Loading...
HomeMy Public PortalAbout2016-02-02 -- Part 2 -- Truman Hotel TIF Redevelopment Plan APPENDIX B Blight Study Report 1/4S,...4.1/ PROPERTY ADVISORS Blight Study Report Truman Hotel and Convention Center 1510 Jefferson Street Jefferson City, Cole County, Missouri 65109 Report Date: October 1, 2015 • ii * =4 ?..v =rte ' .0C- --''...-- --=---. 1 ' - jiti FOR: Mr. Vivek Puri, JD, CHA Puri Group 3200 Vandiver Drive, Suite 11A Columbia, MO 65203 Valbridge Property Advisors Shaner Appraisal, Inc. 10990 Quivira Road, Suite 100 Overland Park, Kansas 66210 (913) 451-1451 phone Valbridge Job No: (913) 529-4121 fax KS01-15-0434-000 valbridge.corn $!fiValbrid e PROPERTY ADVISORS 10990 Quivira Road,Suite 100 Overland Park, Kansas 66210 (913)451-1451 phone (913)529-4121 fax valbridge.com October 1, 2015 Mr. Vivek Puri, JD, CHA Puri Group 3200 Vandiver Drive, Suite 11A Columbia, MO 65203 RE: Blight Study Report Truman Hotel and Convention Center 1510 Jefferson Street Jefferson City, Cole County, Missouri 65109 Dear Mr. Puri: In accordance with your request,we have prepared a blight study report of the above-referenced property. This report sets forth the pertinent data gathered, the techniques employed, and the reasoning leading to our opinions. The property is known as the Truman Hotel and Convention Center, located at 1510 Jefferson Street in Jefferson City, Cole County, Missouri 65109. The Study Area is further identified as tax parcel number 1006130004002008. The Study Area contains four buildings that were constructed around 1968, is of masonry construction and contains approximately 145,884 square feet of gross building area. The Truman Hotel and Convention Center contains 233 hotel room as well as 24,254 square feet of convention center space. The improvements are situated on an 8.510 acre (370,696 square foot) site. Puri Group is the client in this assignment and is the sole intended user of the report. The intended use is for potential redevelopment purposes. The value opinions reported herein are subject to the definitions, assumptions and limiting conditions, and certification contained in this report. VaI bridge Mr.Vivek Puri,JD, CHA 4,y r: ,•;;�;�n Puri Group PROPERTY ADVISORS October 1, 2015 Page 2 Based on the analysis contained in the following report, our value conclusions involving the Study Area property are summarized as follows: Conclusion-Chapter 353 As determined in the following study, it is our opinion that the Study Area represents a "blighted area" as is defined in Missouri "The Urban Redevelopment Corporations Law", Section 353.010 to 353.190. Primary blighting factors include: Chapter 353 Blight Factors Yes No Age X Obsolescence X Inadequate or Outmoded Design X Physical Deterioration X As a result of the factors above, the Study Area suffers from all six of the blight conditions, including economic and social liability. Chapter 353 Blight Conditions _ Yes No Economic Liability X Social Liability X III Health X Transmission of Disease X Crime X Inability to Pay Reasonable Taxes X As a result of the age,obsolescence, inadequate and outmoded design and physical deterioration the Study Area has become and economic and social liability and those conditions are conducive to ill health, the transmission of disease, crime and the inability to pay reasonable taxes. Conclusion-Chapter 99 As determined in the following study, it is our opinion that the Study Area represents a "blighted area" as is defined the Missouri "Real Property Tax Increment Allocation Redevelopment Act" Sections 99.300 to 99.660. Primary blighting factors include: Chapter 99 Blight Factors Yes No Defective or Inadequate Street Layout X Unsanitary or Unsafe Conditions X Improper Subdivision or Obsolete Platting X Deterioration of Site Improvements X Conditions which Endanger Life or Property by Fire and Other Causes X :•!„;`:.:; Mr.Vivek Puri,JD, CHA , ,::' Valbridge Puri Group PROPERTY ADVISORS October 1, 2015 Page 3 As a result of the factors above, the Study Area suffers from three of the four blight conditions. Chapter 99 Blight Conditions Yes No Hindrance to Housing Accommodations X Economic Liability X Social Liability X Menace to Public Health, Safety, Morals or Welfare X As a result of the defective and inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvement and conditions which endanger life or property by fire or other causes, the Study Area has become and economic liability, social liability as well as a menace to public health, safety, morals and welfare. This letter of transmittal is not considered valid if separated from this report, and must be accompanied by all sections of this report as outlined in the Table of Contents, in order for the value opinions set forth above to be valid. Respectfully submitted, Valbridge Property Advisors I Shaner Appraisals, Inc. CLImitik/ 1617 Andrew Baker, MAI Senior Appraiser Missouri License#2013E030999 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r TABLE OF CONTENTS PROPERTY ADVISORS Table of Contents Cover Page Letter of Transmittal Table of Contents Summary of Salient Facts ii Aerial and Front Views iii Location Map iv Introduction 1 City & Neighborhood Analysis 4 Site Description 8 Improvements Description 29 Blight Analysis 40 General Assumptions & Limiting Conditions 72 Addenda 73 VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page i 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r SUMMARY OF SALIENT FACTS PROPERTY ADVISORS Summary of Salient Facts Property Name: Truman Hotel and Convention Center Address: 1510 Jefferson Street Jefferson City, Cole, Missouri, 65109 Assessor's Parcel Number: 1006130004002008 Zoning: C-2, General Commercial Site Size: 8.510 gross acres (370,696 gross square feet) Existing Improvements Property Type: Hotel and convention center Gross Building Area: 145,884 Number of Rooms: 233 Year Built: 1968 Condition: Poor Date of Inspection: September 14, 2015 Date of Report Preparation: October 1, 2015 VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page ii k\\\‘‘,, '`,' . Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS AERIAL AND FRONT VIEWS Aerial and Front Views AERIAL VIEW vY� • -'1!---41 '' .. tAifr .,''• , . ''. .41441P `es+ , '1,tkti - 4( '..t‘ ,tr :'1.' --' ..-''''111'.' 4 , , *4 t ti'4,!7:. <- . ' .,-.. ,-: , lit n �ti r '�, ,a - 4" a��*-� �: . , -,eq-r„,;4.....- ' ,pq��' a . ,-' i. ' ''''''11111.11r:, r .,..,,,,,.,„ �j..,,,,,,.,,.„ , ._,,,,,. ,g 1W , .:,_,, .r .,, . :2, ; . _ _ , .,-- .„,-„-- -,:, FRONT VIEW —. - - • 4 rye. _ VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page iii „, .""" TRUMAN HOTEL AND CONVENTION Valbridge CENTERLOCATION MAP PROPERTY ADVISORS Location Map u I , ® p Q o 1213 11\,,e,os o - f+ iIL: mii e..e si.m P.? t.i.u«” wao °. ,xnwso.uro "•*n,.a n..,e...° wry'" uen.o�r.RPw + mo"""o wq� O b 0 1 Jefferson City 1=1. ESA 2 IIIM °eea-+m�4¢ Ery. F. PY are Lo.,....47 wrap,..e,d,,, 'fi t ,s.a.+xap ey _ .. Unorersity e. — 8 ems' � h t .Y'P ..- $ ei. FY,�� \ dr' b a '0 1 % .Hough Pert 7 v.o.gp 1=1 I ( 6,,,,,,,, :i. . /4,4,, . (—_, ...":„..,...j I j ... v.) . El \,,,.....,,, / VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page iv 1$T!!::.•, Va i brill e TRUMAN HOTEL AND CONVENTION CENTER "'r INTRODUCTION PROPERTY ADVISORS Introduction Client and Other Intended Users of the Blight Study The client and intended user in this assignment is Puri Group. Intended Use of the Blight Study The intended use of this report is to assist in determining if the Study Area is blighted for potential redevelopment purposes. We understand that this report may be submitted by the Puri Group to a governmental entity or agency for the purpose of making a blight determination. Identification of the Property Address: 1510 Jefferson Street Jefferson City, Missouri 65109 Parcel Numbers: 1006130004002008 Owner: Oracle Enterprises, Inc. Legal Description A TRACT OF LAND IN THE SOUTHEAST QUARTER OF SECTION 13,TOWNSHIP 44 NORTH RANGE 12 WEST,COLE COUNVI',MISSOURI,DESCRIBED AS: BEGINNING AT A POINT IN THE SOUTHEASTERLY LINE OF OLD MISSOURI STATE ROUTE"C"NOW KNOWN AS SOLJTHRFDGE DRIVE,SAID POINT BEING THE SOUTHWESTERN CORNER OF PROPERTY CONVEYED TO BRECKE NRIDGE HOTELS CORPORATION,BY DEED RECORDED IN BOOK 182,PAGE 323;THENCE ALONG SAID SOUTHEASTERLY LINE NORTH 54 DEGREES 48 MINUTES EAST,719.52 FEET,TO A POINT BEING THE INTERSECTION OF THE SOUTHEASTERLY RIGHT-OF-WAY LINE OF OLD ROUTE"C",NOW KNOWN AS SOUTHRIDGE. DRIVE OF THE SOUTHWESTERLY LINE OF OLD ROUTE"C"CO11NEC1ION NOW KNOWN AS ZUMWALT ROAD;THENCE ALONG SAID SOUTHWESTERLY LINE,SOUTH 35 DEGREES 15 MINUTES EAST,214.25 FEET,TO A POINT IN THE NORTHWESTERLY RIGHT-OF-WAY LINE OF U.S.HIGHWAY NO.54;.THENCE ALONG SAID NORTHWESTERLY LINE OF U.S.HIGHWAY NO.. 54,SOUTH 35 DEGREES CO MINUTES WEST,1019.45 FEET TO THE NORM EASTERLY CORNER OF A TRACT OF LAND DESCRIBED IN BOOK 772,PAGE 473,COLE COUNTY RECORDER'S OFFICE;THENCE LEAVING THE RIGHT-OF-WAY LINE OF SAID U.S.ROUTE 54,NORTH 55 DEGREES 00 MINUTES 00 SECONDS WEST ALONG THE NORTHERLY LINE OF SAID TRACT AND THE NORTHWESTERLY EXTENSION THEREOF,283.00 FEET TO A POINT ON THE WESTERN BOUNDARY OF A TRACT OF LAND DESCRIBED IN BOOK 232,PAGE 165,COLE COUNTY RECORDER'S OFFICE;THENCE NORTH 35 DEGREES 00 MINUTES OD SECONDS EAST,ALONG SAID WESTERN BOUNDARY 1.51_OO FEET TO THE MOST SOUTHERLY CORNER OF A TRACT OF LAND DESCRIBED IN BOOK 255,PAGE 683,COLE COUNTY RECORDER'S OFFICE;THENCE NORTH 05 DEGREES 23 MINUTES 4.+1SECONDS EAST,ALONG THE WESTERLY LINE OF SAID TRACT,550.61 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF THE AFORESAID TRACT IN BOOK 232,PAGE 165;THENCE NORTH 55 DEGREES OO MINUTESOD SECONDS WEST,ALONG THE SOUTHERLY LINE OF SAID TRACT,213.71 FEET TO THE SOUTHEASTERLY LINE OF OLD MISSOURI STATE ROUTE"C",NOW KNOWN AS SOLJTHRIDGE DRIVE;THENCE ALONG SAID SOUTHEASTERLY UNE OF THE ARC OFA CURVE TO THE RIGHT HAVING A RADIUS OF 925.37 FEET,A DISTANCE OF 70.0 FEET TOA POINT OF TANGENCY;THENCE NORTH 54 DEGREES 48 MINUTES EAST ALONG SAID SOUTHEASTERLY LINE 162.25 FEET TO THE POINT OF BEGINNING. Subject to any and aJJ easements,conditions,restrictions and other Items,now of record. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 1 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r INTRODUCTION PROPERTY ADVISORS Type and Definition of Value Definition-Chapter 353 The Missouri "The Urban Redevelopment Corporations Law", Section 353.010 to 353.190 defines a blighted area as "that portion of the city within which the legislative authority of such city determines that by reason of age, obsolescence, inadequate or outmoded design or physical deterioration have become economic and social liabilities, and that such conditions are conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes." Chapter 353 of the Missouri Urban Redevelopment Corporations Law narrows the broader blight standard shared by Chapter 99 because it requires both economic and social liability to be present blighting factors. The conditions must also be conducive to ill health, transmission of disease, crime or the inability to pay reasonable taxes. Thus, at least three of the six blighting conditions must be present, including economic and social liabilities. Definition-Chapter 99 The Missouri"Real Property Tax Increment Allocation Redevelopment Act"Sections 99.300 to 99.660 defines a blighted area as an area which: A. By reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes,or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use; or B. Has been declared blighted or found to be a blighted area pursuant to Missouri Law including, but not limited to chapter 353 and sections 99.800 to 99.865. (67.1401 RSMo.) In our analysis, we have analyzed five blighting factors which include: 1. Defective or inadequate street layout, 2. Unsanitary or unsafe conditions, 3. Deterioration of site improvements,4. Improper subdivision or obsolete platting, and 5. Existence of Conditions which endanger life or property by fire or other cause. If a predominance of any of these five factors is present in the Study Area,we next analyze if these factors (or a combination of these factors) are a cause of the four blighting conditions which include: 1. Retards the provision of housing accommodations, 2. Economic Liability 3. Social liability and 4. Menace to public health, safety, morals and welfare. Before undertaking our analysis, it is important to clarify the definition as it applies to this report. According to state law, it is not necessary for every condition to be present in order to declare the Study Area blighted. In fact,an area can be declared blighted according to the Chapter 99 definition if only one condition is present. We have completed a blight analysis of the property according the Chapter 99 definition. However, the property will also meet the definition under Missouri Law if a legislative authority determined that the Study Area is blighted under the Chapter 353 definition. To the best of our knowledge, the Study Area property has not previously been declared blighted. In addition to the above definition, we have also considered several court cases which provide insight on the consideration of blight. The following are references to Missouri Supreme Court Cases. • Parking Systems, Inc. v. Kansas City Downtown Redevelopment Corporation, 518 S.W.2d 11, 15 (Mo.1974). The courts determined that it is not necessary for an area to be what commonly would be considered a "slum"in order to be blighted. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 2 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r INTRODUCTION PROPERTY ADVISORS • Crestwood Commons Redevelopment Corporation v. 66 Drive-In, Inc., 812 S.W. 2d 903, 910 (MO. App. E.D.1991). The courts determined that an otherwise viable use of a property may be considered blighted if it is an economic underutilization of the property. • State ex. Rel Atkinson v. Planned Industrial Expansion Authority, 517 S.W.2d 36 at 46 (Mo. banc 1975). The courts determined that blight may also be found if the redevelopment of an area "could promote a higher level of economic activity,increased employment,and greater services to the public." • Maryland Plaza Redevelopment Corporation v.Greenberg, 594 S.W.2d 284, 288 (MO.App.E.D 1979) The courts determined that it is not necessary for every property within an area designated as blighted to conform to the blight definition. A preponderance of blight conditions is adequate to designate an area for redevelopment. Date of Report The date of this report is October 1, 2015, which is the same as the date of the letter of transmittal. Date of Inspection Andrew Baker conducted an interior and exterior inspection of the property on September 14, 2015. Competency No additional work was necessary to meet the competency provision.We have completed numerous blight analyses on properties for local municipalities in Kansas and Missouri. These blight studies have utilized various definitions of blight under Missouri Statutes (R.S. Mo. 67, 99, and 353) and Kansas Statutes (K.S.A Chapter 12).The reader is directed to the appraiser qualifications for further substantiation. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 3 1Y.,/ Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY aQVlsoRs CITY AND NEIGHBORHOOD ANALYSIS City & Neighborhood Analysis The Study Area is located in the City of Jefferson, Cole County, Missouri. Jefferson City is located in the central area of the State of Missouri and is about 30 miles to the south of Columbia, Missouri. Downtown Jefferson City, with includes the Missouri State Capital, is located approximately two miles to the north along Highway 54. The following analysis focuses on the social, economic,government, and environmental forces that form the elements of supply and demand and subsequently affect local real estate values. Market Area Overview According to Market Analysis for Real Estate, published by the Appraisal Institute, the trade/market area is delineated by physical, political, and socioeconomic boundaries or by the time-distance relationship represented by travel times to and from common destinations.A market area is an area in which alternative, similar properties effectively compete with the Study Area in the minds of probable, potential users. For the poses of this report, the neighborhood boundaries are best described as the city limits of Jefferson City. Ae u 1..1 °' ► , I= Iii ' CE) 14.211 1 qImp' J 4 '..W MaS, _ es 4V1 rim ghl r 15c4?i - 0,51 A i Jefferson CityO, IS CD a es- 14381 . I ..—or I 3Li n Unireralty to 11/1 _ . Limirdv," A © E sage Ci 17rrnkna "r 1 f i� MCI Li r/ Sch ) `,,,_ / 1:74\\' . El • C .) � , reaS ff 'i, J Google S i 4 — VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 4 Va!bridge TRUMAN HOTEL AND CONVENTION CENTER CITY AND NEIGHBORHOOD ANALYSIS PROPERTY ADVISORS Neighborhood Land Use Land use in the Jefferson City includes mostly single family, industrial, and commercial land. Significant land use characteristics in the immediate area are summarized in the following table. Predominant Age of Improvements 50+ years Predominant Quality and Condition Fair to Average Approximate Percent Developed 90% Residential 65% Retail 15% Office 5% Industrial 5% Vacant 10% Life Cycle Stage Second-stability Infrastructure/Planning Average Predominant Direction of Growth Western portion of the city Major Developments In April 2015 it was announced that Continental Commercial Products, a company that makes plastic trash cans and other cleaning products, would move it manufacturing operations from Bridgeton, Missouri (located in the St. Louis area) to Jefferson City. The company has leased 534,000 square feet of manufacturing space and plans to begin operation in Jefferson City by the end of 2015. The relocation should create 200 jobs in the local area. In January 2015, the Special Olympics selected a site in southern Jefferson City for a planned "Training for Life Campus". This project would construct a 44,000 square foot building on a 15 acre site to be the home for 30 or more training camps per year. The estimated costs of this project are $12.5 million and it is anticipated to generate $1 million in tourism revenue annually as well as 1,700 to 1,950 hotel room stays each year. Construction of the project would begin after the organization raises enough money in a capital campaign, which is hoped to be concluded by the end of the year. Demographic Analysis The following demographic information was obtained from the 2000 U.S. Census, 2010 U.S. Census, and Site to do Business (STDB) forecasts for 2015 and 2020. We have included the data from the area within a five-minute drive of the Study Area as well as Jefferson City. Population Jefferson City has a current population of 43,511. Since 2010,the population has been growing at a rate of 0.20%, which is similar to the area within a five minute drive. Population 5 Minute Drive Jefferson City 2000 Census 11,665 41,960 2010 Census 11,701 43,079 2015 Estimate 11,788 43,511 2020 Projection 11,905 43,983 % Change 2010-2015 0.15% 0.20% % Change 2015-2020 0.20% 0.22% VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 5 Va!bridge a TRUMAN HOTEL AND CONVENTION CENTER l ,F;`'• CITY AND NEIGHBORHOOD ANALYSIS PROPERTY ADVISORS Educational Attainment The following table shows the educational attainment for the population over the age of 25. Jefferson City has 35.4%of people with a Bachelor's degree and 12.8% of people with an Advanced degree. Education 5 Minute Drive Jefferson City High School Diploma (%) 92.8% 91.8% Bachelor's Degree (%) 32.2% 35.4% Advanced Degree (%) 10.5% 12.8% Housing STDB projects that 53.3% of the housing units in Jefferson City are owner occupied, 38.2% are renter occupied, and 8.4% are vacant. Median home values are $155,389, which is higher than the area within a five minute drive. Housing 5 Minute Drive Jefferson City Total Housing Units 2015 5,630 19,185 Owner Occupied % 41.7% 53.3% Renter Occupied % 47.6% 38.2% Vacant (%) 10.6% 8.4% Median Home Value 2015 $136,822 $155,389 Median Home Value 2020 $180,354 $195,504 % Change 2015-2020 6.36% 5.16% Household Income STDB projects median household income to be$49,766 in Jefferson City,which is higher than the household income levels the area within a five minute drive. Median Household Income 5 Minute Drive Jefferson City 2015 Estimate $37,240 $49,766 2020 Projection $43,343 $57,331 % Change 2015-2020 3.28% 3.04% VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 6 111/ Va I bridge TRUMAN HOTEL AND CONVENTION CENTER ".".;`! PROPERTY ADVISORS CITY AND NEIGHBORHOOD ANALYSIS Major Employers Jefferson City is the state capital of the State of Missouri. By far the largest employer in Jefferson City is the State of Missouri. Additional large employers are included in the table below.The majority of the employers in the local area are smaller and local in scope. Companies with over 1 ,000 employees State of Missouri 14,208 Jefferson City Public Schools 1,556 Scholastic, Inc. 1,400 Capital Region Medical Center 1,398 SSM Health - St. Mary's Hospital 1,070 Source: Jefferson City Chamber of Commerce Conclusions Based on our analysis of the preceding factors, the neighborhood appears to be in the second stage of its life cycle, a period of stability. Recent growth has been primarily limited to single-family development located on the west end of the city. Given the history of the neighborhood, it is our opinion that the short term outlook is good, with slow growth expected in the near term. VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 7 1 ��T!!:,.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "r • SITE DESCRIPTION ':;;' PROPERTY ADVISORS Site Description The following description is based on our property inspection, assessor records, and information provided by the owner. AERIAL MAP P S i S'" '"� { .n.1 , w42 / r� f f'f «, . S . 3 1 4 S M t�i f F P _ f s r ' , - ltk'' , - ' *A.4..„.,„.' . 4,, ' r 7, 4. , ie General Data Street Address: 1510 Jefferson Street,Jefferson City, Missouri 65109 Assessor's Parcel Number: 1006130004002008 Physical Characteristics Site Area: 370,696 square feet, or 8.51 acres Shape: Irregular Parcel Location: The parcel is located to the southwest of Zumwalt Road, in between Southridge Drive and Jefferson Street Adjacent Land Uses North: Missouri Commission for the Deaf, Vacant Land South: Highway 54 East: Conoco Gas Station, U-Haul Dealer West: Motor Vehicle and Driver's License Examination Office, Former Movie Theatre VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 8 y +, TRUMAN HOTEL AND CONVENTION'' Va I bridge CENTERSITE DESCRIPTION PROPERTY ADVISORS Utilities Electricity: Ameren Missouri Gas: Ameren Missouri Water: Missouri-American Water Company Sewer: City of Jefferson Flood Zone Data Flood Map Panel: 29027C0525E dated September 5, 2012 Flood Zone: X, 'area of minimal flood hazard' '" y ' - s••4 J`. ,tee y)+,,, JJ / - _ f vN aL Fr�onr,Ha?ARr �Y /../ . ', F IYaiI PA ELe A ELS -. 1 10i ..7E • f 52912 G0525E e R ' 7 Ac,E T •. Y, ,y,. - ,..' eff."9!fZ at4. 'ff.1172f201,2 _ _, -, } lb.," " - .,,,„:,,‘ , • , • M r. i - )d._ e y • /• .P4 1. _ imp ik roG _ VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 9 1' T!!::.•, Va i bri e TRUMAN HOTEL AND CONVENTIONSITEDESCRIPTION CENTER "''r ;;; PROPERTY ADVISORS Zoning Designation Zoning Code: C 2, General Commercial Zoning Jurisdiction: City of Jefferson Zoning Comments: According to the municipal code,the purpose of the C-2 district is"to accommodate general trades and commercial services not permitted in central and neighborhood zoning districts located at select nodes, intersections and highway interchanges to serve the motoring public and highway users. Buffering, landscaping and open space areas are required to mitigate impacts of the more intensive land uses and traffic activities as well as provide adequate access and traffic improvements." ZONING MAP x ,,w $ Y.011i4V t e , y V'.. Y r J' - hIG � �•rl *,/t"',- -b!C 3 ffi L. y� _ MY.' } A '• f ,moi---...,',..,:'..4l- .' i ' l tai �. e , j� ,.:, if .:. �;. S, ,- { } 6 K P ¢'ate• -` f s .A' F - ,, 1 Lm .' Y'; P- .'kik .0 '...:;;44,":-! P X C.to� :A.' 0411".:Vel. -:, � (.4 � ;;� II ' •. '�} -1°--::)174,4':' ,zp=47.r3% A } . �,� � ' ` .1-,i,..1 7,, ' ,-,- .-: ‘ .--, tv .4 .,.4.47, .., . -- '740 • / - ■STS: g{ 0.*-A-..',: I '} ^�- '� 11;kat .7: '-'..' '.7: ; ..., -;An, ..-: •-; - ,,,-• - •i. / Z. ilW 4 - ..-t'4 . : = ,,..` I etik,ti. � VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 10 " " lVa I bridge TRUMAN HOTEL AND CONVENTION CENTER ; SITE DESCRIPTION PROPERTY ADVISORS Topography The site has a gentle slope that runs downward toward the northeast portion of the site. The topography of the site does not present any developmental limitations. The following shows the topographic maps of the site. L___jf—,..i 1;4°7' • a 1 1 { _ - Jdddhhh_ Af _ - _• +N .Ply t ffi`4� i �i441t. � _ .„ . . ._ __._____ ., it . _ _ .,, _ . , , Nu i . . t - _ ■!k i r,tic. 't"r_ _moi,`,. �~� .._)' 4 t ,._ , ‘,'14 : . / - - ..+Amt, --Jzift,„.i- - .-__-_, /AL.. - ii 1 . , s., , 0 ;•,_.;i , , •,,, 1 - . . .. .-• unity Fit101,tai trig # r - • _ ` . 40, s '° _�e� tip_ y • . 3 / • y .rte . • w. . • - t` �. .. _ ■ w • i '^ [e r - • ' 1 • / .i. -''' a . 4 . •-•-•' )1,7"...-, ! .. y •* • 11 L •� a •1: , •#• J{ _ : 4" Y Fr ■ ■ + ■I ■ ,i r_ i f "�'" �` ` +►.4.� . *Art 0 F -:',(--!---; ,i,/,': .. \ 1 Site Conclusion The Study Area site is functional for its legally permissible use of a commercial development. The site is currently zoned for commercial use, such as retail, office or lodging use. Commercial uses are also consistent with the surrounding development in the local area. The Study Area has the necessary utilities and infrastructure to permit commercial uses of the site. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 11 `,' . Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS SITE DESCRIPTION AERIAL PHOTOGRAPHS - d / f �� a Sdr� f r�.i • J° t rx p � ,t tea,v � pe:-..----,,/-7`...Z.-•: — ...e: 1, 409, •'v a r' r T ' r v 9 "/ J ' /' f''''-',”'10,,r ''''''‘.. ,,,/ ki:. . . \ A'• 3 :a' .. l �5 m,. " 415,6 '`:�. '. North view r }p„t2.,,� i�i `� -..1.:`,.:4-e---- �f�1Fs4�� • I� ,u �.� r r trr c /,1,,,.:,:-.F..-,'-af. i y is is•(d r+ South view VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 72 !,r,, Va I bridge TRUMAN HOTEL AND CONVENTIONSITEDESCRIPTION CENTER PROPERTY ADVISORS rx .. • • 1'1.1 r r ; .I�a' ry ' a i ``+ - • '14 ti � \ t , < ,!;'•.I, .40,-`',..-',/,,-- ' . K.,''''''Z.;:,,.":.,„. '--. v. ..-r'1,1,4*. ‘--.1.;la;.-...,-._, '-',_ ''-'---, 4. ati ,! yr + � „_ .4,4. i \ . .). fr -.. _ -c•--;-----'----7-:.1:---- 7-..;# lit----,." `,tom ✓ i - •,,, �\\ East view ter P a /yi 7:4 y... r. y '• �; ° - qe 4 West view VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 13 i;, ;'; Va I bridge TRUMAN HOTEL AND CONVENTION CENTER ?•} PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION Improvements Description The following description is based on our property inspection, assessor records, and information provided by the owner.The following is our description of the Truman Hotel and Convention Center, which includes a total of five buildings that were constructed in 1968 and contain a total of 145,994 square feet of gross building area. The following shows a map of each of the five buildings that comprise the Study Area. ', .4-f'a ,;;.�� Ie '. A ,, ,a k+•; ! --. ., <,. , 4,01.isir, 0ae«a !� f � osioe.o ,_- nventiQ '- . • k_ rim9 a '� t. - fir .a ,_ . . , -'- a0i4leWr 500 Bu "..� IP .. „, ' fir ' ✓ ,y .< .;_' Y� � '`"` .. 41114p, 4Irillt General Data Property Type: Hotel-Motel Property Subtype: Hotel and convention center Number of Buildings: Five Hotel Rooms: 233 Quality: Average Condition: Poor Building Areas & Ratios Gross Building Area (GBA): 145,884 square feet (based on public records) Land-to-Building Ratio: 2.76-to-1 Number of Parking Spaces 353 Parking Ratio (spaces/GBA) 1.53 spaces per hotel room Age / Life Year Built: 1968 (Based upon the Cole County Assessor's Office) Actual Age: 47 years VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 29 ��1>+( Valbridge TRUMAN HOTEL AND CONVENTION CENTER ::01;.„ PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION Convention Center Building _ -�� LOWER LEVEL . • r--- atl f 5;[tATFIRD HALL GLENWORD - . — [ alE3afis I — 1771 ��_ STRATFORDC C -« "�,/) .,. NCs5L4NF5@@ c CARTERS �y� , / ,4 ��I�� ! HALL S EASTOV€Rr:vCI. C/ LL�C. ¢I{y` &CONFERENCE CENTER �,• � IE FFERSON CITY ..,, ,. . ,--_rt.j ___IorT_ il' j V ammo 17 I UPPER LEVEL ENTP.M�� GUIDE nTN's k' y. I, ROANOKE IDI3v'G9C�[2rt'.S i I umVP. - 1 1 HIGHTOWER . w ! COM FIRESIDE • CDL3fPONGARDEN ROOM ELL!NGTON WINDSOR".1's.€� '1/ f V j C I : . — F- U — SHEFFIELD w=. f ,� li 4 T6 LOW/FRONT C `�'�_ j tFIURCN4LL . 14 r FIERMfrAGE "-Ir-7'�s V 1 �I ;. I� - _��; LISRAR7 LOUNGE II 1 LI I� I afl1A"ax iY{i Evssr PARLOR 1 If I I i, i ', t�TY A ,,ARDwo i TI n I HAMPSHIRE I Illi�+'i I II . OfN.YT,011ENTEr N¢ =, Size Gross Building Area (GBA): 45,264 square feet Exterior Construction Class: Class C per Marshall Valuation Service Foundation: Poured concrete Frame/Walls: Masonry Exterior Wall Finish: Brick Windows: Single-pane Interior Floors: Generally include carpet and tile Walls: Painted drywall Ceiling Finish: Suspended acoustic tile Lighting Fixtures: Various fluorescent and incandescent fixtures No. of Restrooms: Three set's of common area men's and women's restrooms VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 30 i:-/ Va I bridge TRUMAN HOTEL AND CONVENTION CENTER ii?•;•:. PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION Analysis/Comments on Improvements-Convention Center Building The convention center building was constructed in 1968 and contains 45,264 square feet of gross building area. This building contains a total of two floors that can host conventions with the large meeting spaces. The total convention center space is 24,254 square feet. The lower floor contains the Glenwood space as well as Stratford Hall which contains four areas separated by operable partitions (air walls) that can be removed in order to create larger meeting spaces. This lower floor contains two set's of men's and women's restrooms as well a small wine cellar. The upper level contains several smaller rooms for meeting spaces including Binghams and the Library Lounge. The west end of this floor contains Hermitage Hall, which contains two separated areas that are separated by operable partitions. This floor contains one set of common area men's and women's restrooms. The lobby/front desk area of the 100/200 Building can be accessed via a hallway to the west of the Convention Center Building. 100/200 Building SWryryy��Fq?iZ Ncli+ il,. RIO a t4-7ili MIT iI 117116.. 19,1 +1, 14P11 25.1"1 cm tag mit CM B, r1112$- r A511 Wall. bat 1-1 _ '~itit F ; r 0 MI MOS, $xs m$ s -- T 1 1 _ : Gri 97__ =' 1 RS $7ilk1.10 17MOMit ,1 s:ulINEMATT1i umii orb mumosir _ , .... ..., ,,..,.!..... . „..... .. 1 i .4,.1 1.1... MAIM 1 U tj Size Gross Building Area (GBA): 49,060 square feet Total Rooms: 88 Exterior Construction Class: Class C per Marshall Valuation Service Foundation: Poured concrete Frame/Walls: Masonry Exterior Wall Finish: Brick Windows: Single-pane VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 31 i;, ;'; Va I bridge TRUMAN HOTEL AND CONVENTION CENTER ii?•;•:. PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION Interior Floors: Carpet in room area and hallways, tile in restroom area, hardwood in lobby area Walls: Painted drywall Ceiling Finish: Suspended acoustic tile Lighting Fixtures: Primarily incandescent fixtures No. of Restrooms: One common area men's and women's restroom, each room contains a private bathroom. Analysis/Comments on Improvements-100/200 Building The 100/200 Building was constructed in 1968 and contains 49,060 square feet of gross building area. The rooms in this building has been updated within the past several years and contains new furniture and appliances. This building contains a total of 88 rooms that are located in three wings (north, south and west). This building contains the front lobby area. The front lobby contains hardwood floors, antique furniture, chandeliers, as well as several paintings. This building also contains a small office that is used by the owners for sales and catering services. An outdoor pool is located to the northwest of the 100/200 Building. This pool area contains a concrete patio as well as a pool house to store chemicals and equipment. This pool is typically only open during the summer months. 300, 400 and 500 Buildings 4%E&SUdMA£BlllTS. [2NDRUB) . SlDAkClit ¢� :.':«fr, 1 . A r . �wcls� caRtcI €t -r.:-.:7 /1pfROM —war —c - —wv `� — c1"a n (1fiTr1.13 -Iww- F^'y ,' r- r+a 'iy.C*,cT-.a lCo�.cis 4. a. x tr��J Oo�uv- �'•w 1 }} f{ }���j .2:o- LI, .i.,1-a t,'Iry--cw raw wwir—spa ice.Wo i, .Ifil rw. It.�i �a�o,as�� 9 ILLii N=g�PtCa p,saCC ra+A'V -e.+-e� r•V'�1A ' C4 V.�u+a._o ra I1I VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 32 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER :. PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION I 4 :5'1.5151 gl(555r. i :H415.7' Kf55a1 ,STV,AGf 5 551 1. 55351/15 riS8 522195K/5521 5555581 "zi1/57. 5nr5S13 5E.(511531(561' 3 U't"'s' 568 I, S 5n5.11:111(55 5SZ 5i5 51 a ' bSG [ ENEI > SItilil* ilaW SWAGE 300 Building Size Gross Building Area (GBA): 18,900 square feet Total Rooms: 54 400 Building Size Gross Building Area (GBA): 16,200 square feet Total Rooms: 46 500 Building Size Gross Building Area (GBA): 16,460 square feet Total Rooms: 45 Exterior Construction Class: Class C per Marshall Valuation Service Foundation: Poured concrete Frame/Walls: Masonry Exterior Wall Finish: Brick Windows: Single-pane Interior Floors: Carpet in room area and hallways, tile in restroom area Walls: Painted drywall VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 33 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER ?•' PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION Ceiling Finish: Suspended acoustic tile Lighting Fixtures: Primarily incandescent fixtures No. of Restrooms: Each room contains a private bathroom. Analysis/Comments on Improvements-300, 400 and 500 Building The Study Area contains three exterior buildings located to the south of the convention center building that are substantially similar in construction. The 300 building contains 54 rooms as well as 18,900 square feet of gross building area. This building is connected to the convention center building via an interior walkway on the second floor. The 400 Building contains 46 rooms and 16,200 square feet of gross building area. The 500 building contains 45 rooms and 16,460 square feet of gross building area. Rooms in each of these buildings have a very dated interior with old furniture, carpet in need of replacement and peeling paint. The guest rooms in Building 400 and 500 have not been rented in the past several years due to their condition. Rooms in these buildings each contain approximately 338 square feet of space. The rooms can fit two queen size beds (although many rooms are missing beds) and contains a small private bathroom at the rear portion of the room. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 34 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER ?•' PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION ? .. South elevation of convention building and entrance 4i,111111111: 'g=am_ ai. ;mss' !. I`,_ yA • 100 Building-East elevation VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 35 O4, Valbridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION I u I k im i a ' u r or i� 1.A__ t • •\ 'I 11 1:� 1 11 H /• •Avr.. - --. - r� it .AvP - 1vA"� .h` 100 Building-North elevation 300 Building-North elevation VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 36 0Va I bridge TRUMAN HOTEL AND CONVENTION CENTER ..:*, PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION r ' gme,11.4. .._ _ .4 - .- \- __ - - - - - _ li-I_ } 500 Building-North elevation s _ rio t ..s 500 Building-South elevation VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 37 0 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER . PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION 41 V _ `lip 1 Building 100/200-Lobby area vir asammlow M, 1 � i ■ 0010111pW Meeting room space VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 38 0 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER . PROPERTY ADVISORS IMPROVEMENTS DESCRIPTION :IP. v I Typical room-300, 400 and 5004 , ,. I Tit �� �- - - o -♦ t -• -;. - � ` ,,a v • .... a' Typical room-100/200 Building VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 39 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r BLIGHT ANALYSIS PROPERTY ADVISORS Blight Analysis Blight Defined-Chapter 353 As presented earlier, Section 353.020 (2) R.S.Mo of Missouri's Urban Redevelopment Corporations Law defines a blighted area as "that portion of the city within which the legislative authority of such city determines that by reason of age, obsolescence, inadequate or outmoded design or physical deterioration have become economic and social liabilities, and that such conditions are conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes." Chapter 353—Factor #1 Age Age/ Life Year Built: 1968 (Based upon the Cole County Assessor's Office) Actual Age: 47 years Building Type: Class C (Masonry) Full-Service Hotel, Average Quality Useful Life (MVS): 50 years The five buildings in the Study Area were constructed in 1968 and are 47 years old. The Study Area is classified as a Full-Service Hotel of average quality. According to Marshall Valuation Services (MVS), this building type has a useful life of 50 years. Useful life is defined as"The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed." Therefore, based upon its age, the structures are considered to be very close to the end of their useful life. Chapter 353—Factors #2 and #3 Obsolescence and Inadequate or Outmoded Design Obsolescence is defined as "1. The process, quality, state or condition of falling into disuse or gradually becoming obsolete. 2. A diminution in the value or usefulness of property, especially as a result of technological advances." (Black's Law Dictionary, 10th Edition) Inadequate is defined as "Not enough or not good enough." (Merriam-Webster Dictionary) Outmoded is defined as "1. Not being in style. 2. No longer acceptable, current or usable." (Merriam- Webster Dictionary) Based upon the above definitions, we have analyzed Factors #2 and #3 together, taking into account how the Study Area differs from a modern hotel/convention center property. Hotel properties must balance functional, layout and aesthetic issues to simultaneously meet the needs of guests, staff and the owner. Well-designed properties are considered to be safe, cost-effective, and maintain their functionality over time. Hotel design must take into account the activities that will be conducted within the hotel, as well as the space relationships between these activities. The following chart, shows the typical space relationships within a modern hotel: VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 40 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS Figure 21.1 Basic Schematic Relationships Basic Relationships Adrnitt. Offices 1 Parking W fand ]3atiyuct Account. ' Front Office ---- Office Lobby Meeting Rooms ILEIIf Ihik1 Pool and Health Guest Club Rooms Restaurants Kitchen Back of House y I Source: (deRoos, J.A. (2011) Planning and Programming a Hotel, from Cornell University, School of Hospitality Administration site: http://scholarship.sha.cornell.edu/articles/310/) The following shows our analysis of the features that are considered to be obsolete and display an inadequate or outmoded design. Exterior Corridor The guest rooms in the 300, 400 and 500 Buildings, as well as some rooms in the 100/200 Building display an exterior corridor design. In this type of design,guests enter the rooms from exterior. This design feature was popular during the 1950's and 1960's as it was seen to offer convenience and a more home-like atmosphere. The exterior design also decreases the amount of common area space and is more cost- effective to construct. However, since the 1970's hotel design has been more focused on interior corridor design in which rooms are accessed from a common area hallway. Interior design hotels are considered to provide for greater guest security, which is especially important for guests that are visiting an unfamiliar area. According to Hotel News Now, exterior corridor hotels are significantly older than interior corridor hotels. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 41 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r BLIGHT ANALYSIS ';�;;./ PROPERTY ADVISORS Economy Chains - Interior vs Exterior Corridor Room Supply Age — Percent ee _ 70- ■Ito' ■ Exterior I 69-8 eo - r - 3s-7 ala • 3111 30 - 241 20T 10 - as 0 A A 411 Yews 10 20 Years >20 Years Hotel News Now Reports that exterior corridor hotels have been losing market share over the past 20 years and consistently have a lower occupancy rate and lower average daily rate than interior corridor hotels. The few exterior hotels that have been added in recent years have almost exclusively been economy chains, which have lower rental rates and have a limited amount of on-site amenities. The Study Area has been designed to be a convention center property, which makes the poor design especially harmful to income potential. Convention center hotel properties are most often luxury facilities with full-service accommodations and amenities. Furniture, Fixtures and Equipment The Study Area has obsolete furniture, fixtures and equipment, especially in the 300,400 and 500 buildings. This FF&E includes very dated beds, televisions, alarm clocks, and other items. There are also many rooms in these buildings that are missing these basic items. The photographs on the following page shows some of the obsolete FF&E. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 42 !,r,, Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS .}. J ,r^. . \\. , .„1. Carpet is in very poor condition and needs to be replaced. • l -4F- 1 -7:- . ' 41 , . - __. -- Ale • -41‘,1 - _ii _ - '`V3 .tip SCP \� . f . : ---- gip. 44.1' _ --,...,::::f.tcs..,.,...— 2 ...- - ._.. , .. .....„ ., , Obsolete comforter and bedsheets. The beds have not been replaced in many years. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 43 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r BLIGHT ANALYSIS ';:;;.' PROPERTY ADVISORS IP Il 1t .„-F=;' 1 Obsolete LED display alarm clock. rillii.:-.. 417-. s ! Obsolete television. Televisions at modern hotels are flat-screens. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 44 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r BLIGHT ANALYSIS n:.' PROPERTY ADVISORS Mechanical Systems The heating air conditioning system in the guest rooms is provided by window PTAC (Packaged Terminal Air Conditioners) unit that is considered to be very obsolete. This system is controlled by a thermometer in the guest room. However, the calibration of this thermometer does not work and the guest may only turn the heating and cooling system on and off. Also,the PTAC unit is very loud and this can make it difficult to sleep at night. Non-Flag In the hotel industry, a flag identifies the management company that operates the hotel. Until approximately 10 years ago, the Study Area was previously operated as a Ramada Inn. Since that time, the Study Area has been operated as a non-flag hotel, in which an independent owner operates the property. Non-flag hotels have lower occupancy rates and lower average daily rates. ADA Compliance The American with Disabilities Act(ADA) is a federal law that prohibits discrimination based upon disability. In new hotel properties, the ADA requires a door width of at least 32 inches in all guestrooms in order to allow for guests that use wheelchairs, crutches and walkers. The entrance doors in the 300, 400 and 500 Buildings are typically 26 inches or 28 inches. Other issues with ADA compliance include that the Study Area should have at least three rooms that have accessible roll-in showers and three rooms that can accommodate hearing impaired guests. The Study Area is not ADA compliant and this is an indication of obsolescence and an inadequate or outmoded design. Chapter 353—Factor #4- Physical Deterioration The Study Area has numerous issues with deferred maintenance. The interior of the building would require a complete renovation, including new floor tile, ceilings and painted walls. Also, many other components of the improvements would need to be replaced, including the HVAC, roof and parking lot area. As discussed throughout this report, there is a significant amount of physical deterioration in the building and site improvements. Below, we show pictures of the extent of the physical deterioration at the Study Area. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 45 k,\,‘,....:,r,,, Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS a_ \ \ ti• Mat NEM _ T l '1. ` r ' --- yr INF ZINI1110111111111111PUI A 1111- ill 1111411 vow Ware•• It.. MOM 1111112.4. 'I R - 1.ilillik, 11•1116.11111111 OMB am ataimmi 11M111111` mar- ...I[•-.102r1. i ..r* _ Cracked masonry on the front of the hotel. Water is able to leak into the interior of the structure which has caused mold and mildew damage. :44$:,,>,/••• ,-: �t 1 jr ; �PP'"��'" 1.d ip_. , t ` 1-, r. Ar p - "41 I ter„_ Cracks in the brick retaining wall. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 46 !.,r,!, Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS v i s. .. _r ,mow. / Cracks in the pavement area at the swimming pool. c _,.. . .. = , , tri . . illr / 1/is, Peeling paint on awning located near the swimming pool. Also, rust stains on the metal frame area. VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 47 Valbridge TRUMAN HOTEL AND CONVENTION CENTER r1f BLIGHT ANALYSIS PROPERTY ADVISORS • w 0 Stained ceiling tiles in the Convention Center building due to a leaking roof. The roof on each of the buildings is in need of replacement. A Acoustic ceiling tile and furniture has been removed from guest room due to water damage. VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 48 1"‘�T!!::.•, a brill TRUMAN HOTEL AND CONVENTION CENTER ''r BLIGHT ANALYSIS ';;. ' PROPERTY ADVISORS L • The carpet is in very poor condition and needs to be replaced. The carpet in the guest rooms in the 300, 400 and 500 Building has not been replaced in over 25 years. r7.~ z ' „ �,�-.1 9 5a ' R • 10'x c-- *'••Fo /' •x. .. - Jsj !.,r,!, Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS f It`. L�._' --- -moi ra X11, 11111 a Peeling wall paper in the convention center area due to moisture. ; - - —Raiff - s rte'°'fd i ! . '7, . - f. tOli '-.0( ' ' • , f.....7. .... _, .., _ _ __. __,.. _ , . ..,_4(,- _ _ /+ y F C l ff 1 :S .1 I I Rust on railing area. VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 50 1"�T!!::.•, Valbridge TRUMAN HOTEL AND CONVENTION CENTER BLIGHT ANALYSIS PROPERTY ADVISORS Blight Factors Conclusion-Chapter 353 Each of the four blight factors of the definition found in Chapter 353 of the Missouri Revised Statutes are present in the Study Area. Chapter 353BIight Factors Yes No Age X Obsolescence X Inadequate or Outmoded Design X Physical Deterioration X The blighting factors can range from minor (overgrown landscaping) to significant (poor design and significant physical deterioration). As four of the factors exist within the Study Area, we next examine whether these factors contribute to the four conditions defined by the statute. Chapter 353—Condition #1 Economic Liability Economic is defined as"Of, related to,or based on the production, and consumption of goods and services" (Source: Merriam-Webster Dictionary) Liability is defined as "One that acts as a disadvantage." (Source: Merriam-Webster Dictionary) Combining the two definitions above, economic liability can be anything that acts as a disadvantage to the production, and consumption of goods and services. In order to determine if the Study Area represents an economic liability, we have examined the revenue as well as the profitability of the Study Area over the previous two years. We also note that the area can be considered an economic liability due to the low tax revenue and the inability to pay reasonable taxes. A tax analysis of the Study Area is included later in this report. The following table shows the income that has been generated over the past two years. These statements include the first six months of 2015 and the final six months of 2013. Revenue Jan-Jul 2015 2014 Jul-Dec 2013 Sales-Banquet Operations $137,711 $289,113 $116,041 Sales-Restaurant $5,487 $107,034 $52,335 Sales-Room Income $334,254 $803,097 $756,623 Interest Income $0 $409 $2,093 Other Income $776 $9,280 $2,218 Total: $478,228 $1,208,933 $929,310 The revenue for the room income was decreased significantly in February 2014 when Union Pacific Railroad ended their contract at the Study Area. This contract provided for 2,000 room nights per month, and approximately $960,000 in revenue per year. The following table shows the annualized revenue, as well as the annual change in income over the past two years. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 51 a,� Valbridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS Annualized 2015 2014 Annualized Revenue 2015 %Change 2014 %Change 2013 Sales-Banquet Operations $275,423 -4.74% $289,113 24.57% $232,082 Sales-Restaurant $10,974 -89.75% $107,034 2.26% $104,669 Sales-Room Income $668,508 -16.76% $803,097 -46.93% $1,513,247 Interest Income $0 -99.97% $409 -90.22% $4,186 Other Income $1,552 -83.28% $9,280 109.18% $4,436 Total: $956,456 -20.88% $1,208,933 -34.96% $1,858,620 Overall,the revenue decreased 35%from 2013 to 2014 and decreased 21%from 2014 to 2015. For the past several years, the owner has not rented rooms in the 400 and 500 Buildings due to their condition. The property has shuttered the operations at the restaurant and bar and will soon shutter operations at the catering service. It is anticipated that shuttering these operations will further decrease the banquet operations and room income at the hotel. The following table shows the profitability of the Study Area over the past two years. Revenue Jan-Jul 2015 2014 Jul-Dec 2013 Total Income: $478,228 $1,208,933 $929,310 Total Expenses: ($561,298) ($1,496,519) ($909,872) Gross Profit (Loss) ($83,070) ($287,586) $19,438 The Study Area has not been profitable over the past two years, and was only barely profitable in 2013. As revenues drop, the continued operation of the facility as a full-service hotel will be more difficult for the owner. Based upon the declining revenue and the net loss of income over the previous two years, we have concluded that the Study Area constitutes an economic liability. This economic liability is a result of its age, obsolescence, inadequate or outmoded design and physical deterioration. Chapter 353 Condition #2-Social Liability Social is defined as "Of, relating to, or concerned with the welfare of human beings as members of society" (Source: Merriam-Webster Dictionary) Liability is defined as "One that acts as a disadvantage." (Source: Merriam-Webster Dictionary) Combining the two definitions above, social liability can be anything that works to the disadvantage of the welfare of members of a given community or of interaction among such members. On our inspection and after discussions with the owners, there are several social liabilities that are discussed in greater detail in other sections of this report. The Study Area encourages ill health and the transmission of disease. These issues can harm the health not only of guests and employees within the Study Area, but also the community at large. The welfare of the community is substantially based on job opportunities and adequate amenities such as lodging provided by various taxing jurisdictions from its tax revenue sources. The Site Area is operating at a very low occupancy. The low occupancy and shuttering of the restaurant and catering operations means that the Study Area is not able to provide job opportunities for members of the community as would be expected from commercial areas of this nature. Likewise, the lack of tax revenues reduces the ability of taxing districts to provide educational and other services to its community members. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 52 a,� Valbridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS This concept of a social liability as the underutilization of a property as a basis for blight has been upheld by the Missouri Supreme Court. The Court has determined that "the concept of urban redevelopment has gone far beyond 'slum clearance' and the concept of economic underutilization is a valid one." Blight exists to the extent an area is operating at less than its potential. The community is harmed by the foregone tangible and intangible benefits resulting from underperformance. The decline of tax revenues is a result of four blighting factors within the Study Area, and thus by these factors the Study Area is an economic and social liability. Based on the data and information contained in this report, we have determined that the Study Area constitutes both a "social liability" and an "economic liability" and meets the definition of a blighted area. Chapter 353—Condition #3 and #4 III Health and the Transmission of Disease The north wing of the 100/200 Building currently has a mold infestation. This infestation may be due to water entering the building via the leaking roof or the cracked masonry on the front of the building. Therefore, the ill health caused by the mold infestation is the result of the physical deterioration of the property. According to the Centers for Disease Control and Prevention (CDC),"molds can cause nasal stuffiness, throat irritation, coughing or wheezing, eye irritation, or, in some cases, skin irritation... Immune- compromised people and people with chronic lung illnesses, such as obstructive lung disease, may get serious infections in their lungs when they are exposed to mold." The presence of mold in the 100/200 Building is considered to be a menace to public health. • • d r Mold infestation VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 53 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r BLIGHT ANALYSIS PROPERTY ADVISORS . 1 •• I • r `7 • �T • • .• ' • • n i ' Ir - Mold infestation In addition to the mold infestation described above, we also encountered the presence of mildew in other areas of the property. The guest rooms of the 300, 400 and 500 Buildings there were signs of mildew damage due to a musky smell. Mold and mildew are the result of exposure to water and may carry other bacteria that is harmful to human health. The property is also reported to have a has a cockroach infestation. Cockroaches can cause allergies, especially in people who have asthma that can lead to skin rashes. Cockroaches can also transport microbes that are potential dangerous to humans, including E. coli, Salmonella, six parasitic worms and more than seven other types of human pathogens. Chapter 353—Condition #5 Crime In order to determine the extent of crime within the Study Area, we contacted the Jefferson City Police Department. Donna Henson, a dispatcher with the Jefferson City Police Department sent us the incident reports for crimes that had been reported at the address of the hotel. In total,there were 13 incident reports that have occurred within the past year. The incident reports that are criminal in nature include: 1. Seven cases of trespassing from individuals that have been asked repeatedly to leave the hotel. 2. Three instances of guests attempting to leave the hotel without paying. 3. Theft of items in the convention center areas as well as items in the 500 building. 4. Copper theft in the 500 Building. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 54 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r BLIGHT ANALYSIS PROPERTY ADVISORS Trespassing is a continuous problem at the Study Area. On our inspection, we noticed evidence of unwanted people staying overnight underneath the exterior stairwell 47, Ar ... 4. ti • Blanket and trash items from a trespasser Based upon the crimes that have been reported at the hotel over the past year, we conclude that crime is an indication of blight. Chapter 353—Condition #4 Inability to Pay Reasonable Taxes The city and other taxing districts are highly dependent on real property taxes, personal property taxes, utility taxes and sales taxes generated in its commercial areas. The Study Area is generating substantially less in taxes in the last several years and its real property tax generation is declining. Without redevelopment it is expected that the real property tax generation will continue to decline. Clearly the Study Area is not generating the amount of tax revenues to its potential and thus results in an economic liability. The following table, courtesy of the Jefferson City News Tribune, shows the breakdown of funding sources for the Jefferson City municipal government VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 55 1$T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r BLIGHT ANALYSIS PROPERTY ADVISORS CITY REVENUES-GENERAL FUND-€1(2015 Interest Contribution Other Income Donations Operating 0.31% Fees 0.38% Revenues OtherNon- Licenses 0.20% Operating &Permits Revenue 2.23% Fines& 0.08% Charges Forfeitures Transfers in for 3.36% 0.08% Services 8.28% Carry Over Inter- Surplus govern- 0.00% Sales mental Use 1.94% Taxes 33.22% Property Inter- Taxes governmental 17.79% Taxes Franchise& 7.22% Utility Tax Other Taxes 24.49% 0.41% Currently, over 50% of the revenue for the City of Jefferson is obtained through property taxes (17.79%) and Sales and Use taxes (33.22%). The following shows our analysis of sales and real estate taxes that are generated at the Study Area. Sales Tax Analysis In our analysis of economic liability,we discussed the declining revenue that is generated at the Study Area. This includes declining revenue from room rentals due to the very high vacancy at the property as well as the shuttering of the restaurant and catering operations. Overall,the revenue decreased 35%from 2013 to 2014 and decreased 21% from 2014 to 2015. The declining revenue as well as the loss of income at the property over the past two years shows an inability to pay reasonable sales taxes. Real Estate Tax Analysis Property taxes are based upon an appraisal of the property performed by the Cole County Assessor's Office with an effective date of January 1. The appraised value is then multiplied by the assessment rate in order to determine the assessed value. The assessed values are then multiplied by local mill levy, which is determined by the tax rates as established by taxing authorities such as city councils, school boards and county commissioners. The following table shows the assessment rates for each of the property types, as determined by Missouri Law. Assessment Ratio Residential: 19% Commercial: 32% Agricultural: 12% Tax statements are typically sent in November and real estate taxes are due in full on December 31. By far the largest recipients of real estate taxes is the Jefferson City School district. The following table shows the recipients of real estate taxes at the Study Area. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 56 !,r,! Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS Taxing Bodies District Tax Rate Extension COLE COUNTY GR 0.100 $563.65 CC SPECIAL SVCS 0.090 $507.85 JC SCHOOL DIST 3.693 $20,814.47 JEFFERSON CITY 0.460 $2,592.79 LIBRARY 0,200 $1,127.30 JEFF CITY FIRE PENSION FUND 0.096 $541.67 ROAD&BRIDGE 0.270 $1,521.86 STATE OF MO 0.030 $169.10 SURTAX 0.580 $3,269.17 Total 5.519 $31,107.86 JC SCHOOL DIST $2,592 79 SURTAX JEFFERSON CITY •ROAD&BRIDGE •LIBRARY •COLE COUNTY GR •JEFF CITY FIRE PENSION FUND $20,814.47 •CC SPECIAL SVCS •STATE OF MO The assessed values, applicable tax rates and total taxes, including direct assessments, are shown in the following table: Tax ID#: 10-06-13-0004-002-008 Tax Year 2015 2014 2013 2012 Land Value $1,471,800 $1,177,400 $1,177,000 Improved Value $278,200 $584,000 $584,000 Total Appraised Value $1,750,000 $1,761,406 $1,761,406 $4,000,000 Total Assessed Value $560,000 $563,650 $563,650 $1,280,000 Tax Rate 5.51900% 5.51860% 5.51040% Ad Valorem Tax $31,108 $31,106 $70,533 Special Assessments $0 $0 $0 Total Taxes $31,108 $31,106 $70,533 Payment Status Paid Paid Paid Amount Due $0 $0 $0 The appraised value was reduced from $4,000,000 in 2012 to $1,761,406 in 2013, a decrease of 56%. Real Estate taxes at the Study Area were previously considerably higher. For tax year 2015, the Study Area has an appraised value for tax purposed of $1,750,000. Approximately 84% of the value for tax purposes is allocated to the land and 16% is allocated to the improvements. This ratio is considered to be very high. Recently constructed commercial properties typically have a land value that is 15%to 20%of the total value. The tax rates for 2015 have not yet been set. However, based upon the 2014 tax rates, the property would pay $30,906 in real estate taxes in 2015. According to the assessor's office, real estate taxes are current as of the effective date. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 57 1"�T!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER BLIGHT ANALYSIS PROPERTY ADVISORS Assessment Comparables In order to demonstrate the inability to pay reasonable taxes, we have surveyed the tax rates at modern hotel properties in the area. Data for these properties is found in the table below: Name/Address Year Built Number of Rooms Appraised Value Value per Room Real Estate Taxes Taxes per Room Capital Plaza Hotel 415 W.McCarthy Street Jefferson City,MO 1996 255 $11,500,000 $45,098 $203,099 $796 Hampton Inn 4800 Country Club Drive Jefferson City,MO 1998 73 $3,109,219 $42,592 $52,280 $716 Fairfield Inn 3621 W.Truman Blvd. Jefferson City,MO 1998 65 $2,971,000 $45,708 $52,720 $811 Truman Hotel 1510 Jefferson Street Jefferson City,MO 1968 233 $1,750,000 $7,511 $30,906 $133 The appraised values for the three comparable properties analyzed above ranges from $716 to $811 per room, with an average value of$774 per room. This compares to the current appraised value of the Study Area of $133 per room. The current appraised value of the Study Area is approximately 83% less than modern hotel properties in the area. The real estate tax revenue is from the Study Area is considered to be very low and this is an indication of an inability to pay reasonable taxes. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 58 Va I brick a TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS Conclusion-Chapter 353 Each of the four blight factors of the definition found in Chapter 353 of the Missouri Revised Statutes are present in the Study Area. Chapter 353Blight Factors Yes No Age X Obsolescence X Inadequate or Outmoded Design X Physical Deterioration X The Study Area suffers from each of the six blight conditions of the definition, including economic and social liability. Chapter 353 Blight Conditions Yes No Economic Liability X Social Liability X III Health X _ Transmission of Disease X Crime X Inability to Pay Reasonable Taxes X Based upon our analysis, we conclude that this underutilization of the property is partially the result of the four blighting factors that have been discussed earlier in the report. The Study Area, in its present condition and use, constitutes an economic liability, a social liability, is conducive to ill health, the transmission of disease, crime and the inability to pay reasonable taxes. It is our opinion that the Study Area represents a "blighted area" as is defined in Missouri "The Urban Redevelopment Corporations Law", Section 353.010 to 353.190 VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 59 1"�T!!::.•, Valbridge TRUMAN HOTEL AND CONVENTION CENTER ":r BLIGHT ANALYSIS PROPERTY ADVISORS Blight Defined-Chapter 99 The Missouri"Real Property Tax Increment Allocation Redevelopment Act"Sections 99.300 to 99.660 defines a blighted area as an area which: A. By reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes,or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use; or B. Has been declared blighted or found to be a blighted area pursuant to Missouri Law including, but not limited to chapter 353 and sections 99.800 to 99.865. (67.1401 RSMo.) To the best of our knowledge,the Study Area has not previously been declared blighted by any government agency. Chapter 99 Factor #1-Defective or Inadequate Street Layout Conditions associated with defective or inadequate street layout include poor vehicular access and/or internal circulation; substandard driveway definition and parking layout (e.g. lack of curb cuts, awkward entrance and exit points); offset or irregular intersections; and substandard or nonexistent pedestrian circulation and lack of signage. Transportation Routes Highway 54 runs through Jefferson City in the north/south direction and connects the area to the Lake of the Ozarks to the south and more rural communities to the north. Highway 63 is located to the north of Jefferson City and connects the area to Columbia, MO, located about 30 miles to the north. Highway 50 runs through the city in an east/west direction and eventually connects with Kansas City to the west and St. Louis to the east. Overall, access to the area is considered to be average. The following map shows the areas within a 5, 10 and 15-minute drive time of the property. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 60 !.,r,!, Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS I 9 ! ` ew Bloomfield , 1 , s r_PI Hartrhurg t .Th I! I ,,,, it I ! 3v„, std h-'! - • ,/ki ILenferm,,,,,__- p I,.... V ' "1:: '' Tebbetts r I- Mill 5 1 I I r Russellvfll ' ®1 ^ - .. Loos Y ! ' \ rya--Creek , ' q r .„.„,-� )et Cr' 1\ Y _ We;ryhalia y, >0 / er+ a3! ,,,,LS - R MB „ — ( tThrnnes _ I S Or; Eu ee ne Frontage Streets The Study Area is located to the south of Zumwalt Street, in between Jefferson Street and Southridge Drive. Jefferson Street is a frontage road along Highway 54. According to the Missouri Department of Transportation, Highway 54 has a traffic volume of 24,115 per day. The following table shows information about the streets that front the Study Area. Street Name: Jefferson Street Southridge Drive Access: One curb cut Two curb cuts Street Paving: Asphalt Asphalt At Signalized Intersection: None None Lanes: Two Two Direction of Traffic: Northeast/southwest Northeast/southwest Condition: Average Average Curbs: None None Sidewalk: None None Overall Visibility: Good Good VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 61 1$r!!::.•, Va i brit e TRUMAN HOTEL AND CONVENTION CENTER "'r BLIGHT ANALYSIS PROPERTY ADVISORS • _ tip F 1"11111 " • Jefferson Street looking southwest Southridge Drive looking northeast We note the lack of curbing as well as median lane along Jefferson Street and Southridge Drive. Curbs allow surface water to properly drain, discourages illegal parking, and provides support to the pavement edge which will reduce the cost of future repairs. They also provide a more professional and finished look to the roadway which is important in commercial areas such as the Study Area. The median lanes allow for a greater amount of safety and improved traffic flow for motorists stranded in the event of an emergency or breakdown. It also allows for better traffic flow for motorists trying to make left turns into the busy commercial areas located in the Study Area. One of the conditions that was common throughout the Study Area was that of non-existent pedestrian circulation. There are no sidewalks located on the interior of the property or along Jefferson Drive or Southridge Drive. The lack of sidewalks creates a dangerous environment for pedestrians within the Study Area. Creating pedestrian linkages with major activity hubs such as a convention center is often a planning priority of communities. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 62 411//f VaIbridge TRUMAN HOTEL AND CONPROPERTY ADVISORS BLIGHT ANALYSIS Local Traffic Signals The following aerial map shows the ingress/egress points, with the Study Area outlined in red. ,,- ,71!. \fre— „it", : , 0w P, I .. lt je, 4 .„,, -,://_,,,, ;4: ir, • - 4 I. IIP aiii �,6 r Jin Cl15510 Jelfersor :- � . 4,..: " , t r' • „,...„....1-....,/ �� f 4 r r,• L r 4 4✓ :i .AGI i. ‘0 j A, ?-4 •`! • / odosoiN t i a a ®. Va��e Y' , ,:: tin. � "vi ®i:.-„/ N.ars The Study Area contains one curb cut on the south end of Jefferson Street and two curb cuts on the north end of Southridge Drive. As shown above, the entrance to the hotel is located on the northeastern portion of the site, far away from all of the curb cuts. It is difficult for people unfamiliar with the property to discern the location of the entrance to the hotel, based upon the location of the curb cuts. Interior Traffic We have also considered the interior traffic circulation within the Study Area. Unlike modern hotel properties, the Study Area does not have speed bumps which might slow vehicles and allow for greater safety for pedestrians. Also, the Study Area does not have any traffic signs to instruct vehicles to yield or stop. This has the potential to be confusing for motorists and dangerous for pedestrians as there are many buildings sharing access drives in the parking area. Conclusion Based upon the information presented above, it is concluded that the Study Area suffers from a defective or inadequate street layout. The roadways that front the Study Area do not contain any curbing or a median lane area, which does not allow for the adequate flow of traffic and is not a professional, finished look that is important for commercial areas such as the Study Area. Also, there are no sidewalks located around the area. Finally,the interior traffic at the Study Area does not allow for good traffic flow as there are no speed bumps or traffic signals, and the location of the curb cuts is far away from the entrance to the hotel lobby. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 63 Va I brick a TRUMAN HOTEL AND CONVENTION CENTER . PROPERTY ADVISORS BLIGHT ANALYSIS Chapter 99 Factor #2-Unsanitary or Unsafe Conditions There are numerous instances within the Study Area exhibiting unsafe or unsanitary conditions. Many of these issues have been documented in previous sections of this report. As discussed in the previous section, there is a defective or inadequate street layout in the area,which is potentially dangerous for motorists and pedestrians. There is a mold infestation in the north wing of the 100/200 building. There is also mildew damage in all of the other buildings at the property.We also noticed debris such as peeling wall paint and debris in many of the vacant rooms. Additional instances of unsafe or unsanitary conditions are documented in the pictures below. L� • Mold and mildew damage in the carpet. Note guest rooms have suspended acoustic tile ceiling, national chains no longer allow the same. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 64 !,r,!, Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS emir ` s11 .. Ii 1 - MO*- - —2,„ •r•., _ Ill* . y -- -- , _' -- ...!...,r-a,.-1 i . -A --- 7., _ • `-. Crumbling brick wall near the gas pipes. Y Y ;t. 1 himuro Mold infestation in the north wing of the 100/200 Building. VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 65 ""'` Va!bridge TRUMAN HOTEL AND CONVENTION CENTER . PROPERTY ADVISORS BLIGHT ANALYSIS Chapter 99 Factor #3-Deterioration of Site Improvements Site improvements are defined as"Improvements on and off a site that make it suitable for its intended use or development. On-site improvements include grading, landscaping paving and utility hook-ups; off-site improvements include streets, curbs, sidewalks, drains and connecting utility lines." (Dictionary of Real Estate Appraisal, 5th Edition). It is determined that Study Area has deterioration of site improvements and the pictures on the following pages show the extent. We discussed some of these issues with physical depreciation in the previous section of this report. L \ 1 .,,.\\,, , 10 \ l I 1 1.1 I-11I 1 !a1 11 11 ' - h-1 111I ilHH14 4. :' ��� , :_.- '":7-1‘.:4~,- : --- .* ';',..;44,t.--;:_;;‘.7.7''''41X5:'• 4 r ae. — 3"'. . Z +-.C.-,;:f.-(7:-''''''":4 .y z A 2a r.a Y`, r .'tet' p ' t Z : S.:" h v ., 1 air.- r•c ' cx ; ,,�`". *t-.- �' t".";:,-, r 1 `i -,•try,+Y�i''tn_y,�, 1 7,.. "w r 7.� • Yom' N' M 1 Cracked pavement showing deterioration of parking lot. VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 66 1$T!!::.•, Va i brig e TRUMAN HOTEL AND CONVENTION CENTER " • BLIGHT ANALYSIS ';:;;.' PROPERTY ADVISORS Cracked pavement in parking area. Oirldirillinpg"L ,.:Vt -1` t...4 !..r .„„0, .,• �� Iii - 1 • '''-'7.-?!M. . - 416' !L-' -) _ / _ • Cracked pavement in the pool area. VALBRIDGE PROPERTY ADVISORS 1 Shaner Appraisals,Inc. Page 67 Va I brill TRUMAN HOTEL AND CONVENTION CENTER BLIGHT ANALYSIS PROPERTY ADVISORS • ,rte 3 � t , t ,lam HTiti._ ° -.. -. ' - Deteriorated curbing and gutter. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 68 Va I brick a TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS Chapter 99 Factor #4-Improper Subdivision of Obsolete Platting There are specific conditions that can be used to determine the existence of improper subdivision or obsolete platting. Among these conditions are irregular or faulty lot shape and/or layout, inadequate lot size,and poor access.Our inspection and review of public records suggests these conditions are not present within the Study Area. This factor of blight generally applies to urban settings where fractioned interests prohibit coherent development of modern, functional facilities. In this case, however, the site is unplatted land. The property will need to be platted for development to occur, but the lack of existing platting is not considered to be an indication of blight. Chapter 99 Factor #5-Existence of Conditions Which Endanger Life or Property The property is also considered to be a fire risk. There is no sprinkler system in any of the buildings at the Study Area. This risk is especially significant at the Study Area due as the kitchen area can represent a significant fire risk. The guest rooms each contain a smoke detector. However,the guest rooms in the 400 and 500 Buildings have been vacant for at least a year and these smoke detectors have not been checked to see if they are in good working order. The lack of functioning fire sprinkler systems in the buildings will increase fire risk which can endanger life and property. Overall, conditions which endanger life or property are considered to be an indication of blight in the Study Area. Blight Factors Conclusion-Chapter 99 The predominance of blighting factors within the Study Area is established by the presence of four of the five blighting factors. The table below provides a review of the blighting factors. Chapter 99 Blight Factors Yes No Defective or Inadequate Street Layout X Unsanitary or Unsafe Conditions X Deterioration of the Site Improvements X Improper Subdivision or Obsolete Platting X Conditions which Endanger Life or Property by Fire and Other Causes X As four of the five blighting factors exist within the Study Area, we next examine whether these factors contribute to the four conditions defined by the statute. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 69 Va I brick a TRUMAN HOTEL AND CONVENTION CENTER . PROPERTY ADVISORS BLIGHT ANALYSIS Chapter 99 Condition #1-Hinderance to Housing Accommodations This condition of the blight definition is intended to intended to deal with the growth and development in the surrounding neighborhood. The Study area is zoned C-2, General Commercial District by the City of Jefferson. According to the municipal code, the purpose of the C-2 district is "to accommodate general trades and commercial services not permitted in central and neighborhood zoning districts located at select nodes, intersections and highway interchanges to serve the motoring public and highway users. Buffering, landscaping and open space areas are required to mitigate impacts of the more intensive land uses and traffic activities as well as provide adequate access and traffic improvements." Residential uses are not encouraged within this zoning district and therefore this condition is not considered to be applicable. Chapter 99 Condition #2-Economic Liability The Study Area has experienced declining revenues and is generating little in real estate taxes and sales taxes at present. Without redevelopment it is expected that revenues will continue to decline and tax generation will continue to be very low. As discussed in the previous section, the Study Area is considered to be an economic liability. We believe that the poor street layout, unsanitary or unsafe conditions, the deterioration of site improvements,as well as the fire risk at the Study Area has contributed to the economic liability. Chapter 99—Condition #3 Social Liability As discussed in the previous section,the Study Area is not able to provide jobs or adequate tax revenue for services and is considered to be a social liability.We believe that the poor street layout, unsanitary or unsafe conditions,the deterioration of site improvements, as well as the fire risk at the Study Area has contributed to the social liability. Chapter 99 Condition #4-Menace to Public Health, Safety, Morals and Welfare As discussed in the previous section,the Study Area has a mold infestation in the north wing of the 100/200 Building. There is also an issue with mildew in each of the buildings. Finally, the property has a cockroach infestation in the hotel area. The Study Area is concluded to be a menace to public health, safety, morals and welfare. We believe that the unsanitary or unsafe conditions have contributed to the menace to public health, safety, morals and welfare. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 70 Valbridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS BLIGHT ANALYSIS Conclusion-Chapter 99 Four of the five components of the blight definition found in Chapter 99 of the Missouri Revised Statutes are present in the Study Area. Chapter 99 Blight Factors Yes No Defective or Inadequate Street Layout X Unsanitary or Unsafe Conditions X Deterioration of Site Improvements X Improper Subdivision or Obsolete Platting X Conditions which Endanger Life or Property by Fire and Other Causes X By reason of a predominance of these condition, the Study Area suffers from three of the four blighting conditions. Chapter 99 Blight Conditions Yes No Hindrance to Housing Accommodations X Economic Liability X Social Liability X Menace to Public Health, Safety, Morals and Welfare X Based upon our analysis and after conversations with the owners, we conclude that this underutilization of the property is partially the result of the four blighting factors that have been discussed earlier in the report. The Study Area, in its present condition and use, constitutes an economic liability, a social liability, as well as a menace to public health and safety and is therefore concluded to be a blighted area as defined by the Missouri "Real Property Tax Increment Allocation Redevelopment Act" Sections 99.300 to 99.660. Respectfully submitted, Valbridge Property Advisors I Shaner Appraisals, Inc. 0/WA/IA,/ PV Ulf/ Andrew Baker, MAI Senior Appraiser Missouri License#2013E030999 VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 71 TRUMAN HOTEL AND CONVENTION CENTER CERTIFICATION General Assumptions & Limiting Conditions This blight study is subject to the following limiting conditions: 1. All information in this report has been obtained from reliable sources. We cannot, however, guarantee or be responsible for the accuracy of information furnished by others. 2. Possession of this report or a copy thereof does not imply the right of publication or use for any purpose by any other than the addressee,without the written consent of the appraiser. This report was prepared for the sole and exclusive use of the appraiser's client. No third parties are authorized to rely upon this report without the express written consent of the appraiser. 3. The appraiser is not required to give testimony or attendance in court by reason of this blight study, unless prior agreements have been made in writing. 4. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media, without the written consent and approval of the author, particularly as to the conclusions, the identity of the consultant or firm with which he is connected, or any reference to the Appraisal Institute. 5. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data) and has noted in the blight study whether the Study Area site is located in an identified Special Flood Hazard Area. Because the consultant is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 72 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER r PROPERTY ADVISORS ADDENDA Addenda VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 73 Va!bridge TRUMAN HOTEL AND CONVENTION CENTER ADDENDA PROPERTY ADVISORS Glossary Definitions are taken from the Dictionary of Real Estate Appraisal, 5th Edition (Dictionary), the Uniform Standards of Professional Appraisal Practice(USPAP) and Building Owners and Managers Association International (BOMA). floor common areas, parking spaces, portions of loading Absolute Net Lease docks outside the building line, and major vertical A lease in which the tenant pays all expenses including penetrations.(BOMA) structural maintenance, building reserves, and management; often a long-term lease to a credit tenant. Building Rentable Area (Dictionary) The sum of all floor rentable areas. Floor rentable area is the result of subtracting from the gross measured area of Additional Rent a floor the major vertical penetrations on that same floor. Any amounts due under a lease that is in addition to base It is generally fixed for the life of the building and is rarely rent. Most common form is operating expense increases. affected by changes in corridor size or configuration. (Dictionary) (BOMA) Amortization Certificate of Occupancy (COO) The process of retiring a debt or recovering a capital A statement issued by a local government verifying that investment, typically though scheduled, systematic a newly constructed building is in compliance with all repayment of the principal; a program of periodic codes and may be occupied. contributions to a sinking fund or debt retirement fund. (Dictionary) Common Area (Public) Factor In a lease, the common area (public) factor is the As Is Market Value multiplier to a tenant's useable space that accounts for The estimate of the market value of real property in its the tenant's proportionate share of the common area current physical condition, use, and zoning as of the (restrooms, elevator lobby, mechanical rooms, etc.). The appraisal date. (Dictionary) public factor is usually expressed as a percentage and ranges from a low of 5 percent for a full tenant to as high Base (Shell) Building as 15 percent or more for a multi-tenant floor. The existing shell condition of a building prior to the Subtracting one(1)from the quotient of the rentable area installation of tenant improvements.This condition varies divided by the useable area yields the load(public)factor. from building to building, landlord to landlord, and At times confused with the"loss factor"which is the total generally involves the level of finish above the ceiling rentable area of the full floor less the useable area divided grid. (Dictionary) by the rentable area. (BOMA) Base Rent Common Area Maintenance (CAM) The minimum rent stipulated in a lease. (Dictionary) The expense of operating and maintaining common areas; may or may not include management charges and Base Year usually does not include capital expenditures on tenant The year on which escalation clauses in a lease are based. improvements or other improvements to the property. (Dictionary) CAM can be a line-item expense for a group of items that Building Common Area can include maintenance of the parking lot and The areas of the building that provide services to building landscaped areas and sometimes the exterior walls of the tenants but which are not included in the rentable area of buildings.CAM can refer to all operating expenses. any specific tenant.These areas may include,but shall not be limited to, main and auxiliary lobbies,atrium spaces at CAM can refer to the reimbursement by the tenant to the the level of the finished floor, concierge areas or security landlord for all expenses reimbursable under the lease. desks, conference rooms, lounges or vending areas food Sometimes reimbursements have what is called an service facilities, health or fitness centers, daycare administrative load. An example would be a 15 percent facilities, locker or shower facilities, mail rooms, fire addition to total operating expenses, which are then control rooms, fully enclosed courtyards outside the prorated among tenants. The administrative load, also exterior walls,and building core and service areas such as called an administrative and marketing fee, can be a fully enclosed mechanical or equipment rooms. substitute for or an addition to a management fee. Specifically excluded from building common areas are; (Dictionary) VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 74 "T. Va l bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA Condominium Both the buyer and seller are acting prudently and A form of ownership in which each owner possesses the knowledgeably; exclusive right to use and occupy an allotted unit plus an The seller is under compulsion to sell; undivided interest in common areas. • The buyer is typically motivated; • Both parties are acting in what they consider to be A multiunit structure, or a unit within such a structure, their best interests; with a condominium form of ownership. (Dictionary) • An adequate marketing effort will be made during the exposure time specified by the client; Conservation Easement Payment will be made in cash in U.S. dollars or in An interest in real property restricting future land use to terms of financial arrangements comparable thereto; preservation, conservation, wildlife habitat, or some and combination of those uses.A conservation easement may • The price represents the normal consideration for permit farming,timber harvesting,or other uses of a rural the property sold, unaffected by special or creative nature to continue, subject to the easement. In some financing or sales concessions granted by anyone locations, a conservation easement may be referred to as associated with the sale. (Dictionary) a conservation restriction. (Dictionary) Easement Contributory Value The right to use another's land for a stated purpose. The change in the value of a property as a whole,whether (Dictionary) positive or negative, resulting from the addition or deletion of a property component. Also called deprival EIFS value in some countries. (Dictionary) Exterior Insulation Finishing System. This is a type of exterior wall cladding system. Sometimes referred to as Debt Coverage Ratio (DCR) dry-vit. The ratio of net operating income to annual debt service (DCR = NOI/Im), which measures the relative ability to a Effective Date property to meet its debt service out of net operating 1)The date at which the analyses,opinions,and advice in income.Also called Debt Service Coverage Ratio (DSCR). an appraisal, review, or consulting service apply. 2) In a A larger DCR indicates a greater ability for a property to lease document,the date upon which the lease goes into withstand a downturn in revenue, providing an improved effect. (Dictionary) safety margin for a lender. (Dictionary) Effective Rent Deed Restriction The rental rate net of financial concessions such as A provision written into a deed that limits the use of land. periods of no rent during the lease term and above- or Deed restrictions usually remain in effect when title below-market tenant improvements(TI5). (Dictionary) passes to subsequent owners. (Dictionary) EPDM Depreciation Ethylene Diene Monomer Rubber. A type of synthetic 1) In appraising, the loss in a property value from any rubber typically used for roof coverings. (Dictionary) cause; the difference between the cost of an improvement on the effective date of the appraisal and Escalation Clause the market value of the improvement on the same date. A clause in an agreement that provides for the 2) In accounting, an allowance made against the loss in adjustment of a price or rent based on some event or value of an asset for a defined purpose and computed index. e.g., a provision to increase rent if operating using a specified method. (Dictionary) expenses increase;also called an expense recovery clause or stop clause. (Dictionary) Disposition Value The most probable price that a specified interest in real Estoppel Certificate property is likely to bring under the following conditions: A statement of material factors or conditions of which another person can rely because it cannot be denied at a Consummation of a sale within a exposure time later date. In real estate, a buyer of rental property specified by the client; typically requests estoppel certificates from existing The property is subjected to market conditions tenants. Sometimes referred to as an estoppel letter. prevailing as of the date of valuation; (Dictionary) VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 75 Valbridge kaa'��!;; TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA Excess Land Full Service (Gross) Lease Land that is not needed to serve or support the existing A lease in which the landlord receives stipulated rent and improvement.The highest and best use of the excess land is obligated to pay all of the property's operating and may or may not be the same as the highest and best use fixed expenses;also called a full service lease.(Dictionary) of the improved parcel. Excess land may have the potential to be sold separately and is valued separately. Going Concern Value (Dictionary) • The market value of all the tangible and intangible assets of an established and operating business with Expense Stop an indefinite life, as if sold in aggregate; more A clause in a lease that limits the landlord's expense accurately termed the market value of the going obligation, which results in the lessee paying any concern. operating expenses above a stated level or amount. • The value of an operating business enterprise. (Dictionary) Goodwill may be separately measured but is an integral component of going-concern value when it Exposure Time exists and is recognizable. (Dictionary) 1) The time a property remains on the market. 2) The estimated length of time the property interest being Gross Building Area appraised would have been offered on the market prior The total constructed area of a building.It is generally not to the hypothetical consummation of a sale at market used for leasing purposes (BOMA) value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events Gross Measured Area assuming a competitive and open market. (Dictionary) The total area of a building enclosed by the dominant portion (the portion of the inside finished surface of the Extraordinary Assumption permanent outer building wall which is 50 percent or An assumption, directly related to a specific assignment, more of the vertical floor-to-ceiling dimension, at the which, if found to be false, could alter the appraiser's given point being measured as one moves horizontally opinions or conclusions. Extraordinary assumptions along the wall), excluding parking areas and loading presume as fact otherwise uncertain information about docks (or portions of the same)outside the building line. physical, legal, or economic characteristics of the subject It is generally not used for leasing purposes and is property; or about conditions external to the property calculated on a floor by floor basis. (BOMA) such as market conditions or trends; or about the integrity of data used in an analysis. (Dictionary) Gross Up Method A method of calculating variable operating expense in Fair Market Value income-producing properties when less than 100 percent The price at which the property should change hands occupancy is assumed. The gross up method between a willing buyer and a willing seller, neither being approximates the actual expense of providing services to under any compulsion to buy or sell and both having the rentable area of a building given a specified rate of reasonable knowledge of relevant facts. [Treas. Reg. occupancy. (Dictionary) 20.2031-1(b); Rev. Rul. 59-60. 1959-1 C.B. 237] Ground Lease Fee Simple Estate A lease that grants the right to use and occupy land. Absolute ownership unencumbered by any other interest Improvements made by the ground lessee typically revert or estate, subject only to the limitations imposed by the to the ground lessor at the end of the lease term. governmental powers of taxation, eminent domain, (Dictionary) police power, and escheat. (Dictionary) Ground Rent Floor Common Area The rent paid for the right to use and occupy land Areas on a floor such as washrooms, janitorial closets, according to the terms of a ground lease;the portion of electrical rooms, telephone rooms, mechanical rooms, the total rent allocated to the underlying land. elevator lobbies,and public corridors which are available (Dictionary) primarily for the use of tenants on that floor.(BOMA) HVAC Heating, ventilation, air conditioning. A general term encompassing any system designed to heat and cool a building in its entirety. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 76 Valbridge kaa'��if; TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA Highest & Best Use a contractual landlord-tenant relationship (i.e., a lease). The reasonably probable and legal use of vacant land or (Dictionary) an improved property that is physically possible, appropriately supported, financially feasible, and that Leasehold Interest results in the highest value. The four criteria the highest The tenant's possessory interest created by a lease. and best use must meet are 1) legal permissibility, 2) (Dictionary) physical possibility, 3) financial feasibility, and 4) maximally profitability.Alternatively, the probable use of Lessee (Tenant) land or improved —specific with respect to the user and One who has the right to occupancy and use of the timing of the use—that is adequately supported and property of another for a period of time according to a results in the highest present value. (Dictionary) lease agreement. (Dictionary) Hypothetical Condition Lessor(Landlord) That which is contrary to what exists but is supposed for One who conveys the rights of occupancy and use to the purpose of analysis. Hypothetical conditions assume others under a lease agreement. (Dictionary) conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or Liquidation Value about conditions external to the property,such as market The most probable price that a specified interest in real conditions or trends; or about the integrity of data used property should bring under the following conditions: in an analysis. (Dictionary) a Consummation of a sale within a short period. Industrial Gross Lease • The property is subjected to market conditions A lease of industrial property in which the landlord and prevailing as of the date of valuation. tenant share expenses. The landlord receives stipulated a Both the buyer and seller are acting prudently and rent and is obligated to pay certain operating expenses, knowledgeably. often structural maintenance, insurance and real estate a The seller is under extreme compulsion to sell. taxes as specified in the lease. There are significant a The buyer is typically motivated. regional and local differences in the use of this term. a Both parties are acting in what they consider to be (Dictionary) their best interests. a A normal marketing effort is not possible due to the Insurable Value brief exposure time. A type of value for insurance purposes. (Dictionary) a Payment will be made in cash in U.S. dollars or in (Typically this includes replacement cost less basement terms of financial arrangements comparable thereto. excavation, foundation, underground piping and a The price represents the normal consideration for architect's fees). the property sold, unaffected by special or creative financing or sales concessions granted by anyone Investment Value associated with the sale. (Dictionary) The value of a property interest to a particular investor or class of investors based on the investor's specific Loan to Value Ratio (LTV) requirements. Investment value may be different from The amount of money borrowed in relation to the total market value because it depends on a set of investment market value of a property. Expressed as a percentage of criteria that are not necessarily typical of the market. the loan amount divided by the property value. (Dictionary) (Dictionary) Just Compensation Major Vertical Penetrations In condemnation,the amount of loss for which a property Stairs, elevator shafts, flues, pipe shafts, vertical ducts, owner is compensated when his or her property is taken. and the like,and their enclosing walls.Atria,lightwells and Just compensation should put the owner in as good a similar penetrations above the finished floor are included position as he or she would be if the property had not in this definition. Not included, however, are vertical been taken.(Dictionary) penetrations built for the private use of a tenant occupying office areas on more than one floor.Structural Leased Fee Interest columns,openings for vertical electric cable or telephone A freehold (ownership interest) where the possessory distribution, and openings for plumbing lines are not interest has been granted to another party by creation of considered to be major vertical penetrations.(BOMA) VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 77 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER "'.'v'. PROPERTY ADVISORS ADDENDA Market Rent the effective date of an appraisal. (Advisory Opinion 7 of The most probable rent that a property should bring in a the Standards Board of the Appraisal Foundation and competitive and open market reflecting all conditions Statement on Appraisal Standards No. 6, "Reasonable and restrictions of the lease agreement including Exposure Time in Real Property and Personal Property permitted uses, use restrictions, expense obligations; Market Value Opinions" address the determination of term, concessions, renewal and purchase options and reasonable exposure and marketing time). (Dictionary) tenant improvements(Tls). (Dictionary) Master Lease Market Value A lease in which the fee owner leases a part or the entire The most probable price which a property should bring property to a single entity(the master lease) in return for in a competitive and open market under all conditions a stipulated rent. The master lessee then leases the requisite to a fair sale, the buyer and seller each acting property to multiple tenants. (Dictionary) prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition Modified Gross Lease is the consummation of a sale as of a specified date and A lease in which the landlord receives stipulated rent and the passing of title from seller to buyer under conditions is obligated to pay some, but not all, of the property's whereby: operating and fixed expenses. Since assignment of expenses varies among modified gross leases, expense a. Buyer and seller are typically motivated; responsibility must always be specified. In some markets, b. Both parties are well informed or well advised, and a modified gross lease may be called a double net lease, acting in what they consider their own best interests; net net lease, partial net lease, or semi-gross lease. c. A reasonable time is allowed for exposure in the (Dictionary) open market; d. Payment is made in terms of cash in United States Option dollars or in terms of financial arrangements A legal contract, typically purchased for a stated comparable thereto;and consideration, that permits but does not require the e. The price represents the normal consideration for holder of the option (known as the optionee)to buy,sell, the property sold unaffected by special or creative or lease real property for a stipulated period of time in financing or sales concessions granted by anyone accordance with specified terms; a unilateral right to associated with the sale. exercise a privilege.(Dictionary) Market Value As If Complete Partial Interest Market value as if complete means the market value of Divided or undivided rights in real estate that represent the property with all proposed construction, conversion less than the whole (a fractional interest). (Dictionary) or rehabilitation hypothetically completed or under other specified hypothetical conditions as of the date of the Pass Through appraisal. With regard to properties wherein anticipated A tenant's portion of operating expenses that may be market conditions indicate that stabilized occupancy is composed of common area maintenance (CAM), real not likely as of the date of completion, this estimate of estate taxes, property insurance, and any other expenses value shall reflect the market value of the property as if determined in the lease agreement to be paid by the complete and prepared for occupancy by tenants. tenant.(Dictionary) Market Value As If Stabilized Prospective Future Value Upon Completion Market value as if stabilized means the market value of Market value "upon completion" is a prospective future the property at a current point and time when all value estimate of a property at a point in time when all of improvements have been physically constructed and the its improvements are fully completed. It assumes all property has been leased to its optimum level of long proposed construction, conversion, or rehabilitation is term occupancy. hypothetically complete as of a future date when such effort is projected to occur. The projected completion Marketing Time date and the value estimate must reflect the market value An opinion of the amount of time it might take to sell a of the property in its projected condition, i.e., completely real or personal property interest at the concluded vacant or partially occupied. The cash flow must reflect market value level during the period immediately after lease-up costs, required tenant improvements and the effective date of the appraisal. Marketing time differs leasing commissions on all areas not leased and from exposure time,which is always presumed to precede occupied. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 78 Va i bridge TRUMAN HOTEL AND CONVENTION CENTER ADDENDA PROPERTY ADVISORS Prospective Future Value Upon Stabilization Subordination Market value "upon stabilization" is a prospective future A contractual arrangement in which a party with a claim value estimate of a property at a point in time when to certain assets agrees to make his or her claim junior,or stabilized occupancy has been achieved. The projected subordinate,to the claims of another party. (Dictionary) stabilization date and the value estimate must reflect the absorption period required to achieve stabilization. In Substantial Completion addition, the cash flows must reflect lease-up costs, Generally used in reference to the construction of tenant required tenant improvements and leasing commissions improvements (Tls). The tenant's premises are typically on all unleased areas. deemed to be substantially completed when all of the Tls for the premises have been completed in accordance with Replacement Cost the plans and specifications previously approved by the The estimated cost to construct,at current prices as of the tenant. Sometimes used to define the commencement effective appraisal date, a substitute for the building date of a lease. being appraised, using modern materials and current standards, design,and layout. (Dictionary) Surplus Land Land that is not currently needed to support the existing Reproduction Cost improvement but cannot be separated from the property The estimated cost to construct,at current prices as of the and sold off.Surplus land does not have an independent effective date of the appraisal, an exact duplicate or highest and best use and may or may not contribute replica of the building being appraised, using the same value to the improved parcel. (Dictionary) materials, construction standards, design, layout, and quality of workmanship and embodying all of the Triple Net (Net Net Net) Lease deficiencies, super-adequacies, and obsolescence of the A lease in which the tenant assumes all expenses (fixed subject building. (Dictionary) and variable) of operating a property except that the landlord is responsible for structural maintenance, Retrospective Value Opinion building reserves, and management. Also called NNN, A value opinion effective as of a specified historical date. triple net leases,or fully net lease. (Dictionary) The term does not define a type of value. Instead, it identifies a value opinion as being effective at some (The market definition of a triple net leases varies;in some specific prior date. Value as of a historical date is cases tenants pay for items such as roof repairs, parking frequently sought in connection with property tax lot repairs, and other similar items.) appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of Usable Area the type of value with this term is appropriate, e.g., The measured area of an office area, store area or "retrospective market value opinion." (Dictionary) building common area on a floor. The total of all the usable areas or a floor shall equal floor usable area of that Sandwich Leasehold Estate same floor.The amount of floor usable area can vary over The interest held by the original lessee when the property the life of a building as corridors expand and contract and is subleased to another party; a type of leasehold estate. as floors are remodeled. (BOMA) (Dictionary) Value-in-Use Sublease The value of a property assuming a specific use, which An agreement in which the lessee (i.e.,the tenant) leases may or may not be the property's highest and best use part or all of the property to another party and thereby on the effective date of the appraisal.Value in use may or becomes a lessor. (Dictionary) may not be equal to market value but is different conceptually. (Dictionary) VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 79 „' y� Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA Subject Photographs IMAGE PLACEHOLDER IMAGE PLACEHOLDER *right click; Change Picture* *right click; Change Picture* Caption here Caption here IMAGE PLACEHOLDER IMAGE PLACEHOLDER *right click; Change Picture* *right click; Change Picture* Caption here Caption here IMAGE PLACEHOLDER IMAGE PLACEHOLDER *right click; Change Picture* *right click; Change Picture* Caption here Caption here VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 80 x!111) Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA Argus Reports VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 81 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA Lease-Up Discount Calculation VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 82 !,r,! Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA Lease-Up Adjustment Professional Office 0.0% 0 sf N/A 0.0% 0 sf N/A 0.0% 0 sf N/A 0.0% 0 sf N/A 0.0% 0 sf N/A 0.0% 0 sf N/A 0.0% 0 sf N/A 0.0% 0 sf Net Rentable Area 100.0% 844,763 sf Currently Occupied Area 100.0% 844,763 sf Stabilized Occupancy 92.0% 777,182 sf Period (Months) Vacant Area Share of Vacant Area Professional Office #DIV/0! N/A #DIV/0! N/A #DIV/0! N/A #DIV/0! N/A #DIV/0! N/A #DIV/0! N/A #DIV/0! N/A #DIV/0! Total Absorption Professional Office N/A N/A N/A N/A N/A N/A N/A Total Total Occupied % Occupied Lost Rent Market Rental Rates Professional Office $31.00 psf N/A $0.00 psf N/A $0.00 psf N/A $0.00 psf N/A $0.00 psf VALBRIDGE PROPERTY ADVISORS N/A $0.00 psf Page 83 N/A $0.00 psf N/A $0.00 psf 4\4/ Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 84 Va I bridge TRUMAN HOTEL AND CONVENTION CENTER ADDENDA qr PROPERTY ADVISORS Exhibit 3, etc. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 85 k!1rVa I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADV`IS QRS ADDENDA Qualifications VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 86 Valbridge TRUMAN HOTEL AND CONVENTION CENTER ADDENDA 4. PROPERTY ADVISORS Qualifications of Andrew Baker General Certified Real Property Appraiser ems, • Valbridge Property Advisors I Shaner Appraisals, Inc. Independent Valuations for a Variable World State Certifications Membership/Affiliations: Candidate for Designation: Appraisal Institute State of Kansas State of Missouri Education Appraisal Institute and Related Courses: Basic Appraisal Principles BA Case Western Reserve Basic Appraisal Procedures University Uniform Standards of Professional Appraisal Practice Real Estate Finance, Statistics and Valuation Modeling Market Analysis and Highest and Best Use Contact Details Sales Comparison Approach Income Approach Part 1 and 2 913-647-4989 Report Writing and Case Studies Appraisal Review Valbridge Property Advisors I Apartment Appraisal, Concepts and Applications Shaner Appraisals, Inc. Advanced Income Capitalization 10990 Quivira Road Advanced Concepts &Case Studies Suite 100 Advanced Market Analysis and Highest & Best Use Overland Park, KS 66210 Experience: www.valbridge.com Real Estate Analyst/Certified General Appraiser abaker@valbridge.com Valbridge PropertyAdvisors Shaner Appraisals, Inc. (2012-Present) Real Estate Analyst Integra Realty Resources. (2008-2012) Appraisal/valuation and consulting assignments include: apartment buildings; retail buildings and shopping centers; office buildings; industrial buildings; religious and special purpose properties including schools, churches and car washes; daycares; residential subdivisions; industrial, skilled nursing, commercial and residential land. Assignments also include tax appeal valuations and rent comparability studies. Assignments have been concentrated in the Kansas City Metropolitan area. VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 87 4\4/ Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 88 4\4/ Va I bridge TRUMAN HOTEL AND CONVENTION CENTER PROPERTY ADVISORS ADDENDA VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 89 Valbridge TRUMAN HOTEL AND CONVENTION CENTER ADDENDA 4. PROPERTY ADVISORS Information on Valbridge Property Advisors Valbridge covers the U.S. from coast to coast, and is one of the Top 3 national commercial real estate valuation and advisory services firms based on: • Total number of MAIs (163 on staff) • Total number of office locations (60 across the U.S.) • Total number of staff(600+ strong) Valbridge is owned by our local office leaders. Every Valbridge office is led by a senior managing director who holds the MAI designation of the Appraisal Institute. Valbridge services all property types, including: • Office • Industrial • Retail • Apartments/multifamily/senior living • Lodging/hospitality/recreational • Land • Special-purpose properties Valbridge welcomes single-property assignments as well as portfolio,multi-market and other bulk- property engagements. Specialty services include: • Portfolio valuation • REO/foreclosure evaluation • Real estate market and feasibility analysis • Property and lease comparables, including lease review • Due diligence • Property tax assessment and appeal-support services • Valuations and analysis of property under eminent domain proceedings • Valuations of property for financial reporting, including goodwill impairment, impairment or disposal of long-lived assets, fair value and leasehold valuations • Valuation of property for insurance, estate planning and trusteeship, including fractional interest valuation for gifting and IRS purposes • Cost segregation studies • Litigation support, including expert witness testimony • Business and partnership valuation and advisory services, including partial interests Independent Valuation for a Variable World VALBRIDGE PROPERTY ADVISORS Shaner Appraisals,Inc. Page 90 %\\!i Va I badge Truman Hotel and Convention Center ,.,..;IF PROPERTY ADVISORS ADDENDA Office Locations ALABAMA CONNECTICUT KANSAS OHIO TEXAS Valbridge Property Advisors I Valbridge Property Advisors I Valbridge Property Advisors I Valbridge Property Advisors I Valbridge Property Advisors I Real Estate Appraisers,LLC Italia&Lemp,Inc. Shaner Appraisals,Inc. Akron Appraisal Group,Inc. Dugger,Canaday,Grafe,Inc. 4732 Woodmere Boulevard 6 Central Row,Third Floor 10990 Quivira Road,Suite 100 1655 W.Market Street,Suite 130 111 Soledad,Suite 800 Montgomery,AL 36106 Hartford,CT 06103-2701 Overland Park,KS 66210 Akron,OH 44313 San Antonio,TX 78205 334-277-5077 phone 860-246-4606 phone 913-451-1451 phone 330-899-9900 phone 210-227-6229 phone 334-277-5078 fax 17 High Street,Suite 214 913-529-4121 fax 330-680-5204 fax 210-227-8520 fax Norwalk,CT 06851 ARIZONA 203-286-6520 phone KENTUCKY Valbridge Property Advisors I Valbridge Property Advisors I Valbridge Property Advisors I Valbridge Property Advisors Allgeier Company The Gerald A.Teel Company, MJN Enterprises,Inc. FLORIDA Allgeier Company 9277 Centre Point Dr.,Suite 350 Inc. 6061 E.Grant Road,Suite 121 Valbridge Property Advisors I 214 South 8th Street,Suite 200 West Chester,OH 45069 Two Energy Square Tucson,AZ 85712 Armalavage Valuation,LLC Louisville,KY 40202 513-785-0820 phone 4849 Greenville Avenue,Ste 1495 520-321-0000 phone 2240 Venetian Court 502-585-3651 phone 513-563-3539 fax Dallas,TX 75206 520-290-5293 fax Naples,FL 34109 502-589-7480 fax 214-446-1611 phone 239-514-4646 phone Valbridge Property Advisors 974 Campbell Road,Suite 204 CALIFORNIA 239-514-4647 fax LOUISIANA 526 E.Superior Avenue,Suite Houston,TX 77024 Valbridge Property Advisors I Valbridge Property Advisors I 455 713-467-5858 phone Michael Burger&Associates Valbridge Property Advisors I Argote,Derbes,Graham, Cleveland,OH 44114 713-467-0704 fax 4915 Calloway Drive,Suite 101 Beaumont,Matthes&Church, Shuffield&Tatje,Inc. 216-367-9690 phone Bakersfield,CA 93312 Inc. 512 North Causeway Boulevard 330-680-5204 fax Valbridge Property Advisors 661-587-1010 phone 603 Hillcrest Street Metairie,LA 70001 2731 81st Street 661-834-0748 fax Orlando,FL 32803 504-833-8234 phone OKLAHOMA Lubbock,TX 79423 407-839-3626 phone 504-830-3870 fax Valbridge Property Advisors I 806-744-1188 phone Valbridge Property Advisors I 407-839-3453 fax Walton Property Services,LLC 806-744-1189 fax Cummings Appraisal 7607 Fern Avenue,Suite 104 8282 South Memorial Drive,#302 UTAH Group,Inc. Valbridge Property Advisors I Shreveport,LA 71105 Tulsa,OK 74133 Valbridge Property Advisors 99 S.Lake Avenue,Suite 21 Broom,Moody,Johnson& 318-797-0543 phone 918-712-9992 phone 9 P Y I Pasadena,CA 91101 Grain ger,Inc. 918-742-3061 fax Free and Associates,Inc. g 260 South 2500 West,Suite 301 626-744-0428 phone 121 West Forsyth Street,#1000 MARYLAND 626-744-0922 fax Jacksonville,FL 32202 Valbridge Property Advisors I PENNSYLVANIA Pleasant Grove,UT 84062 904-296-3000 phone Lipman Frizzell&Mitchell LLC Valbridge Property Advisors I 801-492-9328 phone Valbridge Property Advisors I 904-296-8722 fax 6240 Old Dobbin Lane,Suite 140 Barone,Murtha,Shonberg& 801-492-1420 fax Columbia,MD 21045 Associates,Inc. Hulberg&Associates,Inc. 1100 East 6600 South,Suite 201 225 Crossroads Blvd,Suite 326 Valbridge Property Advisors I 410-423-2300 phone 4701 Baptist Road,Suite 304 Salt Lake City,UT 84121 Carmel,CA 93923 Entreken Associates,Inc. 410-423-2410 fax Pittsburgh,PA 15227 801-262-3388 phone 831-917-0383 phone 1100 16th Street N 412-881-6080 phone 801-262-7893 fax 925-327-1696 fax St.Petersburg,FL 33705 MASSACHUSETTS 412-881-8040 fax 727-894-1800hone Valbridge Property Advisors I 20 North Main,Suite 304 727-894-1800p hone 2813 Coffee Road,Suite E-2 727-894-8916 fax Bullock Commercial Appraisal, Valbridge Property Advisors I St.George,UT 84770 Modesto,CA 95355 LLC Lukens&Wolf,LLC 435-773-6300 phone 209-569-0450hone GEORGIA 21 Muzzey Street,Suite 2 150 South Warner Road,Ste.440 435-773-6298 fax p 209-569-0451 fax Valbridge Property Advisors I Lexington,MA 02421 King of Prussia,PA 19404 phone 215-545-1900 phone VIRGINIA Cantrell Miller,LLC 215-545-8548 fax One North Market Street 2675 Paces Ferry Road,Ste 145 MICHIGAN Valbridge Property Advisors I San Jose,CA 95113 Atlanta,GA 30339 SOUTH CAROLINA Axial Advisory Group,LLC 408-279-1520 phone 678-644-4853p hone Valbridge Property Advisors I 656 Independence Parkway,#220 The Oetzel-Hartman Group Valbridge Property Advisors I Chesapeake,VA 23320 408-279-3428 fax Atlantic Appraisals,LLC 321 Woodland Pass,Suite 200 757-410-1222 phone IDAHO East Lansin MI 48823 ge Prope 1250 Fairmont Avenue 757-410-2956 fax 3160 Crow Canyon Place,#245 Valbridrty Advisors I g' Mt.Pleasant,SC 29464 San Ramon,CA 94583 517-336-0001 phone Auble,Jolicoeur&Gentry,Inc. 517-336-0009 fax 843-884-1266 phone 7400 Beaufont Springs Drive, 925-327-1660 phone 1875 N.Lakewood Drive,#100 843-881-7532 fax #300 925-327-1696 fax Coeur d'Alene,ID 83814 MINNESOTA Richmond,VA 23225 208-292-2965 phone Valbridge PropertyAdvisors 800 Main Street,Suite 220 804-672-4473 phone Valbridge Property Advisors I I Hilton Head Island,SC 29926 Penner&Associates,Inc. 208-292-2971 fax Mardell Partners,Inc. 120 South 6th Street,Suite 1650 843-342-2302 phone 4732 Longhill Road,Suite 3202 1370 N.Brea Boulevard,#255 Valbridge Property Advisors I 843-342-2304 fax Williamsburg,VA 23188 Fullerton,CA 92835 Minneapolis,MN 55402 Mountain States Appraisal 612-253-0650 phone ValbridgeProperty I 757-345-0170 fa757-345-0010 x 714-449-0852 phone &Consulting,Inc. f Pro ert Advisors 714-738-4371 fax 1459 Tyrell Lane,Suite B 612-253-5650 fax Robinson Company Boise,ID 83706 NEVADA 610 N.Main Street WASHINGTON Valbridge Property Advisors I 208-336-1097 phoneGreenville,SC 29601 Valbridge Property Advisors I Ribacchi&Associates 208-345-1175 fax Valbridge Property Advisors I 864-233-6277 phone Allen Brackett Shedd 10301 Placer Lane,Suite 100 Lubawy&Associates,Inc. 864-233-8577 fax 419 Berkeley Avenue,Suite A Sacramento,CA 95827 3034 S.Durango Drive,Suite 100 Fircrest,WA 98466 INDIANA Las 916-361-2509 phone Vegas,NV 89117 TENNESSEE 253-274-0099 phone 916-361-2632 fax Valbridge Property Advisors I 702-242-9369 phone Valbridge Property Advisors I 253-564-9442 fax Mitchell Appraisals,Inc. 702-242-6391 fax R.K.Barnes&Associates,Inc. COLORADO 820 Fort Wayne Avenue 112 Westwood Place,Suite 300 12320 NE 8th Street,Suite 200 Valbridge Property Advisors I Indianapolis,IN 46204 NORTH CAROLINA Brentwood,TN 37027 Bellevue,WA 98005 Bristol Realty Counselors 317-687-2747 phone Valbridge Property Advisors I 615-369-0670 phone 425-450-4040 phone 5345 Arapahoe,Suite 7 317-687-2748 fax John LLC Bosworth&Associates, 615-369-0671 fax 425-688-1819 fax Boulder,CO 80303 IOWA 4530 Park Road,Suite 100 Valbridge Property Advisors 303-443-9600 phone Valbridge Property Advisors I 9 P Y I 303-443-9623 fax Valbridge Property Advisors I Charlotte,NC 28209 C&I Appraisal Services,Inc. Auble,Jolicoeur&Gentry,Inc. Roy R.Fisher,Inc. 704-376-5400 phone 6750 Poplar Avenue,Suite 706 324 N.Mullan Road Valbridge Property Advisors I 2010 East 38th Street,Suite 201 704-376-1095 fax Memphis,TN 38138 Spokane Valley,WA 99206 Mountain West Davenport,IA 52807 901-753-6977 phone 509-747-0999 phone 562 Highway 133 563-355-6606 phone Valbridge Property Advisors I 509-747-3559 fax Carbondale, 563-355-6612 fax Paramount Appraisal Valbridge Property Advisors I Carbondale, COOp81623one Group,Inc. Meridian Realty Advisors,LLC WISCONSIN 970-797-9124970-3101fax 412 E.Chatham Street 213 Fox Road Valbridge Property Advisors I Cary,NC 27511 Knoxville,TN 37922 Vitale Realty Advisors,LLC 919-859-2666 phone 865-522-2424 phone 12660 W.North Avenue 919-859-2667 fax 865-522-0030 fax Brookfield,WI 53005 262-782-7990 phone 262-782-7590 fax VALBRIDGE PROPERTY ADVISORS I Shaner Appraisals,Inc. Page 91 APPENDIX C Estimated Project Costs and Reimbursable Costs Debt and Equity Financing Detail Table PROJECT 1 Estimated Redevelopment Reimbursable Project�I Project Costs Costs Equity Contribution Land Value(Est) $1,500,000 Subtotal $1,500,000 Hard Construction Costs Demolition $300,000 $300,000 Landscaping $75,000 $75,000 Public Space FF&E $1,845,000 Common Area Improvements $1,700,000 $1,700,000 New Structure $10,685,000 Subtotal $14,605,000 $2,075,000 Soft Construction Cost7.111111.111 Architectural,Engineering,Survey $450,000 $450,0001 Engineering&Survey Insurance,Permits and Inspections $300,000 $300,000 Financing Costs/Interest Expense During Construction Period $975,000 $975,000 Administrative/Overhead $300,000 $300,000 Legal $250,000 $250,000 Developer Fee $1,500,000 $829,6471 Subtotal $3,775,000 $3,104,647 Contingency Hard Cost Contingency(10%) $1,460,500 $1,460,500 Soft Cost Contingency(20%) $755,000 $755,0001 Subtotal $2,215,500 $2,215,500 TOTAL $22,095,500 *It is estimated that approximately 16%of the total PHASE I costs will be reimbursed from TIF Revenues because the net present value of the projected TIF Revenues is only $3,557,853 over a 23 year period. Debt and Equity Financing Detail Table PROJECT 2 Estimated Redevelopment Reimbursa, e ro ect Project Costs Costs Equity Contribution Land Value(Est) $2,750,000 Subtotal $2,750,000 Hard Construction Costs Demolition $450,000 $450,000 Landscaping $125,000 $125,000 Public Space FF&E $3,225,000 Common Area Improvements $1,900,000 $1,900,000 New Structure $16,568,000 Subtotal $22,268,000 $2,475,000 Soft Construction Costs Architectural,Engineering,Survey $590,000 $590,000 Engineering&Survey Insurance,Permits and Inspections $500,000 $500,000 Financing Costs/Interest Expense During Construction Period $1,575,000 $1,575,000 Administrative/Overhead $450,000 $450,000 Legal $300,000 $300,000 Developer Fee $2,800,000 $2,243,479 Subtotal $6,215,000 $5,658,479 Contingency Hard Cost Contingency(10%) $2,226,800 $2,226,800 Soft Cost Contingency(20%) $1,243,000 $1,243,000 Subtotal $3,469,800 $3,469,800 TOTAL $34,702,800.00 $11,603,279.0( *It is estimated that approximately 15%of the total PHASE I costs will be reimbursed from TIF Revenues because the net present value of the projected TIF Revenues is only $5,311,615 over a 23 year period. Debt and Equity Financing Detail Table Total Project Estimated Reimbursable Redevelopment Project Costs Project Costs Equity Contribution Land Value(Est) $4,250,000 Subtotal $4,250,000 Hard Construction Costs Demolition $750,000 $750,000 Landscaping $200,000 $200,000 Public Space FF&E $5,070,000 Common Area Improvements $3,600,000 $3,600,000 New Structure $27,253,000 Subtotal $36,873,000 $4,550,000 Soft Construction Costs Architectural,Engineering, $1,040,000 $1,040,000 Survey Insurance,Permits and $800,000 $800,000 Inspections Financing Costs/Interest Expense During Construction $2,550,000 $2,550,000 Administrative/Overhead $750,000 $750,000 Legal $550,000 $550,000 Developer Fee $4,300,000 $3,152,995 Subtotal $9,990,000 $8,842,995 Contingency Hard Cost Contingency(10%) $3,687,300 $3,687,300 Soft Cost Contingency(20%) $1,998,000 $1,998,000 Subtotal $5,685,300 $5,685,300 TOTAL $56,798,300 $19,078,295 *It is estimated that less than 16%of the total project costs will be reimbursed from TIF Revenues because the net present value of the projected TIF Revenues is only $8,890,468 See Source of Funds iiii,_ Per-Square-Foot Construction Costs Redevelopment Project Area Construction Cost Square Footage Cost Per SF RPA 1 $22,095,500 85,000 $260 RPA 2 $34,702,800 145,000 $239 Total Area $56,798,300 230,000 $247 APPENDIX D TIF Revenue Projections Truman Hotel TIF Redevelopment Plan APPENDIX C-1 Estimated PILOTS and EATS for Life of Project PROJECT I Estimated Assumed Apraisal Aftea sumed Change in Assessed Value After Increase in AV over Increase in TIF YEAR Year Parcel ID Description Appraised Value Base Assessed value Construction praisel Value Construction Previous Year Property Taxes Total Property Taxes PROJECTED PILOT 1 2016 10-06-13-0004-002-008,002 1590 $845,100 $270,432 $845,100 $0 $270,432 $0 $0 $14,859 $0 2 2017 10-06-13-0004-002-008,002 Jefferson $845,100 $270,432 $8,888,800 $8,043,700 $2,844,416 $2,573,984 $141,425 $156,284 $123,838 3 2018 10-06-13-0004-002-008,002 Street $8,888,800 $270,432 $17,777,600 $8,888,800 $5,688,832 $2,844,416 $297,709 $312,567 $260,686 4 2019 10-06-13-0004-002-008,002 $17,777,600 $270,432 $17,955,376 $177,776 $5,745,720 $56,888 $300,834 $315,693 $263,423 5 2020 10-06-13-0004-002-008,002 $17,955,376 $270,432 $17,955,376 $0 $5,745,720 $0 $300,834 $315,693 $263,423 6 2021 10-06-13-0004-002-008,002 $17,955,376 $270,432 $18,404,260 $448,884 $5,889,363 $143,643 $308,727 $323,585 $270,334 7 2022 10-06-13-0004-002-008,002 $18,404,260 $270,432 $18,404,260 $0 $5,889,363 $0 $308,727 $323,585 $270,334 8 2023 10-06-13-0004-002-008,002 $18,404,260 $270,432 $18,864,367 $460,107 $6,036,597 $147,234 $316,816 $331,675 $277,418 9 2024 10-06-13-0004-002-008,002 $18,864,367 $270,432 $18,864,367 $0 $6,036,597 $0 $316,816 $331,675 $277,418 10 2025 10-06-13-0004-002-008,002 $18,864,367 $270,432 $19,335,976 $471,609 $6,187,512 $150,915 $325,108 $339,967 $284,679 11 2026 10-06-13-0004-002-008,002 $19,335,976 $270,432 $19,335,976 $0 $6,187,512 $0 $325,108 $339,967 $284,679 12 2027 10-06-13-0004-002-008,002 $19,335,976 $270,432 $19,626,016 $290,040 $6,280,325 $92,813 $330,208 $345,066 $289,144 13 2028 10-06-13-0004-002-008,002 $19,626,016 $270,432 $19,626,016 $0 $6,280,325 $0 $330,208 $345,066 $289,144 14 2029 10-06-13-0004-002-008,002 $19,626,016 $270,432 $19,920,406 $294,390 $6,374,530 $94,205 $335,384 $350,242 $293,676 15 2030 10-06-13-0004-002-008,002 $19,920,406 $270,432 $19,920,406 $0 $6,374,530 $0 $335,384 $350,242 $293,676 16 2031 10-06-13-0004-002-008,002 $19,920,406 $270,432 $20,219,212 $298,806 $6,470,148 $95,618 $340,637 $355,496 $298,277 17 2032 10-06-13-0004-002-008,002 $20,219,212 $270,432 $20,219,212 $0 $6,470,148 $0 $340,637 $355,496 $298,277 18 2033 10-06-13-0004-002-008,002 $20,219,212 $270,432 $20,522,500 $303,288 $6,567,200 $97,052 $345,970 $360,828 $302,946 19 2034 10-06-13-0004-002-008,002 $20,522,500 $270,432 $20,522,500 $0 $6,567,200 $0 $345,970 $360,828 $302,946 20 2035 10-06-13-0004-002-008,002 $20,522,500 $270,432 $20,522,500 $0 $6,567,200 $0 $345,970 $360,828 $302,946 21 2036 10-06-13-0004-002-008,002 $20,522,500 $270,432 $20,522,500 $0 $6,567,200 $0 $345,970 $360,828 $302,946 22 2037 10-06-13-0004-002-008,002 $20,522,500 $270,432 $20,522,500 $0 $6,567,200 $0 $345,970 $360,828 $302,946 23 2038 10-06-13-0004-002-008,002 $20,522,500 $270,432 $20,522,500 $0 $6,567,200 $0 $345,970 $360,828 $302,946 Total $6,156,103 Net Present Value 5.25% 3,314,534 TIF YEAR Year Parcel ID - Description TIF Eligible Sales Incremental Sales Tao Sales Tax EATs Incremental Utility Costs Utility Tax EATs Total EATs TOTAL TIF 2015 Sales Tax Rates 1 2016 10-06-13-0004-002-008,002 1590 $0 $0 $0 $30,000 $975 $975 $975 Not Subject to TIF Captured by TIF 2 2017 10-06-13-0004-002-008,002 Jefferson $300,000 $23,175 $5,093 $80,000 $2,600 $7,693 $131,530 --- 3 2018 10-06-13-0004-002-008,002 Street $650,000 $50,213 $11,034 $120,000 $3,900 $14,934 $275,620 MIEIMMEEEMBEME= 0.000% 4 2019 10-06-13-0004-002-008,002 $800,000 $61,800 $13,580 $145,000 $4,713 $18,293 $281,710 131 . 2.000% 1.000% 1.000% 5 2020 10-06-13-0004-002-008,002 $850,000 $65,663 $14,429 $149,125 $4,847 $19,275 $282,699 1.500% MECraM 0.750% 6 2021 10-06-13-0004-002-008,002 $900,000 $69,525 $15,278 $153,353 $4,984 $20,261 $290,596 Total 7.725% 5.975% 1.750% 7 2022 10-06-13-0004-002-008,002 $925,000 $71,456 $15,702 $157,687 $5,125 $20,827 $291,161 8 2023 10-06-13-0004-002-008,002 $948,125 $73,243 $16,094 $162,129 $5,269 $21,364 $298,782 9 2024 10-06-13-0004-002-008,002 $971,828 $75,074 $16,497 $166,682 $5,417 $21,914 $299,332 10 2025 10-06-13-0004-002-008,002 $996,124 $76,951 $16,909 $171,349 $5,569 $22,478 $307,157 11 2026 10-06-13-0004-002-008,002 $1,021,027 $78,874 $17,332 $176,133 $5,724 $23,056 $307,735 12 2027 10-06-13-0004-002-008,002 $1,046,553 $80,846 $17,765 $181,036 $5,884 $23,649 $312,793 2015 MILL LEVY RATES 13 2028 10-06-13-0004-002-008,002 $1,072,716 $82,867 $18,209 $186,062 $6,047 $24,256 $313,400 Jurisidiction Rate Not Subject to TIF Captured by TIF 14 2029 10-06-13-0004-002-008,002 $1,088,807 $84,110 $18,483 $191,214 $6,214 $24,697 $318,373 15 2030 10-06-13-0004-002-008,002 $1,105,139 $85,372 $18,760 $196,494 $6,386 $25,146 _ $318,822 State 0.0300% 0.0300% 0.0000% 16 2031 10-06-13-0004-002-008,002 $1,121,716 $86,653 $19,041 $201,907 $6,562 $25,603 $323,880 General Revenue 0.0752% 0.0000% 0.0752% 17 2032 10-06-13-0004-002-008,002 $1,132,934 $87,519 $19,232 $207,454 $6,742 $25,974 $324,250 School 3.6928% 0.0000% 3.6928% 18 2033 10-06-13-0004-002-008,002 $1,144,263 $88,394 $19,424 $213,141 $6,927 $26,351 $329,297 Road and Bridge 0.2700% 0.0000% 0.2700% 19 2034 10-06-13-0004-002-008,002 $1,155,705 $89,278 $19,618 $218,969 $7,116 $26,735 $329,681 Library 0.2000% 0.0000% 0.2000% 20 2035 10-06-13-0004-002-008,002 $1,167,263 $90,171 $19,814 $224,943 $7,311 $27,125 $330,071 Special Services 0.0903% 0.0000% 0.0903% 21 2036 10-06-13-0004-002-008,002 $1,178,935 $91,073 $20,012 $231,067 $7,510 $27,522 _ $330,468 City 0.5561% 0.0000% 0.5561% 22 2037 10-06-13-0004-002-008,002 $1,190,725 $91,983 $20,213 $237,344 $7,714 $27,926 $330,872 Fire 0.0000% 0.0000% 0.0000% 23 2038 10-06-13-0004-002-008,002 $1,202,632 $92,903 $20,415 $243,777 $7,923 $28,337 $331,283 Surtax 0.5800% 0.5800% 0.0000% Total $20,766,860 $1,604,240 $504,390 $6,660,493 Net Present Value 5.25% $263,319 $3,577,853 Total 5.4944% 0.6100% 4.8844% 1.Property Tax Calculation=Assessed Value*5.4994% 2.PILOT=Increase in Property Tax*1 4.8844/5.4944) 3.EATS Tax calculated based upon an estimate that only 70%of the sales generated will be taxable. 4.EATS calculated by taking 50%of the tax collected on taxable sales and capturing 22.635%which is 1.75/7.725 Estimated PILOTS and EATS for Life of Project PROJECT II Estimated Assumed Apraisal After Assumed Change in Assessed Value After Increase in AV over Increase in TIF Y AR Year P.r ell. .- ri.i•n Appraised Value Base Assessed value Construction Appraise)Value Construction Pevious Year Property Taxes Total Property Taxes PROJECTED PILOp 1 2018 10-06-13-0004-002-008,002 1590 $845,100 $289,568 $845,100 $0 $289,568 $0 $0 $15,910 $0 2 2019 10-06-13-0004-002-008,002 Jefferson $845,100 $289,568 $6,875,000 $6,029,900 $2,200,000 $1,910,432 $104,967 $120,877 $91,913 3 2020 10-06-13-0004-002-008,002 Street $6,875,000 $289,568 $24,750,000 $17,875,000 $7,920,000 $5,720,000 $419,246 $435,156 $367,110 4 2021 10-06-13-0004-002-008,002 $24,750,000 $289,568 $27,500,000 $2,750,000 $8,800,000 $880,000 $467,597 $483,507 $409,448 5 2022 10-06-13-0004-002-008,002 $27,500,000 $289,568 $27,500,000 $0 $8,800,000 $0 $467,597 $483,507 $409,448 6 2023 10-06-13-0004-002-008,002 $27,500,000 $289,568 $28,187,500 $687,500 $9,020,000 $220,000 $479,685 $495,595 $420,033 7 2024 10-06-13-0004-002-008,002 $28,187,500 $289,568 $28,187,500 $0 $9,020,000 $0 $479,685 $495,595 $420,033 8 2025 10-06-13-0004-002-008,002 $28,187,500 $289,568 $28,892,188 $704,688 $9,245,500 $225,500 $492,075 $507,985 $430,882 9 2026 10-06-13-0004-002-008,002 $28,892,188 $289,568 $28,892,188 $0 $9,245,500 $0 $492,075 $507,985 $430,882 10 2027 10-06-13-0004-002-008,002 $28,892,188 $289,568 $29,325,570 $433,383 $9,384,183 $138,683 $499,694 $515,605 $437,554 11 2028 10-06-13-0004-002-008,002 $29,325,570 $289,568 $29,325,570 $0 $9,384,183 $0 $499,694 $515,605 $437,554 12 2029 10-06-13-0004-002-008,002 $29,325,570 $289,568 $29,765,454 $439,884 $9,524,945 $140,763 $507,429 $523,339 $444,326 13 2030 10-06-13-0004-002-008,002 $29,765,454 $289,568 $29,765,454 $0 $9,524,945 $0 $507,429 $523,339 $444,326 14 2031 10-06-13-0004-002-008,002 $29,765,454 $289,568 $30,211,936 $446,482 $9,667,819 $142,874 $515,279 $531,189 $451,200 15 2032 10-06-13-0004-002-008,002 $30,211,936 $289,568 $30,211,936 $0 $9,667,819 $0 $515,279 $531,189 $451,200 16 2033 10-06-13-0004-002-008,002 $30,211,936 $289,568 $30,665,115 $453,179 $9,812,837 $145,017 $523,246 $539,157 $458,177 17 2034 10-06-13-0004-002-008,002 $30,665,115 $289,568 $30,665,115 $0 $9,812,837 $0 $523,246 $539,157 $458,177 18 2035 10-06-13-0004-002-008,002 $30,665,115 $289,568 $30,665,115 $0 $9,812,837 $0 $523,246 $539,157 $458,177 19 2036 10-06-13-0004-002-008,002 $30,665,115 $289,568 $30,665,115 $0 $9,812,837 $0 $523,246 $539,157 $458,177 20 2037 10-06-13-0004-002-008,002 $30,665,115 $289,568 $30,665,115 $0 $9,812,837 $0 $523,246 $539,157 $458,177 21 2038 10-06-13-0004-002-008,002 $30,665,115 $289,568 $30,665,115 $0 $9,812,837 $0 $523,246 $539,157 $458,177 22 2039 10-06-13-0004-002-008,002 $30,665,115 $289,568 $30,665,115 $0 $9,812,837 $0 $523,246 $539,157 $458,177 23 2040 10-06-13-0004-002-008,002 $30,665,115 $289,568 $30,665,115 $0 $9,812,837 $0 $523,246 $539,157 $458,177 24 2041 10-06-13-0004-002-008,002 $0 $289,568 $0 $0 $0 $0 $0 $0 $0 Total # ilinft $9,311,329 Net Present Value 5.50% 4,848.,i-'-- TIF YEAR Year Parcel ID Description TIF Eligible Sale?6cremental Sales Taxes Sales Tax EATs Incremental Utility Costs Utility Tax EATs Total EATs Total TIF lrD15 Sales Tax Rates 1 2018 10-06-13-0004-002-008,002 1590 $0 $0 $0 $10,000 $325 $325 $325 M1=2= 101 Not Subject to TIF Captured by TIF 2 2019 10-06-13-0004-002-008,002 Jefferson $50,000 $3,863 $849 $55,000 $1,788 $2,636 $94,550 ---- 3 2020 10-06-13-0004-002-008,002 Street $500,000 $38,625 $8,488 $130,000 $4,225 $12,713 $379,823 EllflIE3 =FIEM= 0.000% 4 2021 10-06-13-0004-002-008,002 $900,000 $69,525 $15,278 $155,000 $5,038 $20,315 $429,763 ® 2.000% 1.000% 1.000% 5 2022 10-06-13-0004-002-008,002 $1,200,000 $92,700 $20,370 $159,500 $5,184 $25,554 $435,002 rr•. r r•. r ••. 6 2023 10-06-13-0004-002-008,002 $1,500,000 $115,875 $25,463 $164,113 $5,334 $30,796 $450,829 Total 7.725% 5.975% 1.750% 7 2024 10-06-13-0004-002-008,002 $1,750,000 $135,188 $29,706 $168,840 $5,487 $35,194 $455,226 8 2025 10-06-13-0004-002-008,002 $2,000,000 $154,500 $33,950 $173,686 $5,645 $39,595 $470,477 9 2026 10-06-13-0004-002-008,002 $2,150,000 $166,088 $36,496 $178,653 $5,806 $42,302 $473,184 10 2027 10-06-13-0004-002-008,002 $2,300,000 $177,675 $39,043 $183,745 $5,972 $45,014 $482,568 11 2028 10-06-13-0004-002-008,002 $2,400,000 $185,400 $40,740 $188,963 $6,141 $46,881 $484,435 12 2029 10-06-13-0004-002-008,002 $2,450,000 $189,263 $41,589 $194,313 $6,315 $47,904 $492,230 2015 MILL LEVY RATES 13 2030 10-06-13-0004-002-008,002 $2,499,000 $193,048 $42,421 $199,795 $6,493 $48,914 $493,240 MO=IIM :131 Not Subject to TIF Captured by TIF 14 2031 10-06-13-0004-002-008,002 $2,548,980 $196,909 $43,269 $205,415 $6,676 $49,945 $501,145 ---- 15 2032 10-0643-0004-002-008.002 $2,599,960 $200,847 $44,134 $211,176 $6,863 $50,998 $502,198 Elz 0.0300% 0.0300% 0.0000% 16 2033 10-06-13-0004-002-008,002 $2,651,959 $204,864 $45,017 $217,080 $7,055 $52,072 $510,249 1== 0.0752% 0.0000% 0.0752% 17 2034 10-06-13-0004-002-008,002 $2,704,998 $208,961 $45,917 $223,132 $7,252 $53,169 $511,346 10 3.6928% 0.0000% 3.6928% 18 2035 10-06-13-0004-002-008,002 $2,759,098 $213,140 $46,836 $229,335 $7,453 $54,289 $512,466 Road and Bridge 0.2700% 0.0000% 0.2700% 19 2036 10-06-13-0004-002-008,002 $2,814,280 $217,403 $47,772 $235,694 $7,660 $55,432 $513,610 IIIME 0.2000% 0.0000% 0.2000% 20 2037 10-06-13-0004-002-008,002 $2,870,565 $221,751 $48,728 $242,211 $7,872 $56,600 $514,777 El=== 0.0903% 0.0000% 0.0903% 21 2038 10-06-13-0004-002-008,002 $2,927,977 $226,186 $49,702 $248,891 $8,089 $57,791 $515,969 ® 0.5561% 0.0000% 0.5561% 22 2039 10-06-13-0004-002-008,002 $2,986,536 $230,710 $50,696 $255,739 $8,312 $59,008 $517,185 gill 0.0000% 0.0000% 0.0000% 23 2040 10-06-13-0004-002-008,002 $3,046,267 $235,324 $51,710 $262,757 $8,540 $60,250 $518,427 1312 0.5800% 0.5800% 0.0000% 24 2041 10-06-13-0004-002-008,002 $1,384,528 $106,955 $23,502 $196,213 $6,377 $29,879 $29,879 Total $48,994,148 $3,442,519 5977,576 $10,288,905 Net Present Value 5.50% $462,759 $5,311,615 Total 5.4944% 0.6100% 4-8844% 1.Property Tax Calculation=Assessed Value*5.4994% 2.PILOT=Increase in Property Tax*)4.8844/5.4944) 3.EATS Tax calculated based upon an estimate that only 70%of the sales generated will be taxable. 4.EATS calculated by taking 50%of the tax collected on taxable sales and capturing 22.635%which is 1.75/7.725 APPENDIX E Certificate of Compliance with the Jefferson City Comprehensive Plan 01'I IF /. City of Jefferson Carrie Tergin,Mayor r Department of Planning&Protective Services — Janice McMillan,AICP,Director 320 E.McCarty St.,Room 120 Phone:573.634.6410 Jefferson City,MO 65101A44 ''""1 Fax: 573.634.6457 December 7, 2015 Mr.Vivek Puri, JD, CHA Vice President and General Counsel Puri Group of Enterprises, Inc. 3300 Vandiver Drive Columbia, MO 65202 RE: Truman Hotel TIF Plan 1510 and 1590 Jefferson Street Jefferson City, MO 65109 Dear Mr. Puri: This letter is in response to your request to initiate the process to prepare a final Tax Increment Financing Plan for the above-referenced property. The above-referenced properties are within the corporate boundaries of the City of Jefferson, Missouri. The City's comprehensive development plan depicts these properties as suitable for "commercial" use. Your plan to redevelop the properties for commercial purposes, including hotel, conference center and incidental uses, is in compliance with the City's comprehensive plan. Sincerely, Janice McMillan, AICP Individuals should contact the ADA Coordinator at(573)634-6570 to request accommodations or alternative formats as required under the Americans with Disabilities Act. Please allow three business days to process the request. Truman Hotel TIF Redevelopment Plan APPENDIX E-1 APPENDIX F Evidence of Commitment to Finance Project Costs Celebrating midi!' . Al l D ce AMERICA BANK WARDSVILLE I META/ LINN / HOLTS SUMMIT/ BELLE www.midambk.com January 21, 2016 Puri Group of Enterprises, Inc. do Dr. Ravinder Puri 404 Sudbury Drive Columbia, MO 65203 RE: Truman Re-Development by Puri Group Dear Dr. Puri, Thanks for the opportunity to finance the Truman Hotel Site Redevelopment TIF Project located at 1510 Jefferson Street, Jefferson City. I am pleased to inform you that the financing for the Project based on the TIF plan as submitted on January 21, 2016, has been approved pending its acceptance and approval by the City of Jefferson. As the TIF plan explains, we think that it is a very crucial element of the overall financial viability of the area and the Project itself. Again thanks for the opportunity and please contact me immediately upon approval of the TIF plan or before if you have any questions. Sincerely, c4ri, r - ' Tim J. H & enhoff e. Senior Vice President Mid America Bank WARDSVILLE META LINN HOLTS SUMMIT BELLE 1511 Friendship Road P.O.Box 187 P.O.Box 649 P.O.Box 424 P.O.Box 727 Jefferson City,Mo.65101 Meta,MO 65058 Linn,MO 65051 Holts Summit,MO 65043 Belle,MO 65013 573-635-0019 573-229-4256 573-897-2211 573-896-4790 573-859-3399 Fax 573-636-9446 Fax 573-229-4621 Fax 573-897-3201 Fax 573-896-4598 Fax 573-859-3383 f;g1) 0 url Group of Enterprises K\Cx].I.hENC:Iv IN HOSPITALITY December 11,2015 City of Jefferson,Missouri Attn:Drew Hilpert,City Counselor 320 E.McCarty Street Jefferson City,MO 65101 RE:Truman Hotel and Conference Center Redevelopment Letter of Interest to Fund Dear Drew: The purpose of this letter is to display our interest to assist in the redevelopment of the Truman Hotel and Conference Center in Jefferson City,Missouri(the"Project")by providing financing to sister concerns of the Puri Group;PGE Hospitality,Inc.and Oracle Enterprises,Inc. Along with the assistance of the Tax Increment Financing,we intend to fully support and finance the project. The Puri Group's interest and ability to fund the project is further subject to the following conditions: 1) Final approval by applicable governing authorities for Tax Increment Financing in connection with the Project. 2) A satisfactory debt financing commitment and execution of loan documents;and 3) A full and satisfactory review of all financial and development data,including development plan and schedule,in connection with the Project and Borrower. We are excited about the opportunities that will become available to the Jefferson City community from the development of this Project,and will support it in every way feasible. Although this letter should not be construed as an absolute commitment to fund this Project,please know that we fully intend to support this Project by filling any financing Gap or providing any additional financing to bring it to fruition. Should you have any questions in regards to the same,please do not hesitate to contact me. Sincerely, Dr.Ravi K.Puri President and CEO APPENDIX G Cost-Benefit Analysis Tables Redevelopment Project Area (RPA) 1 PROJECT I COST BENEFIT ANALYSIS,ECONOMIC IMPACT ANALYSIS AND FISCAL IMPACT ANALYSIS INCREASED TAX REVENUE VERSUS THE VALUE OF THE INCENTIVES PROVIDED(BY AFFECTED TAXING JURISDICTION): This spreadsheet depicts(on the left)the total incentives provided by affected taxing jurisdictions,and it is compared to the potential increased tax revenue to those jurisdiction,from all sources and net of TIF redirected revenue,from the Redevelopment Project(on the right)over a 23 year period.Please note that this analysis does not include the benefit to the State of Missouri from the Project,and it is intended to address the City's internal policy that asks for a comparison of potential increased revenue,from all sources,to the value of the incentives provided.It includes only revenue from the Redevelopment Area. REM Incentives Provided by each affected Taxing Jurisdiction Potential Increase in Tax Revenue to the affected Taxing Jurisdictions Year ill School Road&Bridge Library Special Services City 'Lural year County/Rv General School Road&Bridge Library Special Services City 1 $ 0 5 1$ 0 $ 0 $ 0 S 975$ 975. 1 S 0 $ 0 $ 0 $ 0 $ 0 5 975 2 5 4,089 S 93,62.$ 6,846 $ 5,071 $ 2,289 8 19,60'$ 131,531 S 16,119 5 24,703 $ 1.806 $ 1.338 $ 603 5 93,384 3 $ 6,742 5 197,08'$ 14,410 $ 10,674 $ 4,819 5 39,885$ 275,621 5 43,450 $ 36,136 $ 2.642 $ 1,958 $ 863 5 252,445 4 $ 9,876 9 199,159$ 14,562 $ 10,786 $ 4.870 illi$ 281,71. 4 S 50,350 $ 33.257 $ 2,432 $ 1,802 $ 813 5 291,848 ®$ 10,239 5 199,159$ 14,562 $ 10,786 $ 4,870 5 43,083$ 282,69' 5 5 56,961 $ 30,086 $ 2,200 $ 1,630 $ 735 5 330.731 6 $ 10,710 5 204,383$ 14,944 $ 11.069 $ 4,998 5 44,492$ 290,59. 6 $ 64.109 $ 27,651 $ 2,022 $ 1,498 $ 676$ 372,864 7 $ 10,891 5 204,383$ 14,944 $ 11,069 $ 4,998 5 44,875$ 291,161 7 5 67,042 $ 24,480 $ 1,790 $ 1,326 $ 596 5 390,167 8 $ 11,169 S 209,739 5 15,335 $ 11,359 $ 5,129 S 46,051$ 298,782 8 $ 70,118 $ 22,063 $ 1,613 $ 1,195 8 539$ 408,385 9 $ 11,341 5 209,73•$ 15,335 $ 11,359 $ 5,129 iiii$ 299,332 9 9 73,472 5 24,129 $ 1,764 $ 1,307 $ 590 5 428,187 30 $ 11,630 9 215,228$ 15,736 $ 11,657 $ 5,263 5 47,643$ 307,15 10 $ 73,668 $ 24,085 $ 1,761 $ 1,305 $ 589$ 429,080 $ 11,811 5 215,228$ 15,736 $ 11,657 $ 5,263iiiiii$ 307,735 Il $ 73,837 $ 23,265 $ 1,701 $ 1,260 $ 569$ 429,792 0 $ 12,065liall$ 15,983 $ 11.839 $ 5,346 5 48,955$ 312,793 l2 5 74,022 $ 22,921 $ 1.676 $ 1.241 $ 560 9 430595 $ 12,256Iiiiiii$ 15,983 $ 11,839 $ 5,346 $ 49,372$ 313,401 13 9 74.20E $ 22.101 $ 1,616 $ 1,197 $ 540$ 431,349 ]4 $ 12,442 5 222,031$ 16,234 $ 12,025 $ 5,429 0 50,212$ 318,373 14 $ 74,313 $ 21,764 $ 1,591 $ 1,179 $ 532$ 431,904 15 8 12,561 5 222,031 8 16,234 $ 12,025 $ 5,429 5 50,542 8 318,822 15 9 74,700 $ 31,419 $ 2,297 $ 1,702 $ 768 5 433,975 16 $ 12,753 S 225,509$ 16,488 $ 12,213 $ 5,514 5 51,402$ 323,881 16 9 74,792 $ 30,214 $ 2,209 $ 1,637 $ 738$ 434,422 17 $ 12,834 5 225,509$ 16,488 $ 12,213 $ 5,514 5 51,691$ 324,251 17 $ 74,632 $ 28,518 $ 2,065 $ 1,545 $ 697$ 434,653 18 $ 12,989 9 229,039$ 16,746 $ 12,405 $ 5,601 5 52,518$ 329.297 18 5 74.884 $ 27,320 5 1.998 $ 1,480 $ 668$ 434,966 19 $ 13,072 S 229,03'$ 16,746 $ 12,405 $ 5,601 5 52,818$ 329,681 19 $ 74,926 $ 25,623 9 1,873 $ 1.388 $ 626 5 435,212 20 $ 13,156 S 229,03'$ 16,746 $ 12,405 $ 5,601 S 53,12'$ 330,071 20 S 75,253 $ 34,426 $ 2,517 $ 1,865 $ 841$ 437,047 21 $ 13,241 5 229,039$ 16,746 $ 12,405 $ 5,601 S 53,43.$ 330,468 21 5 75,250 $ 30,981 $ 2,265 $ 1,678 $ 757$ 437,046 22 $ 13,327 5 229,039$ 16,746 $ 12,405 $ 5,601 9 53,755$ 330,872 22 9 75,294 $ 29,283 $ 2.141 $ 1,586 $ 716$ 437,316 23 $ 13,413 5 229,039$ 16,746 $ 12,405 $ 5,601 $ 54,07'$ 331,283 23 $ 75,340 $ 27,586 $ 2,017 $ 1,494 $ 674$ 437,594 TOTAL $ 254,607$ 4,654,25:5 340,29 5 252,072 5 113,811$ 1,045,44'S 6,660,493 TOTAL 5 1,486,932 5 602,011 5 44,01 5 32,60'$ 14,714$ 8,643,936 NPV $ 134,493$ 2,505,919$ 183,221$ 135,71'$ 61.277$ 557,22 $ 3,577,853 NOV S 782,182 S 334,48:S 24,457 S 18,119 S 8,175$ 4,547,851 PROJECT I 2015 Sales Tax Rates Jurisidiction Rate Not Subject to TIF Captured by TIF state 4.225% 4.225% 0.000% City 2.000% 1.000% 1.000% County 1.500% 0.750% 0.750% 7.725% 5.975% 2015 mill property tax RATES I share of surtax Jurisidiction Rate Not Subject to TIF Captured by TIF Jurisidiction Rate percent of total effective rate State 0.0300% 0.0300% 0.0000% State 0.0300% 0.6105% 0.0335% General Reven 0.0752% 0.0000% 0.0752% General Revenue 0.0752% 1.5302% 0.0841% School 3.6928% 0.0000% 3.6928% School 3.6928% 75.1424% 4.1286% Road and Brid€ 0.2700% 0.0000% 0.2700% Road and Bridge 0.2700% 5.4941% 0.3019% Library 0.2000% 0.0000% 0.2000% Library 0.2000% 4.0697% 0.2236% Special Service 0.0903% 0.0000% 0.0903% Special Services 0.0903% 1.8375% 0.1010% City 0.5561% 0.0000% 0.5561% City 0.5561% 11.3157% 0.6217% Fire 0.0000% 0.0000% 0.0000% Surtax 0.5800% 0.5800% 0.0000% 5.4944% 0.6100% 4.8844% Total 4.9144% 100.0000% 5.4944% PROJECT I ECONOMIC IMPACT: REAL PROPERTY VALUES AND ECONOMIC ACTIVITY WITHIN REDEVELOPMENT AREA The chart below sets forth the projected economic impact of the Project on property values and sales in the Redevelopment Area with and without the Redevelopment Project. Projected Projected Assessed Assessed Valu alue(No TIF/No Base Assessed with Project Project) Projected Sales Projected Sales(No TIF/No w/Project Project) Year Base Sales 1 $ 270,432 $ 270,432 $ 270,432 $ 0 $ 0 $ 0 2 $ 270,432 $ 2,844,416 $ 269,080 $ 0 $ 1,176,455 $ 0 3 $ 270,432 $ 5,688,832 $ 267,734 $ 0 $ 3,154,156 $ 0 4 $ 270,432 $ 5,745,720 $ 266,396 $ 0 $ 3,692,300 $ 0 5 $ 270,432 $ 5,745,720 $ 265,064 $ 0 $ 4,162,998 $ 0 6 $ 270,432 $ 5,889,363 $ 263,738 $ 0 $ 4,668,535 $ 0 7 $ 270,432 $ 5,889,363 $ 262,420 $ 0 $ 4,881,962 $ 0 8 $ 270,432 $ 6,036,597 $ 261,108 $ 0 $ 5,102,935 $ 0 9 $ 270,432 $ 6,036,597 $ 259,802 $ 0 $ 5,334,378 $ 0 10 $ 270,432 $ 6,187,512 $ 258,503 $ 0 $ 5,359,626 $ 0 11 $ 270,432 $ 6,187,512 $ 257,211 $ 0 $ 5,384,529 $ 0 12 $ 270,432 $ 6,280,325 $ 255,925 $ 0 $ 5,410,055 $ 0 13 $ 270,432 $ 6,280,325 $ 254,645 $ 0 $ 5,436,218 $ 0 14 $ 270,432 $ 6,374,530 $ 253,372 $ 0 $ 5,452,309 $ 0 15 $ 270,432 $ 6,374,530 $ 252,105 $ 0 $ 5,468,641 $ 0 16 5 270,432 $ 6,470,148 $ 250,844 $ 0 $ 5,485,218 $ 0 17 $ 270,432 $ 6,470,148 $ 249,590 $ 0 $ 5,496,436 $ 0 18 $ 270,432 $ 6,567,200 $ 248,342 $ 0 $ 5,507,765 $ 0 19 $ 270,432 $ 6,567,200 $ 247,100 $ 0 $ 5,519,207 $ 0 20 $ 270,432 $ 6,567,200 $ 245,865 $ 0 $ 5,530,765 $ 0 21 $ 270,432 $ 6,567,200 $ 244,636 $ 0 $ 5,542,437 $ 0 22 $ 270,432 $ 6,567,200 $ 243,412 $ 0 $ 5,554,227 $ 0 23 $ 270,432 $ 6,567,200 $ 242,195 $ 0 $ 5,566,134 $ 0 PROJECT I ECONOMIC IMPACT: PERSONAL PROPERTY VALUE AND ASSESSED VALUE (OVER 23 YEARS): The chart below sets forth the projected market value (left side) and assessed value (right side) of all personal property within the Redevelopment Area over a period of 23 years. Please note three items: (1)the "Base" column depicts the growth in personal property taxes assuming project is built, (2)the "addition" columns shows the replacement of personal property as it ends its useful life of seven years, (3)the Depreciation shows the loss in value of personal property over its useful life of 7 years, and (4)values within the "Base w/out Project" column are based upon the project not being done. 51.84,,000 $0 $0 $0 $0 SO 2 $263,429 $1,845,000 $0 $615,000 $615,000 $0 3 $263,429 $1,581,571 $0 $527,190 $527,190 $0 4 $263,429 $1,318,142 $0 $439,381 $439,381 $0 5 $263,429 $1,054,713 $0 $351,571 $351,571 $0 6 $263,429 $791,284 $0 $263,761 $263,761 $0 7 $263,429 $527,855 $0 $175,952 $175,952 $0 8 $500,000 $599,141 $264,426 $0 $88,142 $88,142 $0 9 $71,286 $428,714 $0 $142,905 $142,905 $0 10 $71,286 $357,428 $0 $119,143 $119,143 $0 11 $500,000 $71,286' $286,142 $0 $95,381 $95,381 $0 12 $71,286' $214,856 SO $71,619 $71,619 $0 13 $71,286' $143,570 SO $47,857 $47,857 $0 14 $71,286' $72,284 SO $24,095 $24,095 $0 15 $1,000,000 5214,998' $856,288 SO $285,429 $285,429 $0 16 $142,714 $713,574 SO $237,858 $237,858 $0 17 $142,714 $570,860 SO $190,287 $190,287 $0 18 $142,714 $428,146 SO $142,715 $142,715 $0 19 $142,714 $285,432 SO $95,144 $95,144 $0 20 51,000,000 $285,428 $1,000,004 SO S333,335 $333,335 $0 21 S285,428 $714,576 SO S238,192 $238,192 $0 22 S142,714 $571,862 SO $190,621 $190,621 $0 23 $142,714 $429,148 SO S143,049 $143,049 $0 PROJECT I FISCAL IMPACT:AD VALOREM TAXES REDIRECTED BY TIF(BY AFFECTED TAX JURISDICTION) The chart below sets forth the ad valorem/real estate taxes redirect by TIF by each tax jurisdiction affected,including the annual total for all taxing jurisdictions,over the 23-year TIF term. Year General Revenue/county School Road&Bridge Library Special Services City TOTAL 1 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $0 2 $ $1,907 $ $93,626 $ $6,846 $ $5,071 $ $2,289 $ $14,099 $123,838 3 $ $4,014 $ $197,089 $ $14,410 $ $10,674 $ $4,819 $ $29,680 $260,686 4 $ $4,056 $ $199,159 $ $14,562 $ $10,786 $ $4,870 $ $29,991 $263,423 5 $ $4,056 $ $199,159 $ $14,562 $ $10,786 $ $4,870 $ $29,991 $263,423 6 $ $4,162 $ $204,383 $ $14,944 $ $11,069 $ $4,998 $ $30,778 $270,334 7 $ $4,162 $ $204,383 $ $14,944 $ $11,069 $ $4,998 $ $30,778 $270,334 8 $ $4,271 $ $209,739 $ $15,335 $ $11,359 $ $5,129 $ $31,585 $277,418 9 $ $4,271 $ $209,739 $ $15,335 $ $11,359 $ $5,129 $ $31,585 $277,418 10 $ $4,383 $ $215,228 $ $15,736 $ $11,657 $ $5,263 $ $32,411 $284,679 11 $ $4,383 $ $215,228 $ $15,736 $ $11,657 $ $5,263 $ $32,411 $284,679 12 $ $4,452 $ $218,604 $ $15,983 $ $11,839 $ $5,346 $ $32,920 $289,144 13 $ $4,452 $ $218,604 $ $15,983 $ $11,839 $ $5,346 $ $32,920 $289,144 14 $ $4,521 $ $222,031 $ $16,234 $ $12,025 $ $5,429 $ $33,436 $293,676 15 $ $4,521 $ $222,031 $ $16,234 $ $12,025 $ $5,429 $ $33,436 $293,676 16 $ $4,592 $ $225,509 $ $16,488 $ $12,213 $ $5,514 $ $33,959 $298,277 17 $ $4,592 $ $225,509 $ $16,488 $ $12,213 $ $5,514 $ $33,959 $298,277 18 $ $4,664 $ $229,039 $ $16,746 $ $12,405 $ $5,601 $ $34,491 $302,946 19 $ $4,664 $ $229,039 $ $16,746 $ $12,405 $ $5,601 $ $34,491 $302,946 20 $ $4,664 $ $229,039 $ $16,746 $ $12,405 $ $5,601 $ $34,491 $302,946 21 $ $4,664 $ $229,039 $ $16,746 $ $12,405 $ $5,601 $ $34,491 $302,946 22 $ $4,664 $ $229,039 $ $16,746 $ $12,405 $ $5,601 $ $34,491 $302,946 23 $ $4,664 S $229,039 $ $16,746 $ $12,405 $ $5,601 $ $34,491 $302,946 TOTAL $ 94,779 $ 4,654,258 $ 340,297 $ 252,072 $ 113,811 $ 700,886 $6,156,103 NPV $ 51,030 --1 2,505,919 I 183,221 I 135,719 I 61,277 I 377,367 3,314,534 PROJECT I The chart below sets forth the City and County sales tax revenues that are redirected by TIF over the 23-year TIF term. Year City County TOTAL 1 $ 0 $ 0 $ 0 2 _$ 2,910 $ 2,183 $ 5,093 3 $ 6,305 $ 4,729 $ 11,034 4 $ 7,760 $ 5,820 $ 13,580 5 �$ 8,245 $ 6,184 $ 14,429 6 4$ 8,730 $ 6,548 $ 15,278 7 `$ 8,973 $ 6,729 $ 15,702 8 $ 9,197 $ 6,898 $ 16,094 . 9 $ 9,427 $ 7,070 $ 16,497 10 $ 9,662 $ 7,247 $ 16,909 11 $ 9,904 $ 7,428 $ 17,332 12 $ 10,152 $ 7,614 $ 17,765 I 13 $ 10,405 $ 7,804 $ 18,209 14 $ 10,561 $ 7,921 $ 18,483 15 $ 10,720 $ 8,040 $ 18,760 16 $ 10,881 $ 8,160 $ 19,041 17 I$ 10,989 $ 8,242 $ 19,232 18 $ 11,099 $ 8,325 $ 19,424 19 1$ 11,210 $ 8,408 $ 19,618 - 20 $ 11,322 $ 8,492 $ 19,814 21 $ 11,436 $ 8,577 $ 20,012 22 $ 11,550 $ 8,663 $ 20,213 23 $ 11,666 $ 8,749 $ 20,415 TOTAL $ 213,104 $ 159,828 $ 372,932 NPV $ 111,283 $ 83,462 $ 194,745 I PROJECT I COST/BENEFIT ANALYSIS: This chart shows net taxes(after TIF)by tax type with the Redevelopment Project and taxes without the Redevelopment Project over a 23 year period.The far right column shows the net benefit(in terms of net tax revenue to all taxing jurisdictions)from the Redevelopment Project after TIF assistance(i.e.,cost).In other words,this chart shows the taxes generated with the Project/with TIF after reducing those revenues by the amount redirected by TIF and compares that revenue to the projected tax revenue from the Redevelopment Area without the Project/without TIF.The net benefit(i.e.,additional tax revenue)is approximately$15 Million in real terms and nearly$8 Million in present value terms. TIF Net Taxes with TIF Taxes without TIF (No Project) Year Ad Valorem Personal Sales Tax Utility Tax Lodging Tax TOTAL Ad Valorem Tax Personal Sales Tax Utility Tax Lodging TOTAL Tax Property Tax Property Tax Tax Ili Difference I $14,859 $0 $0 51,300 $0 $16,159 $14,859 SO $0 S1,300 $0 $16,159 $0 2 $17,587 $30,224 $85,789 $2,600 $61,352 $197,551 $14,784 $0 $0 $1,326 $0 $16,110 $181,441 3 $37,022 $25,908 $232,625 $3,900 $175,291 $474,746 $14,710 $0 $0 $1,353 $0 $16,063 $458,683 4 $37,411 $21,593 $271,650 $4,713 $202,461 $537,827 $14,637 $0 $0 $1,380 $0 $16,016 $521,811 5 $37,411 $17,278 $307,163 $4,847 $231,910 $598,608 $14,564 $0 $0 $1,407 $0 $15,971 $582,637 6 $38,392 $12,962 $345,367 $4,984 5263,797 $665,503 $14,491 $0 $0 $1,435 $0 $15,926 $649,577 7 $38,392 $8,647 $361,430 $5,125 $276,987 $690,581 $14,418 $0 $0 $1,464 $0 $15,882 $674,699 8 $39,398 $4,332 $378,107 $5,269 $290,837 $717,943 $14,346 $0 $0 $1,493 $0 $15,840 $702,104 9 $39,398 $7,023 $395,584 $5,417 $305,379 $752,801 $14,275 $0 $0 $1,523 $0 $15,798 $737,003 10 S40,429 $5,855 $397,122 $5,569 $305,445 $754,420 $14,203 $0 $0 $1,554 $0 $15,757 $738,664 11 540,429 $4,687 $398,623 $5,724 $305,445 $754,909 $14,132 $0 $0 $1,585 $0 $15,717 $739,192 12 $41,064 $3,520 $400,161 $5,884 $305,445 $756,073 $14,062 $0 $0 $1,616 $0 $15,678 $740,396 13 $41,064 $2,352 $401,739 $6,047 $305,445 $756,646 $13,991 $0 $0 $1,649 $0 $15,640 $741,006 14 $41,707 $1,184 $402,708 $6,214 $305,445 $757,259 $13,921 $0 $0 $1,682 $0 $15,603 $741,656 15 $41,707 $14,027 $403,693 $6,386 $305,445 $771,258 $13,852 $0 $0 $1,715 $0 $15,567 $755,691 16 $42,361 $11,689 $404,692 $6,562 $305,445 $770,749 $13,782 $0 $0 $1,750 $0 $15,532 $755,217 17 $42,361 $9,351 $405,368 $6,742 5305,445 $769,268 $13,713 $0 $0 $1,785 $0 $15,498 $753,769 18 $43,024 $7,014 $406,051 $6,927 $305,445 $768,460 $13,645 $0 $0 $1,820 $0 $15,465 $752,995 19 $43,024 $4,676 $406,741 $7,116 $305,445 $767,002 $13,577 $0 $0 $1,857 $0 $15,433 $751,568 20 $43,024 $16,381 $407,437 $7,311 $305,445 $779,598 $13,509 $0 $0 $1,894 $0 $15,403 $764,195 21 $43,024 $11,706 $408,141 $7,510 $305,445 $775,825 $13,441 $0 $0 $1,932 $0 $15,373 $760,452 22 $43,024 $9,368 $408,851 $7,714 $305,445 $774,402 $13,374 $0 $0 $1,970 $0 $15,344 $759,057 23 $43,024 $7,030 $409,569 $7,923 $305,445 $772,991 $13,307 $0 $0 $2,010 $0 $15,317 $757,674 TOTAL $889,134 $236,807 $8,038,611 $131,783 $6,084,246 $15,380,580 $323,594 $0 $0 $37,498 $0 $361,092 $15,019,488 NPV $484,840 $148,474 $4,224,398 $68,883 $3,201,329 $8,127,923 $187,431 $0 $0 $20,557 $0 $207,989 $7,919,935 PROJECT I COST/BENEFIT ANALYSIS:TAXES(REAL AND PRESENT VALUE)BY JURISDICTION AND TAX TYPE The charts below provide a more individualized breakdown of the chart above.And it shows the net benefit(after TIF)from the Redevelopment Project by taxing jurisdiction and by source of Tax Revenue over the same 23-year period.The final chart provides the Redevelopment Project's total benefit(in terms of additional tax revenue)to each taxing jurisdiction. Real Property NPV Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Ben TIP (No Project) of TIF TIF from TIF II State El 2,960 0 1,144 0 1,816 0 5,428 In 1,975 0 3,452 ©General Revenue El 7,419 0 2,868 0 4,551 0 13,606 1. 4,952 0 8,654 111 School El 364,320 0 140,840 0 223,480 0 668,117 IN 243,156 0 424,961 11 Road and Bridge El 26,637 0 10,298 0 16,340 0 48,850 1. 17,778 0 31,071 E Library El 19,731 0 7,628 0 12,104 0 36,185I'M 13,169 0 23,016 Special Services El 8,909 0 3,444 0 5,465 0 16,337 IN 5,946 0 10,392 II City El 54,863 j 21,209 033,654 0 100,612 IN 36,617 0 63,995 TOTAL AV TAX j 484,840® 187,431 j 297,409 la 889,134li. 323,594 j 565,540 Personal Property NPV Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Benefit TIF (No Project) of TIF TIF from TIF II State El 899 0 0 0 899 I 1,434 FM 0 0 1,434 ©General Revenue El 3,008 I0 0 3,008 El 4,797 IN 0 0 4,797 "'School El 111,008® 00 111,008 j 177,051 IR 00 177,051 ©Road and Bridge El 8,117® 0 j 8,117 El 12,946 In 0 0 12,946 ®Library © 6,015® 0 0 6,015 j 9,594 FM 0 0 9,594 ri Special Services j 2,710® 0 0 2,710 El 4,323 In 0 0 4,323 El City ® 16,718® 0 016,718 El 26,663 IN 0 j 26,663 TOTAL PP TAX j 148,474® 0 j 148,474® 236,807 li. 0® 236,807 Sales Tax NPV Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Benefit TIF (No Project) of TIF TIF from TIF II State $ 2,416,942$ 0 116MEZSE$ 4,600,488$ 0$ $4,600,488 ©City $ 1,032,832$ 0 $ 1,032,832$ 1,964,642$ 0$ $1,964,642 ®County $ 774,624$ 0 $ 774,624$ 1,473,481 $ 0$ $1,473,481 TOTAL SALES TAX © 4,224,398 j 0® 4,224,398 El 8,038,611 E. 0 j 8,038,611 Lodging Tax NPV Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Benefit TIF (No Project) of TIF TIF from TIF LI City $ 3,201,329$ 0 $ 3,201,329$ 6,084,246$ 0$ S6.084,246 TOTAL LODGING TAX j 3,201,329 0 0 j 3,201,329 j 6,084,246 E. 011 6,084,246 Utility Taxes NPV Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Benefit TIF (No Project) of TIF TIF from TIE gi City $ 68,883$ 20,557 $ 48,325$ 131,783$ 37,498$ $94,285 TOTAL UTILITY TAX j 68,883 j 20,557 la 48,325 j 131,783 IN 37,498 j 94,285 TOTAL(ALL TAX) NPV Taxes NPV Taxes without NPV Total Taxes with Total Taxes Total Benefit with TIF TIF(No Project) Benefit of TIF without TIF from TIF TIF IIState $ 2,420,801 $ 1,144 $ 2,419,657 $ 4,607,349 u1,975 $ S4.605,374 ©General Revenue $ 10,427 $ 2,868 $ 7,558 $ 18,402 u4,952 $ $13,451 ©School $ 475,328 $ 140,840 $ 334,488 $ 845,168® 243,156 $ $602,011 ©Road and Bridge 5 34,754 $ 10,298 $ 24,457 $ 61,795 u 17,778 $ $44,017 ®Library $ 25,746 $ 7,628 $ 18,119 $ 45,778 u13,169 $ $32,609 Special Services $ 11,619 $ 3,444 $ 8,175 $ 20,660© 5,946 $ $14,714 II City $ 4,374,624 $ 41,767 $ 4,332,858 $ 8,307,946 u74,115 $ $8,233,830 L County S 774,624 S 0 $ 774,624 $ 1,473,481 u 0 $ $1,473,481 TOTAL ALL TAX 11 8,127,923® 207,989 j 7,919,935 El 15,380,580 IN 361,092 j 15,019,488 PROJECT I ECONOMIC IMPACT: LODGING TAXES GENERATED FROM REDEVELOPMENT PROJECT OVER 23 YEARS DEPOSITING OVER $6 MILLION DIRECTLY TO THE CITY FOR THE DEVELOPMENT OF A CITY CONFERENCE CENTER AND TO PROMOTE TOURISM YEAR Parcel ID Desch•tion I odging Tax 1 10-06-13-0004-002-008.002 1590 Jefferson Street $0 $0 2 10-06-13-0004-002-008.002 $876,455 $61,352 310-06-13-0004-002-008.002 $2,504,156 $175,291 410-06-13-0004-002-008.002 $2,892,300 $202,461 510-06-13-0004-002-008.002 $3,312,998 $231,910 610-06-13-0004-002-008.002 $3,768,535 $263,797 710-06-13-0004-002-008.002 $3,956,962 $276,987 810-06-13-0004-002-008.002 $4,154,810 $290,837 910-06-13-0004-002-008.002 $4,362,550 $305,379 1010-06-13-0004-002-008.002 $4,363,502 $305,445 1110-06-13-0004-002-008.002 $4,363,502 $305,445 12 10-06-13-0004-002-008.002 $4,363,502 $305,445 1310-06-13-0004-002-008.002 _ $4,363,502 $305,445 1410-06-13-0004-002-008.002 $4,363,502 $305,445 1510-06-13-0004-002-008.002 $4,363,502 $305,445 1610-06-13-0004-002-008.002 $4,363,502 $305,445 1710-06-13-0004-002-008.002 $4,363,502 $305,445 1810-06-13-0004-002-008.002 $4,363,502 $305,445 1910-06-13-0004-002-008.002 $4,363,502 $305,445 2010-06-13-0004-002-008.002 $4,363,502 $305,445 2110-06-13-0004-002-008.002 $4,363,502 $305,445 22 10-06-13-0004-002-008.002 $4,363,502 $305,445 2310-06-13-0004-002-008.002 $4,363,502 $305,445 Total $86,917,794 $6,084,246 NPV 5.25% $45,733,270 $3,201,329 PROJECT I ECONOMIC IMPACT:AD VALOREM TAXES GENERATED FROM REDEVELOPMENT PROJECT OVER 23 YEARS-LESS TAXES REDIRECTED BY TIF A jurisdiction-by-jurisdiction breakdown of the ad valorem/real property taxes generated within the Redevelopment Area over 23 years from the Redevelopment Project. Year State General School Road&Bridge Library Special City TOTAL Revenue Services 1 $ 91 $ 227 $ 11,165 $ 816 $ 605 $ 273 $ $1,681 $14,859 2 $ 107 $ 269 .$ 13,215 $ 966 �$ 716 $ 323 $ $1,990 $- 17,587 3 $ 226 $ 567 $ 27,819 $ 2,034 $ 1,507 $ 680 $ $4,189 $37,022 4 $ 228 $ 572 $ 28,111 $ 2,055 $ 1,522 $ 687 $ $4,233 $- 37,411 5 $ 228 $ 572 $ 28,111 $ 2,055 $ 1,522 $ 687 $ $4,233• $- 37,411 6 $ 234 $ 587 $ 28,849 $ 2,109 $ 1,562 $ 705 $ $4,344 $38,392 7 $ 234 $ 587 $ 28,849 $ 2,109 $ 1,562 $ 705 $ $4,344 $38,392 8 $ 241 $ 603 $ 29,605 $ 2,165 $ 1,603 $ 724 $ $4,458 $- 39,398 9 $ 241 $ 603 $ 29,605 $ 2,165 $ 1,603 $ 724 $ $4,458 $39,39-8- 10 $ 247 $ 619 -$ 30,380 $ 2,221 -$ 1,645 $ 743 $ $4,575 $- 40,429 11 $ 247 $ 619 $ 30,380 $ 2,221 $ 1,645 $ 743 $ $4,575 $40,429 12 $ 251 $ 628 -$ 30,856 $ 2,256 -$ 1,671 $ 755 -$ $4,647 $- 41,064 13 $ 251 $ 628 $ 30,856 $ 2,256 $ 1,671 $ 755 $ $4,647 $41,064 14 $ 255 $ 638 $ 31,340 $ 2,291 $ 1,697 $ 766 \$ $4,719 $41,707 15 •$ 255 $ 638 $ 31,340 $ 2,291 $ 1,697 $ 766 •$ $4,719 $- 41,707 16 $ 259 $ 648 $ 31,831 $ 2,327 $ 1,724 $ 778 $ $4,793 $42,361 17 $ 259 $ 648 $ 31,831 $ 2,327 $ 1,724 $ 778 $ $4,793 $42,361 18 $ 263 $ 658 -$ 32,329 $ 2,364 -$ 1,751 $ 791 $ $4,868 $43,024 19 $ 263 $ 658 $ 32,329 $ 2,364 $ 1,751 $ 791 $ $4,868 $43,024 20 $ 263 $ 658 -$ 32,329 $ 2,364 -$ 1,751 $ 791 $ $4,868 $43,024 21 $ 263 $ 658 $ 32,329 $ 2,364 $ 1,751 $ 791 $ $4,868 $43,024 22 $ 263 $ 658 $ 32,329 $ 2,364 $ 1,751 $ 791 $ $4,868 $43,024 23 $ 263 $ 658 $ 32,329 $ 2,364 $ 1,751 $ 791 $ $4,868 $- 43,024 TOTAL $ 5,428 $ 13,606 $ 668,117 $ 48,850 $ 36,185 $ 16,337 $ 100,612 $ $889,134 NPV $ 2,960 $ I 7,419 $ I 364,320 $ I 26,637 $ I 19,731 $ I 8,909 $ I 54,863 $ I 484,840 PROJECT I ECONOMIC IMPACT:AD VALOREM TAXES GENERATED W/OUT REDEVELOPMENT PROJECT OVER 23 YEARS Same as above, but the chart below shows the resulting ad valorem tax revenues to each taxing jurisdiction if the Redevelopment Project is not undertaken. Year State General School Road&Bridge Library Special City TOTAL Revenue Services 1 $ 91 $ 227 •$ 11,165 $ 816 $ 605 $ 273 $ $1,681 $ $14,859 2 $ 90 $ 226 $ 11,109 $ 812 $ 602 $ 272 $ $1,673 $ $14,784 3 $ 90 $ 225 $ 11,054 $ 808 $ 599 $ 270 $ $1,665 $ $14,710 4 $ 89 $ 224 $ 10,998 $ 804 $ 596 $ 269 $ $1,656 $ $14,637 5 $ 89 $ 223 $ 10,943 $ 800 $ 593 $ 268 $ $1,648 $ $14,564 6 $ 88 $ 222 $ 10,889 $ 796 $ 590 $ 266 $ $1,640 $ $14,491 7 $ 88 $ 221 $ 10,834 $ 792 $ 587 $ 265 $ $1,632 $ $14,418 8 $ 88 $ 220 $ 10,780 $ 788 $ 584 $ 264 $ $1,623 $ $14,346 9 $ 87 $ 218 $ 10,726 $ 784 $ 581 $ 262 1$ $1,615 $ $14,275 10 $ 87 $ 217 $ 10,673 $ 780 $ 578 $ 261 $ $1,607 $ $14,203 11 $ 86 $ 216 $ 10,619 $ 776 $ 575 $ 260 $ $1,599 $ $14,132 12 $ 86 $ 215 $ 10,566 $ 773 $ 572 $ 258 $ $1,591 $ $14,062 13 $ 85 $ 214 $ 10,513 $ 769 $ 569 $ 257 $ $1,583 $ $13,991 14 $ 85 $ 213 $ 10,461 $ 765 $ 567 $ 256 $ $1,575 $ $13,921 15 $ 85 $ 212 $ 10,408 $ 761 $ 564 $ 255 $ $1,567 $ $13,852 16 $ 84 $ 211 $ 10,356 $ 757 $ 561 $ 253 $ $1,560 $ $13,782 17 $ 84 $ 210 $ 10,305 $ 753 $ 558 $ 252 $ $1,552 $ $13,713 18 $ 83 $ 209 $ 10,253 $ 750 $ 555 $ 251 $ $1,544 $ $13,645 19 $ 83 $ 208 $ 10,202 $ 746 $ 553 $ 249 $ $1,536 $ $13,577 20 $ 82 $ 207 $ 10,151 $ 742 $ 550 $ 248 $ $1,529 $ $13,509 21 $ 82 $ 206 $ 10,100 $ 738 $ 547 $ 247 1$ $1,521 $ $13,441 22 $ 82 $ 205 $ 10,050 $ 735 $ 544 $ 246 $ $1,513 $ $13,374 23 $ 81 $ 204 $ 9,999 $ 731 $ 542 $ 245 $ $1,506 $ $13,307 TOTAL $ 1,975 $ 4,952 $ 243,156 $ 17,778 $ 13,169 $ 5,946_$ 36,617 $ 323,594 NPV $ 1,144 $ 2,868 $ 140,840 $ 10,298 $ 7,628 $ 3,444 $ 21,209 $ 187,431 PROJECT I ECONOMIC IMPACT: PERSONAL PROPERTY TAXES GENERATED WITH REDEVELOPMENT PROJECT OVER 23 YEARS Same as above, but the chart below shows the resulting personal property tax revenues to each taxing jurisdiction if the Redevelopment Project is undertaken. Year State General School Road& Library Special City 10'1 Al. Revenue Bridge Services 1 $ 0$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ $0 2 $ 183$ 612 $ 22,597 $ 1,652 $ 1,224 $ 552 $ 3,403 $ $30,224 - 3 $ 157$ 525 $ 19,371 $ 1,416 $ 1,050 $ 473 $ 2,917 $ $25,908 4 $ 131$ 437 $ 16,144 $ 1,180 $ 875 $ 394 $ 2,431 $ $21,593 - 5 $ 105$ 350 $ 12,918 $ 945 $ 700 $ 315 $ 1,945 $ $17,278 6 $ 78$ 263 $ 9,691 $ 709 $ 525 $ 237 $ 1,460 $ $12,962 - 7 $ 52$ 175 $ 6,465 $ 473 $ 350 $ 158 $ 974 $ $8,647 8 $ 26$ 88 $ 3,239 $ 237 $ 175 $ 79 $ 488 $ $4,332 - 9 $ 43$ 142 $ 5,251 $ 384 $ 285 $ 128 $ 791 $ $7,023 10 $ 35$ 119 $ 4,378 $ 320 $ 237 $ 107 $ 659 $ $5,855 11 $ 28$ 95 $ 3,505 $ 256 $ 190 $ 86 $ 528 $ $4,687 12 $ 21$ 71 $ 2,631 $ 192 $ 143 $ 64 $ 396 $ $3,520 - 13 $ 14$ 48 $ 1,758 $ 129 $ 95 $ 43 $ 265 $ $2,352 14 $ 7$ 24 $ 885 $ 65 $ 48 $ 22 $ 133 $ $1,184 15 $ 85$ 284 $ 10,488 $ 767 $ 568 $ 256 $ 1,579 $ $14,027 16 $ 71$ 237 $ 8,740 $ 639 $ 474 $ 213 $ 1,316 $ $11,689 - 17 $ 57$ 189 $ 6,992 $ 511 $ 379 $ 171 $ 1,053 $ $9,351 18 $ 42$ 142 $ 5,244 $ 383 $ 284 $ 128 $ 790 $ $7,014 - 19 $ 28$ 95 $ 3,496 $ 256 $ 189 $ 85 $ 526 $ $4,676 20 $ 99$ 332 $ 12,248 $ 896 $ 664 $ 299 $ 1,844 $ $16,381 21 $ 71$ 237 $ 8,752 $ 640 $ 474 $ 214 $ 1,318 $ $11,706 22 $ 57$ 190 $ 7,004 $ 512 $ 380 $ 171 $ 1,055 $ $9,368 23 $ 43$ 142 $ 5,256 $ 384 $ 285 $ 128 $ 792 $ $7,030 TOTAL $ ,434 4,797 177,051 2,946 9,594 4,323 26,663 $ 236,87 NPV $ 1899 $I 3,008 $ 111,008 $I 18,117 $I 6,015 $I 2,710 $I 16,718 $ 148,474 I 2015 personal property tax RATES Jurisidiction Rate% -. ---I State 0.006053551-. General Revenue 0.020256112-. State I 0.0297 School 0.74766007-. General Revenue 0.0995 Road and Bridge 0.054668219-I School I 3.6743 Library 0.040512224-. Road and Bridge 0.2687 Special Services 0.018253783-. Library 0.1991 City 0.112596042-. Special Services 0.0897 100.0000% -. City I 0.5533 ---• 4.9144 Total 200.0000% 0.0000 PROJECT I ECONOMIC IMPACT: PERSONAL PROPERTY TAXES GENERATED W/OUT REDEVELOPMENT PROJECT OVER 23 YEARS Same as above, but the chart below shows the resulting personal property tax revenues to each taxing jurisdiction if the Redevelopment Project i5 NOT undertaken. Year State General Revenue School Road& Library Special City TOTAL Bridge Services 1 $ 0 $ 0 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 2 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 3 $ 0 $ 0 .$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 4 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -$ 0 5 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 6 $ 0 �$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -$ 0 7 5 0 $ 0 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 8 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 9 �$ 0 $ 0 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 10 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 11 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 12 5 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -5 0 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 14 $ 0 �$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -$ 0 15 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 16 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 17 . $ 0 $ 0 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 18 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 19 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 20 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -$ 0 21 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 22 .$ 0 �$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 23 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 TOTAL 0$ 0 $ 0$ 0 $ 0 $ 0 $ 0 $ 0 NPV $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 PROJECT I ECONOMIC IMPACT:SALES TAXES GENERATED FROM AND W/OUT REDEVELOPMENT PROJECT(BY JURISDICTION)OVER 23 YEARS-LESS AMOUNTS REDIRECTED BY TIF. With Project Without Project Year State City County F&B Sales F&B Sales Rm Total Sales Rm Sales tax Total Sales Tax Year State City County Tax Tax Sales tax Tax 1 $ 0 $ 0 $ 0 $ 0 $ 0 li 0 1 $ 0 $ 0 $ 0 $ 0 $ 0 LI 0 2 $ 49,705 $ 20,619 $ 15,464 $ 18,083 $ 67,706 Q 85,789 2 $ 0 S 0 $ 0 $ 0 $ 0 Q 0 3 $ 133,263 $ 56,778 $ 42,584 $ 39,179 $ 193,446 $ 232,625 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 4 $ 156,000 $ 66,086 $ 49,565 $ 48,220 $ 223,430 Q 271,650 4 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 5 $ 175,887 $ 75,015 $ 56,261 $ 51,234 $ 255,929 $ 307,163 5 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 6 $ 197,246 $ 84,641 $ 63,481 $ 54,248 $ 291,119 Q 345,367 6 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 7 $ 206,263 5 88,667 $ 66,500 $ 55,754 $ 305,675 $ 361,430 7 $ 0 S 0 $ 0 $ 0 $ 0 $ 0 8 $ 215,599 5 92,862 $ 69,646 $ 57,148 $ 320,959 Q 378,107 8 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 9 $ 225,377 $ 97,261 $ 72,946 $ 58,577 $ 337,007 0 395,584 9 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 10 $ 226,444 $ 97,530 $ 73,148 $ 60,041 $ 337,081 El 397,122 10 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 11 $ 227,496 $ 97,787 $ 73,340 $ 61,542 $ 337,081 © 398,623 11 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 12 $ 228,575 $ 98,050 $ 73,537 $ 63,081 $ 337,081 0 400,161 12 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 13 $ 229,680 $ 98,319 $ 73,739 $ 64,658 $ 337,081 $ 401,739 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 14 $ 230,360 $ 98,485 $ 73,864 $ 65,628 $ 337,081 Q 402,708 14 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 15 $ 231,050 $ 98,653 $ 73,990 $ 66,612 $ 337,081 Q 403,693 15 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 16 $ 231,750 $ 98,824 $ 74,118 $ 67,611 $ 337,081 Q 404,692 16 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 17 $ 232,224 $ 98,939 $ 74,204 $ 68,288 $ 337,081 Q 405,368 17 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 18 $ 232,703 5 99,056 $ 74,292 $ 68,970 $ 337,081 Q 406,051 18 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 19 $ 233,187 $ 99,174 $ 74,380 $ 69,660 $ 337,081 Q 406,741 19 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 20 $ 233,675 $ 99,293 $ 74,470 $ 70,357 $ 337,081 Q 407,437 20 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 21 $ 234,168 $ 99,413 $ 74,560 $ 71,060 $ 337,081 © 408,141 21 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 22 $ 234,666 $ 99,535 $ 74,651 $ 71,771 $ 337,081 Q 408,851 22 $ 0 S 0 $ 0 $ 0 $ 0 Q 0 23 $ 235,169 S 99,657 $ 74,743 $ 72,489 $ 337,081 © 409,569 23 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 TOTAL $ 4,600,488 $ 1,964,642 $ 1,473,481 $ 1,324,211 $ 6,714,400 © 8,038,611 TOTAL $ 0 $ 0 $ 0 $ 0 $ 0 0 0 NPV $ 2,416,942 Q 1,032,832 11 774,624 Q 691,503 Q 3,532,895 Q 4,224,398 NPV $ 0 $ 0 $ 0 $ 0 12 0 Q 0 PROJECT I ECONOMIC IMPACT: SALES TAXES GENERATED FROM ROOM SALES FROM REDEVELOPMENT PROJECT(BY JURISDICTION) OVER 23 YEARS-Almost 6.8 MILLION IN SALES TAX WILL BE GENERATED, WITH 3 MILLION OF IT GOING TO THE CITY AND COUNTY TIF YEAR Parcel ID Description Sales Room Sales Tax State City County 1 10-06-13-0004-002-008,002 1590 Jefferson Street $0 $0 $0 $0 $0 210-06-13-0004-002-008,002 $876,455 $67,706 $37,030 $17,529 $13,147 310-06-13-0004-002-008,002 $2,504,156 $193,446 $105,801 $50,083 $37,562 410-06-13-0004-002-008,002 $2,892,300 $223,430 $122,200 $57,846 $43,385 510-06-13-0004-002-008,002 $3,312,998 $255,929 $139,974 $66,260 $49,695 610-06-13-0004-002-008,002 $3,768,535 $291,119 $159,221 $75,371 $56,528 710-06-13-0004-002-008,002 $3,956,962 $305,675 $167,182 $79,139 $59,354 810-06-13-0004-002-008,002 $4,154,810 $320,959 $175,541 $83,096 $62,322 910-06-13-0004-002-008,002 $4,362,550 $337,007, $184,318 $87,251 $65,438 1010-06-13-0004-002-008,002 $4,363,502 $337,081, $184,358 $87,270 $65,453 1110-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 1210-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 1310-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 1410-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 1510-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 1610-06-13-0004-002-008,002 $4,363,502 $337,081_ $184,358 $87,270 $65,453 1710-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 1810-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 1910-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 2010-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 2110-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 2210-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 2310-06-13-0004-002-008,002 $4,363,502 $337,081 $184,358 $87,270 $65,453 Total $86,917,794 $6,714,400 $3,672,277 $1,738,356 $1,303,767 PROJECT I ECONOMIC IMPACT: PAYROLL DISTRIBUTED WITHIN THE LOCAL COMMUNITY OVER THE 23 YEAR PERIOD OF APPROX 28 MILLION TIF YEAR Parcel ID Descri'tion Room Sales F & B Sales eta! Sales Est Payroll 1 10-06-13-0004-002-008.002 1590 Jefferson Street $0 $0 $0 $0 2 10-06-13-0004-002-008.002 $876,455 $300,000 $1,176,455 $294,114 3 10-06-13-0004-002-008.002 $2,504,156 $650,000 $3,154,156 $788,539 410-06-13-0004-002-008.002 $2,892,300 $800,000 $3,692,300 $923,075 5 10-06-13-0004-002-008.002 $3,312,998 $850,000 $4,162,998 $1,040,750 6 10-06-13-0004-002-008.002 $3,768,535 $900,000 $4,668,535 $1,167,134 710-06-13-0004-002-008.002 $3,956,962 $925,000 $4,881,962 $1,220,491 8 10-06-13-0004-002-008.002 $4,154,810 $948,125 $5,102,935 $1,275,734 910-06-13-0004-002-008.002 $4,362,550 $971,828 $5,334,378 $1,333,595 10 10-06-13-0004-002-008.002 $4,363,502 $996,124 $5,359,626 $1,339,906 1110-06-13-0004-002-008.002 $4,363,502 $1,021,027 $5,384,529 $1,346,132 12 10-06-13-0004-002-008.002 $4,363,502 $1,046,553 $5,410,055 $1,352,514 13 10-06-13-0004-002-008.002 $4,363,502 $1,072,716 $5,436,218 $1,359,055 14 10-06-13-0004-002-008.002 $4,363,502 $1,088,807 $5,452,309 $1,363,077 15 10-06-13-0004-002-008.002 $4,363,502 $1,105,139 $5,468,641 $1,367,160 16 10-06-13-0004-002-008.002 $4,363,502 $1,121,716 $5,485,218 $1,371,305 1710-06-13-0004-002-008.002 $4,363,502 $1,132,934 $5,496,436 $1,374,109 18 10-06-13-0004-002-008.002 $4,363,502 $1,144,263 $5,507,765 $1,376,941 1910-06-13-0004-002-008.002 $4,363,502 $1,155,705 $5,519,207 $1,379,802 20 10-06-13-0004-002-008.002 $4,363,502 $1,167,263 $5,530,765 $1,382,691 2110-06-13-0004-002-008.002 $4,363,502 $1,178,935 $5,542,437 $1,385,609 22 10-06-13-0004-002-008.002 $4,363,502 $1,190,725 $5,554,227 $1,388,557 23 10-06-13-0004-002-008.002 $4,363,502 $1,202,632 $5,566,134 $1,391,533 I $86,917,794 $21,969,491 $108,887,285 $27,221,821 PROJECT I REDEVELOPMENT PROJECT AREA ONE PROJECTIONS(WITH TIF) YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 Rooms 121 121 121 121 121 121 121 121 121 121 Occupancy 45% 50% 55% 60% 65% 65% 65% 65% 65% 65% Average Rate $108 $113 $119 $125 $131 $138 $145 $152 $152 $152 Room Occupied 54.45 60.5 66.55 72.6 78.65 78.65 78.65 78.65 78.65 78.65 Revenues Rooms $2,146,419 $2,504,156 $2,892,300 $3,312,998 $3,768,535 $3,956,962 $4,154,810 $4,362,550 $4,363,502 $4,363,502 Meeting Revenue $493,676 $575,956 $665,229 $761,989 $866,763 $910,101 $955,606 $1,003,387 $1,003,605 $1,003,605 Food and Beverage $182,446 $212,853 $245,845 $281,605 $320,325 $336,342 $353,159 $370,817 $370,898 $370,898 Other Income $19,318 $22,537 $26,031 $29,817 $33,917 $35,613 $37,393 $39,263 $39,272 $39,272 Total $2,841,859 $3,315,502 $3,829,405 $4,386,409 $4,989,540 $5,239,017 $5,500,968 $5,776,017 $5,777,277 $5,777,277 Expenses Rooms $497,325 $580,213 $670,146 $767,622 $873,170 $916,828 $962,669 $1,010,803 $1,011,023 $1,011,023 Meeting Expense $172,787 $201,585 $232,830 $266,696 $303,367 $318,535 $334,462 $351,185 $351,262 $351,262 Food and Bevearge $118,590 $138,355 $159,800 $183,043 $208,212 $218,622 $229,553 $241,031 $241,083 $241,083 Other Expenses $13,522 $15,776 $18,221 $20,872 $23,742 $24,929 $26,175 $27,484 $27,490 $27,490 Total $802,224 $935,928 $1,080,997 $1,238,233 $1,408,490 $1,478,914 $1,552,860 $1,630,503 $1,630,859 $1,630,859 Dep Income $2,039,635 $2,379,574 $2,748,408 $3,148,176 $3,581,050 $3,760,103 $3,948,108 $4,145,513 $4,146,418 $4,146,418 Operating Exp Management Fee $284,186 $331,550 $382,940 $438,641 $498,954 $523,902 $550,097 $577,602 $577,728 $577,728 Sales/Marketing $85,256 $99,465 $114,882 $131,592 $149,686 $157,171 $165,029 $173,280 $173,318 $173,318 Franchise Fee $272,818 $318,288 $367,623 $421,095 $478,996 $502,946 $528,093 $554,498 $554,619 $554,619 Maintenance $42,628 $49,733 $57,441 $65,796 $74,843 $78,585 $82,515 $86,640 $86,659 $86,659 Utilities/Phone $71,046 $82,888 $95,735 $109,660 $124,739 $130,975 $137,524 $144,400 $144,432 $144,432 Total $755,934 $881,924 $1,018,622 $1,166,785 $1,327,218 $1,393,579 $1,463,258 $1,536,420 $1,536,756 $1,536,756 I TIF Revenue $975 $131,530 $275,620 $281,716 $282,699 $290,596 $291,161 $298,782 $299,332 $307,157 $3,120,283 Inc.Before FC $975 $1,415,231 $1,773,270 $2,011,502 $2,264,090 $2,544,428 $2,657,685 $2,783,632 $2,908,425 $2,916,819 $5,729,946 Fixed Costs Insurance $70,000 $70,700 $71,407 $72,121 $72,842 $73,571 $74,306 $75,049 $75,800 $76,558 Property Tax $14,859 $156,284 $312,567 $315,693 $315,693 $323,585 $323,585 $331,675 $331,675 $339,967 $339,967 (Total $226,284 $383,267 $387,100 $387,814 $396,427 $397,156 $405,981 $406,724 $415,767 $416,525 I Inc After FC. $1,188,947 $1,390,003 $1,624,402 $1,876,276 $2,148,001 $2,260,529 $2,377,651 $2,501,701 $2,501,052 $5,313,421 I Reversion Value of Asset at 11 years: Cash Flow ($22,095,000) $1,188,947 $1,390,003 $1,624,402 $1,876,276 $2,148,001 $2,260,529 $2,377,651 $2,501,701 $2,501,052 $5,313,421 I $25,036,220 Reversion Value of Asset(Year 23) NOI $2,193,896 Cap Rate 8.50% Fair Market Value $25,810,536 Less Selling Cost ($774,316) Net Sales Price $25,036,220 Unleveraged Internal Rate of Return 9.69% PROJECT I REDEVELOPMENT PROJECT AREA ONE PROJECTIONS(WITHOUT TIF) YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 Rooms 121 121 121 121 121 121 121 121 121 121 Occupancy 45% 50% 55% 60% 65% 65% 65% 65% 65% 65% Average Rate $108 $113 $119 $125 $131 $138 $145 $152 $152 $152 Room Occupied 54.45 60.5 66.55 72.6 78.65 78.65 78.65 78.65 78.65 78.65 Revenues Rooms $2,146,419 $2,504,156 $2,892,300 $3,312,998 $3,768,535 $3,956,962 $4,154,810 $4,362,550 $4,363,502 $4,363,502 Meeting Revenue $493,676 $575,956 $665,229 $761,989 $866,763 $910,101 $955,606 $1,003,387 $1,003,605 $1,003,605 Food and Beverage $182,446 $212,853 $245,845 $281,605 $320,325 $336,342 $353,159 $370,817 $370,898 $370,898 Other Income $19,318 $22,537 $26,031 $29,817 $33,917 $35,613 $37,393 $39,263 $39,272 $39,272 Total $2,841,859 $3,315,502 $3,829,405 $4,386,409 $4,989,540 $5,239,017 $5,500,968 $5,776,017 $5,777,277 $5,777,277 Expenses Rooms $497,325 $580,213 $670,146 $767,622 $873,170 $916,828 $962,669 $1,010,803 $1,011,023 $1,011,023 Meeting Expense $172,787 $201,585 $232,830 $266,696 $303,367 $318,535 $334,462 $351,185 $351,262 $351,262 Food and Bevearge $118,590 $138,355 $159,800 $183,043 $208,212 $218,622 $229,553 $241,031 $241,083 $241,083 Other Expenses $13,522 $15,776 $18,221 $20,872 $23,742 $24,929 $26,175 $27,484 $27,490 $27,490 Total $802,224 $935,928 $1,080,997 $1,238,233 $1,408,490 $1,478,914 $1,552,860 $1,630,503 $1,630,859 $1,630,859 Dep Income $2,039,635 $2,379,574 $2,748,408 $3,148,176 $3,581,050 $3,760,103 $3,948,108 $4,145,513 $4,146,418 $4,146,418 Operating Exp Management Fee $284,186 $331,550 $382,940 $438,641 $498,954 $523,902 $550,097 $577,602 $577,728 $577,728 Sales/Marketing $85,256 $99,465 $114,882 $131,592 $149,686 $157,171 $165,029 $173,280 $173,318 $173,318 Franchise Fee $272,818 $318,288 $367,623 $421,095 $478,996 $502,946 $528,093 $554,498 $554,619 $554,619 Maintenance $42,628 $49,733 $57,441 $65,796 $74,843 $78,585 $82,515 $86,640 $86,659 $86,659 Utilities/Phone $71,046 $82,888 $95,735 $109,660 $124,739 $130,975 $137,524 $144,400 $144,432 $144,432 Total $755,934 $881,924 $1,018,622 $1,166,785 $1,327,218 $1,393,579 $1,463,258 $1,536,420 $1,536,756 $1,536,756 'Inc.Before FC $0 $1,283,700 $1,497,650 $1,729,786 $1,981,391 $2,253,833 $2,366,524 $2,484,850 $2,609,093 $2,609,662 $2,609,662 Fixed Costs Insurance $70,000 $70,700 $71,407 $72,121 $72,842 $73,571 $74,306 $75,049 $75,800 $76,558 Property Tax $14,859 $156,284 $312,567 $315,693 $315,693 $323,585 $323,585 $331,675 $331,675 $339,967 $339,96711 'Total $226,284 $383,267 $387,100 $387,814 $396,427 $397,156 $405,981 $406,724 $415,767 $416,525 Inc After FC. $1,057,417 $1,114,383 $1,342,686 $1,593,577 $1,857,405 $1,969,368 $2,078,869 $2,202,369 $2,193,896 $2,193,138 Reversion Value of Asset at 11 years: Cash Flow ($22,095,000) $1,057,417 $1,114,383 $1,342,686 $1,593,577 $1,857,405 $1,969,368 $2,078,869 $2,202,369 $2,193,896 $2,193,138 $25,036,220 Reversion Value of Asset(Year 23) NOI $2,193,896 Cap Rate 8.50% Fair Market Value $25,810,536 Less Selling Cost @ 3.0% ($774,316) Net Sales Proceeds $25,036,220 Unleveraged Internal Rate of Return 7.90% Redevelopment Project Area (RPA) 2 PROJECT II COST BENEFIT ANALYSIS,ECONOMIC IMPACT ANALYSIS AND FISCAL IMPACT ANALYSIS INCREASED TAX REVENUE VERSUS THE VALUE OF THE INCENTIVES PROVIDED(BY AFFECTED TAXING JURISDICTION): This spreadsheet depicts(on the left)the total incentives provided by affected taxing jurisdictions,and it is compared to the potential increased tax revenue to those jurisdiction,from all sources and net of TIF redirected revenue,from the Redevelopment Project(on the right)over a 23 year period.Please note that this analysis does not include the benefit to the State of Missouri from the Project,and it is intended to address the City's internal policy that asks for a comparison of potential increased revenue,from all sources,to the value of the incentives provided.It includes only revenue from the Redevelopment Area. Incentives Provided by each affected Taxing Jurisdiction A IL Potential Increase in Tax Revenue to the affected Taxing Jurisdictions Neal C".ovoid School Road&Bridge Library Spend Services Ci bLi ' Year County/ General School Road&BridgeLibrary Special Services CityRev 1 $ 0 5 O S 0 $ 0 $ 0 S 325 . 1 $ 0 S 0 0 0 S 0 $ 0$ 325 2 $ 1,779 $ 69,490$ 5,081 $ 3,764 $ 1,699 5 12,737$ 94,550. 2 $ 5,776 5 4,823 $ 353 $ 261 $ 118$ 35,378 3 $ 9,290 S 277,550$ 20,293 $ 15,032 $ 6,787 S 50,871$ 379 97,. 3 $ 40,362 $ 67,621 $ 4,944 $ 3,663 0 1,652$ 237,189 4 $ 12,851 S 309,559$ 22,633 $ 16,766 $ 7,570 S 60,384$ 429,763. 4 $ 49,268 5 68,968 $ 5,043 $ 3,736 $ 1,685$ 283,971 5 $ 15,034 5 309,559$ 22,633 $ 16,766 $ 7,570 S 63,440 8 435,002. 5 8 57,802 5 65,797 $ 4,811 $ 3,564 $ 1,608$ 329,642 6 $ 17,379 S 317,561$ 23,219 $ 17,199 $ 7,765 S 67,705$ 450,829. 6 $ 66,888 5 63,755 $ 4,662 S 3,454 $ 1,558$ 378,659 7 $ 19,198 $ 317,561$ 23,219 $ 17,199 $ 7,765 S 70,284$ 455,226. 7 $ 76,131 S 60,583 $ 4,430 S 3,282 $ 1,480$ 429,541 8 $ 21,184 S 325,764$ 23,818 $ 17,643 $ 7,966 5 74,102$ 470,477. 8 $ 81,060 $ 58,568 $ 4,282 5 3,173 $ 1,431$ 454,573 9 $ 22,275 5 325,764$ 23,818 $ 17,643 $ 7,966 5 75,718$ 473,184. 9 9 85,345 $ 55,396 $ 4,050 $ 3,001 $ 1,354$ 477,626 10 $ 23,469 S 330,808$ 24,187 $ 17,916 $ 8,089 S 78,098$ 482,568. 10 $ 89,613 5 45,813 $ 3,350 $ 2,481 $ 1,120$ 500,681 Il 5 24,197 S 330,808$ 24,187 $ 17,916 $ 8,089 5 79,238$ 484,435. 11 $ 90,363 5 44,993 $ 3,290 $ 2,437 $ 1,100$ 503,455 12 $ 24,665 335,928$ 24,561 $ 18,194 $ 8,214 5 80,668$ 492,230. 12 $ 90,756 5 44,896 $ 3,283 5 2,432 $ 1,098$ 505,071 13 $ 25,021 S 335,928$ 24,561 $ 18,194 5 8,214 5 81,321$ 493,240. 13 $ 91,112 S 44,075 $ 3,223 $ 2,387 $ 1,078$ 506,462 14 $ 25,490 S 341,125$ 24,941 $ 18,475 $ 8,342 S 82,771$ 501,145. 14 $ 91,491 5 43,989 $ 3,216 5 2,383 $ 1,075$ 507,995 15 $ 25,861 5 341,125$ 24,941 $ 18,475 $ 8,342 5 83,453$ 502,198. 15 5 91,862 5 43,168 $ 3,156 S 2,338 $ 1,055$ 509,449 16 $ 26,347 $ 346,400$ 25,327 $ 18,761 $ 8,471 5 84,944$ 510,249. 16 $ 92,256 5 43,091 $ 3,151 $ 2,334 S 1,054$ 511,047 17 $ 26,733 5 346,400$ 25,327 $ 18,761 $ 8,471 S 85,655$ 511,346. 17 $ 92,818 5 48,713 $ 3,562 $ 2,639 $ 1,191$ 513,537 18 $ 27,127 S 346,400$ 25,327 $ 18,761 $ 8,471 5 86,381$ 512,466. 18 $ 93,190 S 47,017 $ 3,438 $ 2,547 $ 1,149$ 514,959 19 $ 27,528 S 346,400$ 25,327 $ 18,761 $ 8,471 5 87,123$ 513,60)U 19 $ 93,570 S 45,320 $ 3,314 $ 2,455 $ 1,108$ 516,415 20 $ 27,937 S 346,400 0 25,327 $ 18,761 $ 8,471 5 87,881$ 514,777. 20 5 93,958 5 43,623 $ 3,190 $ 2,363 $ 1,067$ 517,907 21 $ 28,355 $ 346,400$ 25,327 $ 18,761 $ 8,471 5 88,655$ 515,963 111 21 $ 94,355 5 41,926 $ 3,065 5 2,271 $ 1,025$ 519,434 22 $ 28,781 S 346,400$ 25,327 $ 18,761 $ 8,471 S 89,445$ 517,185. 22 $ 95,159 5 54,905 $ 4,014 5 2,974 $ 1,342 8 523,209 23 $ 29,216 $ 346,400$ 25,327 $ 18,761. $ 8,471 5 90,253$ 518,427 111 23 9 95,527 $ 51,459 $ 3,763 $ 2,787 $ 1,258 S 524,547 24 $ 10,072 S 0 5 0 5 0 $ 0 S 19,807$ 29,879. 24 $ 46,126 $ 0 $ 0 $ 0 $ 0 5 256,725 TOTAL $ 499,789$ 7,039,734 S 514,712$ 381,268$ 172,143$ 1,681,260$ 10,288,905.TOTAL $ 1,804,789$ 1,088,500$ 79,587$ 58,961$ 26,605$ 10,057,798 NPV $ 242;202 8 3,665,927$ 268,035$ 198,545$ 89,643$ 847,263$ 5,311,615 T NPV $ 888,790$ 598,418$ 43,754$ 32,415$ 14,625$ 4,973,838 PROJECT II 2015 Sales Tax Rates Jurisidiction Rate Not Subject to TIF Captured by TIF state 4.225% 4.225% 0.000% City 2.000% 1.000% 1.000% County 1.500% 0.750% 0.750% 7.725% 5.975% . 2015 mill property tax RATES share of surtax Jurisidiction Rate Not Subject to TIF Captured by TIF Jurisidiction Rate percent of total effective rate State 0.0300% 0.0300% 0.0000% State 0.0300% 0.6105% 0.0335% General Reven 0.0752% 0.0000% 0.0752% General Revenue 0.0752% 1.5302% 0.0841% School 3.6928% 0.0000% 3.6928% School 3.6928% 75.1424% 4.1286% Road and Brid€ 0.2700% 0.0000% 0.2700% Road and Bridge 0.2700% 5.4941% 0.3019% Library 0.2000% 0.0000% 0.2000% Library 0.2000% 4.0697% 0.2236% Special Service 0.0903% 0.0000% 0.0903% Special Services 0.0903% 1.8375% 0.1010% City 0.5561% 0.0000% 0.5561% City 0.5561% 11.3157% 0.6217% Fire 0.0000% 0.0000% 0.0000% Surtax 0.5800% 0.5800% 0.0000% Total 5.4944% 0.6100% * 4.8844% Total I= • 4.9144% 100.0000% 5.4944% PROJECT II ECONOMIC IMPACT: REAL PROPERTY VALUES AND ECONOMIC ACTIVITY WITHIN REDEVELOPMENT AREA The chart below sets forth the projected economic impact of the Project on property values and sales in the Redevelopment Area with and without the Redevelopment Project. IIIII Projected Projected Assessed Assessed Value Value(No TIF/No Assesse with Project Mir V III Project) rojected Sales Projected Sales(No TIF/No /Project Project) Year Base Sales 1 $ 289,568 $ 289,568 $ 270,432 $ 0 $ 0 $ 0 2 $ 289,568 $ 2,200,000 $ 269,080 $ 0 $ 400,000 $ 0 3 $ 289,568 $ 7,920,000 $ 267,734 $ 0 $ 2,823,809 $ 0 4 $ 289,568 $ 8,800,000 $ 266,396 $ 0 $ 3,611,111 $ 0 5 $ 289,568 $ 8,800,000 $ 265,064 $ 0 $ 4,331,333 $ 0 6 $ 289,568 $ 9,020,000 $ 263,738 $ 0 $ 5,086,799 $ 0 7 $ 289,568 $ 9,020,000 $ 262,420 $ 0 $ 5,829,984 $ 0 8 $ 289,568 $ 9,245,500 $ 261,108 $ 0 $ 6,283,983 $ 0 9 $ 289,568 $ 9,245,500 $ 259,802 $ 0 $ 6,648,182 $ 0 10 $ 289,568 $ 9,384,183 $ 258,503 $ 0 $ 7,023,092 $ 0 11 $ 289,568 $ 9,384,183 $ 257,211 $ 0 $ 7,123,092 $ 0 12 $ 289,568 $ 9,524,945 $ 255,925 $ 0 $ 7,174,122 $ 0 13 $ 289,568 $ 9,524,945 $ 254,645 $ 0 $ 7,223,122 $ 0 14 $ 289,568 $ 9,667,819 $ 253,372 $ 0 $ 7,273,102 $ 0 15 $ 289,568 $ 9,667,819 $ 252,105 $ 0 $ 7,324,082 $ 0 16 $ 289,568 $ 9,812,837 $ 250,844 $ 0 $ 7,376,081 $ 0 17 $ 289,568 $ 9,812,837 $ 249,590 $ 0 $ 7,429,120 $ 0 18 $ 289,568 $ 9,812,837 $ 248,342 $ 0 $ 7,483,220 $ 0 19 $ 289,568 $ 9,812,837 $ 247,100 $ 0 $ 7,538,402 $ 0 20 $ 289,568 $ 9,812,837 $ 245,865 $ 0 $ 7,594,687 $ 0 21 $ 289,568 $ 9,812,837 $ 244,636 $ 0 $ 7,652,099 $ 0 22 $ 289,568 $ 9,812,837 $ 243,412 $ 0 $ 7,710,658 $ 0 23 $ 289,568 $ 9,812,837 $ 242,195 $ 0 $ 7,770,389 $ 0 24 $ 289,568 $ 0 $ 0 $ 0 $ 3,746,589 $ 0 PROJECT II ECONOMIC IMPACT: PERSONAL PROPERTY VALUE AND ASSESSED VALUE (OVER 23 YEARS): The chart below sets for the projected market value(left side)and assessed value(right side) of all personal property within the Redevelopment Area over a period of 23 years. Please note three items: (1)the "Base" column depicts the growth in personal property taxes assuming project is built, (2)the "addition" columns shows the replacement of personal property as it ends its useful life of seven years, (3)the Depreciation shows the loss in value of personal property over its useful life of 7 years, and (4)values within the "Base w/out Project"column are based upn the project not being done. Personal Property Value Assessed Value Year Base. Addition depreciation Total w/Project Base w/out Project Total w/Project Total w/out Project 1 $1,845,000-- $0 $0 $0 50 $0 2 $263,429 $500,000 $0 $166,667 $166,667 $0 3 $263,429 53,225,000 $0 $1,075,000 $1,075,000 $0 4 -- $263,429 52,961,571 50 $987,190 $987,190 $0 5 -- $263,429 $2,698,142 $0 $899,381 $899,381 $0 6 $263,429 $2,434,713 $0 $811,571 $811,571 $0 7 $263,429 $2,171,284 $0 $723.761 $723,761 $0 8 $500,000 $2,242,570 $1,907,855 $0 $635,952 $635,952 $0 9 $71,286 $1,644,426 $0 $548,142 $548,142 $0 10 $71,286 $799,464 $0 $266,488 $266,488 $0 11 $500,000 $71,286 $728,178 $0 S242,726 $242,726 $0 I2 $71,286 $656,892 $0 $218,964 $218,964 $0 13 $71,286 $585,606 $0 $195,202 $195,202 $0 14 $71,286 $514,320 $0 $171,440 $171,440 $0 15 $1,000,000 $657,034 $443,034 $0 S!47,678 $147,678 $0 16 $142,714 $371,748 $0 S123,916 $123,916 $0 17 $142,714 $826,538 $0 S275,513 $275,513 $0 18 $142,714 $683,824 $0 5227,941 $227,941 $0 19 $142,714 $541,110 $0 S180,370 $180,370 $0 20 $1,000,000 $285,428 $398,396 $0 $132,799 $132,799 $0 21 $285,428 $255,682 $0 S85,227 $85,227 $0 22 $142,714 $1,311,254 $0 S437,085 $437,085 $0 23 $142,714 $1,025,826 $0 S341,942 $341,942 $0 24 $142,714 $0 $0 $0 $0 PROJECT II FISCAL IMPACT: AD VALOREM TAXES REDIRECTED BY TIF (BY AFFECTED TAX JURISDICTION) The chart below sets forth the ad valorem/real estate taxes redirect by TIF by each tax jurisdiction affected,including the annual total for all taxing jurisdictions, over the 23-year TIF term. Year General Revenue/county School Road&Bridge Library Special Services City TOTAL 1 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $0 2 $ $1,415 $ $69,490 $ $5,081 $ $3,764 $ $1,699 $ $10,465 $91,913 3 $ $5,652 $ $277,550 $ $20,293 $ $15,032 $ $6,787 $ $41,796 $367,110 4 $ $6,304 $ $309,559 $ $22,633 $ $16,766 $ $7,570 $ $46,617 $409,448 5 $ $6,304 $ $309,559 $ $22,633 $ $16,766 $ $7,570 $ $46,617 $409,448 - 6 $ $6,467 $ $317,561 $ $23,219 $ $17,199 $ $7,765 $ $47,822 $420,033 7 $ $6,467 $ $317,561 $ $23,219 $ $17,199 $ $7,765 $ $47,822 $420,033 8 $ $6,634 $ $325,764 $ $23,818 $ $17,643 $ $7,966 $ $49,057 $430,882 9 $ $6,634 $ $325,764 $ $23,818 $ $17,643 $ $7,966 $ $49,057 $430,882 10 $ $6,737 $ $330,808 $ $24,187 $ $17,916 $ $8,089 $ $49,817 $437,554 11 $ $6,737 $ $330,808 $ $24,187 $ $17,916 $ $8,089 $ $49,817 $437,554 12 $ $6,841 $ $335,928 $ $24,561 $ $18,194 $ $8,214 $ $50,588 $444,326 13 $ $6,841 $ $335,928 $ $24,561 $ $18,194 $ $8,214 $ $50,588 $444,326 14 $ $6,947 $ $341,125 $ $24,941 $ $18,475 $ $8,342 $ $51,370 $451,200 15 $ $6,947 $ $341,125 $ $24,941 $ $18,475 $ $8,342 $ $51,370 $451,200 16 $ $7,054 $ $346,400 $ $25,327 $ $18,761 $ $8,471 $ $52,165 $458,177 17 $ $7,054 $ $346,400 $ $25,327 $ $18,761 $ $8,471 $ $52,165 $458,177 18 $ $7,054 $ $346,400 $ $25,327 $ $18,761 $ $8,471 $ $52,165 $458,177 19 $ $7,054 $ $346,400 $ $25,327 $ $18,761 $ $8,471 $ $52,165 $458,177 20 $ $7,054 $ $346,400 $ $25,327 $ $18,761 $ $8,471 $ $52,165 $458,177 21 $ $7,054 $ $346,400 $ $25,327 $ $18,761 $ $8,471 $ $52,165 $458,177 22 $ $7,054 $ $346,400 $ $25,327 $ $18,761 $ $8,471 $ $52,165 $458,177 23 $ $7,054 $ $346,400 $ $25,327 $ $18,761 $ $8,471 $ $52,165 $458,177 24 $ $0 $ $0 $ $0 $ $0 $ $0 $0 $0 TOTAL $ 143,357 $ 7,039,734 $ 514,712 $ 381,268 $ 172,143 $ 1,060,116 $9,311,329 NPV $ 74,653 3,665,927 268,035 198,545 89,643 552,053 4,848,856 I PROJECT II The chart below sets forth the City and County sales tax revenues that are redirected by TIF over the 23-year TIF term. 1 $ 0 $ 0 $ 0 . 2 $ 485 $ 364 $ 849 3 $ 4,850 $ 3,638 $ 8,488 . 4 $ 8,730 $ 6,548 $ 15,278 5 $ 11,640 $ 8,730 $ 20,370 6 $ 14,550 $ 10,913 $ 25,463 7 $ 16,975 $ 12,731 $ 29,706 . 8 $ 19,400 $ 14,550 $ 33,950 9 $ 20,855 $ 15,641 $ 36,496 . 10 $ 22,310 $ 16,733 $ 39,043 11 $ 23,280 $ 17,460 $ 40,740 12 $ 23,765 $ 17,824 $ 41,589 13 $ 24,240 $ 18,180 $ 42,421 . 14 $ 24,725 $ 18,544 $ 43,269 15 $ 25,220 $ 18,915 $ 44,134 16 $ 25,724 $ 19,293 $ 45,017 17 $ 26,238 $ 19,679 $ 45,917 18 $ 26,763 $ 20,072 $ 46,836 19 $ 27,299 $ 20,474 $ 47,772 . 20 $ 27,844 $ 20,883 $ 48,728 21 $ 28,401 $ 21,301 $ 49,702 . 22 $ 28,969 $ 21,727 $ 50,696 23 $ 29,549 $ 22,162 $ 51,710 . 24 $ 13,430 $ 10,072 $ 23,502 TOTAL $ 475,243 $ 356,432 $ 831,676 NPV $ 223,399 .$ 167,550 $ 390,949 PROJECT II COST/BENEFIT ANALYSIS: This chart shows net taxes(after TIF)by tax type with the Redevelopment Project and taxes without the Redevelopment Project over a 23 year period.The far right column shows the net benefit(in terms of net tax revenue to all taxing jurisdictions)from the Redevelopment Project after TIF assistance(i.e.,cost).In other words,this chart shows the taxes generated with the Project/with TIF after reducing those revenues by the amount redirected by TIF and compares that revenue to the projected tax revenue from the Redevelopment Area without the Project/without TIF.The net benefit(i.e.,additional tax revenue)is over$18 Million in real terms and oevr$9 Million in present value terms. TIF Net Taxes with TIF Taxes without TIF (No Project) IIII in ear Ad Valorem Personal Sales Tax Utility Tax Lodging Tax TOT 11. Ad Valorem Tax Personal Sales Tax Utility Tax Lodging TOT Tax PropertAll 1 Property Tax Tax Difference 1 $14,859 SO $0 $1,300 $0 $16,159 $14,859 $0 $0 $1,300 SO $16,159 $0 2 $13,053 $8,191 $30,051 $1,788 $24,500 $77,583 $14,784 $0 $0 $1,326 $0 $16,110 $61,472 3 $52,136 $52,830 $209,652 $4,225 $162,667 $481,509 $14,710 $0 $0 $1,353 $0 $16,063 $465,446 4 $58,149 $48,514 $263,681 $5,038 $189,778 $565,159 $14,637 $0 $0 $1,380 $0 $16,016 $549,143 5 $58,149 $44,199 $314,225 $5,184 $219,193 $640,951 $14,564 $0 $0 $1,407 $0 $15,971 $624,980 6 $59,652 $39,884 $367,493 $5,334 $251,076 $723,438 $14,491 $0 $0 $1,435 $0 $15,926 $707,512 7 $59,652 $35,569 $420,660 $5,487 $285,599 $806,967 $14,418 $0 $0 $1,464 $0 $15,882 $791,084 8 $61,193 $31,253 $451,488 $5,645 $299,879 $849,457 $14,346 $0 $0 $1,493 $0 $15,840 $833,618 9 $61,193 $26,938 $477,076 $5,806 $314,873 $885,886 $14,275 $0 $0 $1,523 $0 $15,798 $870,088 10 $62,140 $13,096 $503,491 $5,972 $330,616 $915,316 $14,203 $0 $0 $1,554 $0 $15,757 $899,559 11 $62,140 $11,929 $509,519 $6,141 $330,616 $920,345 $14,132 $0 $0 $1,585 $0 $15,717 $904,629 12 $63,102 $10,761 $512,612 $6,315 $330,689 $923,479 $14,062 $0 $0 $1,616 $0 $15,678 $907,801 13 $63,102 $9,593 $515,566 $6,493 $330,689 $925,443 $13,991 $0 $0 $1,649 $0 $15,640 $909,803 14 $64,078 $8,425 $518,578 $6,676 $330,689 $928,446 $13,921 $0 $0 $1,682 $0 $15,603 $912,843 15 $64,078 $7,257 $521,651 $6,863 $330,689 $930,539 $13,852 $0 $0 $1,715 $0 $15,567 $914,972 16 $65,069 $6,090 $524,785 $7,055 $330,689 $933,688 $13,782 $0 $0 $1,750 $0 $15,532 $918,156 17 $65,069 $13,540 $527,982 $7,252 $330,689 $944,532 $13,713 $0 $0 $1,785 $0 $15,498 $929,033 18 $65,069 $11,202 $531,243 $7,453 $330,689 $945,656 $13,645 $0 $0 $1,820 $0 $15,465 $930,191 19 $65,069 $8,864 $534,569 $7,660 $330,689 $946,851 $13,577 $0 $0 $1,857 $0 $15,433 $931,418 20 $65,069 $6,526 $537,962 $7,872 $330,689 $948,118 $13,509 $0 $0 $1,894 $0 $15,403 $932,715 21 $65,069 $4,188 $541,422 $8,089 $330,689 $949,457 $13,441 $0 $0 $1,932 $0 $15,373 $934,084 22 $65,069 $21,480 $544,952 $8,312 $330,689 $970,501 $13,374 $0 $0 $1,970 $0 $15,344 $955,157 23 $65,069 $16,804 $548,552 $8,540 $330,689 $969,654 $13,307 $0 $0 $2,010 $0 $15,317 $954,337 24 $0 $0 $265,922 $6,377 $165,344 $437,643 $0 $0 $0 $2,050 $0 $2,050 $435,593 TOTAL $1,337,232 $437,134 $10,173,132 $146,876 $6,542,404 $18,636,777 $323,594 $0 $0 $39,548 $0 $363,142 $18,273,635 NPV $702,707 $278,299 $4,979,232 $72,734 $3,254,023 $9,286,994 $183,234 $0 $0 $20,615 $0 $203,849 $9,083,146 PROJECT II COST/BENEFIT ANALYSIS:TAXES(REAL AND PRESENT VALUE)BY JURISDICTION AND TAX TYPE The charts below provide a more individualized breakdown of the chart above.And it shows the net benefit(after TIF)from the Redevelopment Project by taxing jurisdiction and by source of Tax Revenue over the same 23-year period.The final chart provides the Redevelopment Project's total benefit(in terms of additional tax revenue)to each taxing jurisdiction. Real Property NPV Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Benefit TIF (No Project) of TIF TIF from TIF 1 State j 4,290 131,119® 3,171® 8,163 IR 1,975© 6,188 ®General Revenue ® 10,753 132,804® 7,949© 20,462 IR 4,952© 15,511 ®School 111 528,031 13 137,686® 390,345 11 1,004,829 IR 243,156 11 761,672 ®Road and Bridge ® 38,607 I10,067 j 28,540 j 73,468 IR 17,778 j 55,690 II Library ® 28,598 13 7,457 13 21,141 v 54,421 IR 13,169 j 41,252 ©Special Services ® 12,912 j 3,367 j 9,545 j 24,571 IR 5,946 j 18,625 City ® 79,516 j 20,734 j 58,782 I 151,317 IR 36,617 I 114,700 TOTAL AV TAX ® 702,707 2 183,234 0 519,473 j 1,337,232 lin 323,594 j 1,013,638 Personal Property III IOW Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Benefit TIF (No Project) of TIF TIF from TIF III State © 1,685 j0® 1,685 j 2,646 IR 0 j 2,646 II General Revenue ® 5,637 j (I® 5,637® 8,855 IN 0 ® 8,855 ®School ® 208,073 E 01 208,073© 326,827 IR 0® 326,827 II Road and Bridge ® 15,214 j0® 15,214® 23,897 IR 0 ® 23,897 ®Library ® 11,275 j 01 11,275 j17,709 IR 0 ® 17,709 III Special Services ® 5,080 j 0® 5,080 v 7,979 IR 0 ® 7,979 Il City ® 31,335 j0 j 31,335 I 49,220 IN 0 0 49,220 TOTAL PP TAX ® 278,299 0 0 0 278,299 0 437,134 la 0 2 437,134 Sales Tax III axes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Benefit (No Project) of TIF TIF from TIF IIState $ 2,937,089$ 0 $ 2,937,089$ 6,018,811 $ 0$ $6,018,811 E City $ 1,166,939$ 0 $ 1,166,939$ 2,373,898$ 0$ $2,373,898 ©County $ 875,204$ 0 $ 875,204$ 1,780,423$ 0$ $1,780,423 TOTAL SALES TAX 0 4,979,232 0 0 0 4,979,232 0 10,173,132 In 0 a 10,173,132 Lodging Tax NPV Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIF Total Taxes without Total Benefit TIF (No Project) of TIF TIF from TIF III City $ 3,254,023$ 0 $ 3,254,023$ 6,542,404$ 0 S $6,542,404 TOTAL LODGING TAX j 3,254,023 0 0 0 3,254,023 0 6,542,404 IR 0® 6,542,404 Utility Taxes NPV Taxes with NPV Taxes without TIF NPV Benefit Total Taxes with TIE Total Taxes without Total Benefit TIE (No Project) of TIF TIF from TIF O City $ 72,734$ 20,615 $ 52,119$ 146,876$ 39,548$ $107,327 TOTAL UTILITY TAX j 72,734 la 20,615 j 52,119 j 146,876 In 39,548 j 107,327 TOTAL(ALL TAX) NPV Taxes NPV Taxes without NPV Total Taxes with Total Taxes Total Benefit with TIF TIF(No Project) Benefit of TIF without TIF from TIF A TIF State $ 2,943,063 $ 1,119 $ 2,941,945 $ 6,029,620 III 1.975 $ $6,027,645 Il General Revenue $ 16,390 $ 2,804 $ 13,586 $ 29,317 11 4,952 $ $24,365 11 School $ 736,104 $ 137,686 $ 598,418 $ 1,331,656 III 243,156 $ $1,088,500 Road and Bridge $ 53,821 $ 10,067 $ 43,754 $ 97,366 u 17,778 $ $79,587 ®Library $ 39,872 $ 7,457 $ 32,415 $ 72,130 III 13,169 $ $58,961 ®Special Services $ 17,992 $ 3,367 $ 14,625 $ 32,550 lil 5,946 $ $26,605 City $ 4,604,547 $ 41,349 $ 4,563,198 $ 9,263,714 u 76,165 $ $9,187,549 E County $ 875,204 $ 0 $ 875,204 $ 1,780,423 11 0 $ $1,780,423 TOTAL ALL TAX J 9,286,994 j 203,849 j 9,083,146 j 18,636,777 lin 363,142 j 18,273,635 PROJECT II ECONOMIC IMPACT: LODGING TAXES GENERATED FROM REDEVELOPMENT PROJECT OVER 23 YEARS DEPOSITING OVER$6.5 MILLION DIRECTLY TO THE CITY FOR THE DEVELOPMENT OF A CITY CONFERENCE CENTER AND TO PROMOTE TOURISM IF YEAR Parcel ID Description Sales Lodging Tax 1 10-06-13-0004-002-008.002 1590 Jefferson Street $0 $0 210-06-13-0004-002-008.002 $350,000 $24,500 310-06-13-0004-002-008.002 $2,323,809 $162,667 410-06-13-0004-002-008.002 $2,711,111 $189,778 510-06-13-0004-002-008.002 $3,131,333 $219,193 610-06-13-0004-002-008.002 $3,586,799 $251,076 7.10-06-13-0004-002-008.002 $4,079,984 $285,599 810-06-13-0004-002-008.002 $4,283,983 $299,879 910-06-13-0004-002-008.002 $4,498,182 $314,873 1010-06-13-0004-002-008.002 $4,723,092 $330,616 1110-06-13-0004-002-008.002 $4,723,092 $330,616 12 10-06-13-0004-002-008.002 $4,724,122 $330,689 1310-06-13-0004-002-008.002 $4,724,122 $330,689 1410-06-13-0004-002-008.002 $4,724,122 $330,689 1510-06-13-0004-002-008.002 $4,724,122 $330,689 1610-06-13-0004-002-008.002 $4,724,122 $330,689 1710-06-13-0004-002-008.002 $4,724,122 $330,689 1810-06-13-0004-002-008.002 $4,724,122 $330,689 1910-06-13-0004-002-008.002 $4,724,122 $330,689 2010-06-13-0004-002-008.002 $4,724,122 $330,689 2110-06-13-0004-002-008.002 $4,724,122 $330,689 2210-06-13-0004-002-008.002 $4,724,122 $330,689 23.10-06-13-0004-002-008.002 $4,724,122 $330,689 2410-06-13-0004-002-008.002 $2,362,061 $165,344 Total $93,462,909 $6,542,404 NPV 5.25% $46,486,037 $3,254,023 PROJECT II ECONOMIC IMPACT:AD VALOREM TAXES GENERATED FROM REDEVELOPMENT PROJECT OVER 23 YEARS-LESS TAXES REDIRECTED BY TIF A jurisdiction-by-jurisdiction breakdown of the ad valorem/real property taxes generated within the Redevelopment Area over 23 years from the Redevelopment Project. Year State General School Road&Bridge Library Special City TOTAL Revenue Services 1 $ 91 $ 227 $ 11,165 $ 816 $ 605 $ 273 $ $1,681 $14,859 2 $ 80 $ 200 $ 9,809 $ 717 $ 531 $ 240 $ $1,477 $13,053 3 $ 318 $ 798 $ 39,176 $ 2,864 $ 2,122 $ 958 $ $5,900 $52,136 4 $ 355 $ 890 $ 43,694 $ 3,195 $ 2,366 $ 1,068 $ $6,580 $58,149 5 $ 355 $ 890 $ 43,694 $ 3,195 $ 2,366 $ 1,068 $ $6,580 $58,149 6 $ 364 $ 913 $ 44,824 $ 3,277 $ 2,428 $ 1,096 $ $6,750 $59,652 7 $ 364 $ 913 $ 44,824 $ 3,277 $ 2,428 $ 1,096 $ $6,750 $59,652 8 $ 374 $ 936 $ 45,982 $ 3,362 $ 2,490 $ 1,124 $ $6,924 $61,193 9 $ 374 $ 936 $ 45,982 $ 3,362 $ 2,490 $ 1,124 $ $6,924 $61,193 10 $ 379 $ 951 $ 46,694 $ 3,414 $ 2,529 $ 1,142 $ $7,032 $62,140 11 $ 379 $ 951 $ 46,694 $ 3,414 $ 2,529 $ 1,142 $ $7,032 $62,140 12 $ 385 $ 966 $ 47,417 $ 3,467 $ 2,568 $ 1,159 $ $7,140 $63,102 ` ' 13 $ 385 $ 966 $ 47,417 $ 3,467 $ 2,568 $ 1,159 $ $7,140 $63,102 14 $ 391 $ 981 $ 48,150 $ 3,521 $ 2,608 $ 1,177 $ $7,251 $64,078 ` 15 $ 391 $ 981 $ 48,150 $ 3,521 $ 2,608 $ 1,177 $ $7,251 $64,078 16 $ 397 $ 996 $ 48,895 $ 3,575 $ 2,648 $ 1,196 $ $7,363 $65,069 17 $ 397 $ 996 $ 48,895 $ 3,575 $ 2,648 $ 1,196 $ $7,363 $65,069 18 $ 397 $ 996 $ 48,895 $ 3,575 $ 2,648 $ 1,196 $ $7,363 $65,069 19 $ 397 $ 996 $ 48,895 $ 3,575 $ 2,648 $ 1,196 $ $7,363 $65,069 20 $ 397 $ 996 $ 48,895 $ 3,575 $ 2,648 $ 1,196 $ $7,363 $65,069 21 $ 397 $ 996 $ 48,895 $ 3,575 $ 2,648 $ 1,196 $ $7,363 $65,069 22 $ 397 $ 996 $ 48,895 $ 3,575 $ 2,648 $ 1,196 $ $7,363 $65,069 23 $ 397 $ 996 $ 48,895 $ 3,575 $ 2,648 $ 1,196 $ $7,363 $65,069 24 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ $0 $0 TOTAL �$ 8,163 $ 20,462 $ 1,004,829 $ 73,468 $ 54,421 $ 24,571 $ 151,317 $ $1,337,232 NPV $ 4,290 $ 10,753 $ 528,031 $ 38,607 $ 28,598 $ 12,912 $ 79,516 $ 702,707 PROJECT II ECONOMIC IMPACT:AD VALOREM TAXES GENERATED W/OUT REDEVELOPMENT PROJECT OVER 23 YEARS Same as above, but the chart below shows the resulting ad valorem tax revenues to each taxing jurisdiction if the Redevelopment Project is not undertaken. Year State General School Road&Bridge Library Special City TOTAL Revenue Services 1 $ 91 $ 227 $ 11,165 $ 816 $ 605 $ 273 $ $1,681 $ $14,859 2 $ 90 $ 226 $ 11,109 $ 812 $ 602 $ 272 $ $1,673 $ $14,784 3 $ 90 $ 225 $ 11,054 $ 808 $ 599 $ 270 $ $1,665 $ $14,710 4 $ 89 $ 224 $ 10,998 $ 804 $ 596 $ 269 $ $1,656 $ $14,637 5 $ 89 $ 223 $ 10,943 $ 800 $ 593 $ 268 $ $1,648 $ $14,564 6 $ 88 $ 222 $ 10,889 $ 796 $ 590 $ 266 $ $1,640 $ $14,491 7 $ 88 $ 221 $ 10,834 $ 792 $ 587 $ 265 $ $1,632 $ $14,418 8 $ 88 $ 220 $ 10,780 $ 788 $ 584 $ 264 $ $1,623 $ $14,346 9 $ 87 $ 218 $ 10,726 $ 784 $ 581 $ 262 $ $1,615 $ $14,275 10 $ 87 $ 217 $ 10,673 $ 780 $ 578 $ 261 $ $1,607 $ $14,203 11 $ 86 $ 216 �$ 10,619 $ 776 $ 575 $ 260 $ $1,599 $ $14,132 12 $ 86 $ 215 $ 10,566 $ 773 $ 572 $ 258 $ $1,591 $ $14,062 13 $ 85 .$ 214 $ 10,513 $ 769 $ 569 $ 257 $ $1,583 $ $13,991 14 $ 85 $ 213 $ 10,461 $ 765 $ 567 $ 256 $ $1,575 $ $13,921 15 $ 85 $ 212 �$ 10,408 $ 761 $ 564 $ 255 $ $1,567 $ $13,852' 16 $ 84 $ 211 $ 10,356 $ 757 $ 561 $ 253 $ $1,560 $ $13,782 ` 17 $ 84 $ 210 $ 10,305 $ 753 $ 558 $ 252 $ $1,552 $ $13,713 18 $ 83 $ 209 $ 10,253 $ 750 $ 555 $ 251 $ $1,544 $ $13,645 19 $ 83 $ 208 $ 10,202 $ 746 $ 553 $ 249 $ $1,536 $ $13,577' 20 $ 82 $ 207 $ 10,151 $ 742 $ 550 $ 248 $ $1,529 $ $13,509 21 $ 82 $ 206 $ 10,100 $ 738 $ 547 $ 247 $ $1,521 $ $13,441 22 $ 82 $ 205 $ 10,050 $ 735 $ 544 $ 246 $ $1,513 $ $13,374 23 $ 81 $ 204 $ 9,999 •$ 731 $ 542 •$ 245 $ $1,506 $ $13,307 24 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ $0 $ $0 TOTAL $ 1,975 $ 4,952 $ 243,156 $ 17,778 $ 13,169 $ 5,946 $ 36,617 $ 323,594 NPV $ 1,119-$ 2,804 $ 137,686,$ 10,067 $ 7,457 $ 3,367 $ 20,734 $ 183,234 PROJECT II ECONOMIC IMPACT: PERSONAL PROPERTY TAXES GENERATED WITH REDEVELOPMENT PROJECT OVER 23 YEARS Same as above, but the chart below shows the resulting personal property tax revenues to each taxing jurisdiction if the Redevelopment Project is undertaken. Year State General School Road& Library Special City TOTAI, Revenue Bridge Services I $ 0$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ $0 2 $ 50$ 166 $ 6,124 $ 448 $ 332 $ 150 $ 922 $ $8,191 3 $ 320$ 1,070 $ 39,499 $ 2,888 $ 2,140 $ 964 $ 5,948 $ $52,830 4 $ 294$ 983 $ 36,272 $ 2,652 $ 1,965 $ 886 $ 5,463 $ $48,514 5 $ 268$ 895 $ 33,046 $ 2,416 $ 1,791 $ 807 $ 4,977 $ $44,199 6 $ 241$ 808 $ 29,820 $ 2,180 $ 1,616 $ 728 $ 4,491 $ $39,884 7 $ 215$ 720 $ 26,593 $ 1,944 $ 1,441 $ 649 $ 4,005 $ $35,569 8 $ 189$ 633 $ 23,367 $ 1,709 $ 1,266 $ 570 $ 3,519 $ $31,253 9 $ 163$ 546 $ 20,140 $ 1,473 $ 1,091 $ 492 $ 3,033 $ $26,938 10 $ 79$ 265 $ 9,792 $ 716 $ 531 $ 239 $ 1,475 $ $13,096 11 $ 72$ 242 $ 8,918 $ 652 $ 483 $ 218 $ 1,343 $ $11,929 12 $ 65$ 218 $ 8,045 $ 588 $ 436 $ 196 $ 1,212 $ $10,761 13 $ 58$ 194 $ 7,172 $ 524 $ 389 $ 175 $ 1,080 $ $9,593 14 $ 51$ 171 $ 6,299 $ 461 $ 341 $ 154 $ 949 $ $8,425 1$ $ 44$ 147 $ 5,426 $ 397 $ 294 $ 132 $ 817 $ $7,257 16 $ 37$ 123 $ 4,553 $ 333 $ 247 $ 111 $ 686 $ $6,090 17 $ 82$ 274 $ 10,123 $ 740 $ 549 $ 247 $ 1,525 $ $13,540 18 $ 68$ 227 $ 8,375 $ 612 $ 454 $ 204 $ 1,261 $ $11,202 19 $ 54$ 180 $ 6,627 $ 485 $ 359 $ 162 $ 998 $ $8,864 20 $ 40$ 132 $ 4,879 $ 357 $ 264 $ 119 $ 735 $ $6,526 21 $ 25$ 85 $ 3,132 $ 229 $ 170 $ 76 $ 472 $ $4,188 22 $ 130$ 435 $ 16,060 $ 1,174 $ 870 $ 392 $ 2,419 $ $21,480 23 $ 102$ 340 $ 12,564 $ 919 $ 681 $ 307 $ 1,892 $ $16,804 24 $ 0$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ $0 TOTAL $ 2,646 $ 8,855 $ 326,827 $ 23,897 $ 17,709 $ 7,979 $ 49,220 $ 437,134 NPV $ 1,685 $ 5,637 $ 208,073 $ 15,214 $ 11,275 $ 5,080 $ 31,335 $ 278,299 2015 personal property tax RATES Jurisidiction Rate% -1 ---I State 0.006053551-I General Revenue 0.020256112-I State 0.0297 School 0.74766007-, General Revenue 0.0995 Road and Bridge 0.054668219-I School I 3.6743 Library 0.040512224-I Road and Bridge 0.2687 Special Services 0.018253783 I Library I 0.1991 City 0.112596042-, Special Services 0.0897 100.0000% -I City 0.5533 ---I 4.9144 Total 200.0000% 0.0000 PROJECT II ECONOMIC IMPACT: PERSONAL PROPERTY TAXES GENERATED W/OUT REDEVELOPMENT PROJECT OVER 23 YEARS Same as above, but the chart below shows the resulting personal property tax revenues to each taxing jurisdiction if the Redevelopment Project i5 NOT undertaken. Year State General Revenue School Road& Library Special City TOTAL Bridge Services 1 $ 0 $ 0 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 2 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 3 $ 0 $ 0 .$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 4 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -$ 0 5 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 6 $ 0 .$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -$ 0 7 5 0 $ 0 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 8 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 9 �$ 0 $ 0 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 10 $ 0 $ 0 5 0 $ 0 $ 0 $ 0 $ 0 $ 0 11 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 12 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -5 0 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 14 5 0 -$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -$ 0 15 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 16 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 17 . $ 0 $ 0 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 18 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 19 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 20 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 -5 0 21 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 22 �$ 0 -5 0 $ 0 $ 0 $ 0 $ 0 $ 0 5 0 23 $ 0 $ 0 5 0 $ 0 $ 0 $ 0 $ 0 $ 0 24 $ 0 $ 0 $ 0 5 0 $ 0 $ 0 $ 0 $ 0 TOTAL 0$ 0 $ 0$ 0 $ 0 $ 0 $ 0 $ 0 NPV $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 PROJECT II ECONOMIC IMPACT:SALES TAXES GENERATED FROM AND W/OUT REDEVELOPMENT PROJECT(BY JURISDICTION)OVER 23 YEARS-LESS AMOUNTS REDIRECTED BY TIF. With Project Without Project Year State City County F&B Sales F&B Sales Rm Total Sales Rm Sales tax Total Sales Tax Year State City County Tax Tax Sales tax Tax 1 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 1 $ 0 5 0 $ 0 $ 0 $ 0 Q 0 2 $ 16,900 $ 7,515 $ 5,636 $ 3,014 $ 27,038 Q 30,051 2 $ 0 5 0 $ 0 $ 0 $ 0 Q 0 3 $ 119,306 $ 51,626 $ 38,720 $ 30,138 $ 179,514 $ 209,652 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 4 $ 152,569 $ 63,492 $ 47,619 $ 54,248 $ 209,433 Q 263,681 4 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 5 $ 182,999 $ 74,987 $ 56,240 $ 72,330 $ 241,895 $ 314,225 5 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 6 $ 214,917 $ 87,186 $ 65,389 $ 90,413 $ 277,080 Q 367,493 6 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 7 $ 246,317 5 99,625 $ 74,719 $ 105,481 $ 315,179 $ 420,660 7 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 8 $ 265,498 5 106,280 $ 79,710 $ 120,550 $ 330,938 Q 451,488 8 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 9 $ 280,886 5 112,109 $ 84,081 $ 129,591 $ 347,485 0 477,076 9 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 10 $ 296,726 5 118,152 $ 88,614 $ 138,633 $ 364,859 Q 503,491 10 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 11 $ 300,951 $ 119,182 $ 89,386 $ 144,660 $ 364,859 13 509,519 11 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 12 $ 303,107 $ 119,717 $ 89,788 $ 147,674 $ 364,938 El 512,612 12 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 13 $ 305,177 $ 120,222 $ 90,167 $ 150,627 $ 364,938 $ 515,566 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 14 $ 307,289 $ 120,737 $ 90,553 $ 153,640 $ 364,938 Q 518,578 14 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 15 $ 309,442 $ 121,262 $ 90,947 $ 156,713 $ 364,938 0 521,651 15 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 16 $ 311,639 $ 121,798 $ 91,348 $ 159,847 $ 364,938 Q 524,785 16 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 17 $ 313,880 $ 122,344 $ 91,758 $ 163,044 $ 364,938 Q 527,982 17 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 18 $ 316,166 $ 122,901 $ 92,176 $ 166,305 $ 364,938 Q 531,243 18 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 19 $ 318,497 $ 123,470 $ 92,602 $ 169,631 $ 364,938 Q 534,569 19 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 20 $ 320,876 $ 124,049 $ 93,037 $ 173,023 $ 364,938 Q 537,962 20 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 21 $ 323,301 $ 124,641 $ 93,480 $ 176,484 $ 364,938 © 541,422 21 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 22 $ 325,775 $ 125,244 $ 93,933 $ 180,013 $ 364,938 Q 544,952 22 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 23 $ 328,299 $ 125,859 $ 94,394 $ 183,614 $ 364,938 Q 548,552 23 $ 0 $ 0 $ 0 $ 0 $ 0 Q 0 24 $ 158,293 $ 61,502 $ 46,126 $ 83,452 $ 182,469 0 265,922 24 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 TOTAL $ 6,018,811 $ 2,373,898 $ 1,780,423 $ 2,953,122 $ 7,037,541 0 9,907,210 TOTAL $ 0 $ 0 $ 0 $ 0 $ 0 0 0 NPV $ 2,937,089 $ 1,166,939 $ 875,204 $ 1,388,185 U 3,591,046 Q 4,979,232 NPV $ 0 $ 0 $ 0 $ 0 LI 0 Q 0 PROJECT II ECONOMIC IMPACT: SALES TAXES GENERATED FROM ROOM SALES FROM REDEVELOPMENT PROJECT(BY JURISDICTION) OVER 23 YEARS-APPROX 6.8 MILLION IN SALES TAX WILL BE GENERATED WITH 3MILLION OF IT GOING TO THE CITY AND COUNTY TIF YEAR Parcel ID Description Sales Room Sales Tax State City County 1 10-06-13-0004-002-008,002 1590 Jefferson Street $0 $0 $0 $0 $0 210-06-13-0004-002-008,002 $350,000 $27,038 $14,788 $7,000 $5,250 310-06-13-0004-002-008,002 $2,323,809 $179,514 $98,181 $46,476 $34,857 410-06-13-0004-002-008,002 $2,711,111 $209,433 $114,544 $54,222 $40,667 510-06-13-0004-002-008,002 $3,131,333 $241,895 $132,299 $62,627 $46,970 610-06-13-0004-002-008,002 $3,586,799 $277,080 $151,542 $71,736 $53,802 710-06-13-0004-002-008,002 $4,079,984 $315,179 $172,379 $81,600 $61,200 810-06-13-0004-002-008,002 $4,283,983 $330,938 $180,998 $85,680 $64,260 910-06-13-0004-002-008,002 $4,498,182 $347,485 $190,048 $89,964 $67,473 1010-06-13-0004-002-008,002 $4,723,092 $364,859 $199,551 $94,462 $70,846 1110-06-13-0004-002-008,002 $4,723,092 $364,859 $199,551 $94,462 $70,846 1210-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 13 10-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 1410-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 15 10-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 1610-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 1710-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 1810-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 1910-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 2010-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 2110-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 2210-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 2310-06-13-0004-002-008,002 $4,724,122 $364,938 $199,594 $94,482 $70,862 2410-06-13-0004-002-008,002 $2,362,061 $182,469 $99,797 $47,241 $35,431 Total $93,462,909 $7,220,010 $3,948,808 $1,869,258 $1,401,944 PROJECT II ECONOMIC IMPACT: PAYROLL DISTRIBUTED WITHIN THE LOCAL COMMUNITY OVER THE 23 YEAR PERIOD OF APPROX 28 MILLION TIF YEAR Parcel ID Descri'tion Room Sales F & B Sales !tal Sales Est Payroll 1 10-06-13-0004-002-008.002 1590 Jefferson Street $0 $0 $0 $0 2 10-06-13-0004-002-008.002 $350,000 $50,000 $400,000 $100,000 3 10-06-13-0004-002-008.002 $2,323,809 $500,000 $2,823,809 $705,952 410-06-13-0004-002-008.002 $2,711,111 $900,000 $3,611,111 $902,778 5 10-06-13-0004-002-008.002 $3,131,333 $1,200,000 $4,331,333 $1,082,833 6 10-06-13-0004-002-008.002 $3,586,799 $1,500,000 $5,086,799 $1,271,700 710-06-13-0004-002-008.002 $4,079,984 $1,750,000 $5,829,984 $1,457,496 8 10-06-13-0004-002-008.002 $4,283,983 $2,000,000 $6,283,983 $1,570,996 910-06-13-0004-002-008.002 $4,498,182 $2,150,000 $6,648,182 $1,662,046 10 10-06-13-0004-002-008.002 $4,723,092 $2,300,000 $7,023,092 $1,755,773 1110-06-13-0004-002-008.002 $4,723,092 $2,400,000 $7,123,092 $1,780,773 12 10-06-13-0004-002-008.002 $4,724,122 $2,450,000 $7,174,122 $1,793,531 13 10-06-13-0004-002-008.002 $4,724,122 $2,499,000 $7,223,122 $1,805,781 14 10-06-13-0004-002-008.002 $4,724,122 $2,548,980 $7,273,102 $1,818,276 15 10-06-13-0004-002-008.002 $4,724,122 $2,599,960 $7,324,082 $1,831,020 16 10-06-13-0004-002-008.002 $4,724,122 $2,651,959 $7,376,081 $1,844,020 1710-06-13-0004-002-008.002 $4,724,122 $2,704,998 $7,429,120 $1,857,280 18 10-06-13-0004-002-008.002 $4,724,122 $2,759,098 $7,483,220 $1,870,805 1910-06-13-0004-002-008.002 $4,724,122 $2,814,280 $7,538,402 $1,884,600 20 10-06-13-0004-002-008.002 $4,724,122 $2,870,565 $7,594,687 $1,898,672 2110-06-13-0004-002-008.002 $4,724,122 $2,927,977 $7,652,099 $1,913,025 22 10-06-13-0004-002-008.002 $4,724,122 $2,986,536 $7,710,658 $1,927,665 23 10-06-13-0004-002-008.002 $4,724,122 $3,046,267 $7,770,389 $1,942,597 2410-06-13-0004-002-008.002 $2,362,061 $1,384,528 $3,746,589 $936,647 $93,462,909 $48,994,148 1 $142,457,057 $35,614,264 REDEVELOPMENT PROJECT AREA TWO PROJECTIONS(WITH TIE) YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 Rooms 145 145 145 145 145 145 145 145 145 145 Occupancy 50% 55% 60% 65% 68% 68% 68% 68% 68% 68% Average Rate $121 $127 $133 $140 $147 $154 $154 $154 $154 $154 Room Occupied 72.5 79.75 87 94.25 98.6 98.6 98.6 98.6 98.6 98.6 Revenues Rooms $3,201,963 $3,698,267 $4,236,196 $4,818,673 $5,293,127 $5,557,784 $5,542,306 $5,542,306 $5,542,306 $5,542,306 Meeting Revenue $1,536,942 $1,775,168 $2,033,374 $2,312,963 $2,540,701 $2,667,736 $2,660,307 $2,660,307 $2,660,307 $2,660,307 Food and Beverage $272,167 $314,353 $360,077 $409,587 $449,916 $472,412 $471,096 $471,096 $471,096 $471,096 Other Income $28,818 $33,284 $38,126 $43,368 $47,638 $50,020 $49,881 $49,881 $49,881 $49,881 Total $5,039,889 $5,821,072 $6,667,773 $7,584,592 $8,331,383 $8,747,952 $8,723,590 $8,723,590 $8,723,590 $8,723,5901 Expenses Rooms $881,981 $1,018,688 $1,166,860 $1,327,304 $1,457,992 $1,530,892 $1,526,628 $1,526,628 $1,526,628 $1,526,628 Meeting Expense $691,624 $798,826 $915,018 $1,040,833 $1,143,316 $1,200,481 $1,197,138 $1,197,138 $1,197,138 $1,197,138 Food and Bevearge $176,908 $204,329 $234,050 $266,232 $292,445 $307,068 $306,212 $306,212 $306,212 $306,212 Other Expenses $20,172 $23,299 $26,688 $30,358 $33,347 $35,014 $34,917 $34,917 $34,917 $34,917 Total $1,770,685 $2,045,141 $2,342,617 $2,664,726 $2,927,099 $3,073,454 $3,064,895 $3,064,895 $3,064,895 $3,064,895 Dep Income $3,269,204 $3,775,930 $4,325,157 $4,919,866 $5,404,283 $5,674,497 $5,658,694 $5,658,694 $5,658,694 $5,658,694 Operating Exp Management Fee $503,989 $582,107 $666,777 $758,459 $833,138 $874,795 $872,359 $872,359 $872,359 $872,359 Sales/Marketing $151,197 $174,632 $200,033 $227,538 $249,941 $262,439 $261,708 $261,708 $261,708 $261,708 Franchise Fee $483,829 $558,823 $640,106 $728,121 $799,813 $839,803 $837,465 $837,465 $837,465 $837,465 Maintenance $75,598 $87,316 $100,017 $113,769 $124,971 $131,219 $130,854 $130,854 $130,854 $130,854 Utilities/Phone $125,997 $145,527 $166,694 $189,615 $208,285 $218,699 $218,090 $218,090 $218,090 $218,090 Total $1,340,610 $1,548,405 $1,773,628 $2,017,501 $2,216,148 $2,326,955 $2,320,475 $2,320,475 $2,320,475 $2,320,475 TIF Revenue $325 $94,550 $379,823 $429,763 $435,002 $450,829 $455,226 $470,477 $473,184 $482,568 $4,832,079 Income Before FC $2,023,143 $2,607,348 $2,981,292 $3,337,366 $3,638,964 $3,802,768 $3,808,696 $3,811,404 $3,820,788 $8,170,298 Fixed Costs Insurance $90,000 $90,900 $91,809 $92,727 $93,654 $94,591 $95,537 $96,492 $97,457 $98,432 Property Taxes $15,910 $120,877 $435,156 $483,507 $483,507 $495,595 $495,595 $507,985 $507,985 $515,605 $515,605 Total $210,877 $526,056 $575,316 $576,234 $589,249 $590,186 $603,522 $604,477 $613,062 $614,036 Income After FC $1,812,266 $2,081,292 $2,405,976 $2,761,132 $3,049,715 $3,212,583 $3,205,175 $3,206,927 $3,207,726 $7,556,262 1 Reversion Value of Asset at 11 years: Cash Flow ($34,702,800) $1,812,266 $2,081,292 $2,405,976 $2,761,132 $3,049,715 $3,212,583 $3,205,175 $3,206,927 $3,207,726 $7,556,262 I $33,042,540 Reversion Value of Asset(Year 23) NOI $2,725,158 Cap Rate 8.00% Fair Market Value $34,064,474 Less Selling Cost ($1,021,934) Net Sales Proceeds $33,042,540 Unleveraged Internal Rate of Return 7.87% REDEVELOPMENT PROJECT AREA TWO PROJECTIONS(WITHOUT TIF) YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 Rooms 145 145 145 145 145 145 145 145 145 145 Occupancy 50% 55% 60% 65%68.00% 68% 68% 68% 68% 68% Average Rate $121 $127 $133 $140 $147 $154 $154 $154 $154 $154 Room Occupied 72.5 79.75 87 94.25 98.6 98.6 98.6 98.6 98.6 98.6 Revenues Rooms $3,201,963 $3,698,267 $4,236,196 $4,818,673 $5,293,127 $5,557,784 $5,542,306 $5,542,306 $5,542,306 $5,542,306 Meeting Revenue $1,536,942 $1,775,168 $2,033,374 $2,312,963 $2,540,701 $2,667,736 $2,660,307 $2,660,307 $2,660,307 $2,660,307 Food and Beverage $272,167 $314,353 $360,077 $409,587 $449,916 $472,412 $471,096 $471,096 $471,096 $471,096 Other Income $28,818 $33,284 $38,126 $43,368 $47,638 $50,020 $49,881 $49,881 $49,881 $49,881 Total $5,039,889 $5,821,072 $6,667,773 $7,584,592 $8,331,383 $8,747,952 $8,723,590 $8,723,590 $8,723,590 $8,723,5917 Expenses Rooms $881,981 $1,018,688 $1,166,860 $1,327,304 $1,457,992 $1,530,892 $1,526,628 $1,526,628 $1,526,628 $1,526,628 Meeting Expense $691,624 $798,826 $915,018 $1,040,833 $1,143,316 $1,200,481 $1,197,138 $1,197,138 $1,197,138 $1,197,138 Food and Bevearge $176,908 $204,329 $234,050 $266,232 $292,445 $307,068 $306,212 $306,212 $306,212 $306,212 Other Expenses $20,172 $23,299 $26,688 $30,358 $33,347 $35,014 $34,917 $34,917 $34,917 $34,917 Total $1,770,685 $2,045,141 $2,342,617 $2,664,726 $2,927,099 $3,073,454 $3,064,895 $3,064,895 $3,064,895 $3,064,895 Dep Income $3,269,204 $3,775,930 $4,325,157 $4,919,866 $5,404,283 $5,674,497 $5,658,694 $5,658,694 $5,658,694 $5,658,694 Operating Exp Management Fee $503,989 $582,107 $666,777 $758,459 $833,138 $874,795 $872,359 $872,359 $872,359 $872,359 Sales/Marketing $151,197 $174,632 $200,033 $227,538 $249,941 $262,439 $261,708 $261,708 $261,708 $261,708 Franchise Fee $483,829 $558,823 $640,106 $728,121 $799,813 $839,803 $837,465 $837,465 $837,465 $837,465 Maintenance $75,598 $87,316 $100,017 $113,769 $124,971 $131,219 $130,854 $130,854 $130,854 $130,854 Utilities/Phone $125,997 $145,527 $166,694 $189,615 $208,285 $218,699 $218,090 $218,090 $218,090 $218,090 Total $1,340,610 $1,548,405 $1,773,628 $2,017,501 $2,216,148 $2,326,955 $2,320,475 $2,320,475 $2,320,475 $2,320,475 Income Before FC $1,928,593 $2,227,525 $2,551,529 $2,902,364 $3,188,135 $3,347,542 $3,338,220 $3,338,220 $3,338,220 $3,338,220 Fixed Costs Insurance $90,000 $90,900 $91,809 $92,727 $93,654 $94,591 $95,537 $96,492 $97,457 $98,432 Property Taxes $15,910 $120,877 $435,156 $483,507 $483,507 $495,595 $495,595 $507,985 $507,985 $515,605 $515,605 Total $210,877 $526,056 $575,316 $576,234 $589,249 $590,186 $603,522 $604,477 $613,062 $614,036 Income After FC $1,717,716 $1,701,469 $1,976,213 $2,326,130 $2,598,886 $2,757,356 $2,734,698 $2,733,743 $2,725,158 $2,724,183 II Reversion Value of Asset at 11 years: Cash Flow ($34,702,800) $1,717,716 $1,701,469 $1,976,213 $2,326,130 $2,598,886 $2,757,356 $2,734,698 $2,733,743 $2,725,158 $2,724,183 $33,042,540 Reversion Value of Asset(Year 23) NOI $2,725,158 Cap Rate 8.00% Fair Market Value $34,064,474 Less Selling Cost ($1,021,934) Net Sales Proceeds $33,042,540 Unleveraged Internal Rate of Return 5.96% APPENDIX H Developer's Affidavit DEVELOPER AFFIDAVIT STATE OF MISSOURI ) COUNTY OF BOONE ) I,the Undersigned,am over the age of 18 years and have personal knowledge of the matters stated herein. The Undersigned,swears,affirms,and certifies the following to be true to induce the approval of the Tax Increment Financing for the Redevelopment Area described in the Redevelopment Plan for the Truman Hotel and Conference Center. (the"Redevelopment Plan"). I. I am the duly authorized representative of the Puri Group of Enterprises,Inc.(the "Developer")and am authorized by the Developer to attest to the matters set forth herein. 2. I am familiar with the Redevelopment Area described in the Redevelopment Plan. In my Opinion,based upon the factors set forth in the Blight Study Conducted by Vallbridge Property Advisors,the Redevelopment Area,on the whole,qualifies as a "blighted area"as defined in Section 99.805(3)of the Missouri Revised Statutes,as amended. 3. The redevelopment of this area would not reasonably anticipated to be developed without the adoption of tax increment financing. Affiant further sayeth not. Puri Group of Enterprises,Inc. A Missouri Corpora '.n 400. BY: 2.45iLW- Dr. Ravi K. Puri,President and CEO Subscribed and sworn to before me this I I day of December,2015. Notary Public Commission Expires: a//SAZO/c— 8U8AAE I�1 Notary1 N STASeal TE OF MISSOURI County of Boone My Commission Expires 12/15/2015 Commission#11498188