Laserfiche WebLink
Gordon Lofts MUPTE <br />Application <br />MUPTE REVIEW PANEL <br />MINORITY REPORT <br />100518 <br />TO: Eugene City Manager <br />RE:Gordon Lofts MUPTE Minority Report <br />FROM: Lloyd Helikson, Bill Aspegren <br />At Large Neighborhood Members, Eugene MUPTE Review Panel <br />The above listed members of the Eugene MUPTE Review Panel voted against granting <br />a ten year MUPTE for the Gordon Lofts Project, but would have agreed to a three year MUPTE. <br />This minority report focuses on the financial issue of whether the project could be built without <br />the benefit of MUPTE, as expressed in the opinion of these members. <br />Summary <br /> The attached Tables 1-8 provide the data supporting the conclusions in this report. The <br />following charts from Tables 1,3, and 6 summarize the information that led to the three-year <br />MUPTE recommendation for the Gordon Lofts project: <br /> After reviewing the PNW pro formas, several areas were adjusted: <br />First year vacancy rate and apartment expenses were also adjusted. See II. General E & F. <br /> The PNW consultant reviewing the Gordon Lofts application defined the following <br />requirements indicating the project had reached financial viability. (see III. Conclusions Based <br />Upon Modifications to Consultant’s Revised Pro Formas): <br /> 6% cash on cash, cash flow return defined as Net Operating Income (NOI) divided <br />by Equity ($7,000,000) <br /> 1.20 Debt Service Coverage Ratio (DCR) defined as NOI divided by Annual Debt <br />Service. <br /> The consultant approved the use of cash on cash, cash flow return and cash-on- <br />cash return on equity as evaluation criteria. <br /> Gordon Lofts Adjusted Construction Budget Without MUPTE <br />$34,000,000 Total Project Cost Application p. 38 <br />$378,636 Less Moderate Housing Fee Application p. 38 <br />$2,055,424 Less 10% Limitation on Construction Contingencies II. General Analysis H. <br />$31,565,940 Adjusted Total Project Cost <br />$7,000,000 Less Equity (down payment)Application p. 38 <br />$24,565,940 Adjusted Construction Loan Amount <br /> Debt Service (Principle & Interest) 30 Year Amortization at 6% Interest <br />$147,285 Monthly Payments from Amortization Table <br />$1,767,423 Annual Debt Service – Monthly Payments x 12 <br />$24,714 Retail Lease Income See II. General C. <br />$10,368 Real Estate Tax Discount See II. General D. <br />Page