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With the cost of construction established, the amount of per stall income required to <br />finance the construction of these spaces is determined by the economic return required by <br />the project owners. The following analysis contemplates two borrowing/return <br />scenarios. The first analysis assumes that parking was financed at 4% (the cost of County <br />CH2 financing) and the owners are simply recovering construction and financing costs. <br />The second scenario assumes 4% financing with a 5% annual return. Both scenarios <br />assume 25 year amortization (term of County CH2 bonds). <br />4°/o Project Financing <br />Parking Cost $4,554,256 <br />4% Project Financing w/ 5% Annual Return <br />$4,554,256 <br />Annual Debt Service $291,527 $291,527 <br />5% Return $0 $227,712 <br />------------- <br />Req'd Annul Return -------------- <br />$291,527 $519,239 <br />Required Annual $291,527/314 = $519,239/314 ° <br />Per Stall Revenue $928.43 $1,653.62 <br />Required Monthly <br />Per Stall Revenue $7737* $137.80* <br />*The revenue required excludes repayment of operating expenses. <br />These project costs and required revenues are consistent our experience in developing <br />projects that contain structured parking. The 5% annual return on investment is an <br />example, however, as most private developers would be required to contribute equity into <br />the project and would require a larger return on their investment. <br />Please feel free to contact me at 223-4777 if you have any additional questions or require <br />further clarifications. <br />Sincerely, <br />< <br />Craig . Lewis <br />Project Manager <br />