The Western School Division would like to build an extension to a junior high school using a P3 model. They want a developer to completely finance, design and build the project; in return, the School Division will reimburse the developer a monthly payment for 20-years beginning one month after substantial completion of the work.

The proposed school development will consist of a 2-storey addition of approximate size: 32m x28m on the ground floor and 20m x 6m on the mezzanine level. The construction is similar to the Delia

school that is analyzed on the elemental cost summary attached with the following exceptions:

There is no demolition on this project

650m^2 of asphalt paving is required for a new parking area

The building code calls for 2-flights of stairs to the mezzanine.

Generally use the applicable ratio to GFA numbers in this analysis to calculate all other required quantities. (Rationalize the quantities where necessary.) Then apply the unit prices to determine the construction cost of the new facility. Include the following allowances in your price. They are

calculated as a percentage of the total amount down to and including General Requirements. [Elemental Cost Summary Attached]

Design allowance 12%

Escalation allowance 2%

Construction allowance 8%

The developer has been able to secure the promise of mortgage financing on 75% of the Capital Cost of the project. Allow a monthly mortgage payment equal to 0.725% of the financed amount.

Other anticipated expenses for this development include the following:

Design fee $220,000

Monthly janitor service $2,300

Building permit $1,600

Business permit $230

Monthly heat & utilities $1,850

Legal fees $1,900

Survey fees $4,500

Interim finance $72,00

Annual insurance $1,800

Annual maintenance $10,500

a) Submit a breakdown of the estimated construction cost of the project in elemental form (Template Attached)

b) 2. Submit a pro forma financial statement identifying the: Capital Cost, Hard Costs, Soft Costs, Revenues and Expenses that will generate a 15% return on equity (i.e. net income/cash requirment = 15%) (Template attached)

c) 3. State the monthly payment you require for this development. (This will be the amount that gives you this 15% return.)