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<br />MELVIN MARK COMPANIES <br />MELVIN MARK PROPERTIES • MELVIN MARK BROKERAGE CO. ' MELVIN MARK CONSTR <br />January 26, 2001 <br />Jeff Hamm <br />General Manager <br />Salem Area Transit <br />555 Court Street NE Ste 5230 <br />Salem, OR 97301 <br />RE: Courthouse Square Cost/Income Analysis <br />Dear Jeff: <br />This correspondence addresses the cost of constructing parking on the Courthouse Square <br />project and provides an analysis of the revenue required to cover the cost of such <br />construction. <br />In order to simplify the estimated cost of constructing parking far the project, I have <br />taken Pence/Kelly's accepted bid to construct add alternate #1 and add alternate #2, as <br />reflected in the bid submitted in February of 1998. The per stall cost of these add <br />alternates would be fairly representative of the cost of constructing parking for remainder <br />of the project. Pence/Kelly constructed add alternates one and two, which expanded the <br />garage from 192 to 314 parking stalls. The cost to construct these additional stalls was <br />$1,263,946 ar$10,360 per stalL In addition to the hard construction costs, I would add <br />25% to cover soft costs such as design fees, permits, project management, etc. Because <br />of the contamination and unsuitable subgrade issues associated with the excavation of the <br />subsurface parking level, I would also add an additional 15% for soils remediation and <br />the removal and replacement of unsuitable subgrades. The cost to construct the 40,000 sf <br />of parking would be approximately $14,504 per stall. By extrapolating this cost over the <br />entire structure, it would be fairly accurate to assume the cost of the parking component <br />of Courthouse Square to be $4,554,256. <br />In addition to construction costs, the cost of the land associated with these spaces would <br />need to be added. I have not included this in iny analysis for two reasons. Because the <br />land was acquired over several years, the County's cost basis in the property is not easily <br />established (Transit's share was purchased at its appraised priee). Secondly, the land cost <br />could be allocated several different ways as the project utilizes the land above, as well as <br />below, grade. <br />111 SOUTHWEST COLUMBIA • PORTLAND, OREGON 97201 • TELEPHONE: (503) 223-4777 FAX: (5031 223-4606 <br />