Agenda - 04-20-1993 - VII-C - Laserfiche WebLink

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EXPLANATION OF TERMS AND DATA SOURCES SECTION 1 - BASIC DATA Project Name - Name of the proposed development. Township - Township in which project is located. School District - School district in which project is located. Inflation Rate - Unless an inflation rate is entered, the template will calculate fiscal impacts based on constant dollars. Since the inflation rate changes from month to month, the finance department must be contacted for the most recent figures. Example - 4.83. County Annual Operating Expenditures-Total county expenditures for current year. Can be obtained from the county finance or budget office. Example - $42,494,467. Total Local Equalized Real Property Value - This figure represents the aggregate county market value of all county taxpaying properties on which taxes are assessed. This includes residential, farm,vacant, commercial and industrial. Contact the tax assessor's offices for this figure. Example - $3,463,533,275. Total Number of Land Parcels - This figure represents the sum of all county properties on which taxes are assessed. Contact the tax assessor's office for this figure. Example - 38,500. Total Nonresidential Equalized Real Property Value -This figure represents the sum of the market value of all commercial and industrial properties. Contact the tax assessor's office for this figure. Example - $380,988,660. Total Number of Nonresidential Land Parcels-This figure represents the sum of commercial and industrial tax- paying properties. Because apartment complexes demand services similar to residential parcels, they are not included. Contact the tax assessor's office for this figure. Example - 932. Real Property (Market) Value of Proposed Development - This figure represents the total market value of the development. For an existing development, contact the tax assessor's office. Obtaining an accurate figure for a proposed development is more complicated and will vary according to the type of development and the planned location. Because of the many steps involved in calculating market value, it is best to obtain as much information as possible and seek the assistance of the tax office. They will estimate the market value of the proposed development based on existing developments similar to that which is proposed. In Case Study# 2, Walmart, the market value is$1,899,819. This figure was obtained from the assessor's office. The following are three basic steps used to estimate the market value of a basic empty warehouse with 50,000 sq. ft. of warehouse space: 1) Find a development similar to the one being proposed (type, location, use, size). Based on the preceding information and the projected demand for the development type, the analyst will multiply the number of square feet of the new development by the estimated rent per square foot. Example - 50,000 sq. ft. * $1.50 per sq. ft. _ $75,000 total. 2) If the information is provided, estimate an expense ratio, i.e., the proportion of expenses paid by the owner to those paid by the tenant. In this example, the owner pays all expenses. 3) Divide that figure (in our example the figure remains$75,000 since there is no expense ratio), by the current cap rate. The cap rate is determined by the assessor's office at each revaluation and is based on interest rates and expected return of investments. In this example, the cap rate is 12%. The market value is therefore $625,000, or $75,000/12%. 5