Fort Walton Beach Council agenda — 03-23-2010 Special-Soundside Develp. Project — reading text

projectionprojection ofof payrollpayroll expenses:expenses: PAYROLL AND RELATED FTEFTE AnnualAnnual Manager 42, 000 year 1. 0 42,000 AssistantAssistant ManagerManager 12. 50 hourhour 1.1. 00 26,26, 000000 Leasing Agent 10. 00 hour 1. 0 20, 800 Maintenance Maintenance DirectorDirector 17. 00 hourhour 1.1. 00 35,35, 360360 Maintenance Assistant 12. 00 hour 1. 0 24, 960 TotalTotal FTEsFTEs 5.5. 00 Total Wages 149, 120 ValueValue TechTech RealtyRealty Services,Services, Inc.Inc. www.www. gotovalue.gotovalue. comcom PagePage 3939 122-122-  Sound Side Apartments Income and Expense Analysis Comparable expenses are shown in the following: PAYROLL Comp. 1 Comp. 2 Comp. 3 Projection Total Payroll Expense Per Unit $ 502 $ 847 $ 848 $ 746 Projection $ 149, 120 Payroll expenses were projected to be within the range provided by the comparables. Reliance was placed on Comparable 1 and the subject' s budget when estimating expenses for this category. It should be noted that Comparables 2 and 3 have included other payroll expenses ( such as payroll tax, worker' s compensation, and employee benefits) within this category. Therefore, Comparables 2 and 3 set the high end of the range for payroll expenses. Total Operation The comparables provide the following: TOTAL OPERATION EXPENSES UTILITIES AND PAYROLL Comp. 1 Comp. 2 Comp. 3 Projection Total Operation Expense Per Unit $ 755 $ 1, 192 $ 1, 258 $ 1, 155 Projection $ 230,055 Total operation expenses include the sum of utility expenses and payroll expenses. The subject' s total operation expenses are projected to be within the range provided by the comparables. This is generally representative of lower utility costs as a result of energy efficient building materials and related. In addition, all of the comparables overstated payroll expenses by including other payroll expenses within the category. Decorating This category includes all of the expenses associated with the decorating and cleaning of a unit. The comparables provide the following: DECORATING Comp. 1 Comp. 2 Comp. 3 Projection Total Decorating Expense Per Unit $ 4$ 224 $ 174 $ 106 Projection $ 21, 270 Decorating expenses were projected within the range provided by the comparables. Reliance was placed on the subject' s budget when estimating this expense category, as the subject is expected to have low resident turnover. Repairs Repair expenses can vary widely by the condition of units, common areas, and turnover rates. The subject will utilize modern building materials that tend to require less maintenance over time. The comparables provide the following: REPAIRS Comp. 1 Comp. 2 Comp. 3 Projection Total Repair Expense Per Unit $ 172 $ 190 $ 435 $ 266 Projection $ 53, 174 Page 40 Value Tech Realty Services, Inc. www.gotovalue. com 123-  Sound Side Apartments Income and Expense Analysis The subject' s projection falls within the range provided by the comparables. Reliance was placed on all of the comparables when estimating this expense category. Exterminating The comparables provide the following: EXTERMINATING Comp. 1 Comp. 2 Comp. 3 Projection Total Exterminating Expense Per Unit $ 27 $ 53 $ 0$ 27 Projection $ 5,317 Exterminating expenses were projected within the range provided by the comparables. Reliance was placed on Comparable I and the subject' s budget when estimating this expense. The subject will offer this service within the base rent. Further, this projection coincides with industry norms. Insurance Insurance expense relates to the cost of insurance, the physical plant, and any associated liability. The comparables provide the following: INSURANCE COMP. 1 Com . 2 Comp. 3 Projection Total Insurance Expense Per Unit $ 414 $ 406 $ 584 $ 525 Projection $ 1059000 The subject' s projection for insurance expenses falls within the range provided by the comparables. Reliance was also placed on the subject' s budget when estimating this expense category. Grounds Maintenance The comparables provide the following: GROUNDS MAINTENANCE Comp. 1 Com . 2 Comp. 3 Projection Total Grounds Maintenance Expense Per Unit $ 106 $ 259 $ 240 $ 133 Projection $ 26,587 Grounds maintenance expenses were projected to be within the range provided by the comparables. The subject' s common areas will include landscaping, a swimming pool with clubhouse, and playground area. As such, the subject' s overall landscaping plan is appropriate for the quality and ambiance of the community. Therefore, reliance was placed on Comparable 1 and the subject' s budget when estimating grounds maintenance expenses. Value Tech Realty Services, Inc. www.gotovalue.com Page 41 124-  Sound Side Apartments Income and Expense Analysis Total Maintenance The comparables provide the following: TOTAL MAINTENANCE ( DECORATING, REPAIRS, EXTERMINATING, INSURANCE, AND GROUNDS Comp. 1 Comp. 2 Com . 3 Projection Total Maintenance Expense Per Unit $ 722 $ 1, 292 $ 1, 433 $ 1, 057 Projection $ 211, 348 The total maintenance expense includes the sum of decorating, repairs, exterminating, insurance, and grounds maintenance. The subject' s projection is within the range provided by the comparables. As mentioned above, this is representative of reduced resident turnover and grounds maintenance expenses. Replacement Reserves Replacement reserves were estimated at $ 300 per unit. Total Reserves 60, 000 Taxes and Insurance Taxes and insurance includes employee payroll taxes, licenses and permits, workers compensation insurance, and health insurance. Property liability taxes were included under maintenance. Real estate taxes are based on the property' s assessed value. The assessed value is then multiplied by its respective millage rate. Assessed values of other apartment communities within the county are shown below. Comparables 1 and 2 are representative of newly constructed, income -restricted properties, while Comparable 3 is a market - rate apartment community. Comparable 3 was included in the analysis to set the high -end of the range. TAX COMPARABLE ANALYSIS Sound Side Apartments Comparable 1 Comparable 2 Comparable 3 Property Addison Place Heather Glenn Apartments Madison Parc city Crestview, FL Fort Walton Beach, FL Fort Walton Beach, FL Parcel # 36- 3N -24- 0000 -0001 -0040 08- 2S -24- 0000 -0001 -0080 10 -2S -24 -1010 -0001 -0000 Project Type MF - Restricted MF - Restricted MF - Market Year Built 2004 2002 1999 Units 160 168 108 Current Assessment Tax Year 2009 2009 2009 Total Assessment 4,954, 204 5, 745, 848 5, 487, 508 Per Unit 30, 964 34, 201 50, 810 Total Taxes