 8.59% a) retail tenant 1 5,000 5,500 10.0 500 5,000 b) retail tenant 1 5,000 5,500 10.0 500 5,000 c) retail tenant 1 5,000 5,500 10.0 500 5,000 d) retail tenant 1 5,000 5,500 10.0 500 5,000 e) retail tenant 1 5,000 5,500 10.0 500 5,000 Parking Second Floo 13.16% a) 100 spaces 1 38,295 42,125 10.0 3,830 38,295 Parking Third Floor 13.16% a) 100 spaces 1 38,295 42,125 10.0 3,830 38,295 Parking Forth Floor 13.16% a) 100 spaces 1 38,295 42,125 10.0 3,830 38,295 Parking Fifth Floor 13.16% a) 100 spaces 1 38,295 42,125 10.0 3,830 38,295 Parking Sixth Floor w a) 100 spaces 1 38,295 42,125 10.0 3,830 38,295 Apts Seventh Floor 8.25% a) 30 affordable units 1 24,000 26,400 10.0 2,400 24,000 Apts Eighth Floor 8.25% L a) 30 affordable units 1 24,000 26,400 10.0 2,400 24,000 j 290,925 I 264,475 1 99.89°A6 ESTIMATED COMPLETION SCHEDULE description I floors I floor/mo. 1 month com•I. mo. Pre -Construction n/a n/a 12 n/a Construction - ground floor retail 1 1 2 14 Construction - parking garage 5 1 5 19 Construction - affordable housing apartments 2 1.5 3 22 Finishes 1 23 Decorations & Leasing 1 24 ESTIMATED COMPLETION SCHEDULE 8 24 • • 3 • • • II. Annual Net -Net Income Summary Block 36 • ref. • • • • • • • • • • • • • • ref. pg. • V V • V • VI VII • • • • • • • • • • • • • • • • • roiect schedule ground floor retail area affordable housing apartment area year 1 year 2 2011 2012 733,107 249,600 769,763 262,080 year 5 2015 year 3 year 4 2013 2014 275,184 288,912 Rental Areas Net Income Loan Debt Service Rental Areas Net - Net Income Parking Garage Net - Net Income $982,707 (1,144,668) ($161,961) $1,722,439 $1,031,843 $1,083,486 $1,137,641 $1,194,304 (1,144,668) (1,144,668) (1,144,668) (1,144,668) ($112, 825) ($61,182) ($7,027) $49,636 $1,722,439 $1,722,439 $1,763,667 $1,763,567 Net Revenue 1,560,478 1,609,614 1,661,257 1,756,640 1,813,203 Less: 6% Developers' Fees (93,629) (96,577) (99,675) (105,398) (108,792) ANNUAL NET -NET INCOME $1,466,849 $1,513,037 $1,561,582 $1,651,242 $1,704,411 project schedule ground floor retail area affordable housing apartment area year 6 year 7 year 8 year 9 year 10 2016 2017 2018 2019 2020 935,653 982,363 1,031,586 1,083,113 1,137, 362 318,552 334,464 351,312 368,784 387,192 Rental Areas Net Income Loan Debt Service Rental Areas Net - Net Income IX Parking Garage Net -Net Income $1,254,205 $1,316,827 $1,382,898 (1,144,668) (1,144,668) (1,144,668) $109,537 $172,159 $238,230 $1,763,567 $1,792,946 $1,792,946 $1,451, 897 (1,144,668) $307,229 $1,792, 946 $1,524, 554 (1,144, 668) $379,886 $1,822, 323 Net Revenue Less: 6% Developers' Fees ANNUAL NET-11NCOME 1,873,104 1,965,105 2,031,176 2,100,175 2,202,209 (112,386) (117,906) (121,871) 126,011) (132,133) $1,760,718 $1,847,199 $1,909,305 $1,974,164 $2,070,076 Rental Area jiycomd Vaftie capitalized eta Estimated Loan 80% LTV Rental Areas Equity Parking Garage Income Value capitalized @ Estimated Loan @ 60% LTV Parking Garage Equity $16,298,322 9% $24, 000,000 ($7, 701 678) $6, 998, 811 9% $15, 721, 590 ($8, 722, 779) •••••••.•.•.••••.0••••••••••14*••••••••••••• III. Retail Areas - Net Income Estimate Block 36 description 1 2011 1 2012 1 2013 I 2014 J 2015 1 2016 1 2017 2018 2019 1 2020 GROUND FL RETAIL AREA Net Rentable Area 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Rental Rate -Grocery Str $35.00 $36.75 $38.59 $40.52 $42.54 $44.67 $46.90 $49.25 $51.71 $54.30 Retail Area Revenue $875,000 $918,750 $964,750 $1,013,000 $1,063,500 $1,116,750 $1,172,500 $1,231,250 $1,292,750 $1,357,500 Gross Revenue -Retail $875,000 $918,750 $964,750 $1,013,000 $1,063,500 $1,116,750 $1,172,500 $1,231,250 $1,292,750 $1,357,500 Less: Vacancy Rate (61,250) (64,313) (67,533) (70,910) (74,445) (78,173) (82,075) (86,188) (90,493) (95,025) Effective Gross Income $813,750 $854,437 $897,217 $942,090 $989,055 $1,038,577 $1,090,425 $1,145,062 $1,202,257 $1,262,475 Less: a) Leasing Commission (48,825) (51,266) (53,833) (56,525) (59,343) (62,315) (65,426) (68,704) (72,135) (75,749) b) Operating Expenses (7,405) (7,775) (8,165) (8,573) (9,000) (9,451) (9,923) (10,420) (10,941) (11,489) c) Replacement Reserve (24,413) (25,633) (26,917) (28,263) (29,672) (31,158) (32,713) (34,352) (36,068) (37,875) Retail Net Income Rounded $733,107 $769,763 $808,302 $848,729 $891,040 $935,653 $982,363 $1,031,586 $1,083,113 $1,137,362 Rental Rate Annual Increas Vacancy Rate Leasing Commission Operating Expenses Re•Iacement Reserve 5. 0% -7.0% -6.O% -13.0% pass-thru -3.0% • • •••••••••••••••••••••,410•••0f4•••••o ••••••••• IV. Rental Affordable Housing Areas - Net Income Estimate Block 36 description I 2011 I 2012 2013 1 2014 1 2015 1 2018 J 2017 2018 1 2019 J 2020 AFF HOUSING AREA Net Rentable Area - G Apts 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 Rental Rate $8.00 $8.40 $8.82 $9.26 $9.72 $10.21 $10.72 $11.26 $11.82 $12.41 Gross Revenue Aff 1-bus $384,000 $403,200 $423,360 $444,480 $466,560 $490,080 $514,560 $540,480 $567,360 $595,680 Less: a) Leasing Commission 0 0 0 0 0 0 0 0 0 0 b) Operating Expenses (96,000) (100,800) (105,840) (111,120) (116,640) (122,520) (128,640) (135,120) (141,840) (148,920) c) Vacancy Rate (26,880) (28,224) (29,635) (31,114) (32,659) (34,306) (36,019) (37,834) (39,715) (41,698) d) Replacement Reserve (11,520) (12,096) (12,701) (13,334) (13,997) (14,702) (15,437) (16,214) (17,021) (17,870) Apt Rental Net Income $249,600 $262,080 $275,184 $288,912 $303,264 $318,552 $334,464 $351,312 $368,784 $387,192 Rental Rate Annual Increase Vacancy Rate Leasing Commission Operating Expenses Re•Iacement Reserve 5.0% -7.0% 0.0°% -25.0% -3.0% • • ••.••••••••••••I•••••••••••••••••••i••*MO • V. Parking Garage Estimated Value and Net -Net Income Projections Block 36 description 2011 2012 2013 2014 2015 ( 2016 2017 2018 2019 L 2020 Number of Parking Spaces Monthly Utilization Rate 500 92% 500 92% 500 92% 500 93% 500 93% 500 93% 500 94% 500 94% 500 94% 500 95% Monthly Parking Spaces 458 458 458 465 465 465 470 470 470 475 Monthly Parking Rate/Space $652.84 $652.84 $652.84 $652.84 $652.84 $652.84 $652.84 $652.84 $652.84 $652,84 Yearly Parking Rate/Space $3,588,009 $3,588,009 $3,588,009 $3,642,847 $3,642,847 $3,642,847 $3,682,018 $3,682,018 $3,682,018 $3,721,188 Less: 25% Operating Exp (897,002) (897,002) (897,002) (910,712) (910,712) (910,712) (920,504) (920,504) (920,504) (930,297) Parking Garage Net Income $2,691,007 $2,691,007 $2,691,007 $2,732,135 $2,732,135 $2,732,135 $2,761,514 $2,761,514 $2,761,514 $2,790,891 Annual Debt Service (P I) ($968,568) ($968,568) ($968,568) ($968,568) ($968,568) ($968,568) ($968,568) ($968,568) ($968,568) ($968,568) Parking Net -Net Income 1,722,439 1,722,439 1,722,439 1,763,567 1,763,567 1,763,567 1,792,946 1,792,946 1,792,946 1,822,323 Parking Value Cap @ 9% 19,138,211 19,138,211 119,138,211 19,595,188 19,595,188 19,595,188 19,921,622 19,921,622 19,921,622 20,248,033 Loan Amount - 80% LTV (10,908,110) (10,808,593) (10,700,816) (10,584,094) (10,457,684) (10,320,782) (10,172,517) (10,011,947) (9,838,049) (9,649,717) Parking Owners Equity $8,230,101 $8,329,618 $8,437,395 $9,011,094 $9,137,504 $9,274,406 $9,749,105 $9,909,675 $10,083,573 $10,598,316 M. rates annual increase 0% Value Per Space $38,276 Loan Amount For Space $22,000 Loan Debt Service $80,714 er rno. @ 8% over 30 years • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • VI. Estimated Development Cost Block 36 total sq. ft. 290,925 description notes / references area sq.ft. total Price/sf Land Cost 95,994 0 $0.00 Hard Cost Site Cost: On -Site $200,000 per acre 400,000 1.37 Off Site (curb costs, sewer lines) 0 0.00 Site Lighting 80,000 0.27 Demolition 5,000 0.02 Landscaping & Irrigation 200,000 0.69 Total Site Costs_ $685,000 $2.35 Building Cost: Retail Ground Floor psfcost @ $150.00 27,500 4,125,000 14.18 Apartments Area psf cost @ $150.00 52,800 7,920,000 27.22 Parking Garage 500 spaces @ 20,000 /space 210,625 10,000,000 34.37 Contingency 5% of building cost 1,102,250 3.79 Total Building Cost 23,147,250 79.56 Total Hard Cost $23,832,250 $81.92 Soft Cost Architects, Engineers & Interiors 3% of hard cost 714,968 2.46 Real Estate Taxes 3 years 250,000 0.86 Legal Fees 100,000 0.34 Studies 15,000 0.05 Insurance 3.8% of hard cost 905,626 3.11 Permits & Fees 75,000 0.26 Impact Fees 1,047,700 3.60 Developer Fee 6% of hard cost 1,429,935 4.92 Realtor - Commission 6% of sales 0 0.00 In -House Commission 3% of sales 0 0.00 Leasing Commission 6% of base rent 48,825 0.17 Loan Costs & Fees 1% of construction loan 232,000 0.80 Interest Reserve APR 8% over 1 year 1,392,000 4.78 Survey 5,000 0.02 Real Estate Appraisal 5,000 0.02 Phase I Environmental 2,500 0.01 Construction Management Fees 1% of hard cost 238,323 0.82 Marketing Materials 15,000 0.05 Consultants 100,000 0.34 Contingency 1% of soft cost 49,529 0.17 Total Soft Cost $6,626,406 $22.78 TOTAL DEVELOPMENT COST $30,458,856 $104.70