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3. Total Costs - Private Assemblage As shown in Table 3, the site assemblage cost of the private assemblage is estimated to be $2,410,000 for the 3.66 acres ($15.12 per sq.ft. of land area). Additionally, the Auto Dealer is funding $30,000 for the demoltion of 1072 Marina Blvd. The total cost is then $2,440,000. Finally, there are risks of higher site remediation costs. C. Reuse Value - Agreement with Agency The Auto Dealer is privately assembling parcels along Marina Boulevard. In order to optimize the opportunity for a successful Auto Center, the Agency is conveying an additional 1.32 acres. A review of the land values paid by auto dealers indicates that dealers, in general, can support a land value in the range of $10 to $12 per sq.ft. Beyond that range, there is little evidence using comparable land sales that auto dealers can support higher land values. In . essence, the value range is for cleared sites ready for development with no extraordinary site preparation costs, such as remediation, or other special assessments. Based on the upper end of the range ($12), the value that can be supported for the combined site of 216,800 sq.ft., i.e., the privately assembled parcels ( "Private Assemblage ") and the Agency conveyed parcels ( "Agency Assemblage ") is estimated at $2,600,000. The estimated cost for the Auto Dealer to acquire the Private Assemblage is estimated to be $2,410,000 plus $30,000 for demolition of 1072 Marina Blvd. The total cost is then $2,440,000. Therefore, the fair reuse value for the Agency Assemblage is $160,000 ($2,600,000 less $2,440,000). The fair reuse value is subject to the reuse conditions that are stated above. Should these reuse conditions change, then the reuse value is subject to revision. D. Agency Financing of Land Sale In fact, as will be described later in this analysis, the projected assemblage costs for the Agency Assemblage is estimated to be $1,300,000. The Agency and the Auto Dealer have agreed that the Agency will convey the Agency Assemblage to the Auto Dealer by means of a sale. The terms of the agreement between the Agency and the Auto Dealer are as follows: The Agency will acquire three parcels along the north side of Marina Boulevard just east of Interstate 880 ( "Agency Assemblage "). Certain costs (e.g., demolition, remediation, onsites and offsites) will be borne by either the previous owner /Seller, the Agency or the Auto Dealer, as will be detailed below. The Auto Dealer will purchase the Agency Assemblage from the Agency for a set purchase price. The purchase price will be determined by a formula as follows: • KEYSER MARSTON ASSOCIATES INC. 1 9 096 1 001 4- 003.doe Page 16