Agenda - 06-15-1999 - III - Laserfiche WebLink

Browse Search

Financing The Town proposes to finance the $220,000 project through a seven -year installment- purchase agreement. Based on a 4.8% interest rate, the seven annual payments would be approximately $37,800 per year. In an attempt to develop a fair cost sharing formula I propose the ,following methodology as a starting point in our discussions. Once again, the Town is happy to consider any other ideas or suggestions you may have on this subject. Of the 2,300 square foot facility, it is estimated the County will require 450 square feet of space. In addition, I'm arbitrarily going to assume that of the approximate 200 square feet or rest room facility (four rest rooms), the County will be responsible for about 25% of usage or 50 square feet of space. Adding the 450 and 50 square foot totals equates to 500 square feet of space. I propose not to include lobby area or use of the shower facilities in this methodology. Since the County will likely be allowing this facility to be constructed on County property at little or no expense, I thought this might be an unscientific, yet easy way to deal with developing a formula. 500 square feet is 21.7% of the 2,300 sq. ft. facility. Extending this 21.7% formula to the seven annual installment payments of $37,800 results in projected payments of $8,202.60 for the County for seven years, at which time the debt will be retired. The Town would arrange and administer the financing for the project.' The Town would simply invoice the County once a year for seven years per a pre - arrangement agreement. The Town could separately invoice the County at the end of the fiscal year for 21.7% of the utility and maintenance costs for the facility or mutually develop a flat annual maintenance /utility charge. Note: The 21.7% figure will likely change somewhat depending on the final design/layout of the Center. Closing The Town would make sure to involve the County in the design process for the building. The best way to help ensure the County is satisfied with its space at the Center is to have the architect and County staff meet early in the design process. This way the County staff can clearly explain their needs "one on one" with the architect, so those interests can be addressed at the beginning of the design process. The Town of Hillsborough greatly appreciates the County's willingness to consider cooperation on the development of this project. Please feel free to give me a call so we can discuss your ideas and thoughts on the concepts proposed in this letter., Thanks! Sincerely, Eric Peterson Town Manager cc: Mayor Johnson & Board of Commissioners to — I (P