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Judson Brown, City of Santa Ana January 9, 2019 <br />Francis Xavier Residence: Preliminary Financial Gap Analysis Page 5 <br />b. An allowance for construction bonds / general liability insurance at 2% of <br />construction costs is provided. <br />5. KMA included a $125,000 direct cost contingency allowance, which is equal to <br />5% of other direct costs. <br />KMA estimates the total direct costs at $2.62 million. This equates to $177 per square <br />foot of GBA. <br />Indirect Costs <br />KMA utilized the following assumptions in estimating the indirect costs: <br />1. The architecture, engineering and consulting costs are estimated at 7% of direct <br />costs. <br />2. The Developer estimated the public permits and fees costs at $375,000, or <br />approximately $31,300 per unit. City of Santa Ana (City) staff should verify the <br />accuracy of this estimate. <br />3. The taxes, legal and accounting costs are estimated at 6% of direct costs. <br />4. The insurance costs are estimated at $27,000, or $2,250 per unit. <br />5. An approximately $1,700 per unit allowance for marketing and leasing costs is <br />provided, which equates to $20,000. <br />6. The Developer set the Developer Fee at $498,000, which is equal to 13% of the <br />net construction costs.' <br />7. An indirect cost contingency allowance equal to 7% of other indirect costs is <br />provided. <br />KMA estimates the total indirect costs at $1.35 million. <br />1 Net construction costs equate to the total construction costs less the developer fee amount. <br />City Council 16 — 34 IQLV20243 <br />19090.017.010 <br />3-22 <br />