Rock Spring Acquisition Analysis.pdf

Rock Spring Acquisition Preliminary Plan & Financial Analysis 2/14/2019 Total 8 year cost 16,888,983 Total 8 year Offsetting Revenue 18,293,265 Net Surplus (loss) 1,404,282 Purchase Price 11,283,000 Year 1 Golf Revenues ‐ Soft Costs* 767,340 Early Closing Credit Year 2 Golf Revenues 100,000 Total Bond Ordinan 12,050,340 183,000.0 11,867,340 Year 2 Green Acres Award 750,000 Year 3 Golf Revenues 150,000 Year 1 Cost ‐ 7,500,000 Year 2 Cost Tax Loss & Interest 911,472 Year 3 Cost Tax Loss & Interest 891,237 Year 4 Cost Tax Loss & Interest 688,324 Year 5 Cost Tax Loss & Interest 667,699 Year 3 Green Acres Award 750,000 Year 6 Cost Tax Loss & Interest 644,335 Year 4 Golf Revenues 150,000 Year 7 Cost Tax Loss & Interest 620,970 Year 4 Green Acres Award 750,000 Year 8 Cost Tax Loss & Interest 597,606 Year 5 Golf Revenues 150,000 Year 5 Green Acres Award 750,000 Year 6 Golf Revenues 150,000 Year 6 Green Acres Award 750,000 * Breakdown of Soft Costs 767,340 1,518,186 Cost of BAN/Bond Issuance 44,500 Engineering 75,000 Environmental 40,000 Year 7 Golf Revenues 150,000 Legal Costs 125,000 Year 7 Green Acres Award 750,000 Closing Cost 37,500 1,518,186 Green Acres Application Costs 50,000 Miscellaneous Costs 5,000 2019 Tax Amortization 390,340 Year 8 Golf Revenues 150,000 Year 8 Green Acres Award 738,708 1,518,186 Year 3 ‐ Sale of 15 Acres for luxury residential development @ 10 units per acre Year 6 ‐ Taxes from new Residential Ratable Year 7 ‐ Taxes from new Residential Ratable Year 8 ‐ Taxes from new Residential Ratable

Rock Spring Acquisition Preliminary Plan & Financial Analysis 2/14/2019 137.9 Acres Debt Analysis Closing Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 R.S. Purchase Price 11,283,000 R.S. Transaction Costs 767,340 R.S. Total Cost/Financing 12,050,340 11,867,340 11,117,340 3,738,708 2,988,708 2,139,085 1,289,461 439,838 0 30 years Early Closing Credit Applied 183,000 183,000 Green Acres Grant Applied 4,840,214 750,000 750,000 750,000 750,000 750,000 750,000 340,214 Sale of Land Applied 6,628,632 6,628,632 Municipal Budget Impact Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Golf Course Operation n/a ‐ 100,000 150,000 150,000 150,000 150,000 150,000 150,000 2.75% Debt Service Interest (326,352) (305,727) (102,814) (82,189) (58,825) (35,460) (12,096) BAN Interest Debt Service Principal ‐ ‐ ‐ (99,624) (99,624) (99,624) (99,624) Sale of Land Applied 871,368 871,368 ‐ ‐ ‐ Green Acres Grant Applied 398,494 398,494 Lost Ratable Tax Impact ‐ (585,120) (585,510) (585,510) (585,510) (585,510) (585,510) (585,510) New Ratable Tax Impact ‐ ‐ ‐ ‐ ‐ 1,518,186 1,518,186 1,518,186 Taxpayers Impact Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total Annual Budget Impact ‐ (811,472) 130,132 (538,324) (617,323) 924,227 947,592 1,369,451 Average Residential Taxpayer Annual Impact ‐ (49) 8 (33) (37) 56 57 83 Average Residential Tax Bill Annual Impact ‐ (49) 57 (40) (5) 93 1 26

Rock Spring Acquisition Preliminary Plan & Financial Analysis 2/14/2019 137.9 Acres Assumptions Acreage Allocation 15 Year 1 ‐ Avg Home Assessments 338,560.62 Cost Allocation 1,310,769 Years Amortized 40 Year 2 100,000 Rock Spring Assessments 14,500,000 Development Density 10 Years 3‐10 150,000 All Properties Assessments 5,593,516,832 Development Potential 150 2018 Tax Rate 4.038 Lot Value/unit 50,000 Rock Spring 2018 Taxes 585,510 Improvement Value 200,000 Total New Rateable 37,500,000 Cost of Issuance ‐ Bond Council 20,000 Title Insurance 27,000 Cost of Issuance ‐ Financial Advisor 12,000 Remainder of 2019 Taxes 390,340 Acreage Allocation 3 Cost of Issuance ‐ Auditor 7,500 Recording Fees 500 Cost Allocation 262,154 Miscellaneous 5,000 Legal Fees 125,000 Section 20 Costs 20,000 LSRP 40,000 Acreage Allocation 119.9 Taxable Issue Interest Rate 2.75% Appraisals, Purchase & Green Acres 20,000 Cost Allocation 10,477,417 Engineering Costs 100,000 Green Acres Acreage Revenue from Golf Operator Rock Spring Transaction Costs Developable Acreage DPW Acreage Zero Down Current Rock Spring DataMortgage Terms