HomeMy WebLinkAbout02-06-2013 Items Submitted at the Meeting I i �,.
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�ro�ec� ��bse�va�t�o�s
• The design is efficient and maximizes net square footage to
building gross
• Current design appears to meet program objectives in a
very straightforward manner
� Low ratio of glazing to wall area
m Construction cost/sf is well within the range of similar civic
buildings
� Sensible VE opportunities have already been incorporated
into the design
o Recommend change from wood to metal framing ( included
in cost estimate)
� Project can be ready to receive 2013 NMTC allocation, for
construction start in August
Development Budget — Hard Costs
CONSTRUCTION COSTS Notes:
GMP CONTRACT 8,018,279 Contractor estimate 12/21/12
CONTINGENCY @ 7 0% 7 00% 561,280
DESIGN CONTINGENCY 5.00% 400,914
FURNITURE, FIXTURES & EQUIPMENT Lorig estimate from drawings/operations
(FF&E) 225,000 pian
SALES TAX @ 9.5% 9 50% 836,433
TOTAL CONSTRUCTION COSTS 10,041,906
Develop�nent � udget — Soft Costs
SOFT COSTS Notess
PERMITS AND FEES 92,088 Per City ofAuburn email 12/12/12
ARCHITECT/ENGINEERS/CIVIULANDSCAPE 276,820 A&E estimate 1/8/13
OTHER CONSULTANTS 20,000 Lorig estimate for Geotech
TESTING & INSPECTIONS 65,OOD Lorig estimate 6ased on past projects
SURVEY (ALTA) 13,000 Lorig estimate based on past projects
ENVIRONMENTAL LEVEL 1 & HAZMAT 10,000 Lorig estimate based on past projects
CONSTRUGTION DRAW INSPECTOR 25,000 Lorig estimate based on past projects
REIMBURSABLE EXPENSES 45,000 Architect & Lorig/NDC estimate
GENERAL LIABILITY INSURANCE 17,000 Lorig estimate based on past projects
TITLE INSURANGE 25,D00 Lorig estimate based on past projects
LEGAL FEES 75,000 NDC estimate based on past projects
LOAN FINANCING COSTS @ 75% 89,124 Lorig estimate based on past projects
INTEREST DURING CONSTRUCTION 147;524
SOFT COST CONTINGENCY ON ABOVE ITEMS 10.00% S$,Q58
PROJECT MANAGEMENT 2.50% 275;264
DEVELOPER FEE 2.50% 275,264
NDC PM FEE 1.00% 110;105
TOTAL 80FT COSTS 1,629,275
Development Budget - Summary -
Summary Project Costs
Construction (GMP Contract + FF&E + Sales Tax) 9,079,712
Soft Costs 1 ,541 ,617
Contingencies 1 ,050,252
Total Development Costs 11,671,181
�o�na��ca �g — � ��C Sta�t�s l� pd��e
• Congress included a 2 year extension of the NMTC program in
the American Taxpayer Relief Act signed into law on January 2,
2013
• The extension is at $3 .5 billion per year down from $5 billion per
year
o Awards are anticipated to be made to CDEs in April or May
o CDEs will begin accepting projects for approval immediately
thereafter
• A condition of acceptance by CDEs will be project readiness to
close in August, September and October of 2013
� NMTC funds can provide approx. 21% of funding for this project
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E�q;uify i Fun,d� ' � De.bt ;% Lend:er
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�NMTC In�estor I
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C.D,E wi�th a �C�DE Load &
N'MTC
A���'OCa�tIOCI � (P�roject Sp:ecific), i �Reserves
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QALIC�B�
(+Prgject�),
Financing - Sources
SOURCES — Max Bank Loan
NMTC @ 21 % 2,450,948
Loan Amount 9,220,233
City of Auburn Contribution 0
State Grant 0
TOTAL SOURCES 11 ,671 ,181
Operating Model
Construcflon Year2 Year3 Year4 Year5 Year6 Year7
I CO :
Recreation Programs 0 45,000 47,250 49,813 52,093 54,698 57 433
ContractServiceslRentals 0 55,000 57,750 80,838 83,869 68,853 70,195
Oifice Rental 0 0 0 0 0 0 0
Miec.Revenue 0 6.000 8.300 8.815 8.848 7,293 7.858
Total Oroas Income O 106,000 111,300 178,885 122,708 728,844 135,286
EXPENSES:
SalaryBenefits 0 47,750 49,183 60,858 52,178 53,743 55,355
Supplies 0 24,200 24,884 25,178 2b,861 28,195 26,719
Contracted Suppliea 0 27,000 27,540 28,091 28,853 29,228 29,810
M 8 O 0 133,000 135,660 138,373 141.741 143,983 746,843
MinorEqupmeni_._._�_._._._._._._._._._._._._._._._._._._._._._.__�._._._._._._.__._��_.__._._ 10,,000,_,_,_,_�10,200 _._._._._.?�.'�_._._._._. 10,81,2,,,_,_,_,_,_,_10,,824,_,_,_,___,_77„041
Property Taxes 0 120,000 722,400 124,848 127,345 128,892 132,490
Asset Management Fee 0 15,000 15,225 15,453 15,885 15,920 16,759
Uability Insurance 0 2,500 2,538 2,578 2,814 2,853 2,893
Annuallnsoections 0 1.500 1.523 1.545 7,569 1,592 1.676
Tohai Expenses 0 380,950 388,852 397,128 40b,477 414,009 422,728
Mnual Additionei ReM/Net Income 0 IY/4.9501 1277.Bb21 !Z$0.2611 1282.7891 12$8,7661 (287,4401
DeM Service-S92M Bank Loan
9ase ReM(Annual Debt Service(fl14°h. Interesf Onlv) (In Dev.BudJ (368,8091 (388.808) (388.8081 (372,368) (388,8091 (388,809)
Bank Loan Annual Baee Rent+Addltlonal Rent 1843.758) (846.4871 (849.0701 (BS1,6781 (663.8751 IBb6.249!
�ro�ect Scl�ed �u �e
ID Task Narne Duration Start Fnish Predecf
1 Pre-Construction Pleriod 752 days Wed Z6/13 Sun 7/7/73
2 Present Budget & Schedule to Comrcittee 1 day Wed 2/6�13 Wed 2/6i13
3 Approval.of Current L�sign & Budget 30 days Thu 2/7/13 Fri 3/8/13 2
4 Preconstruction Contraots Signed 30 days Sat 3/9M3 Sun 4/7/13 3
5 Spec l,pdates & Perrrit Revisions 60 days Nbn 4/8r13 Thu 6/6✓13 4
6 100% CD Set Issued 1 day Fri 6/7/13 Fri 6/7/13 5
7 Fnal Project Budget 30 days Sat 6/8/13 Sun 7/7/13 6
8 Fnanang.Period _____106 days Tue 4/16/13 Tue 7130/73
9 New Markets Tax Credits Award to CDEs 30 days Tue 4/16/13 Wed 5/15/13
10 New Nlarkets Tax Credits Comrmtrr�t to Project 45 days Thu 5/16/13 Wed 7/17/13 9
11 Bank Loan Comrnitmerrt 60 days Wed 5/1/13 Sat 6/29�13
12 Bank Loen Underw ritng 30 days Sun 6/30/13 Nbn 7/29/13 11
13 Gose Bank Loan 1 day Tue 7/30/13 Tue 7/30/13 12
14 Construction Periad 408 days Thu 7/18/13 Fri 8/2�14
15 Fnalize Construction Contract 15 days Thu 7/18/13 Thu 8/1/13 10
16 Notice to Roceed 1 day Fri 8/2/13 Fri 8/2/13 15
17 Building Construction 11 mons Sat 8/3/13 Sat 6/28�14 16
18 Substar�2ial Completion 1 day Sun 6/29/14 Sun 6/29/14 17
19 Contractor Gose-out, FF&E, Operations Start-up 60 days Nbn 6/30/14 Thu 8/28/14 18
20 Building Occupancy 1 day Fri 8/29�14 Fri 8/29�14 19
�o�c� �usio�s � �lext Steps
� Lorig & NDC recommend proceeding with the current project as
designed to take advantage of this round of NMTC, and working
with the team to reduce construction cost & required
contingencies.
o Next 60 days:
� Committee and Council approval of the design and budget
� Finalize financing plan and loan amount required
� Contract with NDC
� NDC Contracts with Lorig, contractor and design team for pre-
construction services
• Maintaining the target schedule will be required to secure the
2013 NMTC allocation and we are prepared to work diligently.