Project Analysis and Feasibility Report (2)

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ASSU1~iPTIONS 3/18/98 ARGUS Financial Model (4:28 PM) ~ Five Story- 258 subsurface stalls-Private Tenant in Reduced Speculative Space, / 5% Vacancy - WITH INCREASED BASE CONTINGENCY AND ADDITIONAL C ST CONTINGENCIES Assumes Marion County occupies 96,622 s£ An additional 2,633 sf is assessed for '/z interest in the first floor conference room. Assumes a 0°/a vacancy rate witllin County-occupied pace. -Assumes Salem Area Transit's share of the project is $ 9,844,000. ,.: :::,::.;;;;:;:;;..; . ;-`~e inc~t3~~s;~e~l~c~ rents at ~1 3fl ~:inc~ Per re~tab~e sf ~~ IS ~t~ ann~at~y~; -Expenses are assumed to be $.284 / mo. Per rentable sf ($ 3.41 annually). County reimburses expenses escalated over base year e~:penses. -The model assumes 258 stalls subsurface and 59 above grade parking stalls_ -T'he model assumes County controls 277 stalls and generates $ 40/ mo. per s 11 on all spaces and escalates at 4% annually. -Assumes a 5.25% (exempt) interest rate on a standard 25-year amortization s hedule. -Assumes Marion County qualifies for a completely exempt rate. -Assumes the County pays e~cpense escalation ove: base year. Assumes Marion County leases out 15,302 sf of speculative space. Assumes the spa is leased to a non-exempt tenan~. Th~ model assu:nes 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 escalation~ over base year e~enses. ~ -Assumes Sa1em Area Transit controls 24,193 sf of office. An additiona12,63~ 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. -E~enses a.re assumed to be $284 / mo. Per rentable sf ($ 3.41 annually) in Transit reimburses their prorata. share of these e~enses. y~. -The model assumes that transit controls 40 subsurface parking stalls.