You are the economic development director for the city of Newstown. Vou are approached by a developer who is proposing to redevelop a blighted and abandoned city block of your downtown. The city block needs to be purchased and cleared of the remaining buildings on the site. The redevelopment proposal is a $25 million mix-use redevelopment project, with retail and office uses on the first floor and two floors of apartment units above. The developer has a commitment from a technology firm that it will move its headquarters and its 50 employees to the new building. Half of the building's proposed 50 apartment units will be for low and moderate income families. The developer commits to hiring contractors paying prevailing wages. Yourjob, as the city's economic development director, is to help the developer understand how the project could be financed using the city's financial incentives available. Items to note: Newstown is an entitlement city, receiving over 57m in CDBG funds annually. Based on previous commitments, the City can provide no more than $2M toward the deal. You have performed a preliminary "but-for" analysis that suggests TIF financing is a possibility. The estimated assessment value (EAV) is $1.5M and the estimated value of the property after the improvements is $145M The developer has $2M in equity to contribute to the project. The local county government will provide a forgivable loan in the amount of $25,000 perjob created. The local workforce development board will provide support of up to 25% of total labor costs in support of contractors who pay prevailing wages. Assignment Using the information above, complete a sources and uses table for the project proposal. Is there a project gap? If there is a project gap, discuss ways to close that project gap. Sources 9,000,000.00 Construction materials 7,600,000.00 Labor (all labor paid prevailing wages) 650,000.00 Site Acquisition 1,500,000.00 Site Clearance 750,000.00 Developer Costs 500,000.00 Overhead and Miscellaneous Costs 20,000,000.00 mmmmmmm m In