HomeMy WebLinkAbout33433 Summary ReportNATIONAL CITY REDEVELOPMENT PROJECT
NATIONAL CITY, CALIFORNIA
SUMMARY REPORT PERTAINING TO THE PROPOSED LEASE
OF CERTAIN PROPERTY WITHIN THE
NATIONAL CITY REDEVELOPMENT
PROJECT AREA
California Community Redevelopment Law
Section 33433
PURSUANT TO PROPOSED DISPOSITION AND
DEVELOPMENT AGREEMENT AND GROUND LEASE
BETWEEN
THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY
AND
PARADISE CREEK HOUSING PARTNERS, L.P.
Community Development Commission of
the City of National City
National City, California
June 2011
K[YSER . iARSTON ASSOCIATES_
TABLE OF CONTENTS
Page
I. Introduction 1
II. Costs of the Agreements to the CDC 7
III. Estimated Value of the Interests to be Conveyed at the Highest and Best Use
Permitted Under the Redevelopment Plan 8
IV. Estimated Value of the Interests to be Conveyed at the Use and with the Conditions,
Covenants, and Development Costs Required by the Agreements 10
V. Compensation which Developer will be Required to Pay 13
VI. Explanation of the Difference, if any, between the Compensation to be Paid to the
CDC by the Proposed Transaction and the Fair Market Value of the Interests to be
Conveyed at the Highest and Best Use Consistent with the Redevelopment Plan 15
VII. Explanation of why the Lease of the Property will Assist with the Elimination of Blight 16
VIII. Limiting Conditions 17
KEYSER. ,MARSTON ASSOCIATES_
I. INTRODUCTION
A. Purpose of Report
This Summary Report was prepared in accordance with Section 33433 of the California
Community Redevelopment Law in order to inform the Community Development
Commission of the City of National City (CDC) and the public about the proposed
transaction between the CDC and Paradise Creek Housing Partners, L.P. (Developer).
The Report describes and specifies:
1. The costs to be incurred by the CDC under the Disposition and Development
Agreement (DDA) and Ground Lease (Lease) (collectively, Agreements);
2. Estimated value of the interests to be conveyed at the highest and best use
permitted under the Redevelopment Plan;
3. The estimated value of the interests to be conveyed at the proposed use and with
the conditions, covenants, and development costs required by the lease of the
Property;
4. The compensation to be paid to the CDC pursuant to the proposed transaction;
5. An explanation of the difference, if any, between the compensation to be paid to the
CDC under the proposed transaction, and the fair market value at the highest and
best use consistent with the Redevelopment Plan; and
6. An explanation of why the lease of the Property will assist with the elimination of
blight.
B. Summary of Findings
The CDC engaged its economic consultant, Keyser Marston Associates, Inc. (KMA), to
analyze the proposed financial terms. KMA reviewed the draft Agreements under
discussion between the CDC and the Developer as of June 5, 2011. The KMA
conclusions are summarized as follows:
• The estimated costs of the Agreements to the CDC total $44,906,000.
• The estimated fair market value of the Property its highest and best use is
$8,890,000.
• The estimated fair re -use values of the interests to be conveyed are as follows:
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o Phase I Parcel, proposed as 109 units on 3.46 acres, estimated fair re -use
value of negative $20,197,000.
o Phase II Parcel, proposed as 92 units on 3.69 acres, estimated fair re -use
value of negative $14,909,000.
• The estimated value of the compensation to be received by the CDC is:
o Phase I, negative $19,794,000
o Phase II, negative $14,909,000
C. Description of Area and Proposed Project
Community Overview
The site is located within the National City Redevelopment Project Area (Project Area).
The Project Area encompasses approximately 2,000 acres. Goals of the
Redevelopment Plan (Plan) are to keep businesses and jobs in the area, creating and
improving public facilities in the area, and improving the community's supply of
affordable, quality housing. Since the adoption of the Plan, numerous redevelopment
ventures have been, and continue to be, carried out by public agencies, non-profit
institutions, and private developers in National City.
Proposed Development
The site to be developed has a gross land area of approximately 12.75 acres (Property),
inclusive of proposed street closures. The Property is situated south of West 19th Street,
north of West 22nd Street, east of Wilson Avenue, and west of Hoover Avenue within the
City of National City (City). The Property is flat, irregular in shape, and partially
improved with the City's public works yard (Public Works Yard).
The Property, owned by the City, consists of the Public Works Yard, Illes Trust Property,
Paradise Creek (Creek), and existing street rights -of -way. Portions of the Property will
continue to be occupied by the Creek and adjoining open space. As part of the Phase I
development, the Developer will make improvements to Paradise Creek and improve
and expand the Paradise Creek Educational Park (Park). The remaining net
development site totals approximately 7.15 acres.
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The Developer intends to build a Transit -Oriented InfiII Affordable Housing development
comprising a total of 201 rental residential units and podium parking structures with 328
parking spaces in two phases (Project).
Net Property Size
Number of Units
Parking Spaces
3.46 Acres
109 Units
183 Spaces
3.69 Acres
92 Units
145 Spaces
7.15 Acres
201 Units
328 Spaces
The residential units comprise studio, one, two, and three bedroom units, as shown
below.
Studio
One Bedroom
Two Bedroom
Three Bedroom
Total
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Unit Mix by Phase
Phase II <, . :Total
0 Units
24 Units
49 Units
36 Units
109 Units
6 Units
21 Units
36 Units
29 Units
92 Units
6 Units
45 Units
85 Units
65 Units
201 Units
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D. Proposed Transaction Terms
This section summarizes the salient aspects contained in the draft Agreements between
the CDC and Developer as of June 5, 2011.
• The CDC will lease the Property to the Developer for 99 years.
• The Developer will pay ground rent (Rent) for Phase I as follows:
oYears 1 through 30:
oYears 31 through 55:
oYears 56 through 99:
$75,000 per year, without escalation
$75,000 per year, plus a 2.0% annual escalation
factor
The Developer and CDC shall meet and attempt to
agree on a rent figure. If the parties are unable to
come to an agreement, each party will engage an
appraiser to determine the rent. The appraisals
will be subject to the Project's income and rent
restrictions at that time.
• The Developer will pay Rent for Phase II as follows:
oYears 1 through 55:
oYears 56 through 99:
$1.00 per year
The Developer and CDC shall meet and attempt to
agree on a rent figure. If the parties are unable to
come to an agreement, each party will engage an
appraiser to determine the rent. The appraisals
will be subject to the Project's income and rent
restrictions at that time.
• The CDC will contribute a maximum of $35,866,000 towards the development of
the Project as follows:
than
CDC Subordinate Loan for Phase I
CHW Third Trust Deed Loan for Phase I
CHW Third Trust Deed Loan for Phase II
Total Loans
Amount
$6,000,000
$14,957,000
$14,909,000
$35,866,000
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o The CDC Subordinate Loan for Phase I will be in the form of a 55-year loan at
0.25% simple interest. Repayment of the CDC Subordinate Loan will be from
residual receipts calculated from the Project's Phase I annual cash flow. The
Developer will receive 50% of the residual receipts from cash flow. The
remaining 50% will be split pro rata (based on loan amounts) between the CDC
and Community Housing Works (CHW).
o The entire unpaid balance of the CDC Subordinate Loan including any accrued
interest will be due and payable at the end of Year 55.
o The CDC will grant to CHW the Third Trust Deed Loans for each respective
phase.
• The Developer will acquire the necessary land use approvals and entitlements for
construction and operation of the Project.
• The CDC will request that the City conduct hearings and legal proceedings
necessary to vacate the public rights -of -way on Coolidge and Harding Avenues.
• The Developer will make good faith efforts to obtain a minimum of two (2)
competitive bids for construction of the Project.
• The Developer will use previously awarded Proposition 1 C funds towards the
development of the Project, as follows:
o Phase I, $4,664,000
o Phase II, $3,936,000
• For each Phase, the Developer will apply to the California Debt Limit Allocation
Committee (CDLAC) for a tax-exempt bond allocation.
• The Developer will apply to the 2012 first round of the State of California 4% Low
Income Housing Tax Credits (LIHTCs) for the Phase I development. If the
Developer is unsuccessful in obtaining a reservation, the Developer shall re -apply
in one or more succeeding rounds of 4% LIHTCs within the time frame allotted in
the Agreements.
• If available before the close of escrow for Phase I, the Developer will apply for a
maximum of 27 Section 8 Vouchers (Vouchers). The Vouchers must be for a
minimum of 15 years. If the Vouchers are secured, the CDC Subordinate Loan
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shall be reduced by $28,000 per voucher awarded. Additionally, the Rent payment
shall be increased by $2,000 per voucher for the duration of the Voucher.
• The Developer will apply for a maximum of 23 Vouchers for Phase II. The
Vouchers must be for a minimum of 15 years. If the Vouchers are secured, the
CHW Third Trust Subordinate Loan will be reduced accordingly and the Rent
payment will be increased for the duration of the vouchers.
• As part of Phase I, the Developer will construct Paradise Creek Educational Park
(Park). After construction, the Park will be maintained by the City.
• The Developer will construct 201 residential units, inclusive of two manager units,
in two phases.
• During Years 1 through 99, 49% of the units will be restricted to households
earning not more than 50% of Area Median Income (AMI). The remaining 51% of
the units will be restricted at moderate -income levels, i.e., households not earning
more than 120% of AMI. The units will be subject to restrictions imposed by
California Redevelopment Law (CRL).
• During Years 55-99, the Project will also be subject to California Tax Credit
Allocation Committee (TCAC) restrictions, as follows:
Units @ 30% AMI
Units @ 40% AMI
Units @ 50% AMI
Manager Units
12 Units
23 Units
73 Units
1 Unit
11 Units
21 Units
59 Units
1 Unit
23 Units
44 Units
132 Units
2 Units
Total
109 Units
92 Units
201 Units
• The Developer will provide tenant services for residents of the Project for 99 years.
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II. COSTS OF THE AGREEMENTS TO THE CDC
The estimated costs of the Agreements to the CDC total $44,906,000, and include the
following items:
Site Acquisition — Illes Trust Property (1)
Site Acquisition — Public Works Yard (1)
Subtotal — Acquisition Costs
Add: Subordinate Loans
Add: Other CDC Third Party Costs (2)
Total CDC Costs
$1,520,000
$7,370,000
$8,890,000
$35,866,000
$150,000
$44,906,000
(1) Acquisition cost basis assumed to equal current fair market value based on recent appraisals. See discussion in
Section III.
(2) Gross estimate; reflects appraisals, legal consultants, and economic consultants.
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III. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED AT THE
HIGHEST AND BEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN
This section presents an analysis of the fair market value of the Property at its highest
and best use.
In appraisal terminology, the highest and best use is that use of the Property that
generates the highest property value and is physically possible, financially feasible, and
legally permitted. Therefore, value at highest and best use is based solely on the value
created and not on whether or not that use carries out the redevelopment goals and
policies for the City of National City. By definition, the highest and best use is that use
which is physically possible, financially feasible, and legally permitted. The Property is
currently zoned as a civic institutional zone that allows for community, cultural, and
public recreational uses (IC). The Developer proposes to rezone the Property to a multi-
use commercial and residential zone that is designed to encourage transit -oriented
development (MCR-2).
In order to determine the fair market value of the Property, KMA first reviewed the
appraisal prepared for the CDC by Lipman Stevens & Carpenter, Inc. (Lipman) with a
date of value of January 11, 2010. The appraisal valued the Public Works Yard. Lipman
states that the optimal utility is for the Public Works Yard is for a residential affordable
housing development. Lipman relied on the comparable sales approach to value, with a
conclusion of value for the Public Works Yard of $7,370,000.
Secondly, KMA reviewed an appraisal prepared for the CDC by FirstService PGP
Valuation (PGP) with a date of value of October 15, 2009. The appraisal valued the Illes
Trust Property. PGP relied on the comparable sales approach to value, with a
conclusion of value for the Illes Trust Property of $1,520,000.
In sum, the appraisals concluded a blended average value of $16 per SF of land. It
should be noted that the appraised properties included unusable land area in Paradise
Creek.
In addition, KMA undertook its own independent review of selected land sales in the City
of National City. Table A-1 summarizes the KMA review of commercial land sales. The
KMA survey focused on sales of sites for the time period from January 2008 to the
present. As shown in the table, sales prices ranged from $19 to $40 per SF of land.
The surveyed comparable sales varied in terms of location, intended use, and prevailing
market conditions at time of sale. Two of the comparable sales were larger sites (5.7
and 7.0 acres), located on Hoover Avenue in close proximity to the Property in an
established commercial area. These sites sold for $19 and $23 per SF of land,
respectively. The other two comparable sales were smaller sites (0.42 and 0.78 acres)
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and located further away from the Property. These sites sold for $35 and $40 per SF of
land, respectively. KMA finds the Hoover Avenue comparables to be more relevant,
although they must be adjusted to reflect the proportion of the Public Works Yard that is
unusable.
Based on the above discussion, KMA concurs with the findings of the Lipman and PGP
appraisals for the Property. On this basis, then, KMA concludes that the fair market
value of the Property at its highest and best use is $8,890,000, or $16 per SF of gross
land area.
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IV. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED AT THE USE
AND WITH THE CONDITIONS, COVENANTS, AND DEVELOPMENT COSTS
REQUIRED BY THE AGREEMENTS
This section explains the principal conditions and covenants which the Developer of the
Property must meet in order to comply with the Redevelopment Plan. The Agreements
contain specific covenants and conditions designed to ensure that the conveyance of the
Property will be carried out in a manner to achieve the CDC's objectives, standards, and
criteria under the Redevelopment Plan. Based on a detailed financial feasibility analysis
of the Project, KMA concludes that the fair re -use value of the Property is as follows:
• Phase I Parcel, estimated fair re -use value of negative $20,197,000
• Phase II Parcel, estimated fair re -use value of negative $14,909,000.
KMA estimated the re -use value of the Property based on the anticipated income
characteristics of the proposed Project. Re -use value is defined as the highest price in
terms of cash or its equivalent which a property or development right is expected to bring
for a specified use in a competitive open market, subject to the covenants, conditions,
and restrictions imposed by the Agreements.
KMA reviewed and analyzed the financial pro forma submitted by the Developer for the
Project. KMA then prepared independent financial pro forma analyses for the Project
using inputs and assumptions consistent with our experience with comparable projects
and industry standards in Southern California. Appendices B and C present the KMA
pro forma analyses for Phase I and Phase II of the Project, respectively.
Estimated Development Costs
KMA estimated total development costs, excluding acquisition, of the Project. The
estimated development costs for the Project are broken out as follows:
Direct Costs
Indirect Costs
Financing Costs
Total Development Costs (1)
(1) Excludes acquisition costs.
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Development Costs
$31,978,000
$7,327,000
$3,606,000
$42,911,000
Phase II
$24,070,000
$6,321,000
$2,659,000
$33,050,000
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Total development costs are estimated to be $42,911,000, or $377 per SF gross building
area (GBA) for Phase I, and $33,050,000, or $355 per SF GBA for Phase II. These
include the following:
• Direct construction costs consist of such items as off- and on -site improvements,
parking, shell construction, and contingency. The estimated direct construction costs
total $31,978,000, or $281 per SF GBA, and $24,070,000, or $259 per SF GBA, for
Phase I and Phase II, respectively. These cost estimates assume that the Developer
will be required to pay prevailing wages.
• Indirect costs consist of architecture and engineering, permits and fees, legal and
accounting, taxes and insurance, environmental insurance, developer fee,
marketing/lease-up, and contingency. Phase I and Phase II have estimated indirect
costs of 22.9% and 26.3% of direct costs, respectively.
• Financing costs consist of such items as loan fees, interest during construction, Tax
Credit Allocation Committee (TCAC)/syndication costs, and operating/lease-up
reserves. These items are estimated at 11.3% and 11.0% of direct costs for Phase I
and Phase II, respectively.
Net Operating Income
The following table summarizes the anticipated stabilized Net Operating Income (NOI)
for the Project by phase.
Unit Mix
Units @ 30% AMI
Units @ 40% AMI
Units @ 50% AMI
Manager Units
Total Units
Total Rental Income
Other Income
Vacancy Factor
Operating Expenses (1)
Net Operating Income
12 Units
23 Units
73 Units
1 Unit
109 Units
$960,000
$6 /unit/month
5% of income
$5,200 /unit/year
$349,000
(1) Includes operating expenses, replacement reserves, and social services.
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11 Units
21 Units
59 Units
1 Unit
92 Units
$790,000
$6 /unit/month
5% of income
$5,400 /unit/year
$261,000
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Residual Land Value
The table below presents the KMA estimate of residual land value. The residual land
value can be estimated as the difference between total available funding sources and
total development costs. KMA estimates total available funding sources comprised of
the following:
Supportable Debt
Tax Credit Equity
Proposition 1 C Funds
Deferred Developer Fee
Total Sources of Funds
$3,542,000
$14,508,000
$4,664,000
$0
$22,714,000
$2,648,000
$11,557,000
$3,936,000
$0
$18,141,000
As summarized below, the comparison of total funding sources and total development
costs yield residual land values of negative $20,197,000 for Phase I and negative
$14,909,000 for Phase II.
Total Sources of Funds
(Less) Development Costs (1)
Residual Land Value
(1) Excludes acquisition costs.
Conclusion
$22,714,000
($42,911,000)
($20,197,000)
$18,141,000
($33,050,000)
($14,909,000)
Based on the foregoing analysis, KMA concludes that the fair re -use values for the
respective phases are as follows:
• Phase I Parcel, negative $20,197,000.
• Phase II Parcel, negative $14,909,000.
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V. THE COMPENSATION WHICH THE DEVELOPER WILL BE REQUIRED TO PAY
This section summarizes the total compensation to be paid by the Developer to the CDC
for the interest to be conveyed.
KMA estimates Developer compensation to the CDC from two sources:
• Annual Rent
• Repayment of the CDC Loan through residual receipt payments
Phase I
Annual Rent
The Developer agrees to provide the City with an annual payment of $75,000 per year
beginning in Year 1 through Year 30. Beginning in Year 31, the payment will include an
annual escalation factor of 2.0% per year. Table D-1 presents the KMA estimate of the
revenue stream from Rent payments to the City.
Residual Receipts
The Developer agrees to pay residual receipts to the CDC toward repayment of the CDC
Loan. This revenue stream, inclusive of the unpaid balance of each loan and any
accrued interest, is due and payable at the end of Year 55 (see Table D-1).
As summarized below, the net compensation to the CDC for Phase I is estimated to total
negative $19,794,000.
Compensation to'CDC :. Phase I
Present Value of Annual Rent Payments (1)
Present Value of Loan Payments (1)
Gross Compensation to CDC
(Less) CDC Subordinate Loan for Phase I
(Less) CHW Subordinate Loan for Phase I
Net Compensation to CDC — Phase I
Amount
$941,000
$222,000
$1,163,000
($6,000,000)
($14,957,000)
($19,794,000)
(1) Present value figures expressed in 2011 dollars, at an 8.0% discount rate.
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Additionally, the Rent for Phase I from Years 56 through 99 will be determined in the
future based on appraisal(s). As such, rent collected from Years 56 through 99 has
been excluded from this analysis.
Phase 11
Annual Rent
The Developer agrees to provide the CDC with an annual payment of $1.00 per year
beginning in Year 1 through Year 55.
As summarized below, the net compensation to the CDC for Phase I is estimated to total
negative $14,909,000.
®n abort
Annual Rent Payments
(Less) CHW Subordinate Loan for Phase II
• $55
($14,909,000)
Net Compensation to CDC — Phase II (rounded)
($14,909,000)
Additionally, the Rent for Phase II from Years 56 through 99 will be determined in the
future based on appraisal(s). As such, rent collected from Years 56 through 99 has
been excluded from this analysis.
Conclusion
Based on the foregoing analysis, KMA concludes that the compensation paid to the CDC
for the interest to be conveyed is:
• Phase I, negative $19,794,000
• Phase II, negative $14,909,000
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VI. EXPLANATION OF THE DIFFERENCE, IF ANY, BETWEEN THE
COMPENSATION TO BE PAID TO THE CDC BY THE PROPOSED
TRANSACTION AND THE FAIR MARKET VALUE OF THE INTERESTS TO BE
CONVEYED AT THE HIGHEST AND BEST USE CONSISTENT WITH THE
REDEVELOPMENT PLAN
The estimated fair market value of the interests to be conveyed at their highest and best
use is $8,890,000.
The compensation to be paid to the CDC is negative $34,703,000.
Factors affecting the difference in compensation and fair market value of the Property at
highest and best use include:
• The fair market value at highest and best use has been determined based on
assumed continued use for commercial purposes.
The Project will consist of multi -family apartments restricted to very low-, low-, and
moderate income households.
• The Project will be developed on a 99-year ground lease rather than fee simple
ownership.
• The Project is proposed to receive subsidies from Low Income Housing Tax Credits
and Proposition 'IC which impose specific covenants and restrictions (such as
prevailing wages) on the Project.
• The Project is required to maintain an annual operating budget for social services for
tenants.
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VII. EXPLANATION OF WHY THE LEASE OF THE PROPERTY WILL ASSIST WITH
THE ELIMINATION OF BLIGHT
The Redevelopment Plan (Plan) for the National City Redevelopment Project Area
governs the Property. In accordance with Section 33490 of the California Community
Redevelopment Law, the Plan contains the goals and objectives and the projects and
expenditures proposed to eliminate blight within the Project Area. These blighting
factors include:
• The age, obsolescence, deterioration, mixed character, or shifting uses of existing
buildings within the Project Area.
• The subdividing and sale of lots of irregular form and shape, and inadequate size, for
proper usefulness and development.
• A prevalence of depreciated values and impaired investments, and social and
economic maladjustment.
• The defective design in character or physical condition of existing buildings.
Implementation of the proposed Agreement can be expected to assist in the alleviation
of blighting conditions through the following:
• Improve the City's housing stock.
• Consolidation of irregular parcels into a site appropriate for development.
• Elimination of conditions of economic dislocation such as fragmented ownership
patterns.
• Expansion, renovation, and relocation of businesses within the Project Area.
• Encourage private sector investment in development in the Project Area.
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VIII. LIMITING CONDITIONS
The estimates of re -use and fair market value at the highest and best use contained in
this Summary Report assume compliance with the following assumptions:
1. The ultimate development will not vary significantly from that assumed in this Report.
2. The title of the Property is good and marketable; no title search has been made, nor
have we attempted to determine the ownership of the property. The value estimates
are given without regard to any questions of title, boundaries, encumbrances, liens or
encroachments. It is assumed that all assessments, if any are paid.
3. The Property will be in conformance with the applicable zoning and building
ordinances.
4. Information provided by such local sources as governmental agencies, financial
institutions, realtors, buyers, sellers, and others was considered in light of its source,
and checked by secondary means.
5. If an unforeseen change occurs in the economy, the conclusions herein may no
longer be valid.
6. The Project will adhere to the schedule of performance described in the Agreements.
7. Both parties are well informed and well advised and each is acting prudently in what
he/she considers his/her own best interest.
attachments
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Appendix A
LAND SALES COMPARABLES
Transit -Oriented Infill Affordable Housing
National City CDC
TABLE A-1
COMMERCIAL LAND SALES, NATIONAL CITY, JANUARY 2008 TO PRESENT (1)
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
Sale Date Address
City Sale Price Acres SF $/SF Intended Use
09/16/10 2120 Highland Avenue National City $1,370,000 0.78 33,846 $40 Hold for development
03/11/10 1540 E. Plaza Boulevard National City $640,500 0.42 18,295 $35 Retail
03/13/09 Hoover Avenue National City $6,900,000 6.98 304,049 $23 Hold for investment
09/30/08 Hoover Avenue National City $4,750,000 5.73 249,599 $19 Commercial
Minimum $640,500 0.42 18,295 $19
Maximum $6,900,000 6.98 304,049 $40
Median $3,060,000 3.25 141,723 $29
Average $3,415,125 3.48 151,447 $29
Source: CoStar Comps, Inc.
Prepared by: Keyser Marston Associates, Inc.
Filename: i:National City\Re_Use_Land Comparables;6/6/2011;rks
Appendix B
FINANCIAL PRO FORMA ANALYSIS
Transit -Oriented Infill Affordable Housing
Phase I
National City CDC
Phase I
TABLE B-1
PROJECT DESCRIPTION
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Site Area 3.46 Acres
II. Gross Building Area
Residential Net Building Area 102,520 SF 90%
Circulation/Common Areas 11.400 SF 10%
Total Gross Building Area 113,920 SF 100%
(Buildings 1, 2, and 3)
III. Unit Mix # of Units
Average
Unit Size
One Bedroom 24 Units 22% 615 SF
Two Bedroom 49 Units 45% 884 SF (1)
Three Bedroom 36 Units 33% 1,235 SF
Total/Average 109 Units 100% 941 SF
IV. Affordability Mix
30% of AMI 12 Units 11 %
40% of AMI 23 Units 21%
50% of AMI 73 Units 67%
Manager Unit 1 Unit 1%
Total Units 109 Units 100%
Average Affordability 46% AMI
(excl. Manager Unit)
V. Number of Stories 3 Stories (Type V) over Concrete Garage
VI. Parking Structured At -Grade Podium
Number of Spaces
(1) Reflects weighted average for two -bedroom unit.
183 Spaces 1.7 Spaces/Unit
Prepared by: Keyser Marston Associates, Inc.
Filename: National City\Phase I_v4_Re-Use;6/6/2011;rks
Phase I
TABLE B-2
ESTIMATED DEVELOPMENT COSTS
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Direct Costs (1)(2)
Off -Site Improvements (3)
Demolition
On-Sites/Landscaping
Parking
Shell Construction
FF&E/Amenities
Contingency
Total Direct Costs
II. Indirect Costs
Architecture & Engineering
Permits & Fees (3)
Legal & Accounting
Taxes & Insurance
Environmental Insurance
Developer Fee
Marketing/Lease-Up
Contingency
Total Indirect Costs
III. Financing Costs
Loan Fees
Interest During Construction
Interest During Lease -Up
Escrow/Title/Recording
TCAC Fees
Operating Lease-Up/Reserves
Total Financing Costs
Totals Per Unit
$2,467,000 $22,600
$417,000 $3,800
$2,481,000 $22,800
$7,575,000 $69,500
$17,206,000 $157,900
$325,000 $3,000
$1,507,000 $13,800
$31,978,000 $293,400
$2,462,000 $22,600
$1,090,000 $10,000
$825,000 $7,600
$25,000 $200
$150,000 $1,400
$2,500,000 $22,900
$175,000 $1,600
$100,000 $900
$7,327,000 $67,200
$509,000 $4,700
$1,855,000 $17,000
$0 $0
$50,000 $500
$264,000 $2,400
$928,000 $8,500
$3,606,000 $33,100
Comments
$16 Per SF Site
$3 Per SF Site
$16 Per SF Site
$41,393 Per Space
$151 Per SF GBA
Allowance
4.9% of Directs
$281 Per SF GBA
7.7% of Directs
$10 Per SF GBA
2.6% of Directs
0.1% of Directs
0.5% of Directs
7.8% of Directs
Allowance
1.4% of Indirects
22.9% of Directs
1.6% of Directs
5.8% of Directs
0.0% of Directs
0.2% of Directs
0.8% of Directs
2.9% of Directs (4)
11.3% of Directs
IV. Total Development Costs $42,911,000 $393,700
Excluding Land $42,911,000
$377 Per SF GBA
(1) Assumes the payment of prevailing wages.
(2) Includes pro rata share of general conditions and contractor fee.
(3) Developer estimate; not verified by KMA or City.
(4) Includes transition/operating reserve and other costs/reserve.
Prepared by: Keyser Marston Associates, Inc.
Filename: National City\Phase I_v4_Re-Use;6/6/2011;rks
Phase I
TABLE B-3
NET OPERATING INCOME
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Gross Scheduled Income
One Bedroom @
One Bedroom @
One Bedroom @
One Bedroom @
30% of AMI
40% of AMI
50% of AMI (1)
50% of AMI
# of Total
Units $/Month Annual
3 $388 $13,968
5 $536 $32,160
13 $683 $106,548
3 $683 $24,588
Two Bedroom @
Two Bedroom @
Two Bedroom @
Two Bedroom @
Two Bedroom
30% of AMI
40% of AMI
50% of AMI
50% of AMI (1)
Manager Unit
5
10
9
24
1
$461
$638
$780
$814
$0
$27,660
$76,560
$84,240
$234,432
$0
Three Bedroom @
Three Bedroom @
Three Bedroom @
Three Bedroom @
30% of AMI
40% of AMI
50% of AMI (1)
50% of AMI
4
8
18
6
$528
$732
$936
$860
$25,344
$70,272
$202,176
$61,920
Total/Average 109 $734 $959,868
Add: Laundry Income $6 /Unit/Month $7,848
Total Gross Scheduled Income (GSI) $967,716
II. Effective Gross Income
(Less) Vacancy @ 5.0% of GSI ($48,386)
Total Effective Gross Income (EGI) $919,330
III. Operating Expenses
(Less) Operating Expenses
(Less) Management Fee
(Less) Social Services
(Less) Property Taxes (2)
(Less) Replacement Reserves
Total Expenses
$3,827 /Unit/Year ($417,196)
$506 /Unit/Year ($55,160)
$550 /Unit/Year ($60,000)
$46 /Unit/Year ($5,000)
$300 /Unit/Year ($32,700)
$5,230 /Unit/Year ($570,056)
62.0% of EGI
IV. Net Operating Income
Or Say (Rounded)
$349,274
$349,000
(1) Reflects units restricted at California Redevelopment Law (CRL) moderate levels.
(2) Development will be tax-exempt because co -developer is a non-profit entity.
Prepared by: Keyser Marston Associates, Inc.
Filename: National City\Phase 1_v4_Re-Use;6/6/2011;rks
Phase I
TABLE B-4
RESIDUAL LAND VALUE
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Sources of Funds
Supportable Debt (1) $3,542,000
Market Value of Tax Credits (2) $14,508,000
Deferred Developer Fee $0
Proposition 1C Funds $4,664,000
Total Sources of Funds $22,714,000
II. (Less) Development Costs - Excl. Land ($42,911,000)
III. Residual Land Value ($20,197,000)
Per Unit ($185,000)
(1) Supportable Debt
Net Operating Income $349,274
Interest Rate 6.50%
Term (in years) 30
Debt Coverage Ratio 1.30
Annual Debt Service $268,672
Supportable Debt $3,542,000
(2) Low Income Housing Tax Credits (Federal)
Estimate of Eligible Basis:
Total Development Costs $42,911,000
(Less) Ineligible Costs ($5,216,236)
Eligible Basis $37,694,764
Tax Credit Proceeds:
Maximum Eligible Basis $37,694,764
Impacted Bonus Factor 130.0% $49,003,193
Tax Credit Qualified Units/Applicable Factor 100.0% $49,003,193
Tax Credit Rate @ 3.29% $1,612,205
Total Tax Credits @ 10 $16,122,051
Limited Partner Share 100.0% $16,120,438
Present Market Value @ 90.0% $14,508,000
Prepared by: Keyser Marston Associates, Inc.
Filename: National City\Phase I_v4_Re-Use;6/6/2011;rks
Appendix C
FINANCIAL PRO FORMA ANALYSIS
Transit -Oriented Infili Affordable Housing
Phase it
National City CDC
Phase II
TABLE C-1
PROJECT DESCRIPTION
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Site Area 3.69 Acres
II. Gross Building Area
Residential Net Building Area 83,685 SF 90%
Circulation/Common Areas 9.300 SF 10%
Total Gross Building Area 92,985 SF 100%
(Buildings 4 and 5)
III. Unit Mix # of Units
Average
Unit Size
Studio 6 Units 7% 400 SF
One Bedroom 21 Units 23% 625 SF
Two Bedroom 36 Units 39% 898 SF (1)
Three Bedroom 29 Units 32% 1.235 SF
Total/Average 92 Units 100% 910 SF
IV. Affordability Mix
30% of AMI
40% of AMI
50% of AMI
Manager Unit
Total Units
Average Affordability
(excl. Manager Unit)
11 Units 12%
21 Units 23%
59 Units 64%
1 Units 1%
92 Units 100%
45% AMI
V. Number of Stories 3 Stories (Type V) over Concrete Garage
VI. Parking Structured At -Grade Podium
Number of Spaces
(1) Reflects weighted average for two -bedroom unit.
145 Spaces 1.6 Spaces/Unit
Prepared by: Keyser Marston Associates, Inc.
Filename: National City\Phase II_v4_Re-Use;6/6/2011;rks
Phase II
TABLE C-2
ESTIMATED DEVELOPMENT COSTS
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Direct Costs (1)(2)
Off -Site Improvements (3)
Demolition
On-Sites/Landscaping
Parking
Shell Construction
FF&E/Amenities
Contingency
Total Direct Costs
II. Indirect Costs
Architecture & Engineering
Permits & Fees (3)
Legal & Accounting
Taxes & Insurance
Environmental Insurance
Developer Fee
Marketing/Lease-Up
Contingency
Total Indirect Costs
III. Financing Costs
Loan Fees
Interest During Construction
Interest During Lease -Up
Escrow/Title/Recording
TCAC Fees
Operating Lease-Up/Reserves
Total Financing Costs
Totals Per Unit
$1,174,500
$123,300
$2,251,700
$6,535,100
$12,529,200
$325,000
$1,130,700
$24, 070, 000
$1,756,000
$920,000
$695,000
$25,000
$150,000
$2,500,000
$175,000
$100,000
$6,321,000
$464,000
$1,544,000
$0
$50,000
$253,000
$348,000
$2,659,000
$12,800
$1,300
$24,500
$71,000
$136,200
$3,500
$12,300
$261,600
$19,100
$10,000
$7,600
$300
$1,600
$27,200
$1,900
$1,100
$68,700
$5,000
$16,800
$0
$500
$2,800
$3,800
$28,900
Comments
$7 Per SF Site
$1 Per SF Site
$14 Per SF Site
$45,070 Per Space
$135 Per SF GBA
Allowance
4.9% of Directs
$259 Per SF GBA
7.3% of Directs
$10 Per SF GBA
2.9% of Directs
0.1% of Directs
0.6% of Directs
10.4% of Directs
Allowance
1.6% of Indirects
26.3% of Directs
1.9% of Directs
6.4% of Directs
0.0% of Directs
0.2% of Directs
1.1% of Directs
1.4% of Directs
11.0% of Directs
IV. Total Development Costs
(excluding land)
$33,050,000 $359,200 $355 Per SF GBA
$33,050,000
(1) Assumes the payment of prevailing wages.
(2) Includes pro rata share of general conditions and contractor fee.
(3) Developer estimate; not verified by KMA or City.
Prepared by: Keyser Marston Associates, Inc.
Filename: National City\Phase II_v4_Re-Use;6/6/2011;rks
Phase II
TABLE C-3
NET OPERATING INCOME
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
# of Total
Units $/Month Annual
I. Gross Scheduled Income
Studio @ 30% of AMI 1 $374 $4,488
Studio @ 40% of AMI 2 $512 $12,288
Studio @ 50% of AMI (1) 3 $649 $23,364
One Bedroom @ 30% of AMI 3 $388 $13,968
One Bedroom @ 40% of AMI 5 $536 $32,160
One Bedroom @ 50% of AMI (1) 11 $683 $90,156
One Bedroom @ 50% of AMI 2 $683 $16,392
Two Bedroom @ 30% of AMI 4 $461 $22,128
Two Bedroom @ 40% of AMI 8 $638 $61,248
Two Bedroom @ 50% of AMI (1) 18 $814 $175,824
Two Bedroom @ 50% of AMI 5 $780 $46,800
Two Bedroom Manager Unit 1 $0 $0
Three Bedroom @ 30% of AMI 3 $528 $19,008
Three Bedroom @ 40% of AMI 6 $732 $52,704
Three Bedroom @ 50% of AMI (1) 14 $936 $157,248
Three Bedroom @ 50% of AMI 6 $860 $61,920
Total/Average 92 $715 $789,696
Add: Laundry Income $6 /Unit/Month $6,624
Total Gross Scheduled Income (GSI) $796,320
II. Effective Gross Income
(Less) Vacancy @
Total Effective Gross Income (EGI)
III. Operating Expenses
(Less) Operating Expenses
(Less) Management Fee
(Less) Social Services
(Less) Property Taxes (2)
(Less) Replacement Reserves
(Less) Monitoring Fee
Total Expenses
5.0% of Income ($39,816)
$756,504
$3,885 /Unit/Year ($357,378)
$493 /Unit/Year ($45,390)
$652 /Unit/Year ($60,000)
$54 /Unit/Year ($5,000)
$300 /Unit/Year ($27,600)
Q /Unit/Year s0
$5,384 /Unit/Year ($495,368)
65.5% of EGI
IV. Net Operating Income
Or Say (Rounded)
$261,136
$261,000
(1) Reflects units restricted at California Redevelopment Law (CRL) moderate levels.
(2) Development will be tax-exempt because co -developer is a non-profit entity.
Prepared by: Keyser Marston Associates, Inc.
Filename: National City\Phase II_v4_Re-Use;61612011;rks
Phase 11
TABLE C-4
RESIDUAL LAND VALUE
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Sources of Funds
Supportable Debt (1) $2,648,000
Market Value of Tax Credits (2) $11,557,000
Deferred Developer Fee $0
Proposition 1 C Funds $3,936,000
Total Sources of Funds $18,141,000
II. (Less) Development Costs ($33,050,000)
III. Residual Land Value ($14,909,000)
Per Unit ($162,000)
(1) Supportable Debt
Net Operating Income $261,136
Interest Rate 6.50%
Term (in years) 30
Debt Coverage Ratio 1.30
Annual Debt Service $200,846
Supportable Debt $2,648,000
(2) Low Income Housing Tax Credits (Federal)
Threshold Basis Limits:
Total Development Costs $33,050,000
(Less) Ineligible Costs ($3,023,286)
Eligible Basis $30,026,714
Tax Credit Proceeds:
Maximum Eligible Basis $30,026,714
Impacted Bonus Factor 130.0% $39,034,728
Tax Credit Qualified Units/Applicable Factor 100.0% $39,034,728
Tax Credit Rate @ 3.29% $1,284,243
Total Tax Credits @ 10 $12,842,426
Limited Partner Share 100.0% $12,841,141
Present Market Value @ 90.0% $11,557,000
Prepared by: Keyser Marston Associates, Inc.
Filename: National City\Phase II_v4_Re-Use;6/6/2011;rks
Appendix D
Cash Flow Analysis
Transit -Oriented Infill Affordable Housing
Phase I
A. Income Escalation:
Affordable Housing (Years 1-99) 2.5%
B. Vacancy:
Affordable Housing (Years 1-99) 5.0%
C. Operating Expense Escalation:
Operating Expenses 3.5%
Services/Amenities 3.5%
Property Tax 2.0%
Replacement Reserves 3.5%
Ground Rent Payment 2.0%
Asset Management Fee Escalation 3.5%
D. Ground Lease Payments:
Years 1 - 30 (per Year)
Years 31 - 55 (per Year)
$75,000
2.0% escalation/year
E. Cash Flow Distribution Years 1-30 Years 31-55
City Taxable Loan $6,000,000 14% 14%
CHW Community Benefit Loan $14,197,000 36% 36%
CHW Proposition 1C Funds Loan $4,664,000 15% 15%
Developer 35% 35%
Total $24,861,000 100% 100%
Phase I
TABLE D-1
55-YEAR CASH FLOW PROJECTION
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Gross Scheduled Income (GSI)
(Less) Vacancy
1 2 3 4 5 6 7 8 9
$967,716 $991,909 $1,016,707 $1,042,124 $1,068,177 $1,094,882 $1,122,254 $1,150,310 $1,179,068
($48,386) ($49,595) ($50,835) ($52,106) ($53,409) ($54,744) ($56,113) ($57,516) ($58,953)
II. Effective Gross Income (EGI) $919,330 $942,313 $965,871 $990,018 $1,014,769 $1,040,138 $1,066,141 $1,092,795 $1,120,115
(Less) Operating Expenses ($570,056) ($589,381) ($609,368) ($630,0381 ($651,416) ($673,525) ($696,392) ($720,041) ($744,501)
III. Total Net Operating Income $349,274 $352,932 $356,504 $359,980 $363,353 $366,613 $369,750 $372,753 $375,614
(Less) Debt Service - Permanent Loan ($268,672) ($268.672) ($268,672) ($268,672) ($268,6721 ($268,672) ($268.672) ($268,672) ($268.672)
IV. Project Cash Flow $80,602 $84,260 $87,831 $91,308 $94,681 $97,940 $101,077 $104,081 $106,941
V. (Less) Limited Partner Asset Mgmt. Fee ($5,000) ($5,175) ($5,356) ($5,544) ($5,738) ($5,938) ($6,146) ($6,361) ($6,584)
(Less) General Partner Asset Mgmt. Fee ($25.000) ($25.875) ($26.781) ($27,718) ($28,6881 ($29,6921 ($30,731), ($31,807) j$32,9201
Total Asset Management Fees ($30,000) ($31,050) ($32,137) ($33,262) ($34,426) ($35,631) ($36,878) ($38,168) ($39,504)
VI. Total Cash Flow
$50,602 $53,210 $55,695 $58,046 $60,255 $62,310 $64,200 $65,913 $67,437
VII. Commission Subordinate Loan for Phase I
Beginning Balance
Interest
(Less) Cash Flow Credit of
Ending Balance
Present Value of Loan Payments
0.25%
8.0%
Discount Rate
t $6 000;000
$15,000
($7,324)
$6,007,676
$222,000
$6,007,676 $6,014,975 $6,021,914 $6,028,512 $6,034,791 $6,040,773 $6,046,481 $6,051,941
$15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
($7,701) ($8.0611 ($8,4011 ($8,721) ($9,018) ($9,292) ($9,540) ($9,761)
$6,014,975 $6,021,914 $6,028,512 $6,034,791 $6,040,773 $6,046,481 $6,051,941 $6,057,180
VIII. Annual Rent Payments
Present Value of Annual Rent Payments 8.0%
Discount Rate
Prepared by: Keyser Marston Associates, Inc.
Filename: i:National City\Phase I v4_Re-Use;6/6/2011;rks
$75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000
$941,000
Phase I
TABLE D-1
55-YEAR CASH FLOW PROJECTION
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Gross Scheduled Income (GSI)
(Less) Vacancy
10 11 12 13 14 15 16 17 18 19
$1,208,545 $1,238,758 $1,269,727 $1,301,470 $1,334,007 $1,367,357 $1,401,541 $1,436,580 $1,472,494 $1,509,307
($60,427) ($61,938) ($63,486) ($65,074) ($66,700) ($68,368) ($70,077) ($71,829) ($73,625) ($75,465)
II. Effective Gross Income (EGI) $1,148,117 $1,176,820 $1,206,241 $1,236,397 $1,267,307 $1,298,990 $1,331,464 $1,364,751 $1,398,870 $1,433,841
(Less) Operating Expenses J$769,798) ($795,963) ($823.024) ($851,013) ($879,961) ($909.9031 ($940`871) ($972,902) ($1,006,031) ($1,040,298)
III. Total Net Operating Income $378,319 $380,858 $383,217 $385,384 $387,345 $389,087 $390,593 $391,849 $392,838 $393,543
(Less) Debt Service - Permanent Loan ($268,6721 ($268,672) ($268,672) ($268,672) ($268,672) ($268,672) ($268,672) ($268,6721 ($268,672) ($268,672)
IV. Project Cash Flow $109,647 $112,185 $114,545 $116,712 $118,673 $120,415 $121,921 $123,177 $124,166 $124,871
V. (Less) Limited Partner Asset Mgmt. Fee ($6,814) ($7,053) ($7,300) ($7,555) ($7,820) ($8,093) $0 $0 $0 $0
(Less) General Partner Asset Mgmt. Fee ($34.072) ($35,265) ($36.4991 ($37.777) ($39,099) ($40,467) ($41,884) ($43,350) ($44,867) ($46,437)
Total Asset Management Fees ($40,887) ($42,318) ($43,799) ($45,332) ($46,919) ($48,561) ($41,884) ($43,350) ($44,867) ($46,437)
VI. Total Cash Flow
$68,760 $69,867 $70,745 $71,380 $71,754 $71,854 $80,037 $79,827 $79,299 $78,434
VII. Commission Subordinate Loan for Phase I
Beginning Balance $6,057,180 $6,062,228 $6,067,116 $6,071,877 $6,076,546 $6,081,160 $6,085,760 $6,089,176 $6,092,622 $6,096,145
Interest 0.25% $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
(Less) Cash Flow Credit of ($9.952) ($10,1121 ($10,239) ($10,331) ($10.385) ($10,400) ($11,584) ($11,554) f$11.477) ($11,352)
Ending Balance $6,062,228 $6,067,116 $6,071,877 $6,076,546 $6,081,160 $6,085,760 $6,089,176 $6,092,622 $6,096,145 $6,099,793
Present Value of Loan Payments
8.0%
Discount Rate
VIII. Annual Rent Payments
Present Value of Annual Rent Payments 8.0%
Discount Rate
Prepared by: Keyser Marston Associates, Inc.
Filename: i:National City\Phase I v4_Re-Use;6/6/2011:rks
$75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000
Phase I
TABLE D-1
55-YEAR CASH FLOW PROJECTION
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Gross Scheduled Income (GSI)
(Less) Vacancy
Effective Gross Income (EGI)
(Less) Operating Expenses
Total Net Operating Income
(Less) Debt Service - Permanent Loan
Project Cash Flow
(Less) Limited Partner Asset Mgmt. Fee
(Less) General Partner Asset Mgmt. Fee
Total Asset Management Fees
VI. Total Cash Flow
20 21
23 24 25 26 27 28 29
$1,547,039 $1,585,715 $1,625,358 $1,665,992 $1,707,642 $1,750,333 $1,794,091 $1,838,944 $1,884,917 $1,932,040
($77,352) ($79,286) ($81,2681 ($83,300) ($85,382) ($87 517) ($89,705) ($91,9471 ($94,246) ($96,602)
$1,469,687 $1,506,430 $1,544,090 $1,582,693 $1,622,260 $1,662,816 $1,704,387 $1,746,996 $1,790,671 $1,835,438
($1,075,741) ($1.112,401) ($1,150,320) ($1,189,541) ($1,230,109) ($1.272,071) ($1,315,475) ($1,360,3711 ($1,406,811) ($1,454,847)
$393,946 $394,029 $393,771 $393,152
($268,672) ($268,672), ($268,672) ($268,672)
$392,151
($268,672)
$390,745 $388,911 $386,625 $383,861 $380,592
($268,672) ($268,672) ($268,672) ($268,672) ($268,672)
$125,274 $125,356 $125,098 $124,480 $123,479 $122,073 $120,239 $117,953 $115,188 $111,919
$0 $0
($48,0631 ($49 745)
($48,063) ($49,745)
$77,212 $75,612
$0
($51,486)
($51,486)
$0
($53.288)
($53,288)
$0
($55.153)
($55,153)
$0
($57.083)
($57,083)
$0
($59.081)
($59,081)
$0
($61,149)
($61,149)
$0
($63.289)
($63,289)
$0
($65,504)
($65,504)
$73,613 $71,192 $68,326 $64,990 $61,158 $56,804 $51,899 $46,415
VII. Commission Subordinate Loan for Phase I
Beginning Balance
Interest
(Less) Cash Flow Credit of
Ending Balance
Present Value of Loan Payments
0.25%
8.0%
Discount Rate
$6,099,793
$15,000
($11,175)
$6,103,618
$6,103,618
$15,000
($10.944)
$6,107,674
$6,107,674
$15,000
($10.654)
$6,112,019
$6,112,019
$15,000
($10.304)
$6,116,715
$6,116,715
$15,000
($9.889)
$6,121,826
$6,121,826
$15,000
($9.4061
$6,127,420
$6,127,420
$15,000
($8,852)
$6,133,568
$6,133,568
$15,000
($8,222)
$6,140,347
$6,140,347
$15,000
($7,512)
$6,147,835
$6,147,835
$15,000
($6,718)
$6,156,117
VIII. Annual Rent Payments
Present Value of Annual Rent Payments 8.0%
Discount Rate
Prepared by: Keyser Marston Associates, Inc.
Filename: i:National City\Phase I_v4 Re-Use;6/6/2011;rks
$75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000
Phase I
TABLE D-1
55-YEAR CASH FLOW PROJECTION
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Gross Scheduled Income (GSI)
(Less) Vacancy
30 31 32 33 34 35 36 37 38 39
$1,980,341 $2,029,850 $2,080,596 $2,132,611 $2,185,926 $2,240,574 $2,296,589 $2,354,003 $2,412,853 $2,473,175
($99,017) ($101,492) ($104,030) ($106,631) ($109,296) ($112,029) ($114,829) ($117,700) ($120,643) ($123,659)
II. Effective Gross Income (EGI) $1,881,324 $1,928,357 $1,976,566 $2,025,980 $2,076,630 $2,128,546 $2,181,759 $2,236,303 $2,292,211 $2,349,516
(Less) Operating Expenses ($1,504,534) ($1,555,931) ($1,609,096) ($1,664,090) ($1,720,976) ($1,779,820) ($1,840,6891 ($1,903,655) ($1,968,788) ($2,036,164)
III. Total Net Operating Income $376,790 $372,426 $367,470 $361,891 $355,654 $348,726 $341,070 $332,649 $323,423 $313,352
(Less) Debt Service - Permanent Loan ($268,6721 30 1 P. 30 iQ 1 P. VI 22 1 P. L
IV. Project Cash Flow $108,117 $372,426 $367,470 $361,891 $355,654 $348,726 $341,070 $332,649 $323,423 $313,352
V. (Less) Limited Partner Asset Mgmt. Fee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(Less) General Partner Asset Mgmt. Fee ($67.797) ($70,170) ($72,626) J$75,168) ($77,799) ($80.522) (83,3401 ($86,257) ($89,276) ($92,4001
Total Asset Management Fees ($67,797) ($70,170) ($72,626) ($75,168) ($77,799) ($80,522) ($83,340) ($86,257) ($89,276) ($92,400)
VI. Total Cash Flow $40,320 $302,256 $294,845 $286,723 $277,855 $268,204 $257,730 $246,392 $234,147 $220,952
VII. Commission Subordinate Loan for Phase I
Beginning Balance $6,156,117 $6,165,281 $6,136,534 $6,108,860 $6,082,361 $6,057,145 $6,033,326 $6,011,024 $5,990,362 $5,971,448
Interest 0.25% $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $14,976 $14,929
(Less) Cash Flow Credit of ($5.8361 ($43.7471 ($42.674) 1$41,4991 ($40.2161 ($38.819) ($37.303) ($35.662) ($33,8891 ($31,980)
Ending Balance $6,165,281 $6,136,534 $6,108,860 $6,082,361 $6,057,145 $6,033,326 $6,011,024 $5,990,362 $5,971,448 $5,954,398
Present Value of Loan Payments
8.0%
Discount Rate
VIII. Annual Rent Payments
Present Value of Annual Rent Payments 8.0%
Discount Rate
Prepared by: Keyser Marston Associates, Inc.
Filename: (:National City\Phase I_v4_Re-Use;6/6/2011;rks
$75,000 $76,500 $78,030 $79,591 $81,182 $82,806 $84,462 $86,151 $87,874 $89,632
Phase I
TABLE D-1
55-YEAR CASH FLOW PROJECTION
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Gross Scheduled Income (GSI)
(Less) Vacancy
4Q 41 42 43 44 45 46 47 48 49
$2,535,004 $2,598,379 $2,663,339 $2,729,922 $2,798,170 $2,868,124 $2,939,828 $3,013,323 $3,088,656 $3,165,873
($126,750). ($129,919) ($133,167) ($136,496) ($139,909) ($143,406) ($146,991) ($150,666) ($154,433) ($158,294)
II. Effective Gross Income (EGI) $2,408,254 $2,468,460 $2,530,172 $2,593,426 $2,658,262 $2,724,718 $2,792,836 $2,862,657 $2,934,224 $3,007,579
(Less) Operating Expenses j$2,105,8611 ($2,177.959) ($2,252,540) ($2,329,692) ($2,409,503) ($2,492,065) ($2,577,473) ($2,665,826) ($2,757,226) ($2,851,778)
III. Total Net Operating Income $302,393 $290,502 $277,631 $263,734 $248,759 $232,653 $215,363 $196,831 $176,997 $155,801
(Less) Debt Service - Permanent Loan I0 I0 Q. 1 P
IV. Project Cash Flow $302,393 $290,502 $277,631 $263,734 $248,759 $232,653 $215,363 $196,831 $176,997 $155,801
V. (Less) Limited Partner Asset Mgmt. Fee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(Less) General Partner Asset Mgmt. Fee ($95,634) ($98,981) ($102,446), ($106,031) ($109,743) ($113.584) ($117,559) ($121.674) ($125.9321 ($130,340)
Total Asset Management Fees ($95,634) ($98,981) ($102,446) ($106,031) ($109,743) ($113,584) ($117,559) ($121,674) ($125,932) ($130,340)
VI. Total Cash Flow
$206,759 $191,520 $175,186 $157,702 $139,016 $119,070 $97,804 $75,157 $51,065 $25,461
VII. Commission Subordinate Loan for Phase I
Beginning Balance $5,954,398 $5,939,358 $5,926,487 $5,915,947 $5,907,912 $5,902,561 $5,900,084 $5,900,679 $5,904,552 $5,911,923
Interest 0.25% $14,886 $14,848 $14,816 $14,790 $14,770 $14,756 $14,750 $14,752 $14,761 $14,780
(Less) Cash Flow Credit of ($29,925) ($27,720) ($25,356) ($22,825) ($20,121) ($17,234) ($14,156) ($10,878) f$7,391) ($3,685)
Ending Balance $5,939,358 $5,926,487 $5,915,947 $5,907,912 $5,902,561 $5,900,084 $5,900,679 $5,904,552 $5,911,923 $5,923,017
Present Value of Loan Payments 8.0%
Discount Rate
VIII. Annual Rent Payments $91,425
Present Value of Annual Rent Payments 8.0%
Discount Rate
Prepared by: Keyser Marston Associates, Inc.
Filename: i:National City\Phase I v4_Re-Use;6/6/2011;rks
$93,253 $95,118 $97,020 $98,961 $100,940 $102,959 $105,018 $107,118 $109,261
Phase I
TABLE D-1
55-YEAR CASH FLOW PROJECTION
TRANSIT -ORIENTED INFILL AFFORDABLE HOUSING
NATIONAL CITY CDC
I. Gross Scheduled Income (GSI)
(Less) Vacancy
50 51 52 53 54 55
$3,245,020 $3,326,145 $3,409,299 $3,494,531 $3,581,894 $3,671,442
($162,251) ($166,307) ($170,465) ($174,727) ($179,095) ($183,572)
II. Effective Gross Income (EGI) $3,082,769 $3,159,838 $3,238,834 $3,319,805 $3,402,800 $3,487,870
(Less) Operating Expenses j$2,949,5921 ($3,050,780) ($3,155,460) ($3,263,751) ($3.375,7811 ($3,491,677)
III. Total Net Operating Income $133,177 $109,058 $83,374 $56,053 $27,019 ($3,808)
(Less) Debt Service - Permanent Loan IQ 1.Q. IQ IQ IQ IQ
IV. Project Cash Flow $133,177 $109,058 $83,374 $56,053 $27,019 ($3,808)
V. (Less) Limited Partner Asset Mgmt. Fee $0 $0 $0 $0 $0 $0
(Less) General Partner Asset Mgmt. Fee ($134.902) ($139,623) j$144,510) ($149.5681 ($154.803) ($160,221)
Total Asset Management Fees ($134,902) ($139,623) ($144,510) ($149,568) ($154,803) ($160,221)
VI. Total Cash Flow ($1,725) ($30,565) ($61,136) ($93,515) ($127,784) ($164,028)
VII. Commission Subordinate Loan for Phase I
Beginning Balance $5,923,017 $5,937,825 $5,952,670 $5,967,551 $5,982,470 $5,997,426
Interest 0.25% $14,808 $14,845 $14,882 $14,919 $14,956 $14,994
(Less) Cash Flow Credit of IQ IQ IQ IQ IQ0
Ending Balance $5,937,825 $5,952,670 $5,967,551 $5,982,470 $5,997,426 $61O 1OOO
Present Value of Loan Payments
8.0%
Discount Rate
VIII. Annual Rent Payments $111,446 $113,675 $115,948 $118,267 $120,633 $123,045
Present Value of Annual Rent Payments 8.0%
Discount Rate
Prepared by: Keyser Marston Associates, Inc.
Filename: I:National City\Phase I_v4_Re-Use;6/6/2011;rks