I am assigning you to make the recommendation on both location and business options on our expansion. The office will be similar to the other 12 expansion offices we have built. A parametric office is attached based upon Chicago. You will have to adjust that price to local conditions.at each of the three locations, depending on the suburb you are looking at.

To review the bidding with: We are expanding by three more offices into the Austin Tx, Charlotte NC, and Tampa FL market areas. You can choose the actual neighborhood or suburb. Based upon your comparative analysis we will do the cheapest building in 2023 and the other 2 in 2024. The office will house 20 Red Hawk employees, 10 Engineers and 10 Support personnel. Estimated space 5000 SF for Red Hawk, and have 2000 SF of engineering space to be sublet to firms that are partnering with us. Depending on the Partnering Agreement on an individual project we will absorb the lease costs but for your proposal assume the leasehold is full time income.

Utilize the commercial interest and rental rates and tax rates in each market on 1NOV22.

We intend to capitalize 20% of the construction costs and you are to determine the optimum method or combination of methods (short and long term up to the life span of the building) to cover the remainder of the construction costs We anticipate a 25 year life span on the building, you can assume 100% recovery of the cost of land at the end of the 25 years if you choose to purchase land instead of leasing the land for this project. We will capitalize 10% for a land purchase but nothing for a land lease.

Federal depreciation rates for buildings and land apply (IRS Pub 946)