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Example 16A. Assume the simpl~ing assumption oja SpeciTe Plan 1+ith 100
<br />units in the Plan Area, with four infrastructure improvements cost SS, 000,
<br />515.000, 530,000, and 530,000 respectively. In Year 1. DeveloperA huilds 10
<br />units and installs the 53, 000 improvement. Developer A pans SS.000 into the
<br />Fund to equal the SIO, 000 total share his 10 units represent ojthe total S 100.000
<br />improvement cost. In Year 1 City installs the SIS, 000 impronenrent using irc
<br />water fund, but its cost is 520, 000. In Year 2. Developer R builds S0 units
<br />requiring no infrastructure. Developer B will pay a jee equal to:
<br />Uneonstructed infrastructure: 550,000 + 530,000,
<br />adjusted for S% injlmion (84,000} = S8-1.000
<br />Ciry funded infrastructure not using Specific Plan funds, + S21.600
<br />adjusted jor 8% reimbursement ($20, 000 @ 8% interest)
<br />54.000 City administration fee + S-1.000
<br />(55,000 Fund balance adjusted jor interest earned @ 4%) - <S 3.200>
<br />5104.4011
<br />- 90 units remaining = 51,160/unit, or, jor SO units, 538.000
<br />Example 16B. Assuming the same simplifying assumptions as in Example 16A, in
<br />Year 1 Developer A constructs the 530, 000 improvement.jor 535.000 and huilds•
<br />20 units. Ne pays no fee and is eligible for reimbursement ojS35.000 - 521.000
<br />= 534,000 (adjusted lot share cost = SI,OSO; total share is 20 x Sl,OSO =
<br />521.000). In Year 3 Developer B constructs the 515.000 improvement, for
<br />520, 000 and builds 30 units. Developer B pays a fec equal to:
<br />• unconstructed infrastructure SS.000 + S30.000
<br />• plus Developer B's cost for injrasn•uclure
<br />• plus inflation @ 5% for 2 years, jor
<br />unconstructedinfrastructure
<br />533, 000 @ I.OS x 1.03 - 535, 000
<br />• plus balance ofreimbursable costs
<br />• plus interest @ 8% for 1 years for
<br />reimbursable costs
<br />534, 000 @ 1.08 x 1.08 - 534, 000
<br />• plus two years' administration fee
<br />• less Fund balane¢
<br />• divide by remaining lots
<br />(including project) [80unitsJ
<br />= 535.000
<br />= s2o.onn
<br />= 5 3.388
<br />= 53-J.00I1
<br />= 5 3, 638
<br />= 5 x.ovo
<br />5106,2x6
<br />- 51,328/unit
<br />Thus, Developer B would pay 30 units x 51, 328/unit = 539, 840, less the credit, far
<br />installed infrastructure (520,000j, or a total of 519, 840. This would go into the
<br />Fund. Developer A would be eligible for the pro rata reimbursement from
<br />Developer B's payment into the Fund. This would he 30 units'share rtf the
<br />improvement installed (533.000), or 30//OOthr of SSS. D00 = 516, 500. Developer
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