Resolution No. 5057 - Laserfiche WebLink

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of Olive Plaza residents. The design of the stop will be coordinated with LTD and City of Eugene staff._ 2.6.5 Design and Construction Capstone has agreed to: 2.6.5.1 Improve the existing sidewalks surrounding the project to provide for a more inviting pedestrian environment. Capstone will expand the circulation space, and will work with City of Eugene staff to see if expansion of the existing right -of way is desired in this location. 2.6.5.2 Create a sidewalk design that incorporates strategic tree and root pruning to enable retaining as many trees within Olive Street and 13 Avenue. rights -of- way as possible. The trees within the right -of -way are in the process of review with the City arborist with specific pruning and care instructions to be established to minimize the impact to the trees. In the case an existing tree is required to be removed then it will be replaced with a like species. 2.6.5.3 Consistent with Capstone policy, encourage the use of local contractors, suppliers, and workers for the project as much as possible. 2.7 The financial information Capstone submitted in their application is based on projections prior to finalizing financing, construction, and tenanting. This analysis is based on the conservative approach that the project is built at one time. (Phasing would increase the cost of the project due to mobilization, lost economies of scale, and increased design and other soft costs; and reduce the return on investment.) The financial assumptions included in Capstone's MUPTE application pro -forma have been analyzed and adjusted as necessary to more accurately reflect the expected financial performance of the project. Of particular note, the projected tax savings in Capstone's pro - forma were overstated by their assumption that the full construction value of the project would be used for tax assessment purposes. The changed property ratio used in assessing real property would result in a lower taxable value and lower tax savings than projected in their pro- forma. The result of this adjustment is an increased projected return on investment in the "without MUPTE" scenario. Capstone's originally submitted pro -forma forecasted a 3.2% return on investment without MUPTE. With the more accurate tax savings figure, the projected return on investment without MUPTE has been adjusted to 6 %. There are no adjustments made that result in a lowering of the projected return. The applicant demonstrated that the project as proposed could not be built but for the benefit of the tax exemption. The financing for the project will be required to meet a specific Loan -to -Value underwriting- criteria which is expected to be 70 %. The Loan -to -Value assumption appears to be consistent with today's tighter real estate lending standards. For this large scale project, Capstone will need to provide 30% ($27 million) of the project's financing in the form of equity. Unlike typical MUPTE projects financed with local equity, the proposed scale of the Capstone development will require institutional sources of equity to be attracted to the project. Additionally, the proposed project will require the investor to