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The revenues to the Agency are summarized below: <br />Estimated <br />Total Costs to Agency $ 1,622,000 <br />Less Predevelopment and Project Management (340,000) <br />Costs not Passed on to Auto Dealer <br />Agency Acquisition Loan to Auto Dealer $1,282,000 <br />(Rounded) $1,300,000 <br />Less Credit to Auto Dealer (800,000) <br />Net Payment (balloon payment) by Auto Dealer to Agency, Year 5 $500,000 <br />Present Value of Payment to Agency $ 340,000 <br />In other words, the Acquisition Loan is reduced by $800,000 to provide the Auto Dealer with <br />the incentive to proceed. Subtracting the $800,000 credit, the net payment due to the Agency in <br />five (5) years is estimated to be $500,000. <br />The present value of the estimated payment by the Auto Dealer is $340,000. Therefore, the <br />revenue stream to the Agency is estimated to be $340,000. The payment to the Agency is supported <br />by the reuse value, as discussed later on in this report. <br />C Net Cost to the Agency <br />The projected assemblage costs to the Agency for the Agency Assemblage is estimated to be <br />$1,622,000. The present value of the Agency revenues from the land payment is based on the <br />above -described formula and is estimated at $340,000. As a result, the net cost of the Agreement to <br />the Agency is estimated at $1,282,000. <br />KEYSER MARSTON ASSOCIATES I N C. <br />19096\0014-002doc Page 8 <br />