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<br /> <br /> <br />5. Financial Summary: Collateral and Debt Service Coverage <br /> <br />COLLATERAL <br />The City of Eugene’s Urban Renewal Agency (the “City”) will have first position trust deeds on <br />the Centre Court real property, the adjacent vacant parcel, and the Washburne Building real <br />property. The existing Section 108 Loan #1 and the proposed Section 108 Loan #2 would be <br />secured by an assignment of the trust deeds on the three properties to HUD. The value of the <br />Centre Court Building at stabilization is projected to be $8,659,679. The appraised value of the <br />Washburne building is $1,721,000. The vacant parcel has an appraised value of $454,000. The <br />combined value of the three properties is $10,834,679. The total Section 108 debt on the Centre <br />Court building and Washburn building will be $7,895,000, resulting in a loan to value ratio of <br />73%. (The BEDI loans will be collateralized by subordinate trust deeds to secure Beam’s <br />obligation to repay the BEDI loans based on an agreement to distribute a percentage of the <br />project’s net earnings to the City. The BEDI loans are not included in the loan to value <br />calculation.) Additional collateral for the City would include assignment of leases on the Centre <br />Court and Washburne buildings, and a personal guarantee from the Beam owner, all of which <br />would be assigned to HUD. The City Downtown Revitalization Loan Program (DRLP) loans in <br />the amounts of $404,000 and $350,000 would be subordinate to the Section 108 Loan #1 and <br /> <br />Loan #2. <br /> <br /> <br />Centre Court Projected Value (7.5% Cap) $ 8,659,679 <br />Washburne Building Appraised Value 1,721,000 <br />Vacant Parcel Appraised Value 454,000 <br /> Collateral Value $10,834,679 <br /> <br />Total Section 108 Debt $ 7,895,000 <br /> <br />Loan-to-Value 73% <br /> <br />@ 8% Cap Value on Centre Court 77% <br /> <br /> <br />PROJECTED INCOME AND OPERATING EXPENSES – CENTRE COURT BUILDING: <br /> <br /> Rentable Sq ft Monthly Annual Income <br />Rate <br /> <br />Ground Floor 9,852 $ 1.50 $ 177,336 <br />2 nd Floor 10,000 $ 1.58 $ 190,000 <br />3 rd Floor 11,449 $ 1.33 $ 183,184 <br />4 th Floor 11,018 $ 1.50 $ 198,324 <br />5 th Floor 11,018 $ 1.67 $ 220,360 <br />Other $ 14,400 <br /> TOTAL INCOME $ 983,604 <br /> <br /> <br />-Less Vacancy @ 10% 98,360 <br /> <br />-Less Annual Operating Expenses235,768 <br /> <br />Net Operating Income (NOI) $ 649,476 <br /> <br />3 <br />