Development Team Meeting Notes (96-99)

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Randy rephrased his concern when reaching the hard cost figure of $19.5 million, transit's $9.8 million was taken out first. NIlVIDC assumes that transit is paying their fair share. Transit is ~ paying 100% equity for their share and county has to bonow for their part, and that is assuming transit is paying true costs. After discussion there is still need for an internal breakdown and we can revisit this later. The architect fee (6% of contractor costs), the $1.8 million for streetscape and the costs of TI's might be over. This assumes paying Arbuckle for costs associated with actual occupied space, but does not include retail space. This has to included in the budget somewhere. NIlVIDC needs direction as to what to put in for debt service. Dan had estimated $5-6. Randy had researched Dan Berrey's original numbers and he used cost estimates of 35-45 cents a square foot for $4.20/$5.40 annual. The difference was whether it was county or private with added property tax to higher number. If it is full government operation is 35 cents appropriate. NIlVIDC needs guidance for operating expenses. They are different in what is used in private and the Portland area as well. County will do a fair comparison on the Robertson building on State and 12~` Streets. County will research this area to arrive at a more accurate number. Dan could not remember what number he used to calculate the $1.65. It was a rough estimate. Now we have a low of 35 cents and a high of 50 cents. Discussions turned to where the $1.20 figure county is looking for came from. The new ~ downtown number is $1.40-$1.50. Randy arrived at the $1.20 by using the 1999 projection of the Equitable building at $1.30/s£ In order to show this project was a cost effective way to go, we had to show a rate lower than the cunent market rate as our goal. In August 1996, Mark and Scott confirmed that it could be done. There was a lot of confidence in this number until recently. At the $1.20 rate, county would have had to carry a$300,000 subsidy from the general fund to make up this shortfall in revenues generated by county departments. Early on we also went through another exercise of looking at purchasing the Equitable building with 155,000 gross square feet. It had a$10 million appraised value and needed $2-3 million in seismic upgrades. This study was generated by a committee and building new was the direction they wanted to go. This is the kind of analysis that the county has to go through to satisfy critics that we are making the right decision. We may want to revisit this exercise. Under the worst case our goal is to preserve FTA money, build a bus mall and find office space. If we can't get within budget, those options need to be evaluated again. Ken stated that a conversation with two of the commissioners yesterday mentioned this option as a fall back position, but we don't want to go there. We have other options and we are optimistic. Assignments were given to Leonard to find a contact for tl~e Robertson building for Elyn to research operating expenses for the past year for this building. Bob will also check internal numbers from county owned buildings. NIlVIDC will check their buildings they have done that are tax exempt 100% government occupancy as well. ~ Page 6 of 7