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Home My WebLink AboutE- Packet 07-16-2007_Update and Discussion on the Bozeman Intermodal Fa_10 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: For the Special Presentation: Bozeman Intermodal Parking Facility Parking Garage Financing and Timeline MEETING DATE: July 16, 2007 NOTE: DUE TO THE APPROXIMATE ONE MONTH DELAY IN THE FEDEARL AWARD, DATES MENTIONED HEREIN WILL BE UPDATED AS A PART OF THE JULY 16, 2007 PRESENTATION. ALL OTHER INFORMATION REMAINS ACCURATE. Timeline for Financing of the Base Parking Garage Monday, June 18, 2007: Award Base Bids. Begin Staging and Construction. July 2007: Begin drawing on Federal Award – Direct, as invoices are due. Prepare Federal Award – GANs private placement memorandum and agreements. Closing date dependant on project cash flow needs; close when necessary. Invest GANs proceeds in STIP or Agency Bonds until needed. August 2007: Receive Taxable Value of TIF and prepare bond sale documents. September 2007: Close TIF BONDS on September 17, 2007. Invest TIF BONDS proceeds in STIP or Agency Bonds until needed. May 2008: Construction Complete. 65 October 2008: Draw from FY08 Federal Appropriation to pay 1st Installment on GANs. October 2009: Draw from FY09 Federal Appropriation to pay 2nd Installment on GANs. Description of Financing Instruments: Federal Award – Direct: This represents two of the four years’ (FY2006 and FY2007) Federal Transit Authority (FTA) Appropriations. These amounts have been printed in the Federal Register, dated March 23, 2007, for the Bozeman Montana-Intermodal and Vehicular Parking Facility. Total allocation is $1,910,339, and can be drawn against as soon as the City begins incurring costs for garage construction. Federal Award – GANS: This represents the Grant Anticipation Notes we will be issuing related to the FY2008 and FY2009 Federal Transit Authority Appropriation. We expect we will need the cash from these appropriation amounts by April 2008, many months before the FTA will release the funds. Because of this cash flow issue, we will sell notes via a private placement (large institution, etc.) in September 2007. The notes will be structured to mature when the FTA appropriations can be accessed. We expect to net, after interest and sale costs, $1,971,105 from these notes. TIF BONDS: This represents a very conservative estimate of what will be available for construction as a result of TIF Bonds, issued after the FY2008 TIF valuation is received in August 2007. The par amount of the bonds is estimated to be $5,315,000, with $370,000 going to a debt service reserve account, and $141,000 for the underwriters discount and costs of issuance. The term of the bonds will be 25 years, with an average coupon life of 15 years and an average coupon rate estimated at 4.85%. This will leave $4.8 Million for construction of the facility. Interest Earnings during Construction: Once the GANS and BONDs are issued, proceeds not needed for immediate payment will be invested in either the State Short Term Investment Pool or agency bonds. We conservatively estimate earnings from these investments to provide $130,000 for during the construction period. TIF CASH: The TIF Fund currently holds approximately $480,000. Of this amount, it is estimated that we will need $460,000 to fund the Base Bid project. If the TIF BOND and/or the Interest Earnings During Construction amounts are higher than expected, we may be able to adjust the TIF CASH requirement down, preserving money in the TIF Fund for other uses. Timeline for Financing of the Alternate 1 (Additional ~105 spaces) June – July 2007: Prepare and distribute a Request for Proposals to sell the approximate 10,000 square feet of retail space in the facility. Evaluate Proposals and 66 make a decision on sale of retail space. Enter into purchase/sale agreement. August 2007: With retail space purchase agreement and funding timeline in hand, award construction of Alternate 1. Total Project Costs and Sources of Funds: Base Alt 1 Alt 2 Total Project Cost 9,257,926 1,291,663 6,047 Source of Funds Federal Award - Direct 1,901,339 Federal Award - GANS (net of interest cost) 1,971,105 TIF BONDS 4,800,000 Interest Earnings During Construction 130,000 TIF CASH 460,000 Proceeds from Sale of Retail 1,291,663 6,047 TOTAL FUNDS AVAILABLE 9,262,444 1,291,663 6,047 Difference between Costs & Funds Available 4,518 0 0 67 OPERATIONS PLAN FINAL 6-18-07 Bozeman Garage - Bozeman, Montana Hours of Operation:8:00 a.m.to 10:00 p.m.(Monday through Saturday) Number of Parking Spaces:335 (Phase 1) 435 (Phase 2) Phase 1 Projected Annual Revenue:$161,860.80 Projected Annual Expenses:$150,774.18 Proj. Net Operating Income:$11,086.62 Proj. Net Oper. Income / Space:$33.09 Phase 2 Projected Annual Revenue:$218,020.80 Projected Annual Expenses:$165,773.04 Proj. Net Operating Income:$52,247.76 Proj. Net Oper. Income / Space:$120.11 Does not include maintenance reserve (est. $75 per space). Debt Service to be paid via TIF District budgets. Page 1 68 OPERATIONS PLAN FINAL 6-18-07 Bozeman Garage - Bozeman, Montana Hours of Operation:8:00 a.m.to 10:00 p.m.(Monday through Saturday) Number of Parking Spaces:335 (Phase 1) 435 (Phase 2) Projected User Groups: Phase 1 Phase 2 Monthly Parking 272 272 spaces Transient Parking 63 163 spaces 335 435 Total Projected Parking Rates: Transient Parking:$0.50 per hour (Maximum $5.00 per day) Monthly Parking: Regular:$35.00 per month Basement:$45.00 per month (Assumes reserved parking) Rooftop:$35.00 per month (Lower rooftop rate) Projected Income: Transient Parking:Assumptions - Average rounded stay of 3 hours, turnover of 2 vehicles per space, 60% utilization, no validations. Free Parking Time = 0 Hours Phase 1 # of Spaces X Utilization %=Spaces Util. 63 0.6 38 Spaces Util.X Turnover X 3 Hour Rate =Projected Revenue 38 2 $1.50 $113.40 (Daily) Projected Annual Transient Revenue (Phase 1):$35,381 Phase 2 # of Spaces X Utilization %=Spaces Util. 163 0.6 98 Spaces Util.X Turnover X 3 Hour Rate =Projected Revenue 98 2 $1.50 $293.40 (Daily) Projected Annual Transient Revenue (Phase 2):$91,541 Monthly Parking: Regular # of Spaces X Utilization %X Monthly Rate X 12 Months =Annual Revenue 70 1 $35.00 12 $29,400.00 Basement # of Spaces X Utilization %X Monthly Rate X 12 Months =Annual Revenue 102 1 $45.00 12 $55,080.00 Rooftop # of Spaces X Utilization %X Monthly Rate X 12 Months =Annual Revenue 100 1 $35.00 12 $42,000.00 Projected Annual Monthly Revenue:$126,480.00 Total Projected Annual Income (Phase 1):$161,860.80 Revenue per Space:$483.17 Total Projected Annual Income (Phase 2):$218,020.80 Revenue per Space:$501.20 Projected Revenue - First Full Page 2 69 OPERATIONS PLAN FINAL 6-18-07 Bozeman Garage - Bozeman, Montana Hours of Operation:8:00 a.m.to 10:00 p.m.(Monday through Saturday) Number of Parking Spaces:335 (Phase 1) 435 (Phase 2) Projected Stafﬁng Needs: # Staff Est. Hrs. per week Payrate Cost per week Cashiers 4 92 $10.00 $920 (1 full-time, 3 part-time - w/ Breaks) Bookkeeper 1 10 $15.00 $150 (2 hrs. - 5 days per week) Manager 1 15 $20.00 $300 (3 hrs. - 5 days per week) Maint.(Porters)1 12 $10.00 $120 (2 hrs. - 6 days per week) Total Cost per Week:$1,490 Subtotal Annual Stafﬁng Costs:$77,480 Payroll Expenses (includes taxes, beneﬁts, etc.):25% Total Annual Stafﬁng Costs:$96,850 Typical Operating Expenses (Est. Annual Expense): Phase 1 Phase 2 Est. Cost per Space Maintenance Supplies $2,131 $2,767 $6 Operations Supplies $6,677 $8,670 $20 Ofﬁce Supplies $811 $1,053 $2 Uniforms $750 $750 NA Postage $821 $1,066 $2 Sweeping $2,921 $3,793 $9 Snow Removal $1,621 $2,105 $5 Utilities $20,100 $26,100 $60 Insurance $4,868 $6,321 $15 Equip. Maintenance $1,216 $1,579 $4 Landscaping $1,216 $1,579 $4 Elevator Maint.$4,057 $5,268 $12 Miscellaneous $2,345 $3,045 $7 (Includes marketing) Total Op. Expenses:$49,533 $64,095 Total Projected Facility Expenses: One Year Inﬂation Total Proj. Expenses Phase 1 X 3%=$150,774.18 One Year Inﬂation Total Proj. Expenses Phase 2 X 3%=$165,773.04 Phase 1 Phase 2 Total Projected Facility Expenses per Space:$450.07 $381.09 $146,382.70 Subtotal Subtotal $160,944.70 Projected Expenses - First Full Page 3 70