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EXHIBIT 1 <br />Judson Brown, City of Santa Ana March 1, 2017 <br />Santa Ana Arts Collective: Financial Gap Analysis Page <br />termination options that were understated by the Developer's appraiser. The <br />Developer currently estimates these costs at $1.61 million.° <br />3. The Developer included $30,000 In closing costs. <br />The total property assemblage costs are estimated at $8.84 million. <br />Direct Casts <br />The direct costs estimates assume thatthe Project will be subject to prevailing wage <br />requirements. The direct costs applied In this analysis can be summarized as follows: <br />1. The Developer estimates the AHSC infrastructure costs at $1,29 m1111on. <br />2. The Developer estimates the Clty-required off-site improvement costs at $1.13 million. <br />City staff should verify the scope and accuracy of the off-site improvements required to <br />serve the Project. <br />3. The Developer did not include a specific line Item estimate for on-site improvement <br />costs. It is assumed these costs are included in the residential building costs line Item. <br />4. The Developer estimates the residential building costs are estimated at $207,100 per <br />unit, or $12.01 million. <br />5. The Developer Included a $275,000 allowance for furnishings, fixtures and equipment. <br />6. A 10% allowance for contractorfees and general requirements is provided. <br />7. An allowance for construction bonds / general liability insurance at 2% of construction <br />costs Is provided. <br />8. A direct cost contingency allowance equal to 5% of other direct costs Is provided. <br />KMA estimates the total direct costs at $17.26 million. This equates to $297,500 per unit.' <br />a The Developer provided a breakdown of ralocatlon payments that total $1.41 million. KMA assumes <br />that the additional $200,000 in costs are related to administering relocation activities. <br />a The Developer originally provided Independently prepared cost estimates that range from $12.81 to <br />$15.13 million for off -sites, building, contractor and insurance costs. The Developer currently estimates <br />these costs at $14.36 million, however, contractors' bids have not yet been obtained for the Project, <br />1703001;5NA:TRa <br />19090.014.007 <br />80A-32 <br />