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.~ . ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ • SUMMARY OF PROPOSAL Lease / Purcl--ase: T~is lease is to be a Iease / purc~ase wit~ no balance (residual) at the en~ o~ t~e lease. In ot~er worcls, t~e County will own tlie 61,000 ns~ at t~e end o~ t~e lease, wit~ no balance due. Tenant Improvements: Tenant Impravement $udget ~a ~39.00 GSF. Demolition ~ Fxcavation; Transit to pay ~or 57% o~ t~e estimated cost, or ~1,39$,210. Marion County to pay for 43% o~ t~e cost, or ~1,054,790. Lease Up; ~ It is estimated that t~e project will need to show the lender a preleasing o~ 70% o~ any private o~{ice /retai~ space. A{urE~er analysis will be eacplorec~ {o ]ruijd an a~itional fl~ o~ o{{ice space. T~is is to be per~ormed once the Architect ~as addressed t~e number of par~in~ spaces t~at can be ~t on site. A{ t.~at point the developer will ~ave an estimate as to ~ow muc~ additional o~{ice space can be built on site. To c~ate it is estimated tliat 13,000 GSF o~ Retai~ Space will be built and owned by t~e Project Coordinator. ~ S treetscaPe; City o~ Salem will cover t,~e cost of t~e Streetscape w~ic~ is estimated ~ _ to be ~2,000,000. ~ Wit~out Federal Grant Dollars or Cost Saving Ideas: T~e Project Coordinator is prepared to bring up to ~3,000,000 to reduce t~ie loan ~ amount required to build the project ~or Marion County. A lease ~or 2j years is to be negotiated wit~ General Services t~at will yield t~e ~ Project Coordinator between 15% to 18% Internal Rate o~ Return (IRR.), $e~ore Taxes. ~ '~This model is not included at t~is time. Further meetin s will ta~xe lace wit~ $ p General ~ ervices and t~e Project Coordinator to wor~Z t~e di.~erent options out. ~ pa~e 14 / su:nmary o~ Proposa~ ~ _