HomeMy Public PortalAbout2016-07-11-TIF-TrumanHotelDoc-Concerns of OppositionConcerns of Opposition
•Developer has sold a portion of Property
•Land is Prime Location and Does not need Assistance
•Question on Land Price
•Per Room Cost is Inflated
Developer has sold a portion of
Property
•ALLEGATION FALSE!!!
•Property never owned by Puri Group
Land is Prime Location
•Land was listed Twice
–Dec 2010 – 2011
–Taken off Market
–Returned to Market July 2012
•FACTORS are NOT indicative of a Prime Spot
•FRUSTRATED-Owner contacted us
•Puri Group Purchased Property in July 2013
–3 YEARS AFTER IT was put up for sale
-Leisure Real Estate Investors
Question on Land Price
•Springsted DID NOT use our acquisition cost in
its evaluation
•Used the Appraised Value from Assessors
office $1,750,000
•Conclusion: Project needs TIF to Proceed
Per Room Cost is Inflated
•Best Way
–Comparative Analysis
–RSMEANS
»RSMEANS RANGE RPA 1 = $142.49 to $161.49/Sqr Foot
•PURI GROUP = $147.41/Sqr Foot
»RSMEANS RANGE RPA 2 = $137.61 to $152.66/Sqr Foot
•PURI GROUP = $136.50/Sqr Foot
PURI GROUP at LOW END of RANGE on BOTH RPA’s:
Conclusion: BUILDING COSTS ARE REASONABLE
–Previous Proposals
»Ehrhardt – proposal submitted to City Council 2013
»Farmers –proposal submitted to City Council 2013
»Marquette Towers – most recent TIF in Cape Girardeau
COMPARATIVE ANALYSIS
Proposal Rooms Meeting Cost ‘13 Cost ‘16
Parking Total Cost/key
Ehrhardt 150 30,000 $24.7M $25.4M $3.6M $29.0M $193,333
Farmer 150 30,000 $34.9M $35.9M $3.6M $39.5M $263,333
Puri 266 25,000 $46.1M $47.5M $3.6M $51.1M $192,105
Differences in Projects
Ehrhardt and Farmer
-NO DEMOLITION OR REBUILD
- Erhardt had a 4 Story Medium Rise Wooden Structure
-Neither Proposal includes Common Area and Parking
Improvements
Puri Group
-DEMOLITION AND REBUILD REQURED
-5 Story and 4 Story Medium Rise Metal And Masonry Structures
-Common Area and Parking Improvements Included
APPLES TO APPLES
PURI GROUP-PER KEY COST LOWER THAN ERHARDT OR FARMER PROPOSAL
COMPARATIVE ANALYSIS
Proposal Square
Footage
Cost Parking Total
Cost
Cost/Square Foot
Marquette Towers 85,000 17.5M $3.6M $21.1M $248.24
Puri Group 230,000 47.5M $3.6M $51.1M $222.17
Differences in project
Marquette Towers
- No Demolition or Rebuild REQUIRED
- Strictly a Renovation
-No Parking or Common Area Improvements Included
Puri Group
–Tear Down and Rebuild REQUIRED
- APPLES FOR APPLES
-11% less per square foot
inclusive of:
All Hard Cost
All Soft Cost
All Contingency fees
PURI GROUP PROJECT NUMBERS are LOWER than most recent proposal accepted in Cape
OPPOSITION RECAP
•FALSE ALLEGATION
–Puri Group Never owned the Property.
•Land is Prime Location No assistance needed
–Property listed for 3 years
•critics had equal opportunity to purchase property
•Capital Plaza took a 25 year abatement
•Question on Land Price
–Springsted used Assessors value of $1,750,000 as acquisition Cost
–CONCLUDED TIF STILL NEEDED
•Per Room Cost Inflated
–Apples to Apples: Per Key cost is less than Ehrhardt or Farmer Proposal
–Per Square foot cost is below Marquette Towers Development.
CONLCUSION
•TIF is STILL GOOD
FOR
JEFFERSON CITY!!!