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<br />QA--1. <br /> <br />2) Utilities <br />It is estimated that it would cost $75,000 to bring water and electric service from the City- <br />owned pump station. A connection to the sewer main at Twin Dolphin would be required <br />at an estimated cost of approximately $100,000. Storm drainage, natural gas, and <br />telephone service are estimated at an additional $100,000. <br /> <br />3) Site Preparation <br />It would cost approximately $275,000 to prepare the site for construction, including <br />engineering services, permit and development fees, compaction and consolidation at the <br />building pad, and administration for all site soils and utility work. <br /> <br />4) Environmental Mitigation <br />An asphalt plant formerly occupied the site, so there is potential soil contamination. An <br />initial environmental assessment would cost approximately $5,000 and environmental fees <br />could cost as much as $20,000 if extensive contamination is found. Impact of any <br />remediation on total construction costs cannot be estimated at this time. Based on reports <br />of the asphalt plant configuration, we do not expect extensive contamination. City <br />experience at another child care development project indicates that this type of <br />contamination can be addressed by physical barriers such as lawn and concrete flatwork <br />above the contaminated soil. The $275,000 of site preparation costs includes an additional <br />18" layer of clean soil at the play yard area. <br /> <br />5) BCDC Permit and Easement Requirements <br />A significant amount of time will need to be spent in order to meet BCDC permit and <br />easement requirements for this property. Permitting processes and fees are an estimated <br />$5,000 to $15,000. <br /> <br />Total site development costs are estimated at $630,000. <br /> <br />Financing Challenges: <br /> <br />There are two main impediments for developers and/or child care operators to obtaining <br />traditional financing for child care facility development. These issues are: <br /> <br />1. The unique requirements associated with a child care facility make its construction <br />more costly than an office building. For example, putting toilets and sinks in each <br />classroom, diaper-changing facilities for infant care, and dedicated outdoor playground <br />space all increase the cost of child care facilities. <br /> <br />2. The rent the developer can charge to the child care operator is limited by the current <br />market fees that parents are willing and able to pay for child care. This in turn limits the <br />developer's ability to qualify for traditional construction and long term loans. <br /> <br />2 <br />