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ta <br />www.FinanceDTA.com <br />SECTION I <br />PROJECT INFORMATION <br />The timing and cash flow related to the Specific Plan's financial analysis starts as of <br />June 2023. DTA assumed that the processing of Tentative Tract Maps or parcel maps <br />(collectively referred to as "TTMs" in this Report) would commence after the completion of <br />a Development Agreement ("DA") between the City and Developer. <br />It is expected that a DA will be negotiated between the City and Developer. However, at the <br />time of the NAV preparation, the DA was not completed. As a result, we did not anticipate <br />specific terms and instead predicted general assumptions contained in similar DAs. An <br />important assumption we made was that the DA would not address any credits for <br />Development Impact Fees ("DIFs"). <br />In our analysis, we assumed that the Developer would not be providing low-income <br />housing units but would instead incur the Santa Ana Housing In -Lieu Fee of $15.00 per SF, <br />totaling approximately $50,625,000 upon the build -out of the Project. <br />The LRV assumes the Developer will pay all costs to be incurred from today through <br />lease -up, allowing DTA to determine each block's NAV. This includes the Developer <br />completing the TTMs, preparation of approved engineering plans, payment of all DIFs, <br />construction of all site development improvements, and construction of all the buildings. <br />At the time the buildings achieve full occupancy, we assume they will be valued at their <br />respective NAV(s). <br />Often, in a project of this size, a developer may sell separate parcels to third -party <br />developers and builders. Although this will reduce the overall profit to the developer, often <br />an early sale to a third party will return invested capital and increase other financial metrics, <br />such as an increased Internal Rate of Return (" IRR") and Net Present Value ("NPV") of the <br />development program. It also allows a developer to spread financial risk. <br />We have been informed that the property will be encumbered by a 99-year ground lease. <br />Since most home buyers are not interested in purchasing a home on leased land, the <br />residential development will be targeted to rental tenants. <br />Related Bristol at 3600 South Bristol Street <br />Land Residual Value Study Report <br />Exhibit 10 <br />September 2Z 2023 <br />3 <br />