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Applicant #2 Leasing of the Historic Flanders Mansion

Apr 03, 2018

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  • 7/28/2019 Applicant #2 Leasing of the Historic Flanders Mansion

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    Jason StilwellCity AdministratorCity of Cannel-by-the SeaP.O.BoxCCCarmel-by-the-Sea, CA, 93921

    Dear Mr. Stilwell,

    29 March 2013

    In response to the RFP for leasing the Historic Flanders Mansion, we are pleased to submit thisCuratorship proposal to completely manage, restore and maintain Flanders Mansion as ourfamily's residence on behalf of and for the city of Cannel-by-the-Sea.

    The principle features of our proposal are:

    1) We will manage restoration in accordance with the Secretary of Interior's Standards forRehabilitation and Guidelines for Rehabilitating Historic Buildings, and local codes.

    2) The house and property will be restored and maintained as a single family residence withfew limits on public access that are consistent with the existing EIR issues, the park setting andthe neighborhood. The need for additional fencing or parking is not required and public access

    to the park via the driveway can be maintained as is.3) We will incur all costs of restoration and maintenance including material, equipment, laborand sweat equity, and these will be donated as an irrevocable gift to the City. The work willproceed in accordance with the .relevant draft mitigation measures as identified in EIR and incoordination with the city.

    4) The City will receive periodic reporting on progress and will maintain rights to inspect theproperty and restoration and maintenance activities.

    5) We will niaintain liability insurance, naming the city as additional insured.

    6) The agreement can remain in effect for the life of the Curators and will not be transferable.

    7) After careful financial analysis, we have determined that the restoration. costs coupled withthe ongoing maintenance costs effectively offset the fair market rental value of this propertyover a 25-30 year term -effectively the life of the agreement proposed.

    Our goal is to preserve the property as part of Cannel's heritage; while providing a living lessonto our two school age children about preservation, conservation and serving the community. Ourrole will be to steward this fantastic historic and environmental public resource.

    We have experience in historic restoration, having completed the restoration of an 18th centurymiller's house on state park land in Maryland. This work too was in accordance with the

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    Secretary of Interior's Standards for Rehabilitation and Guidelines for Rehabilitating HistoricBuildings and required the balance of maintaining a single family residence on public lands. Asprofessional program managers we have the experience, skills and financial capability to preserveFlanders on terms suitable to the City and citizens of Carmel.

    We have confirmed with our insurance company, USAA, that we are able to provide liability andpersonal property insurance under a curatorship lease arrangement, with the City named as anadditional insured. I t should be noted that Curators or tenants cannot provide real propertyinsurance since they will not ~ v ean insurable interest in the property.

    We confirm that we are familiar with the terms stated under section III of the RFP, and areprepared to comply with the mitigation standards identified in Exhibit B, including completingand complying.with the Preservation Plan.

    We authorize the City to conduct necessary background investigation on us as required toevaluate the credibility of this offer.

    In accordance with the RFP the following attachments are included:

    Attachment A includes our professional resumes and our background as Curators.Included in this are the reslimes of the caretakers we have selected for the initialoccupancy and stabilization efforts (approximately the first year) while the preservationplan is completed and approved.

    Attachment B is our personal Financial Statement per Exhibit C in the RFP.

    Attachment C summarizes the key elements of this proposal and offers additional termsfor the City's consideration.

    Additionally, we include the following attachments to better describe our approach to thisrestoration and the consideration for rental payments

    Attachment D explains the Rehabilitation/Preservation Plan approach and forms a basisfor the eventual Preservation Plan and estimated costs.Attachment E Provides analysis for Rent and Calculationof Payments to the City

    We thank you for your consideration. We will be happy to provide further clarification on theproposal or answer questions at your convenience. We can be contacted at email

    or phone:

    Respectfully Yours,

    CC: Sharon Friedrichsen, Director of Public Services

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    Attachment A. Background and Resumes

    Restoration an d Renovation Experience

    Background:

    We have experience in performing most relevant types of preservat ion an d renovationwork ourselves and also in managing an d coordinating the work of contractors. Thatincludes developing estimates, obtaining bids, negotiating and supervising th e work.

    We have hands on experience with carpentry, finish carpentry, plumbing, hydronic heating,designing an d install ing "Spacepak" HVAC, rough an d finish electrical, cemen t and stonework, insulation, sheetrock, painting and design, site works and correction of waterinfiltration, sourcing historic materials and applying th e Secretary of Inter iors Guidelinesfor Historic Preservat ion.

    We are committed to th e prospect that its often better to properly upgrade old buildings

    for new use, rather than replacing them; no t only for preserving a cultural heritage, butalso to str ive for environmental conservation.

    While no t a professional endeavor, renovation an d preservation has been a major part ofou r lives for over 30 years. Our histo ry of renovation includes:

    19851988: 4 bedroom home remodel in Lompoc, CA including outdoor living space,stonework, landscaping, electrical, plumbing, gas, cabinetry and drywall.

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    Attachment A. Background and Resumes

    STATE OF MARYLANDOFFICE OF THE GOVERNOR

    ROBEI?T L. EHRl.ICH, JR.GOVERNOR

    $'TATE HOUSE!00 STATE CIRCLE!

    November 19, 2003

    Dear

    ANNAPOLJ$, MAFIYU.ND21401(4 TC/)974$901

    (TOLl. FREE} 1../JOIJB118

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    Experienced Project ManagerGiiiJ;,JWU;;ai&Jii:.liittWiiM&Ziib&J.iU:lWuwAA5444it: : &&aauii&il i i i i ii i&& at.

    Professional Highlights 25 years managing complex technicalsystems, includingall stages of lifecycle development. Allaspects of project management conducted in areas of research, development, systems

    engineering, test and evaluation,and operations and maintenance. Utilizedacquisitionskills in contracting and subcontracting, budgeting, scheduling,performance

    monitoringand system acceptance. 3 years leading 24/7 system operations and maintenance, achieving over 99% availability 6 years managing advanced technology programs 5 years resident at customer facilities providing technicalsupport for new requirements or on

    going operations

    Experience .US Dept of the Air Force,; Headquarters Air Force Element 2001 - PresentOperations and Maintenance Engineering (Mar 12-present) Oversee and restore remote, large-scale operational systems from anomalous conditions.

    Develop and implement life-extendingcourses of action, enabling systems to operate 3-4 timestheir design life. Conduct root cause investigationsand apply results to both systems underdevelopmentand operational systems.

    Senior Technical Referent, Silicon Valley Operations (Dec 06-Mar 12) Initiated and maintained subcontract relationshipsfor technical developments and operations.

    Negotiated challenging agreements with Silicon Valley technology firms for access to technicaldevelopments.

    Deputy Director, Operations Division, Mission Engineering (Jun 04-Dec 06) Program manager of $250 Million/210person contract running a critical 24/7defense

    communicationsnetworkat Menwith HillStation, Harrogate, England. Responsiblefo r budget,contracting, operations, maintenance, software upgrades, system improvements and anomalyresolution.

    Deputy Director of 300-person Operations Division.Chief, Operations and Maintenance, Radio Relay Station (Jun 04-Jun OS) Program manager of $70 Milllon/110person contract running 24/7 radio relay system at Joint

    Defense Facility,Alice Springs,Australia.Chief, Advanced Systems Engineering Lab (Mar01-Jun 04) Led an engineering laboratoryof 20+ senior scientists and engineers focused on applications

    oriented research and development. Managed joint advanced development programs withAustraliancounterparts, responded to immediate operational requirementsand supportedengineering studies.

    US Dept of Army, Technical Testing and Training Agency 1991.;... 2001Senior Representative, National Support Staff (Oct 98-Mar 01) Resident Haison officer responsible for Department of State and National Security Agency needs

    in technical systems support and systems engineering activities. Assured customer requirementswere represented, advised on technology, capabilities,systems engineering processes, budget,systems acquisitions, operationsand support.

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    Chief, TechnicaiTargeting Branch (Jan 97-0ct 98) Formulated and led technical support program for counter-terrorist operations. United

    operational elements with technical resources, anticipated technical requirements, developed or

    acquired systems in support of quick response military operations. Continuallyapplied newtechnical capabil_ities to the mission.Contracting Officer Technical Representative, R&DOffice (Jan 92-Jan 97) Managed multiple advanced technology programs in support of global communications systems

    and advanced system architectures. Focused on high data rate communications, antennadevelopment and new technologies. Managed the successful development of a multi-milliondollar technology demonstrationunder budget and meeting all technical objectives. Managed allaspects of multiple programs' engineering, financial and schedule requirements.

    Career Development Trainee, DoD (Jan 94-Dec 94) Selected for career development training program. Exposed to DoD activities and

    responsibilities, analysis and research and development.Technical Security Officer, Tech Surveillance Countermeasures (Mar 91-Jan 92) Conducted testing and training on technical aspects of facilitiessecurity. Led RF device research

    and supported development of RF detection systems.

    Responsible Design Engineer, Antenna Systems Lab, TRW 1987 - 1991 Led electrical development, analysis and production of high frequency satellite feed. Assisted

    with feed design for new mission requirement. Designed antenna test equipment andconducted antenna testing and analysis.

    - - -=+

    Education

    M.S. Electrical Engineering, 1990, Universityof Southern california

    B.S. Electrical Engineering, 1987, Universityof california, Los Angeles

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    Systems Development Manager

    Career

    Profile

    Areas of

    Proficiency

    Performance

    Overview

    Twenty-five year background in space systems an d advanced technology acquisition,development and operations with the Air Force, other government agencies an dindustry.

    Management experience in Program Management, R&D,Systems Engineering,Test and EvaluationandO&M,including government acquisition, contracting, cost estimating, budgeting,scheduling, , strategicplanning, and process reengineeriilg.

    Technical experience in advanced spacecraft mechanical and electronic systems, signals intelligence,advanced space communications,space launch and facilities.

    Leadership experience in running a 24/7 space operations directorate, directing IT development andsupport division, leading self directed teams, formingmulti-agency and contractor collaboration.

    Hands on experience in all phases of systems development from concept study, prototype development,systems activation and operations of national assets and commercial space systems.

    Business development and strategic analysis High performance team leadership Program management Earned value cost/schedule management Technology integration Space and launch operations Best value analysis and source selection Systems engineering management

    Oct 06-Present: Advanced Program Manager Space Systems/Loral Defined and executed all programmatic aspects of advanced commercialand government satelliteprograms. Managed program execution valued at several hundred million dollars from requirementsdefinition to customer handover on orbit.

    . Aug 00 to Jun 06: President and Chief Technology Officer, i3 AerospaceTechnologies

    Co-founder of Australian company focused on developing a sustained network of innovative maritimesurveillance Unmanned Aerial Vehicles.Developed business plans, funding sources, system architectureand interfaces and led collaborationof seven companies to initiate funded R&D.

    Provided continued support to national space systems as Air Force Reserve Lieutenant Colonel.

    Jan 98 to Mar 00: Overhead Collection Management Center

    Director of Operations {Jan 99 to Mar 00)Led team of 34 joint-service military and multi-agency civilians to execute requirements levied by

    National Command Authorities, intelligence agencies & Military Command Authorities. Director of Acquisition, Engineering and Logistics (Jan 98 to Dec 98)

    Headed a division of 40+budgeting, acquisition and engineering strategies and O&M activities of thecenter. Executed $6M annually. Manage IT systems including 1.5 million lines of code.

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    lun 93 to Dec 97: Secretary of Air Force Special Projects Office (SAF/ST) Team Lead, National Space Communications Program (Jul 96 to Dec 97)

    Supported the study, development and initial acquisition phases of a multi-billion dollar joint DoD,Intelligence and NASA enterprise. Lead and supported several Integrated Product Teams (IPTs)

    Contracting Officers Technical Representative (COTR)Systems Research and Development Office (Jun 93 to Jun 96)Managed micro-electronics technology development and transition programs in support of futurepayload architectures. Focused on Digital High Temperature Superconducting (HTS), SiGe and advanced CMOS. Managed 10 programs' technical, financial and schedule requirements.

    lu i 89 to Jun 93: Space and Missile Center, Los Angeles AFB Continuous Improvement Consultant (May 91 to Jun 93) .

    Served on a select team to assist the Center Commander and senior staff In implementing TotalQuality Management, vision deployment, strategic planning and process reengineering. Project Manager, Prototype Flight Cryocooler (Jul 89 to May 91)

    Project Manager to develop and transition cryogenic refrigerator technology into space qualifiedhardware. $80 million program, $15 million annual budget.

    lu i 84 to lu i 89: Western Space and Missile Center, Vandenburg AFB Project Engineer, Space Launch Complex (Titan IV) (Nov 87 to Jul 89) Project Engineer, Space Shuttle Hydrogen Disposal System (Feb 87 to Oct 87) Systems Engineer, Space Shuttle Liquid Oxygen System (Jul 84 to Feb 87)

    EDUCATION M.S. in Technology Management, 1991 Northrup University, CaliforniaB.S. in Astronautical Engineering, 1984 USAF Academy, Colorado

    AWARDS

    Air Command and StaffCollege, Jul1999$quadron Officer School (SOS) in residence, Oct 1989Systems 200, Acquisition Planning and Analysis 1988, Vandenberg AFBSystems 1 00, Introduction to Acquisition Management 1986, Vandenberg AFBDefense Contract Management 1988, Vandenberg AFBIntroduction to Configuration Management 1987, Vandenberg AFBNumerous technical and management short courses and conferencesCarmel High School, 1980

    Defense Meritorious Service Medal, Air Force Commendation Medal-first oak leaf cluster, Air ForceAchievement Medal, Command Space Badge. Acquisition Level Il l Program Management.

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    Bachelor of Arts, English, March 1Q97Bachelor of Science. Environmental Biology and a n a g e m e n ~June 1996

    Both degrees granted by University of Califomia.Davis

    Employment Experience:Property Caretakers Tassajara, CalifomiaMay 2009- January 2013Employed as residential caretakers for a 27--aere private parcel adjoining 1he Ventana W'ddemess. Maintained

    existing structures through painting, rehabilitation of deck. roofing, caipentry, and fife prevention maintenance,Enhanced exisi:ting garden through installation of nigation systems and addition of raised beds. Worked withand maintained well pumps. generators, and solar power systems.

    Property Caretakers Tassajara, CaliforniaNovember 2008 -April 2009Worked as residential property caretakers on a 20-acre parcel adjoining the Ventana W'ddemess. Assisted inplanning and execution of new wate r system, including trenching, laying of pipe and valves, C8lpenfry o f valveboxes, and tank placement Also rehabilitated old septic system, installed an d adjusted solar-power system,assisted with organi

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    Historic Restoration curaror for Maryland DN RJuly 1997- July 1998 Sunshine, MarylandAssisted with historic restoration of a mid-18th century farmb.ouse in Patuxent River State Park. :&perienceincluded installation of hand-milled hardwood floor, painting, restoratiott of existing bathroom using originalmaterials,assistance with installation ofFrench drain, glazing and repair of historic Windows, rough and finishcmpentry 1D repair water damage. grmmds maintenance. and insta.U.ationof mantelpieces. Interacted withrepresentatives of he Maryland Resident Curatorship program to ensu.-e adherence to policies, and met withother cm:ators to discuss cballenges and solutions inv-olved with historic t'eStomtion.

    Other Experienee

    Batmoom Remodeling; expetience in complete 1-emodels,including re-design and creation of tile showers.

    Gardeni:ng and Landscape Design: bas u:ained as a Mas ter Gardenel' with the University of Califomia.and have extensive expel'ience in landscaping, from inigatioo. systems to flower gardens to

    organic vegetable gardens.

    References

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    Attachment C: Summary of the Elements of the Curatorship Proposal

    In addition to themitigations and other termsdiscussed elsewhere in the RFP and proposal,the followingkey elements ofthis proposal are offered to the City for consideration:

    Proposed length of the lease: The.Curatorship shall continue in effect throughout the lives ofthe Curators,including the life of he one surviving on the death of the other. In no event shallthe Curatorship continue beyondthe dateof he deathof the surviving Curator.The Curatorsmay terminate the Curatorship after providing sixty (60) daysnotice to the City.

    Proposed Monthly Lease Payment: Fair market rent for a similar style houseon thecommercialmarket may be up to $8500 a monthfor a fully restored and maintained house.However, thisproperty is uniquely encumbered and will not warrant what might beconsidered comparable fair market rent:

    First, the Curators assumeadditional obligations and risks verses a traditional tenant:. The whole of the Curator's investment (time and money) isat risk.. In the eventuality

    that through natural disaster or other fate the house is destroyed, the curator has noinsurable interest in the improvements provided to the City and is not expresslyguaranteed recovery of hose costs,nor a place to live. Whilea typical lease obligatesthe landlord to provide a warranty of habitability, the curatorship does not obligate thecity to meet that standard;rather, all maintenance of habitability must be administeredby thecurator, and alldislocation expenses alsoborn by the curator in that eventuality.

    Second,there are unique lifestyle impediments to maintaining a household in a publicpark on behalf of the city while implementing historic preservation standards;including accommodating public accesseasements,historic preservation restrictions,environmental restrictions including botanical, avian and mammalsurveys and

    resultant actions, limitations on the timingand scopeof

    exteriorwork,

    unique buildingrestrictions, restrictions on garden and vegetation and restrictions on exterior lighting.

    These considerations directly impact the fair market rent of his property, which we estimateat $4000 to $4250 per month (current year dollars) after the property is restored.

    Proposed Improvement Allowance: The total costs for restoration over a four year periodare approximately $800,000,with a p p r o ~ t e l yanother $875,000(escalated for inflation)anticipated for recurring maintenance over a 30 year period.

    The city has received a cost estimate of $1.2Mto repair the mansion and grounds. While thecity has addressed several items, much of he work remains.However three major factorsdistinguish that estimate from the work proposed here:

    First, the repair estimate was not for an historic preservation, rather it wasrepresentative of a renovation of a typical house forsale or lease--a flip. Our approachis to reuse as much of he original items as possible and carefully source or reproducematching itemswhere restoration is not possible. In some cases this involves

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    Attachment C: Summary of he Elements of the Curatorship Proposal

    removing some modern, inappropriate fixtures and treatments and replacing them withcorrect fixtures and treatments. Generally, historic preservation takes more time andmoney than a simple renovation.Second, the estimate included about a 35% mark-up in fee's, contingencies andinsurance. The actual estimated work was about $780K, and some of this work the city

    has already completed.

    Third, because we will be managing the restoration ourselves and in many casesactually performing the work ourselves, both the costs and schedule will be .considerably different from a typical renovation. The project schedule can be adjustedto accommodate an efficient sourcing of historical ly appropriate materials. Oftenappropriate materials can be salvaged from other projects or donated to achieve costsavings and environmental benefits--using time to be cost effective rather than costly-a process that isn't practical in a contracted renovation. Finally, personal sweat equitydirectly offsets out of pocket expenses and eliminates mark-ups for overhead,. fee's andgeneral contractor insurance.

    As shown in the Financial Analysis, Attachment E, the fair market monthly rent,considering encumbrances does not offset expenses for 25-30 years, largely because of thefront loaded major expenses incurred. This is effectively the anticipated life of the contract.(However, pe r this analysis, subsequent lease of the property a t fair market rent, even if offsetfor maintenance costs, would result in rental payments.)

    Sustaining Maintenance: Upon completion of the work listed the preservation plan, theCurators shall continue to restore, repair, and maintain the Premises, including structures andgrounds, as necessary in a continuous basis during the term of the Curatorship Agreement.These services will be provided without charge and will be performed continuously while theCuratorship is in effect. The Curators may occupy the premises as their residence in order toperform the services. The City reserves the right to inspect the premises and grounds uponreasonable notice to the Curators.

    Permits: The Curators shall obtain all permits, inspections and approvals required inconnection with the Curatorship and the restoration, renovation and improvement of the same.The Curators shall keep all such permits, inspections an d approvals on file and shall providecopies to upon request. The Curators shall comply with all applicable federal, state and locallaw.

    Documentation of Donation: The Curators' contribution to the City will be in the form ofboth payment for material and services purchased by them and their time and labor used in the

    management, restoration and renovation of he property. Records of funds expended and time/labor invested shall be kept by the Curators and forwarded to the City annually on or beforeMarch 15 of each year. Upon final acceptance by the City of each year of he renovationwork, the Supervisor shall accept receipt of the amount expended by the Curators an d shallissue a written acknowledgement to the Curators of the amount contributed and received bythe City. When the restoration is complete, the City shall draft for the signature of the Mayor

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    Attachment C: Summary of he Elements of he Curatorship Proposal

    of Cannel, and addressed to the Curators, a letter acknowledging completion of the restorationas a gift to the City.

    Documentation of the Restoration: The Curators shall thoroughly document all of their

    restoration and renovation work with photographs or video records. Prior to thecommencement of any phase of restoration or renovation work as set out in the preservationplan, and again upon completion of that work, the.Curators shall photograph or otherwisevisually record the area to be worked on.

    Termination: If the Curators fail to comply with any and/or all of the terms and conditions ofthis Curatorship Agreement, or fail to correct a defect reasonably after receiving notice, thecity may terminate the Curatorship Agreement upon ninety (90) days notice.

    Condition of Property: All permanent improvements, alterations, and real propertyappliances shall remain the property of the City upon termination of the Curatorship

    Agreement. The curators shall be responsible for the Curatorship structures being in the bestcondition, to which they had restored it, atsuch time as the Curatorship terminates, normalwear and tear excepted.

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    Attachment D: Rehabilitation/Preservation Plan Approach

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    Attachment D: Rehabilitati.on/Preservatiqn Plan Approach

    3

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    Attachment D: Rehabilitation/Preservation Plan Approach

    4

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    Attachment D: Rehabilitation/Preservation Plan Approach

    5

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    Attachment D: Rehabilitation/Preservation Plan Approach

    6

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    Attachment D: Rehabilitation/Preservation Plan Approach

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    Attachment E: Consideration for Rent and Calculation of Payments

    The paymentis the rent offsetby expenses:Pm t = R-E

    Pmt =Yearly paymentto the cityR= Annualrental valueadjusted for inflation anddi!!COuntedfor encumberancesof he curatorshipE= Expensesinclusive of actual yearly costsof estoration, maintainence,equipment,sweatequity, andopportunity

    oportunitycost of expenses above rental value

    Fair marketrent for restored,unencumbered SFR= $8500/monthFair marketl'e!lt, discounted for encumbrances= $4250/month

    Encumbrances include:-Additional obligationsand risks on a Curatorverses a Tenilan.t-Uniquedifficulties tO maintininga household in a publicpark and to historic preservation standards.

    YEAR Restoration Recurring TOTAL AnnualRent Annual Opportunity Cum Annual&Major Minor ANNUAL (3) Difference . Cost (4) Balance (5) Payment(6)

    Maintenance Maintenance ExpensesExpenses(1) (2)

    1 158,750 - 158,750 51,000 (107,750 - (107,7502 315,375 - 315,375 52499 (262,876 114,215 (377 0913 230,000

    -230,000 54,043 (175 957 399,716 (575,673

    .4 89,675 . 89,675 55,632 (34,043 610,214 644,257:5 - 16,000 16,000 57,267 41,267 682,912 641,6456 - 16,470 16,470 58,951 42,481 680,144 637 6637 - 16,955 16,955 60,684 43,730 675 923 632,1938 - 17,453 17,453 62,468 45,015 670,125 625,1109 17,966 17,966 35,932 64,305 28,372 662,616 634,244

    10 . 18,494 18 494 66,195 47,701 672299 624,59811 - 19,038 19,038 68,142 49,103 662,073 612 97012 - 19,598 19,598 70,145 50547 649,748 599,20113 - 20174 20,174 72207 52,033 635153 583,12014 20,767 20,767 41,534 74,330 32,796 618,108 585 31215 - 21,378 21,378 76,515 55,138 620,431 565,29316 . 22,006 22,006 78,765 56,759 599,211 542,45217 - 22,653 22,653 81,081 58,427 574,999 (516,57218. . 23,319 23,319 83,464 60,145 547,566 487 42119 24005 24,005 48,010 85,918 37 909 516,666 478,75820 . 24711 24,711 88,444 63,734 507,483 443,74921 - 25,437 25,437 91,044 65,607 470,374 404,76722 - 26,185 26,185 93 721 67 536 . 429,053 361,51723 - 26955 26,955 96,477 69,522 383 208 (31368624 27,747 27,747 55,494 99,313 43,819 332,507 288 68825 - 28,563 28,563 102,233 73 670 306,010 232,34026 - 29,403 29,403 105,238 75,836 246,280 170,44527 - 30,267 30,267 108,332 78 065 180 671 102,60628 - 31,157 31,157 ll1,517 80,360 108,762 (28,40229 32,073 32,073 64,146 114,796 50,650. 30,106 20,54430 - 33,016 33,016 118,171 85,155 - 85 155

    1. Beyondupfront restoration expenses,major maintenance expensesare budgeted everyfive years after completionof he restoration

    2. Recurringregular maintenance budgetedafter restoration, escalated at CPI (2.94%)3. Annual rental value shownescalated for inflation (CPl)4. Opportunitycost of moneyincluding previousyear funds expendedin excess of rental value assuming6% interest5. RentalValue less annual expenses andopportunity cost6: Payments tothe City, once Cum Balanceis positive--under conservative assumptions, this occursafter 29 years,

    effectively at the life of his contract

    --

    ---.------------------.-.-

    50,65085,155