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06/18/98 THU 07: 52 FA% (~ 00.2
<br />` . ~ . ~ , ~ . • , ' .
<br />'~~ SE/4TTLE-NO~RTHWEST , ~ 4zo Fifth Avenue '
<br />~ ~~~ SECURITIES ~ORP.oR^T10N Suite 43Q~0
<br />~ .
<br />Sea[Lle, W8'shingron 98101
<br />June17,199g ~aos•~bzs-zee2
<br />ivir.'Deanis.Kilfoil ~ .
<br />~inancrJDevclopii~iwt Officer ~ ' : ~ ~"~o ~~ ~" '•~- .
<br />~ : . ~ ~c% Ms. Myr[t~ Botata , . "~~`" . ~ - .
<br />. ~ . ~ Hoc~.4ing Authority of Maiion: Cou~y, Oregoa ' . ~wY ZS ~ . . , ~
<br />. :315.(3 Lancaster Drive N~.., Suite D. ~. .
<br />. :~~;,:` AI~;: ~ .
<br />.5alerri. OR• 97305-1398 ~ . ',,~ , ~ .~ .
<br />. ~ . . . p~.,~4'. ~ . .
<br />,, ~
<br />' ~: RE: Housing Autbority Officc Space Financiag Proposal . ` C~~,<; r~' i' - .
<br />. ~ . ' < I, ,
<br />~ Dear De~nis: . . ~ ..
<br />Based ~on,our recent :discuasi~ns pertaining to ttie office buildin~ proj ect beiag cons+ilered,by, the Mariam .
<br />~Counry~Housing Authority. I have rcvised iny.previous aaalysis sent to you in a letter dated November 5,
<br />~1997 based on a redviced amoim~ o~'tax-exa~t bimds needed ta fina~ce. 5.000 sqiiarc f~;et of office ~pacc. .
<br />Plca:c note that all as.curnptions used ia tfiis ana(ysis are snbject io fiirtkiec a~justmenu. thercfoce, this
<br />stici~tld b~e uiewed mereiy ac a.prelimmaty study of 6ow a Marion County Hwsing Authority tax-exempt , .
<br />bond financiag mi~t appear using these assumptions: - . •
<br />The follawing is based on the Housing Authority deveioping and occupyang 5,000 square feeC af office ' . ~
<br />spact. It is~further'ag9iuried that the Housing Aut~otity would. issue. non-iated taz-exemp~ bonds tliat afe .
<br />backe~ by. $ gcAecal obligauon pledge of ihc Havsing Authcfrity~ and a Conringcnt Loan. Agreerhent from
<br />Marion Couary. . ~ . . , .
<br />~ ~ ~ Assumodons: ~ _ ?oral sq. R. af 5,00(F . . ~'~. ~~ : ~-,. ,,_ r~. ~ ~, ~u ,: ,: ~. t _ ..~, ~ -t~ ~ a.- ~c;~.}
<br />~ . ~ ' . * Dcvelopr~ieul~ costs (a~ $90'.OQ pet'Sq: ft. . ~ . o o ~ .. ~
<br />~. .. . * Land ass~smeat cost~~ $20.Of1 per sq. ft.. ~ I
<br />.. . ~ : Operating czpense ~of offce spac;e ~ Sa.28 porsq. ft. . -z. q, ~ .
<br />~ ; ~ . . '~ Cosis ofbonds issvance (~0 12~o~oftaaal~bonds ~ ,
<br />~ . ~ . #;Bonds:ef#'ective.intcrestrateC3a 5.40°/p
<br />~ .*~B~nds reseive furid interest rate @ 5~.40%
<br />~ ~ = Bonds~.amoFtization rate (a~ 3U years > ,s ~; r, . . ,
<br />~ : Y Bonds debt c;overage rauo ~,1.15 times
<br />. * No funding of a dcbt service•re.ce~ve fund .. . ~
<br />Calcal~tions: . . ~ . ~,
<br />Dc~!elopment cosc ~ $90.1~ ; 5.000sf = 5450;~O0:00 ~
<br />~ ... Lsnd~cost. j5,000sf/(52,095;OUOI$2U.00)j+$2,095,0(i0~ ~ SI(1U,000.00 .
<br />Cost of issuancc ~ 5630.000 * 12%+roundingamounf ~ _ ~ 80.000.00 ,
<br />~ . . . . TOTAl- BUIVDS ~ ~ , = S63D.000.00
<br />. :t4nrii~l ~debt serviee payme,~t dn.$63Q:000 bond issuanc'e ~. = 542~000.W
<br />~ ~ Monthly.debtscrvicePaY~~ . -', $~3500.00
<br />. . : ~ ~A~nual operatiB~ expense for office spac.e . $1,4(1U:00.* 12 - _ $16,SOO.dO ~ . ~ ~
<br />1~Iantl~ly operating expcnse. ~ S,OOQsf * $0.28psf . . _ $ '1,40U.00 . :
<br />~~ ~ ' , : ~ ~ ~ ~. ~ ~ ~
<br />~ . . . ~Aruwal rent c~oIlectinn for 1.T5x.debt.coverage .., . : : $58,800.00'~ 1.15 ~ . - $67~.620.UQ~ ~ ~ ~ . .
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