Costs Tentative cost for necessary infrastructure upgrades that would bring all need utilities to the building could be accomplished for $2.4 million, work must be completed within 12 months (page 14) Expect owners to accept an offer totalling $25 million including real estate and legal fees.(page 15) Assuming $5,000,00 in fees and down payment can be paid up front. The owner is prepared to hold a 10 year, $20 million mortgage at 5% per annum. Minimum monthly payments would be approximately $84,000 or $1,000,000 annually.(page 15) The Site has a 97,000 sq foot footprint however it is possible to add a second floor thereby doubling the available square footage to 194,000 sq feet. All cost estimates below are calculated uses 194,000 square foot building Capital expenses 1. Site Purchase - $25 million (pg 15) 2. Professional Fees – I have not found any information in the handout for this cost, any ideas? 3. Site Infrastructure – 2.4 million (pg 15) 4. Renovation - $48.5 million per work sheet $250 per square foot) 5. Fittings and Fixtures – 9.7 million per work sheet $50 per square foot 6. Specialized Lab Costs – to be determined 7. Allowance for inflation – worst case the project takes two years to complete we will calculate this number by inflation rate x the estimated value of the uncompleted work + any contingencies Total Capital expenses $84.9 million not including items 2,6 and 7. Capital Revenue 1. Government Grant for new campus - $20 million (pg 7 and 17) 2. Share of Academic Capital Grant - $2.5 million (pg 16) 3. 3. Share of Building Retrofit Grant – I cannot see this amount anywhere, ideas? 4. Other Capital Revenue – to be determined Total Capital Revenue $22.5 million not including items 3 and 4 Total short fall in funding - $62.4 million The seller of the site has indicated a willingness to provide a mortgage of up to $20 million at a cost of 6% of the total cost of the loan.(pg 5) I’m not sure if this means a 6% interest or a flat cost of 6%. Using a mortgage calculator a $20 million mortgage amortized over 30 years with an interest term of 5 years at 6% the monthly payments would be $118,964.68. The total payments would total $42,827,286.26 and the total interest paid would be $22,827,286.26 (http://www.mortgagecalculator.net/). I am not sure if this is the proper method of calculating this cost, help! If it is a fat 6% the cost is $1.2 million To complete this portion of the assignment we will need to determine what types of classroom we will need. The installation of labs will increase the costs.
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