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- 7,� - ICo <br /> III. COST OF THE AGREEMENT TO THE AGENCY (RDA) <br /> This section presents the total potential cost of the Agreement to the Agency that will be funded <br /> with redevelopment agency tax increment funds. The "net cost" of the Project after consideration of <br /> the revenues that will accrue to redevelopment funds, if any, is also evaluated. The net cost can be <br /> either an actual cost, when expenditures exceed receipts, or a net gain, when revenues created by <br /> implementation of the Agreement exceed expenditures. <br /> A. Estimated Cost to the Agency (RDA) <br /> The costs to the Agency to be funded from Redevelopment Agency's Low and Moderate Income <br /> Housing Fund is estimated at $667,900, comprised of approximately $366,800 of the $807,500 <br /> "Land GranY', and $264,100 of the $321,000 of the "Development GranY' and $37,000 of the <br /> estimated $74,000 "Fee Subsidy" provided to the Project. The remainder, or approximately <br /> $534,600, is expected to come from other funds available to the Agency, including Community <br /> Development Block Grant (CDBG) funds and Home Partnership Investment Funds. <br /> Land Grant funded by T.I. $366,800 <br /> Est. Water Fee Subsidy funded by TI $44,000 <br /> Development Grant Funded by T.I. p <br /> Total Agency Cost Funded by T.I. $410,800 <br /> B. Revenues to the Agency (RDA) <br /> Given the location of the development site in a Redevelopment Project Area, the RDA will <br /> receive a portion of annual property tax increment generated by the homes. The net present <br /> value of the payments to the Agency over the life of the Redevelopment Plan is estimated at <br /> $192,000, of which 20%, or $57,000, would be deposited into the Agency's Housing Fund. <br /> C. Net Cost to the Agency (RDA) <br /> The net cost to the Redevelopment Agency resulting from this transaction is the difference <br /> between the Agency's costs to be funded with tax increment and any revenues. Since there will <br /> be no revenues from the Project other than tax increment, the net Agency cost is as follows: <br /> NPV <br /> Net Cost <br /> Agency Costs Funded with Tax Increment $410,800 <br /> (Less) Agency Property Tax Increment Revenues 192 000 <br /> Total Net Agency Cost Or, $218,800 <br /> 18610.001\028-005.doc, 2/11/2005 Keyser Marston Associates, Inc. <br /> Page 8 <br />