Daley Field Offering - Comparison of Offers! rt
Site Facts -
Comparison of the Two Offers -
Total Area -
681,758 sf
15.65 acres
Rosauers
Gross Price
$743,311
Rosauers Parcel -
228,711 sf
Commissions
0
5.26 acres
Net Price
$743,311
North Parcel -
132,564 sf
Site Area
228,711 sf
3.04 acres
5.25 acres
South Parcel -
320,483 sf
Price per SF
$3.25 Gross
7.36 acres
$3.25 Net
King Mgmt, Inc.
$1,364,000
109,120
$1,254,880
681,758 sf
15.65 acres
$2.00 Gross
$1.84 Net
If the City accepted the Rosauers Offer, and re-offerred the remaining parcels, how much would they need
to receive to achieve breakeven with the initial full -parcel offer?
King Mgmt Offer - Net $1,254,880 Total Parcel Area 681,758 sf
Rosauers Offer 743,311 Rosauers Area 228,711 sf
Net Price Difference $511,569 Remaining Area 453,047 sf
Price/sf Required for Breakeven $1.13
Another way of stating this is - Assuming the land being sought for the Rosauers development is worth the $3.25/sf price
being offerred, then King Management is proposing to pay only $1.13/sf for the remaining balance of the site.
08/29/97 Page 1
In our opinion, the remaining North Parcel is worth at least the same $3,25 per sf that Rosauers is offering
In their proposal, while the remaining South Parcel is not quite as desirable. Based on certain prices
received on the North Parcel, how much would the City need on the remaining South Parcel to achieve
breakeven?
If the City
Received a
$/sf Offer
Of
Equates to
a Total $
Offer Of
Leaves
This Amount
of Total $
to Reach
Breakeven
Which Equals
a Breakeven
$/sf Price on
the South
Parcel of
$2.00
$265,128
$246,441
$0.77
$2.50
$331.410
$180,159
$0.56
$3.00
$397,692
$113,877
$0.36
$3.25
$430,833
$80,736
$0.25
$3.50
$463,974
$47,595
$0.15
$3.75
$497,115
$14,454
$0.05
$4.00
$530,256
($18,687)
$0.00
If the City were to accept the Rosauers Offer, and re -offer the remaining North and South Parcels, how much
more in total proceeds could they reasonably expect to receive?
Total Less: Net
North &
Proceeds
Price
Would
South
From
Difference
Provide
Sold at an
Re -Sale
of King vs.
Increased
Average
of North &
Rosauers
Proceeds to
$/sf Price of
South
Offer
the City of
$1.25
$566,309
$511,569
$54,740
$1.50
$679,571
$511,569
$168,002
$1.75
$792,832
$511,569
$281,263
$1.84
$833,606
$511,569
$322,037
$2.00
$906,094
$511,569
$394,525
$2.25
$1,019,356
$511,569
$507,787
$2.50
$1,132,618
$511,569
$621,049
$2.75
$1,245,879
$511,569
$734,310
$3.00
$1,359,141
$511,569
$847,572
08/29/97 Page 2
f
If Rosauers were to develop their store as planned, and the balance of the site were developed as set
forth per the King Management proposal, how much greater would the net ad valorem tax base be?
Value of the Rosauers development
Value of King Management "compatible' components -
First Motel
Restaurant on North Parcel
Auto Dealership
Convenience Store/Auto Service
Quick Lube (est.)
Other (est.)
TOTAL POTENTIAL COMBINED TAXABLE VALUE
Less: Value of Full Site King Management Proposal
POTENTIAL EXCESS TAXABLE VALUE
POTENTIAL EXCESS AD VALOREM TAXES -
Market Value Class 4 (est.)
Class 4 Classification
TAXABLE VALUE
Market Value Personal Property (est.)
Class 8 Classification
TAXABLE VALUE
TOTAL MARKET VALUE
Combined Mill Levy 1996
POTENTIAL EXCESS AD VALOREM TAXES
$6, 000, 000
$2,900,000
1,100,000
2,000,000
1,500,000
600,000
300,000 8,400,000
14,400,000
12, 000, 000
$2,400,000
$2, 000, 000
3.86%
$77, 200
400,000
8.00%
$32, 000
$109, 200
52.0252%
$56,812 Per Year
O8/29/97 Page 3