Financial Analysis Summary Board Team 0428 SUMMARY PRO FORMA Phase I Phase II 2010-11 2012 2013 Phase III 2014 2015 2016 Phase IV 2017 2018 2019 2020 2021 Net Operating Income Market-rate Affordable Total Net Operating Income Rental Housing $ - $ For-Sale Housing $ - $ Rental Housing $ - $ For-Sale Housing $ - $ Office/Commercial $ - $ Retail $ - Structured Parking $ $ - 1,790,140 339,673 - $ 5,796,970 $ 10,888,751 $ 17,000,529 $ 24,533,572 $ 33,490,301 $ 40,823,695 $ 54,055,296 $ 58,217,348 $ 62,144,373 $ 13,832,810 $ 32,769,927 $ 39,623,116 $ 43,834,906 $ 48,263,743 $ 51,315,257 $ 67,720,103 $ 85,063,057 $ 43,807,474 $ 784,349 $ 1,315,563 $ 2,181,150 $ 3,004,545 $ 3,793,617 $ 4,303,371 $ 4,833,306 $ 5,271,147 $ 5,587,511 $ - $ 2,416,839 $ 3,236,148 $ 3,589,634 $ 3,961,418 $ 4,352,278 $ 4,482,846 $ 7,214,581 $ 7,431,018 3,388,185 $ (2,713,019) $ 6,431,791 $ 15,417,473 $ 22,307,404 $ 29,507,229 $ 41,972,002 $ 44,502,667 $ 47,474,809 $ 49,742,140 $ 942,759 $ 1,942,084 $ 3,438,648 $ 4,481,326 $ 5,695,108 $ 6,738,037 $ 7,996,355 $ 8,642,974 $ 9,635,391 $ 10,571,700 $ $ 1,229,276 7,690,033 $ $ 3,009,969 22,653,162 $ $ 4,761,870 62,023,389 $ $ 6,942,198 88,881,939 $ 52,146,720 $ 9,286,687 $ 112,251,856 $ 10,904,819 $ 136,659,164 $ 12,697,635 $ 163,460,594 $ 14,012,747 $ 198,249,940 $ 15,154,786 $ 228,031,119 $ 16,352,736 $ 195,636,953 Development Costs Rental Housing $ Market-rate 24,679,945 For-Sale Housing $ Rental Housing $ Affordable - $ (3,771,489) $ For-Sale Housing $ - (7,910,673) $ - Office/Commercial $ (101,513,720) $ (206,929,513) Retail $ (9,922,713) $ (20,039,089) Structured Parking $ (25,150,000) $ (25,904,500) $ 47,692,649 $ (46,852,748) $ (54,551,598) $ (42,222,982) $ (29,103,167) $ (34,927,108) $ (29,456,136) $ (17,241,233) $ $ (9,551,116) $ (22,189,504) $ (26,773,240) $ (29,617,418) $ (34,644,438) $ (45,947,850) $ (57,428,569) $ (28,903,755) $ $ (7,280,533) $ (7,117,788) $ (8,268,195) $ (6,444,716) $ (4,438,302) $ (5,280,409) $ (4,496,083) $ (2,608,271) $ (1,195,855) $ (1,558,160) $ (3,615,884) $ (4,362,283) $ (4,825,682) $ (5,312,958) $ (5,644,494) $ (7,488,301) $ (9,356,631) $ (4,702,752) $ (143,451,813) $ (77,481,713) $ (69,052,792) $ (43,666,295) $ (28,222,120) $ (26,131,158) $ (26,978,432) $ (23,047,756) $ (7,857,066) $ (4,365,476) $ (4,476,455) $ (5,678,816) $ (6,864,481) $ (3,202,792) $ (12,012,166) $ (12,372,531) $ $ (13,622,257) $ (7,086,490) $ (7,299,085) $ (5,600,866) $ (19,753,958) $ (27,771,657) $ (22,943,497) $ (11,662,297) (7,888,771) - (9,557,780) $ (9,844,514) $ Community Center $ (42,299,479) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - City Market $ (18,200,819) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Infrastructure $ (4,088,875) $ $ (2,749,627) $ $ (2,197,717) $ (4,052,644) S il R di ti /D liti $ (774 863) $ Soil Remediation/Demolition (774,863) $ (181,042,013) $ (212,689,699) Total Development Costs (3,337,847) $ (3,158,871) $ (2,137,125) $ (636 251) $ $ $ (636,251) $ (150,274,816) $ (196,089,882) $ (196,409,560) $ (146,177,383) (2,519,796) $ (2,542,210) $ - (2,197,108) $ (432 182) $ $ $ (317 485) $ $ (432,182) (317,485) $ (120,728,525) $ (137,299,802) $ (143,626,327) $ (100,381,232) $ (24,847,236) Annual Cash Flow Net Operating Income $ - $ 7,690,033 $ 22,653,162 $ 62,023,389 $ 88,881,939 $ 112,251,856 $ 136,659,164 $ Total Asset Value (owned) $ - $ 82,938,266 $ 99,411,855 $ 295,098,225 $ 504,549,830 $ 711,608,001 $ 929,211,638 $ 1,183,865,723 163,460,594 $ 198,249,940 $ 1,392,362,356 $ 228,031,119 $ 1,499,631,335 195,636,953 $ (79,762,779) $ (150,274,816) $ (196,089,882) $ (196,409,560) $ (146,177,383) $ (120,728,525) $ (137,299,802) $ (143,626,327) $ (100,381,232) $ (24,847,236) Total Costs of Sale Total Development Costs $ (181,042,013) $ (212,689,699) $ $ 1,595,255,590 LIHTC Credit Sale Proceeds $ 1,018,302 $ 2,135,882 $ 1,965,744 $ 1,921,803 $ 2,232,413 $ 1,740,073 $ 1,198,342 $ 1,425,710 $ 1,213,942 $ 704,233 $ 322,881 Debt Proceeds $ 107,274,613 $ 203,404,822 $ 150,670,787 $ 108,101,758 $ 105,374,858 $ 71,238,152 $ 50,791,800 $ 54,071,980 $ 49,508,711 $ 38,744,065 $ 13,093,915 Cumulative Loan Value $ 107,274,613 $ 309,593,857 $ 457,131,672 $ 560,607,431 $ 660,309,156 $ 724,865,231 $ 768,321,671 $ 54,071,980 $ 810,055,259 $ 92,268,858 $ 814,951,724 Interest on debt $ 7,777,409 $ 22,445,555 $ 33,142,046 $ 40,644,039 $ 47,872,414 $ 52,552,729 $ 55,703,321 $ 3,920,219 $ 58,729,006 $ 6,689,492 $ 59,084,000 CCDC City Market and Community Center Offset $ 30,250,149 Debt Service ($8,862,988) Net Cash Flow Unleveraged Net Cash Flow Net Present Value (12%) ($25,578,527) ($37,768,045) ($46,317,172) ($54,554,491) ($59,888,089) ($63,478,444) ($4,467,406) ($66,926,457) $ (51,361,937) $ (25,037,489) $ (12,753,168) $ (70,360,105) $ (54,474,841) $ (20,835,390) $ 4,442,338 $ 77,191,076 $ 38,419,809 $ (180,023,711) $ (202,863,785) $ (125,655,910) $ (132,144,691) $ (105,295,209) $ $ 17,128,981 $ 27,586,503 $ 55,837,555 (32,185,453) ($7,623,218) ($67,331,001) $ 159,474,967 $ 817,416,598 $ $ 1,686,605,408 128,354,120 $ 192,972,781 Unleveraged IRR Before Taxes 12% Leveraged IRR Before Taxes 24% 2. MULTIYEAR DEVELOPMENT PROGRAM Year-by-Year Cumulative Absorption (For Sale Housing Units are not cumulative) Total Buildout 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2850 Project Buildout by Development Units Rental Housing (units) 400 840 1150 1550 1955 2160 2360 2630 2750 For-Sale Housing (units) 0 0 100 130 140 150 160 160 250 250 Rental Housing (120% AMI) (units) 21 42 61 80 99 112 123 134 142 146 Rental Housing (80% AMI) (units) 21 42 61 80 99 112 123 134 142 146 Rental Housing (50% AMI) (units) 28 56 81 107 131 149 164 179 189 195 Total Affordable For-Sale Housing (units) 0 0 17 22 24 26 28 28 43 43 (s.f.) 850,000 1,700,000 2,000,000 2,300,000 2,520,000 2,620,000 2,720,000 2,800,000 2,900,000 2,950,000 490,000 Market-rate Affordable Office/Commercial (s.f.) 120,000 240,000 280,000 320,000 360,000 380,000 405,000 425,000 460,000 Structured Parking (spaces) 0 0 200 500 800 800 800 800 800 800 Below-Ground Parking (spaces) 0 1000 2000 2600 3400 4000 4400 4800 5200 5500 Street Parking Other (spaces) PHASE I PHASE II PHASE III PHASE IV TOTAL Retail PROJECT BUILDOUT BY AREA & PHASE Rental Housing (s.f.) For-Sale Housing (s.f.) Rental Housing (120% AMI) EQUITY AND FINANCING SOURCES 892,000 540,000 176,000 2,280,000 - 351,500 446,500 1,140,000 1,938,000 (s.f.) 29,252 39,757 24,905 8,422 Rental Housing (80% AMI) (s.f.) 29,252 39,757 24,905 Rental Housing (50% AMI) (s.f.) 39,002 53,009 For-Sale Housing (Total All Inc. Ranges) (s.f.) - - Office/Commercial (s.f.) 1,700,000 Retail (s.f.) 240,000 City Market (s.f.) 99,071 Community Center (s.f.) 246,516 Structured Parking (s.f.) Below-ground Parking Other (s.f.) (s.f.) 380,000 - 912,000 - 532,000 - 114,000 - 1,938,000 (s.f.) 3,435,093 3,532,023 1,961,178 1,692,136 10,620,430 Market-rate Affordable Total 672,000 - Market-rate Affordable 117,400 per unit For-Sale Housing $ 172,057 per unit Rental Housing $ 103,169 per unit For-Sale Housing $ 162,286 per unit Office/Commercial $ 233.86 per s.f. Retail $ 158 88 158.88 per s.f. sf 17,500 per space 25,000 per space Community Center $ 171.25 per s.f. City Market $ 183.71 per s.f. 15% 8,422 102,336 General Partner Equity Req'd $215,260,964 13% 33,206 11,230 136,448 Developer Fees $61,462,593 14,663 19,061 33,724 820,000 280,000 150,000 2,950,000 120,000 65,000 65,000 490,000 - - - - - - 304,000 - - Financing Sources (total) 65% Conventional Construction/Perm $952,275,461 59% LIHTC Sale $15,879,325 1% 99,071 TIF Financing (5% of Cost) $80,478,324 5% 246,516 C.C.D.C. Subsidies (total) $35,250,149 2% 304,000 - Community Ctr. Cost Offset (50%) $21,149,739 1% City Market Cost Offset (50%) Infrastructure Subsidy $9,100,410 $5,000,000 1% 0.3% $1,609,566,476 100% Total 5. LIHTC Credit Proceeds calculated from 50% AMI share of rental residential (40%) multiplied by the total construction cost of affordable rental housing in a given year x 9%, then multplied by 10 year life and assumed 75% investor purchase price Private 8,000,000 $ 13,574,421 Other Hardscaping (not incl. surf. pkg.) $ 100,000 $ 5,000,000 City Park Construction $ 4,000,000 Landscaping $ 750,000 $ 9,657,399 Other Amenities $ Total Infrastructure Costs $ 250,000 13,100,000 $ $ 750,000 28,981,820 6. Primary debt assumed at 65% LTC, 7.25% rate, 30 Year Amortization 7. All buildings intended to be LEED certified, funded by a 3% premium included in all construction costs n/a 8. Data from RS Means, Reed Construction Data, and Saylor Publications was used in calculating construction costs 9. CCDC Subsidies for half of the cost of the public community center and city market are proposed, plus $5M for infrastructure GOVERNMENTAL IMPACT FEE CALCULATION Fee Amount Total Residential (per unit) $ 3,970 $ 19,486,596 Office (per 1000 s.f.) $ 2,020 $ 5,959,000 Retail per (1000 s.f.) $ 2,020 $ 989,800 $ 26,435,396 Overall Total Proportional Use Breakdown Below‐Ground Parking Market Rate Rental Housing Structured Parking PROJECT SNAPSHOT Community Center Total Residential Units (15% Affordable) For Rent For Sale Total Office Square Footage Total Retail Space 4952 3380 1571 2,950,000 490,000 6300 Total Structured (Above + Below Ground) units units units s.f. s.f. spaces City Market TOTAL DEVELOPMENT COST $ 1,609,566,476 , , , NET PRESENT VALUE (12%) $ 192,972,781 LEVERAGED IRR BEFORE TAXES Market Rate For Sale Housing Retail Affordable Rental 120% AMI Parking 24% Office and Academic Space 4% $1,048,633,110 4. Operating Expenses calculated from comparable properties and team member experience Utilities $ Use Type $244,959,660 3. Market rent information collected from a combination of market survey by team, CBRE 2009 Market Report, and comparables Structured Parking $ Public Purchased Land Value 2. The following Cap Rates were used in determining asset value: Rental Residential: 8.5%, Retail: 9.5%, Office: 9.5%, Parking Structures: 10% Below Ground Parking $ Infrastructure Costs 32% 102,336 1. All rents, sales prices, operating costs, and construction costs are expected to increase at the projected annual rate of inflation (3%) (before inflation) Rental Housing $ % of total cost $521,683,217 KEY ASSUMPTIONS, SOURCES, AND PROJECT INFORMATION UNIT DEVELOPMENT AND INFRASTRUCTURE COSTS Average Unit Cost Development Costs Amount Source Equity Sources (total) Affordable Rental 80% AMI Affordable For Sale Housing Affordable Rental 50% AMI