Reso 1996-062 - Laserfiche WebLink

Home

M. COST OF HiE AGREE1PI(ENT TO HIE AGENCY This section presents the total cost of the DDA to the Agency, as well as the "net cost" of the project after consideration of the project revenues. The net cost can be either an actual cost, when expenditures exceed receipts, or a net gain, when revenues created by implementation of the Agreement exceed expenditures. A. Estimated Cost to the Agency For this agreement, the net costs that the Agency must incur are estimated to be: (Estimated) Site Assemblage (Purchase Land) -1066 -1072 Marina Blvd. $ 450,000 Site Assemblage (Purchase Land) -1152 Marina Blvd. 740,000 Environmental Remediation -1066 Marina Boulevard 57,000 Predevelopment Costs t° 40,000 Project Management 111 300,000 Asbestos and Lead Paint Removal — 1066 -1072 Marina Blvd. 10,000 Closing Costs 20,000 Equipment Relocation —1152 Marina Blvd. 5 00 T ta $ 1,622,000 (1) Predevelopment and project management costs will not be included in the total costs passed on to the Auto Dealer. • The Agency will finance the cost using cash on hand. R Revenues to the Agency The Agency will sell the Agency Assemblage to the Auto Dealer per a formula in the DDA. The payment to the Agency is projected to be $500,000 five years after conveyance. Specially, the DDA will have the Agency advance an acquisition loan (estimated to be $1.3 million). The acquisition loan will require no money down and payment is due in five years. If the Auto Dealer meets the obligations under the DDA, the interest rate is waived and the payment to the Agency will be reduced by an $800,000 credit. If the obligations of the DDA are not met by the Auto Dealer, the dealer will owe the Agency $1.4 million plus 6% per year. KEYSER M A RSTON A SSOCI ATES INC. 1909610014- 002.doc Page 7 warty Y- .Aic.000 rage t3