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EXHIBIT 1 <br />Judson [crown, City of Santa Ana March 1, 2017 <br />Santa Ana Arts Collective: Financial Gap Analysis Page 9 <br />Indirect Costs <br />KMA utilized the following assumptions In estimatingthe indirect costs: <br />1. The architecture, engineering and consulting costs are estimated at 10% of direct costs, <br />2. The Developer estimated the public permits and fees costs at $1.40 million, or$24,080 <br />per unit. City staff should verify the accuracy of this estimate. <br />3. The taxes, Insurance, legal and accounting costs are estimated at 3% of direct costs. <br />4. An approximately $1,000 per unit allowance for marketing and leasing costs is provided. <br />5. The Developer Fee is set at $2.0 million, which is the maximum amount allowed for the <br />Project by TCAC, <br />6. An Indirect cost contingency allowance equal to 5%of other indirect costs is provided. <br />KMA estimates the total Indirect costs at $5,99 million, <br />Financing Costs <br />The financing costs for the Project are estimated as follows: <br />1. The Developer estimates the Interest costs for the acquisition/ predevelopment loan at <br />$617,000, This estimate is based on a $6.04 million loan amount, a 15 -month <br />predevelopment period, an 18 -month construction period, and a 5% interest rate, <br />2. The interest costs on the construction loan are estimated at $855,000. These costs are <br />based on the following assumptions: <br />a, The construction period Interest costs are based on a 3.52% interest rate, an 113 - <br />month construction period, and a 60% average outstanding balance. <br />b. The absorption period Interest costs are based on a three-month absorption <br />period and a 100% average outstanding balance. <br />3. The financing fees are estimated at $349,000, and are based on 1.50 points for the <br />construction and permanent loans. <br />1703001:5NATRB <br />39090.094.007 <br />