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Judson Brown, City of Santa Ana October 6, 2021 <br />Francis Xavier Residence: Financial Gap Analysis Page 5 <br /> <br /> 2108022:SA:TRB <br /> 19090.017.010 <br /> <br />2. The residential building costs are estimated at $220 per square foot of GBA, <br />which equates to $3.15 million. <br />3. A $50,000 allowance for furnishings, fixtures and equipment is provided. <br />4. The contractor costs are estimated as follows: <br />a. A 12% allowance for contractors’ fees and general requirements is <br />provided. <br />b. An allowance for construction bonds / general liability insurance at 2% of <br />construction costs is provided. <br />5. The Developer included an $814,000 direct cost contingency allowance, which <br />equates to approximately 20% of other direct costs. While this contingency <br />allowance is higher than typical, the current construction cost environment is <br />extremely volatile. Recent projects have experienced exponential cost increases <br />over the past year. In addition, the small size of the Project may limit the ability <br />of the Developer to achieve economies of scale in terms of construction pricing. <br />As such, KMA included a 20% direct cost contingency allowance in this analysis. <br />KMA estimates the total direct costs at $4.88 million. This equates to $341 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 $533,000, or <br />approximately $31,300 per unit. City staff should verify the accuracy of this <br />estimate. <br />3. The taxes, insurance, legal and accounting costs are estimated at 3% of direct <br />costs. <br />EXHIBIT 3