Agenda Packet 9-11-19 Work Session

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Memorandum Date: August 19, 2019 To: Mayor and City Council From: Amanda D’Souza, Business Development Analyst Subject: Financial Analysis Materials from Johnson Economics – Ferry St. Manor The Ferry St. Manor project proforma and financial information was analyzed by Johnson Economics, an independent real estate economics consultant. Johnson Economics conducted a pro forma evaluation of the project’s viability with a review of assumptions including income, lease rates, operating costs, permanent financing, construction costs, and return. The analysis was provided to the Review Panel in advance of the first meeting and was discussed at the second meeting (Exhibit A). The Panel provided questions to Johnson Economics to be addressed at the second meeting. The answers were provided to the Panel in a memo dated June 4, 2019 (Exhibit B). The Johnson 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.” Attachment F September 11, 2019, Work Session – Item 1