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Examvle 16A. Assume the simplifying assumption of a Specific Plan with 100 units in the Plan Area. with four i'1frastructure improvements cost 55.000, 515,000.530.000. and 550.000 respectively. In Year 1. De,'eloper A builds 10 units and installs the 55,000 improvement. Developer A pays 55.000 into the Fund to equal the 510.000 total share his 10 units represent of the total 5100.000 improvement cost. In Year 1 City installs the 515,000 improvement usinK its waterfund. bur its cost is 520.000. In Year 2, Developer B builds 50 ullits requiring no infrastructure. Developer B will pay afte equal to: Unconstructed i'1frastructure: 550,000 + 530,000. adjustedfor 5% inflation {$4.000} City-funded infrastructure not using Specific Plan funds, + adjusted for 8% reimbursement ($20.000 @ 8% interest) 54.000 City administrationfee + (55.000 F UM balance adjusted for interest earned @ 4%) 584.000 521.600 5 .1.000 <55.200> 5104,.100 -i- 90 units remaining = 51,160/unit, orJor 50 units. 558.000 Examvle 16B. Assuming the same simplifying assumptions as in Example 16A. in Year 1 Developer A constructs the 550,000 improvementfor 555.000 and builds 20 units. He pays no fee and is eligible for reimbu,.sement o{555.000 - 521.()()O = $34,000 (adjusted lot share cost = 51.050; total share is lOx 51.050 = 511.000). In Year 3 Developer B constructs the $15.000 improvememfiw 520,000 and builds 30 units. Develope,. B pays afee equal to: . unconstructed i'1frastructure 55.000 + 530.000 . plus Developer B's cost for infrastructure . plus inflation@ 5%for 1 yearsfor unconstructed infrastructure $35.000@ 1.05 x 1.05 - $35,000 . plus balance of reimbursable costs . plus interest@ 8%for 1 yearsfor reimbursable costs $34.000@ 1.08 x 1.08 - $34.000 . plus two years' administration fee .. less Fund balance 535.000 = 520.(){)O - $ 3.588 = 534.{)O() $ 5.658 5 8.000 ----0..-- 5106,246 = . divide by remaining lots (including project) [80 units) = 51. 328/unit Thus. Developer B would pay 30 units x $I,328/unit = 539,840. less the credit lor installed i'1frastructure ($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 would he 30 units' share of the improvement installed ($55,000). or 30/100ths of$55.000 = 516.500. Developer 1]