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<br />ll\ß-\~ <br /> <br />ill. <br /> <br />COST OF THE AGREEMENT TO THE AGENCY (RDA) <br /> <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 ofthe Agreement exceed expenditures. <br /> <br />A. <br /> <br />Estimated Cost to the Agency (RDA) <br /> <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 Grant", and $264,100 of the $321,000 ofthe "Development Grant" 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 /> <br />Land Grant funded by T.!. <br />Est. Water Fee Subsidy funded by TI <br />Development Grant Funded by T.!. <br /> <br />$366,800 <br />$44,000 <br />0 <br /> <br />Total Agency Cost Funded by T.!. <br /> <br />$410,800 <br /> <br />B. <br /> <br />Revenues to the Agency (RDA) <br /> <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 /> <br />c <br /> <br />Net Cost to the Agency (RDA) <br /> <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 /> <br />NPV <br />Net Cost <br /> <br />Agency Costs Funded with Tax Increment <br />(Less) Agency Property Tax Increment Revenues <br />Total Net Agency Cost <br /> <br />$410,800 <br />$192.000 <br />Or, $218,800 <br /> <br />18610.001\028-005.doc, 2/11/2005 <br /> <br />Keyser Marston Associates, Inc. <br />Page 8 <br />