RES 00021 - Laserfiche WebLink

Example 16A. Assume the simpliJSying assumption qf a Specific Plan with 100 units in the Plan Area, with four infrastructure improvements cost S5, 000. 815.000, $30,000, and $50. O00 respectively. In }~ar 1, Developer.4 builds 10 units and installs the 85.000 improvement. Developer A pays S5.000 into the Fund to equal the $10,000 total share his 10 units represent of the total S100. 000 improvement cost. In !/~ar ] Ci.ty installs the S15.000 improvement using its water fund but its cost is $20.000. In I~ar 2. Developer B builds 50 units requiring no infrastructure. Developer B will pay a fee equal to.' Unconstructed infrastructure: $50.000 + $30,000, adjusted for 5% inflation {$4, 000} = City-funded infrastructure not using Specific Plan fun& + adjusted for 8% reimbursement ($20, 000 @ 8% interest) $4. 000 City administration fee + ($5. 000 Fund balance adjusted for interest earned (9 4%) + 90 units remaining = $1,160/unit, or, for 50 units, $58,000 S84.000 S21.600 $ 4,000 <S 5,200> S104,400 Example 16B. Assuming the same simplifying assumptions as in Example 16A, in Year 1 Developer A constructs the 850. 000 improvement for $55.000 and builds 20 units. He pays no fee and is eligible for reimbursement ~f S55.000 - S21.000 = $34, 000 (adjusted lot share cost = Sl. 050,' total share is 20 x S1,050 = $21,000). In ~ar 3 Developer B constructs the S15.000 improvement.~n' 820, 000 and builds 30 units. Developer B pays a~e equal to: · unconstructed infrastructure S5, 000 + S30. 000 = S35.000 · plus Developer B's cost for ir~'astructure = S20. 000 · plus it~ation ~ 5%for 2years for tinconstructed infrastructure $35,000 ~ ].05x 1.05 - $35,000 = $ 3,588 · plus balance of reimbursable costs = $34. 000 · plus interest ~ 8%for 2 years for reimbursable costs $34,000 @ 1.08 x 1.08 - $34.000 = $ 5,658 · plus two years' administration fee = $ 8, 000 · · less Fund balance ..... 0 .... $106,246 divide by remaining lots (including project) [80 units] $1,328/unit Thus, Developer B would pay 30 units x $1,328/unit = $39,840. less the credit for installed infrastructure ($20,000). or a total of $19.840. This' would go into the Fund Developer A would be eligible for the pro rata reimbursement from Developer B's payment into the Fund This wouM be 30 units" share of the improvement installed ($55, 000), or 30/100ths of $55, 000 = $16. 500. Developer 11