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IH. COST OF THE AGREEMENT TO THE AGENCY <br />This section presents the total cost of the Agreement to the Agency, as well as the "net cost" of the <br />project after consideration of the project revenues. The net cost can be either an actual cost, when <br />expenditures exceed receipts, or a net gain, when revenues created by implementation of the <br />Agreement exceed expenditures. <br />A. Estimated Cost to the Agency <br />Agency costs related to site acquisition, clearance and rough grading were accounted for in the <br />previously approved Costco agreement. Additionally, relocation, site remediation and off-site <br />improvements for traffic and utilities were completed. For this agreement, the net additional costs <br />that the Agency must incur are estimated to be: <br />Acquisition Costs <br />N/A(1) <br />Goodwill, Relocation Costs <br />N/A(') <br />Demolition and Other Related Costs <br />N/A(I) <br />Administrative Costs <br />N/A(l) <br />Conveyance and Transfer Fees, Recording and Escrow Fees <br />$2,000 <br />Real Estate Commission1$ <br />0.350 <br />Total $12,350 <br />(')Costs were accounted for in the previously approved Costco Agreement. <br />The Agency will finance the cost using cash on hand. <br />B. Revenues to the Agency <br />Per the terms of the Agreement, the Agency shall sell the Site to the Developer for $207,000. <br />Therefore, the revenue stream to the Agency is estimated to be $207,000. <br />C. Net Revenues to the Agency <br />The Agency's cost is estimated to be $12,350. Agency revenues are estimated at $207,000. As a <br />result, the net revenue of the Agreement to the Agency is estimated at $194,650, or $195,000 <br />(rounded), as summarized below: <br />Agency's Revenues <br />(Less) Agency Costs <br />Net Revenues to Agency <br />19104\0001-002.DOC <br />$207,000 <br />(12,350) <br />$194,650 <br />(rounded) $195,000 <br />KEYS E R MARSTON ASSOCIATES INC. <br />Page 6 <br />