Financial- Argus Financial Assumptions Model

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i~ ~~ ~ ~~ ~ ASSUMPTIONS 10/21/98 ARGUS Financial Model (4:21 PM) Five Story- 258 subsurface stalls-Private Tenant in Reduced Speculative Space, W/ 5% • Vacancy-Approximate $22M Financing POST DESIGN DEVELOPMENT E5TIMATE Assumes Marion County occupies 102,272 sf. An additiona12,712 sf is assessed for YZ interest in the first floor conference room. Assumes a 0% vacancy rate within County-occupied space. -Assumes Sa1em Area Transit's share of the project is $ 9,844,000. -The models reflect rents at $1.30 / mo. Per rentable sf ($ 15.60 annually). -Expenses are assumed to be $284 / mo. Per rentable sf ($ 3.41 annually). The County reimburses expenses escalated over base year e~enses. -The model assumes 258 subsurface stalls. -The model assumes County controls 218 stalls and generates $ 50/ mo. per stall on all spaces and escalates at 4% annually. -Assumes a 4.8% (exempt) interest rate on a standard 25-year amortization schedule with semiannual payments. -Assumes Marion County qualifies for a completely exempt rate. ~ -Assumes the County pays expense escalation over base yeaz. Assumes Marion County leases out 9,964 sf of speculative space. Assumes the space is leased to a non-exempt tenant. The model assumes a 5% vacancy rate on speculative space. Vacancy is calculated on non-exempt tenant's gross revenue. -Assumes a$1.60 per sf rent on the speculative space. Tenant pays escalations over base year e~enses. -Assumes Sa1em Area Transit controls 26,255 sf of office. An additiona12,712 sf is assessed for %Z interest in the first floor conference room. -Assumes Transit pays $ 9,844,000 cash for their interest and pays no rent. -Expenses are assumed to be $.284 / mo. Per rentable sf ($ 3.41 annually) in base year. Transit reimburses their prorata shaze of these expenses. -The model assumes that transit controls 40 subsurface parking stalls. •