Financial Feasibility and Conclusion

Irving Development	HIGHLY
	ENERGY EFFICIENT
	WAL-MART
+ Construction Costs (PSF)	$                 140.00
x Total Square Feet	50,000
= Total Construction Cost	$       7,000,000.00
+ Land Acquisition Costs	$                         -
= Total Development Costs	$       7,000,000.00
- Governmental Rebates for Energy/Sustainability	$         (500,000.00)
= Revised Development Costs	$       6,500,000.00
Project Financing Details
Maximum LTV Ratio	75.00%
Loan Term in Months	180
Loan Interest Rate	6.00%
Equity Required	$       1,625,000.00
Debt (Loan Amount)	$       4,875,000.00
Before Tax Cash Flow (BTCF)	$123,414.06
Annual Debt Service	$493,656.24
Minimum DSC Ratio	1.25
Required Minimum Net Operating Income (NOI)	$617,070.31
Total Operating Expenses as % of EGI	25.00%
Total Operating Expenses	$205,690.10
Effective Gross Income (EGI)	$822,760.41
Vacancy and Collection Loss % of PGI	7.00%
Vacancy and Collection Loss (VCL)	$            61,928.20
Potential Gross Income (PGI)	$          884,688.61
Required Gross Rental Rate PSF	$                   17.69
Required Net Rental Rate PSF	$                   12.34
BTCF/EQUITY INVESTED (BTROE)	7.59%

Because of the economic impact that the Wal-Mart/Convention Plaza development will have on the community, I believe that it's a great long term investment and an adaptive reuse of valuable, but vacant public and private property. From an investor's point of view, based on the cost savings from sustainability and the TIF program its a great opportunity to support the community AND make a profit!