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SENT BY=SF OFFICE ; 1-30-06 : 12:34 ; KEYSER MARSTON 5105776007;# 2/ 2 1 L COST OF THE AGREEMENT TO THE AGENCY This section presents the total cost of the Agreement to the Agency, as well as the "net cost" of the project after consideration of the project revenues. The net cast 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 Agency costs related to site acquisition, clearance and rough grading were accounted for in the previously approved Costco agreement. Additionally, relocation, site remediadon and off -site improvements for traffic and utilities were completed. For this agreement, the net additional costs that the Agency must incur are estimated to be: Provide utilities to property line $85,000 Conveyance & transfer taxes, recording and escrow fees $11,640 Brokerage fees and commissions $65,000 Curb, gutter and sidewalk $10,000 Total $171,640 The Agency will fmmce the cost using cash on hand and the proceeds from the sale. R Revenues to the Agency Per the terms of the Agreement, the Agency shall sell the Developer Parcels for $24 per sq.ft. of land area. The payment shall be all cash. The parcel is approximately 55,000 sq.ft. (1.26 acres) in size, resulting in an estimated sale price of $1.32 million. The exact price will be determined in the future after the survey measuring the parcel is completed. The option price of $25,000 will be credited toward the purchase price. Therefore, the revenue stream to the Agency is estimated to be $1,320,000. C Net Cost to the Agency The Agency's cost is estimated to be $171,640. The Agency revenues from the land payment is estimated at $1,320,000, As a result, there is not a net cost. There is a net revenue estimated at $1,143,360. 19096=15-0 I AM Page e