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Judson Brown, City of Santa Ana December 10, 2024 <br />Habitat Alton – Preliminary Financial Gap Analysis Page 4 <br /> <br /> 2412001v2.SA.TRB <br /> 19090.018.038 <br /> <br />PROPERTY ACQUISITION COSTS <br />Based on information provided by Habitat, Habitat is proposing to purchase the Site for $4.25 <br />million, or $49 per square foot of land area. Habitat did not provide an appraisal and/or <br />purchase and sale agreement to confirm the purchase price. <br />RELOCATION COSTS <br />The property consists of multiple buildings that are leased to three tenants. Per Habitat, Federal <br />relocation requirements stipulate that the maximum relocation assistance for businesses is <br />$53,200 plus three months of rent payments, if required. As such, Habitat estimates the total <br />relocation assistance at $213,000. However, Habitat did not provide a relocation plan for <br />review. The City should review the relocation plan prior to disbursement of any financial <br />assistance. <br />LOST RENT TO SELLER <br />The Seller has agreed to hold the property during the development period and complete the <br />purchase transaction upon completion of construction. As such, the Seller will be holding the <br />property for the estimated development period of approximately 24 months prior to receiving <br />the agreed-upon purchase price. <br />To account for this holding period, Habitat is proposing to compensate the Seller for the loss of <br />rent payments during the 24-month development period. Habitat estimates the lost rent <br />payments to be made to the Seller at $386,000. <br />CLOSING COSTS <br />Habitat estimates the closing costs at 2% of the purchase price, or $85,000. <br />Direct Costs <br />The direct costs assume that the Project will be subject to Federal Davis Bacon prevailing wage <br />requirements. In addition, the Project is subject to the provisions of the Build America Buy <br />America Act (BABA). The direct costs can be summarized as follows: <br />1. Habitat estimates the site improvement costs at $4.0 million, or $46 per square foot of <br />land area. The site improvement budget includes costs for demolition, grading, sewer <br />EXHIBIT 3