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GONSULTATION SUMMAFtY The first technique which is the mazket rent analysis versus the cost to build on a direct compazison basis, indicates the market rent analysis scenario results in a higher cost in present dollars to the Counry than tlie cost per square foot to build the structure. The mazket rent cost per square foot using the market oriented discount rate is $218.54 per square foot and $243.19 square foot using the project oriented discount or interest rate. Both exceed the $181.80 per square foot cost in the building cost scenario. The second technique which is the comparison of the mazket rent versus the contract renbownership analysis indicates a similaz pattern when the present value of the reversion is deducted from the analysis for comparison purposes. The marketrent cost per squaze foot using the market oriented discount rate is $218.54 per square foot and $243.19 per square foot using the project oriented discount or intemst rate. Both exceed the $164.95 to $177.65 per squaze foot cost range in the conhact rent/ownership scenario. In summary, the techniques using present value analysis (discounted cash flow analysis) supports the build and contract rent/ownership scenarios as being the least cost per square foot to Marion County for the office/parldng provided in the Courthouse Square project. Craphi Pr _ ntatinn Also, you have requested that we present a graphic representation of the conclusion in our report. On the following pages aze graphic illustrations of our techniques described as follows: (1) The first chart presenu a graphic comparison of dollazs per square foot for both techniques; and (2) The second chart presents a graphic comparison of the annual growth in current dollars of total annual mazket rent (escalated at 2°lo per year) compazed to the scheduled contract rent. The contract rent is also escalated 2 percent per year. However, the escalation is applied only to the $.30 per square foot of the $1.30 per square foot monthly contract rent, because the $.30 per square foot represents the expense portion of the contract rent with the balance of the contract rent remaining flat. A 2 percent growth rate is a conservafive estimate with current rental escalations beinQ in the 3 to 4 nercent ranee.