|
Costs
Since we have existing tracks
and industrial buildings on the site, we choose to remove one side of the
railroad tracks (about 4,000ft) and keep another side to use as our tram
track. For the existing industrial buildings, we might keep one of them
(at the far east of the site) and remodel it to be operational office and
remodel or demolish others, depends on situation of the buildings, and
arrange lots for sale.
Major capital costs of site
improvements, furnishings, and landscaping include: walkway along the site
(connect the new sport center and existing commercial area), benches and
gazebos (for recreation or can be sale spaces for souvenirís shop
as well), planters, soil preparation, glass, shrubs, and trees are accrued
in year 1. For the tram, we assumed that the city already own one, so we
can just manipulate it to be the solar tram. Start up costs = 37.8 million.
In years 2-30, maintenance
of the project is needed. Maintenance in year 2 will cost approximately
$96,000 a year. These maintenance costs are in year 2 dollars so they must
be inflated for years 3 - 30 as seen in the Tables.
|
Cost
analysis |
| Startup Costs |
Unit
Cost |
Unit
of Measurement |
Total
Cost |
| Site Demolition |
|
|
|
| Railroad track
removal |
$
17.80 |
4,000
ft |
$
71,200.00 |
| Building Demolition |
|
|
|
| Mixture of
types |
$
0.24 |
12,000,000
cf |
$
2,880,000.00 |
| Dump Charges |
|
|
|
| Building construction
meterials |
$
48.00 |
3
ton |
$
144.00 |
| |
|
|
|
| Site Improvements |
|
|
|
| Walk |
$
46.00 |
6,000
ft |
$
276,000.00 |
| Street Furnishings |
|
|
|
| Gazebo (14'
diameter) |
$
1,445.00 |
5
u |
$
7,225.00 |
| Benches (4'
long) |
$
440.00 |
20
u |
$
8,800.00 |
| Planters (48"diameter,
24" high) |
$
505.00 |
10
u |
$
5,050.00 |
| Solar train |
$
- |
1
u |
$
- |
| Solar panels |
$
2,000.00 |
2
u |
$
4,000.00 |
| Landscaping |
|
|
|
| Soil Preparation |
$
33.50 |
1,600,000
sft |
$
53,600,000.00 |
| Seeding |
$
5.20 |
800,000
sft |
$
4,160,000.00 |
| Shrubs (22.5
sft) |
$
72.50 |
35,000
u |
$
2,537,500.00 |
| Trees (15"
* 18") |
$
26.00 |
150,000
u |
$
3,900,000.00 |
| |
|
|
$
67,449,919.00 |
| Operating
Costs |
|
|
|
| |
per
year |
|
|
| maintenance |
$24,000.00 |
4
u |
$
96,000.00 |
| Greenway/Commercial
Development |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Annual expenditure
value (maintenance costs): |
|
|
|
|
|
|
|
|
|
|
|
| $96,000 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| future value
at |
|
|
|
|
|
|
|
|
|
|
|
| inflation
rate of: |
now |
year |
year |
year |
year |
year |
year |
year |
year |
year |
year |
| |
0 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| 3.00% |
$96,000 |
$98,880 |
$101,846 |
$104,902 |
$108,049 |
$111,290 |
$114,629 |
$118,068 |
$121,610 |
$125,258 |
$129,016 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
year |
year |
year |
year |
year |
year |
year |
year |
year |
year |
| |
|
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
| |
|
$132,886 |
$136,873 |
$140,979 |
$145,209 |
$149,565 |
$154,052 |
$158,673 |
$163,434 |
$168,337 |
$173,387 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
year |
year |
year |
year |
year |
year |
year |
year |
year |
year |
| |
|
21 |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
| |
|
$178,588 |
$183,946 |
$189,464 |
$195,148 |
$201,003 |
$207,033 |
$213,244 |
$219,641 |
$226,230 |
$233,017 |
| Ten-year life
cycle/investment return |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Toatal inflated
exps. |
|
|
|
|
|
|
|
|
|
|
|
| for next 30
yrs.: |
|
$1,133,548 |
| Total Inflated
Maintenance Costs for next 30 years at 3% |
| $
4,704,257.00 |
| |
| Start-up Costs |
| $67,445,919.00 |
| |
| Total Costs
over 30 Years |
|
$72,150,176.00 |
Benefits
We have assumed that approximately
four jobs will be created as a result of our project. There will be a conductor
for the tram, a general custodian, and two urban foresters/gardeners. If
we assume an average salary of $24,000/year, and the city is entitled to
15% of this salary, then the cityís annual tax revenues from these
jobs will equal $14,400. We have also assumed, based on the population
of the city and the size of our new development, that approximately 500
people per day will pay to ride the tram. We figured that it would take
20 minutes for the tram to go from one end of the development to the other
(including stops). In an eight hour day the tram would make about 24 trips,
with 30 people on board for each trip, which comes to 720 people per day.
Our figure of 500 people per day is the result of an average between 30
riders per day and 15 riders per day. We have decided that an all day pass
for the tram costs $.50. So the cityís annual revenue from the tram
will be $86,250 ($.50*500* (365 days per year - 20 days per year for holidays,
etc.)). Assume tax revenues from the commercial sales will be $7,762,500.
(1000 sq.ft./bldg @200 shops * $750/day * 345 operation days/yr *.15 =
7,762,500) Finally, we have assumed that the city will sell a percentage
of the land for commercial use. Our total land area equals 6,000 ft. by
800 ft.. If the city were to sell 25% of this land at $30/sq. ft., then
the total revenue generated from the sale of land will equal $36,000,000
(.25*(6000*800)*$30). Since we have assumed a 30 year time frame for this
project, our $36,000,000 figure needs to be divided by 30 to obtain an
annual revenue of $1,200,000. Total annual benefits of our greenway/commercial
development will equal $9,063,150 ($14,400 + $86,250 + $1,200,000 + 7,762,500)
| Greenway/Commercial
Development |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Annual expenditure
value (income or benefit): |
|
|
|
|
|
|
|
|
|
|
|
| $700,650 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| future value
at |
|
|
|
|
|
|
|
|
|
|
|
| inflation
rate of: |
now |
year |
year |
year |
year |
year |
year |
year |
year |
year |
year |
| |
0 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| 3.00% |
$700,650 |
$721,670 |
$743,320 |
$765,619 |
$788,588 |
$812,245 |
$836,613 |
$861,711 |
$887,562 |
$914,189 |
$941,615 |
| |
|
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
| |
|
$969,863 |
$998,959 |
$1,028,928 |
$1,059,796 |
$1,091,590 |
$1,124,338 |
$1,158,068 |
$1,192,810 |
$1,228,594 |
$1,265,452 |
| |
|
21 |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
| |
|
$1,303,415 |
$1,342,518 |
$1,382,793 |
$1,424,277 |
$1,467,006 |
$1,511,016 |
$1,556,346 |
$1,603,037 |
$1,651,128 |
$1,700,661 |
| |
|
|
|
|
|
|
|
|
|
|
|
| present value
at |
|
|
|
|
|
|
|
|
|
|
|
| discount rate
of: |
now |
year |
year |
year |
year |
year |
year |
year |
year |
year |
year |
| |
0 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| 10.00% |
$700,650 |
$656,063 |
$614,314 |
$575,221 |
$538,616 |
$504,340 |
$472,246 |
$442,194 |
$414,054 |
$387,706 |
$363,033 |
| |
|
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
| |
|
$339,931 |
$318,299 |
$298,044 |
$279,077 |
$261,318 |
$244,689 |
$229,118 |
$214,537 |
$200,885 |
$188,101 |
| |
|
21 |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
| |
|
$176,131 |
$164,923 |
$154,428 |
$144,601 |
$135,399 |
$126,782 |
$118,714 |
$111,160 |
$104,086 |
$97,462 |
| |
|
|
|
|
|
|
|
|
|
|
|
| 3.00% |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
| |
|
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
| |
|
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
$700,650 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Ten-year life
cycle/investment return |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Toatal inflated
exps. |
|
|
|
|
|
|
|
|
|
|
|
| for next 10
yrs.: |
|
$8,273,132 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| present value
at r=10% |
|
$4,967,788 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| present value
at r=3% |
|
$7,006,500 |
|
|
|
|
|
|
|
|
Economic Evaluation],