General Assumptions:

Projects are a 2 phase investment

The first phase begins operation in January 2010, and is completed in 2011.

The second phase begins in January 2015 and is completed in 2016.

The same tax abatement is offered for both phases (80%).

The first tax abatement expires in 2019, the last tax abatement expires in 2024.

The model uses a terminal value to estimate revenvues and costs from 2025 on.

The model assumes all costs for infrastructure (roads and utilities up to property boundary) are paid by City and County.

The model assumes all infrastructure costs are related exclusively to this Site- this is a "marginal cost" assumption.

Land is sold, not donated, to investing firm.  Proceeds go to City.

Scenarios Tested

Notes

Low Value Firm:

Characterized by lower-cost construction, modest wages,

and heavy road use requiring large infrastructure investment.

Total build-out of 450,000 square feet

250 employees when complete

low employees per square foot

average wage of $33,000 per year

wages slightly higher than comparable distribution facilities in Johnson County

capital investment in facility of  $36,000,000

capital investment is representative of lower range of firms that have looked at the 87 acre site

Mid Value Firm:

Characterized by moderate-cost construction, average wages for manufacturing,

and moderate road use requiring some infrastructure investment.

Total build-out of 400,000 square feet

500 employees when complete

comparable employees per square foot to some manufacturing facilities

average wage of $44,000 per year

similar wages to manufacturing overall in Douglas County, according to Kansas Department of Labor, for 2006

capital investment in facility of $50,000,000

mid-range between a lower value and higher value facility

High Value Firm:

Characterized by high-cost construction, skilled manufacturing-level wages,

and similar infrastructure requirements to mid-value firm.

Total build-out of 425,000 square feet

400 employees

slightly fewer employees represents a more equipment-intensive operation

average wage of $50,000 per year

higher salaries comparable to some tech-oriented manufacturing

capital investment in facility of $63,750,000

upper range of plant capital investment proposals has recently been much higher than this.