Agenda - 10-22-2001-hb2 - Laserfiche WebLink

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ANNLXA TION FINANCIAL FRASBILI ]YRBPORT Proposed Pavioe's Points Apartment Complex .March 28, 2001 Prepared By Eric Peterson, Town Manager Introduction: The presentation and methodology used in dais report to analyze oho( 'bility of the Patriot Pointe project is non-traditional in its approach. The standard method of analyzing the financial impact of a proposed development, if annexed, is to prepare a list of assumptions and formulas In help develop a cos Wenclit analysis that shows a "bottom line" loss or profit. In most cases this approach, combined with same common sense amlysis, is the best way to conduct a feasibility study of this type. This report provides a few basic numbers regarding projected revenues, some amounts on service provision, but fxues m n posing philosophical questions to assist the Board in evaluating the mans ofPamot Pointe on rite Town of Hillsborough's short and long -term financial health in both the General Food add Water (fewer Fund It is very important to note that the focus of Nis report is shortly financial and ones not take into account other crucial issues that must be weighed when mnsidening an ex'ptinn, such as learns and quality of life issues. The Proposed Development: Patriot Pointe proposes to build 130 Due bedroom apartments, I20 two - bedroom apartments, and a clubhouse associated with this project, If fully occupied, the development would add approximately 430 maidans to Hillsborough. This estimate is based on an coinage of 133 residents for oath ova- bMroom apartment and 2.25 residents for each two - bedroom apartment The developer minions the project would be completed widin 12 months of constructors stoup. Upon Protect completion, projected revenues to the Town of Hillsborough would be as follows: • Property Taxes for the $16,000,000 project $96,000 per year (based on a 60 tend tax rate). Additional General Fwd Revenues generated in sales tics: and state -shared noncoms by increasing the Town's population by approximately 8 iuu and recessed valuation by about 5.0% would generate at least an additional $25,000 - 30,000 per year. • One -time Capital Facility Fees for Water and Secret: $184,600, • Annual Watcrand Sewer Usagc Revenue :$157,440 Key Service Provision Considerations While it is uncertain at this time whether the Project would be a contiguous or satellit annexation, it is really has no bearing the does concerning provision of municipal services. The 101 ascot (lone, 8mrvrt • PO. Box assay • Hill laver h Norse Como,, •evvra