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Meaford Haven Proforma Sept 2013
Meaford Haven Proforma Sept 2013
19/2013
1.
TOTAL REVENUE Gross Revenue (Incl. HST) Interim Occupancy Income H.S.T. Payable (Net of Rebate) Net Revenue EXPENSES Land + Closing Costs & LTT Site Servicing Development Charges Common Element Expenses Purchaser Deposit Interest Development Soft Costs Hard Construction Costs Overhead Recovery Indirect Constr./Direct O.H. Site Labour & Service Marketing Sales Commission Interim Financing Total Expenses Total Profit Club House Cost Net Profit Total O.H. & Profit O.H. & Profit as a % of Net Revenue $4,993,183 $8,970,375 $4,061,578 $28,800 $112,000 $3,366,481 $35,266,120 $1,921,841 $1,600,000 $1,760,000 $1,100,000 $800,000 $1,502,817 $65,483,195 $10,342,183 $1,600,000 $8,742,183 $10,664,024 14.06% $78,684,500 $770,798 ($3,629,920) $75,825,378
PER UNIT
$15,603.70 $28,032.42 $12,692.43 $90.00 $350.00 $10,520.25 $110,206.63 $6,005.75 $5,000.00 $5,500.00 $3,437.50 $2,500.00 $4,696.30 $204,634.99 $32,319.32 $5,000.00 $27,319.32 $33,325.07
2.
Unit Avg. =
$201,072.00
100 Garages 25 Parking Stalls Premiums Purchaser Extras ($6,000/unit) TOTAL 320 $770,798
Unit Avg. = $264,781.67 - $20,000 each - $9,000 each - refer to Notes & Assumptions Unit Avg. = $245,889.06
INTERIM OCCUPANCY FEES Occupancy Fee Calculation: Avg. selling price Less cash on closing VTB amount (75%)
$190,000 - per Hensel estimate $265,000 - per Hensel estimate $8,970,375.00 $28,032.42
3. DEVELOPMENT CHARGES Town of Meaford-Phase 1 -Phase 2 County of Grey School Board Parkland Contribution Future County Increase $5,991.00 x 162 units $11,806.00 x 158 units $3,514.01 /unit $970,542 $1,865,348 $1,124,484 $0 $0 $101,204 $4,061,578 $28,800 $112,000 - Year 1 -refer to Notes & Assumptions for calculation - Year 3 -refer to Notes & Assumptions for calculation - valid to Aug / 13 - refer to Notes and Assumptions - not applicable as of Jan /13 - to be paid by Developer - allow 3% increase per yr for 3 yrs $12,692.43 per unit $90 per unit $350 per unit
Total D.C.'s COMMON ELEMENT EXPENSES - during Interim Occ. Period PURCHASER DEPOSIT INTEREST- during Interim Occ. Period DEVELOPMENT SOFT COSTS Eng. & Design Fees: Architect Planner Landscape Architect Civil Engineer Structural Engineer Mechanical Engineer Electrical Engineer Soils Engineering Sub-total:
- allowance for Site Plan & Working Drawings - allowance for site plan approvals - 10% of C.O.W. - 8% of C.O.W - allow $200/apt unit - allow $200/apt unit - allow $100/unit - allow $5,000 per acre x 18.04 acres $3,643 per unit
Municipal Fees:
Hydro Fees Site Plan Appl'n Fees Condo Appl'n Fees Town Engineering Admin Fee Misc. Fees Realty Taxes Sub-total:
$192,000 $28,400 $38,700 $270,944 $30,000 $216,000 $776,044 $80,000 $80,000 $4,000 $105,000 $269,000 $333,959 $112,000 $50,000 $0 $40,000 $120,000 $193,531 $849,491 $306,044 $3,366,481
- allow $600 per unit - per Town, County & GSCA fee schedule - per Town, County & GSCA fee schedule - 3.5% of servicing costs excl. contingency - allowance - allow $675 per unit $2,425 per unit - allow $50,000 phase 1, $30,000 phase 2 - allow $40,000 per phase - allow $2,000 per phase - refer to Notes & Assumptions for calculation $841 per unit - allow 0.75% of $43,676,940 loan - allow $350 per unit - allow $25,000 per phase - allow $20,000 per phase - $20,000 per unit x 1.25% x 1.5 yrs - Servicing costs x 1.25% x 2 yrs $2,655 per unit $956 per unit allowance $10,520 per unit
Condominium:
Finance:
Commitment Fee Loan Legal Fees Corporate Legal Cost Consulting Project Accounting Tarion L/C Fees Town L/C Fees Sub-total:
Development Contingency:
4. HARD CONSTRUCTION COSTS Unit Description Bachelor apartment 1 Br apartment 1 Br + Den apartment 2 Br apartment 2 Br apartment 2 Br + Den apartment 3 Br apartment Units 40 20 40 20 40 20 20 200 8 47 54 11 120 320 Saleable SF 350 480 600 750 930 1100 1300 $/SF $127.37 $126.05 $124.74 $123.89 $121.58 $119.37 $117.92 $/unit $44,579 $60,505 $74,842 $92,921 $113,068 $131,305 $153,291 $/type $1,783,158 $1,210,105 $2,993,684 $1,858,421 $4,522,737 $2,626,105 $3,065,811 $18,060,021 $691,560 $4,653,000 $6,378,750 $1,451,450 $13,174,760 $1,200,000 $1,152,000 $1,679,339 $35,266,120 $110,207 OVERHEAD RECOVERY INDIRECT CONSTRUCTION SITE LABOUR & SERVICE Site Labour After Sales Service $1,040,000 $720,000 $1,760,000 $3,250 per unit $2,250 per unit $5,500 per unit avg per unit avg
MARKETING
$1,600,000 - allow $5,000 per unit ($100,000) - Sales Centre can be housed in Club House ($400,000) - marketing mat'l from developer $1,100,000 $3,438 per unit avg $800,000 - allow $2,500 per unit
SALES COMMISSIONS
INTERIM FINANCING
5.
Phase II Apartments 90 x $15,000= $1,350,000 Phase II Bungalows - all units 68 x $7,000= $476,000 - open space 20 x $5,000= $100,000 - end units 22 x $3,500= $77,000 TOTAL $2,551,300
6. 4Interim Occupancy Fees Interim Occupancy Fees are collected from Purchasers from the date of Occupancy until Final Closing. It has been assumed that each Purchaser will occupy their unit for an average of 2 months. The purchase price used for the calculation includes parking & premiums but excludes extras. 5Harmonized Sales Tax (HST) HST & HST Rebates have been calculated on an average sale price (excluding extras) in accordance with applicable legislation. Refer to attached worksheet. 6Land Purchase Price It is assumed that the project will proceed as 2 phases Phase 1 is comprised of Blocks 4 (2.72 acres) & 5 (5.58 acres) on the Draft Plan of Subdivison. Phase 2 is comprised of Block 6 (9.14 acres) on the Draft Plan of Subdivison. The Purchase price has been calculated by allowing $14,200 per apartment unit and $17,000 per bungalow ($4,880,000) The purchase price includes the Recreation Centre (Block 1). 7Site Servicing It is assumed that all required services will be provided by the Builder The cost of the site servicing is based on estimates from Crozier in January 2013, and does not include the internal servicing costs for the Retirement Residence (Block 3), or for the Commercial building (Block 2) The cost includes the internal servicing of the blocks as well as connections to the buildings. 8Development Charges It is assumed that the Town D.C.'s for Phase 1 (162 units) will be paid in Year 1 and the Phase 2 (158 units) will be paid in Year 3. County of Grey development charges are based on 20% residential B and 80% residential C An escalation factor of 3% per annum for 3 years has been allowed on the County of Grey D.C.'s. based on the assumption that Phase 1 will be paid in Year 1 & phase 2 in Year 3. 9Common Element Expenses The Builder is required to operate, maintain & repair the Common Elements from first occupancy until condominium registration 10 - Purchaser Deposit Interest The Builder is required to pay interest on purchaser's deposits from occupancy until final closing at a rate prescribed by the Condominium Act. 11 - Tarion Bulletin 19 It is assumed that the Apartments will require Bulletin 19 inspection & reporting as there appears to be some Part 3, OBC construction. An allowance of $15,000 per apartment building has been included. 12 - Commitment Fee The construction loan for both Phases has been estimated at $43,676,940 based on loan of 60% of the gross revenue for Phase 1 (including all garages and parking stalls) and 40% of Phase 2 (excluding purchaser extras and premiums) with the fee calculated at 1% of the loan amount. It is assumed that contruction for each Phase will be approximately 30% of gross revenue, but that the proceeds from the first Phase will help fund the second.
7. 13 - Tarion L/C Fees It is assumed the Builder will be required to post security in the amount of $20,000 per unit and the security will be outstanding for 1 1/2 years with an L/C fee of 1.25% of the security amount per year. 14 - Town L/C Fees It is assumed that under the terms of a Site Plan Agreement, the Builder will be required to post securities to ensure the completion of the internal site services and landscaping. It is anticipated that the securities will be outstanding for a period of 2 years and a rate of 1.25% of the security amount per year. 15 - Hard Construction Costs It has been assumed the saleable square footage of the apartment units represents approximately 95% of the gross floor area to account for stairwells, elevators, HVAC closets & exterior walls. 16 - Indirect Construction Includes items such as temporary utilities & heat, security, miscellaneous construction supplies, washroom rentals, garbage removal, street cleaning, construction office & related expenses, insurance, etc. 17 - Site Labour & Service Includes site superintendent, labourers, clerical staff, truck expenses & insurance and an allowance for after sales service. 18 - Overhead Recovery An amount equal to 3% of gross revenue has been allowed to cover a portion of the builder's overhead during the life of the project. 19 - Marketing Includes the cost of partially finishing the interior of the partially built club house and operating it as an on-site sales office, all media advertising & the design & printing of brochures & handouts. 20 - Sales Commissions Assumes the use of an outside sales company; not in-house staff. 21 - Interim Financing It has been assumed that, on average, the full loan amount will be outstanding for half of the project duration (1 1/2 years) at an interest rate of 4.5% per annum. Total sale price excludes premiums and extras but includes parking. 22 - Club House (10,000 sf) It is assumed that the cost provided by the developer is all-inclusive and that is will be used as a sales centre, and fully built after Phase 1.