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<br /> <br />Memorandum Date: October 17, 2018 To: Mayor and City Council From: Amanda Nobel Flannery, Economic Prosperity Programs Manager Subject: Financial Analysis Materials from PNW Economics – Gordon Lofts The Gordon Lofts project proforma and financial information was analyzed by PNW Economics, an independent real estate economics consultant. PNW Economics provided a Market and Financial Analysis with a review of assumptions including rents, vacancy rates, operating costs, lender underwriting criteria, interest rates, and a review of cash-on-cash return (Exhibit A). The analysis was provided to the Review Panel in advance of the first meeting and was discussed at the second meeting. The Panel provided questions to PNW Economics to be addressed at the second meeting. The answers were provided to the Panel in a memo dated August 29, 2018 (Exhibit B). Based on the Review Panel’s discussion at the second meeting and their follow-up questions, PNW Economics provided additional information. This was provided to the Review Panel in advance of the third meeting in a memo dated August 29, 2018 and includes the final proforma scenarios (Exhibit C). The PNW Economics analysis concludes that the project would not be viable without the availability of the MUPTE, using the reasonable assumptions outlined and that “inclusion of the MUPTE over a ten-year period would likely make this project viable.” <br />ATTACHMENT E <br />Independent Financial Consultant Analysis <br />October 17, 2018, Work Session – Item 2