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E Reuse Value/Consideration Paid to Agency <br />Per the terms of the Agreement, the Agency will sell the site to the Developer on an installment <br />basis, as detailed in the DDA, and briefly summarized below: <br />■ $1,500,000 due upon close of escrow; <br />■ An additional one-time payment of from $0 to $500,000, paid between Years 1 <br />to 5, based upon the performance of the Project. The formula for calculation of <br />this ratio is contained within the DDA. Please refer to Table 4 for a detailed <br />summary of these Agency cash flows. For purposes of this analysis, the <br />additional payment is assumed to occur at the end of Year 2 of operation, and is <br />estimated to be $200,000. This amount is based on the midpoint of the range of <br />fair reuse value ($1.5 million to $1.9 million), less the upfront payment of $1.5 <br />million at close of escrow. <br />As shown in Table 4, the present value of these payments is $1,660,000. Therefore, the <br />consideration paid to the Agency approximates the residual land value. <br />199 <br />KEYSER MARSTON ASSOCIATES I N C. <br />19100l0001-002.doc Page 17 <br />