Project Analysis and Feasibility Report (2)

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Marion Count~ OREGON BOARD OF COMMISSIONERS (503) 58&5212 (503) 588-5237 - FAX DATE: BOARD OF COMMISSIONERS FROM: Randali Franke Mary B. Pearmine Don Wyant Jr. T,O: couNnr ADMINISTRATOR ~ Ken Roudybush • March 20, 1998 Marion County Commissioners Special Project Oversight Committee Economic Feasibility of Courthouse Square Project Regarding Item 13 of your March 13, 1998, report, we support the county administrative officer's conclusions (see attached memorandum) that the Courthouse Square project is economically feasible. We are confident that the total project financing and operating budgets are reliable, and that the project meets expectations without "substantially hurting" existing county programs. As stated in Mr. Roudybush's memo, Marion County anticipates a$235,569 increase in future annual rental costs for general fund departments as a result of moving to the Courthouse Square at a rental rate of $1.30 per SF. This estimate is based on a worst case scenario. The project development team believes that the costs may actually be less than $130 per SF. Under these conditions, the non-general fund departments will incur an additional $395,757 in rental costs. We support the conclusions of the county administrator for the following reasons: ^ Marion County anticipates an increase in revenues of approximately $2.1 million in Fiscal Year 1998-99. This will be sufficient to mitigate the additional $235,569 costs to the Marion County General Fund in the 2000- 2001 fiscal year. ^ County services will incur greater negative impacts if the Courthouse Square project is stopped than if it continues. The county would have to lease commercial space at a projected market rate of $1.47 per SF. Furthermore, the county would be obligated to pay the costs of closing the project. Cont.... Marion County Courthouse . 100 High Street NE . Salem, Oregon 97301-3670 . www.open.o~g/marion