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its absence means we will not be able to move forward with the project. It is this loan that we hoped to retire through the sale of housing credits. If housing credits are not available, we are seeking the City's assistance to pay the annual debt service associated with the bridge loan. As noted in the pro formas presented to the City, the debt service on the bridge loan is about $2.6 million per year. As a result, we request that the City provide, on an annual basis, a portion of the in lieu fees collected from developers to help retire this debt. We are mindful that providing $2.6 million per year may leave the City with limited funds to support other affordable housing endeavors. Therefore, we request that the City earmark 70% of total in lieu fees, to a maximum of $1.75 million per year for 40 years, to AMG to'be used to pay the aforementioned debt service. In exchange for this assistance, AMG will income -restrict the units for a period of 55 years. By participating in this manner, the City will realize the development of over 1,000 affordable units to address the needs of lower income families and seniors. Although a bridge loan of $50 million is substantial, when viewed on a per unit basis of approximately $50,000, it is substantially less than the level of assistance provided by the City to other projects. Indeed we estimate this level of assistance is about one-fourth to one-third the level of assistance granted other projects. In the course of various discussions, AMG was asked to respond to the suggestion that there may be other ways to improve project economics, such as reducing the project size, or creating a mixed used project of market rate and income -restricted units. While AMG has explored these options, it is not able to reduce the number of units, as a reduction of units adversely affects the overall financial viability of the project. In addition, because of the complex financing associated with this project, including the 4% tax credits, it is not possible to introduce market rate units or significant non-residential uses, without jeopardizing project financing and the resultant affordable units. In addition to possible project revisions, AMG was also to comment on whether a reduction or waiver of impact fees would be helpful. The short answer is yes. Based on the project as currently proposed, we estimate the project will incur the following fees (expressed in millions): Park: $ 7.2 Traffic/Tra nsportatio n: 6.8 Sewer: 4.7 Capital: 4.5 School: 2.2 Fire: 1.3 Total $ 26.7 Not included in the above figures is the cost of processing the application through the planning process. Actual and projected costs for the entitlement process are expected to equal about $175,000. To the extent the City is able to reduce or waive any of the above fees, it certainly impacts project economics in a favorable way. 60E-34