Financial Feasibility 8-17-23.pdf

Financial Feasibilty Analysis of the Development Costs and Necessary Sales Revenue
Below are the conceptual estimated costs for the development of the 10 commercial lots as well as the intended
revenue generate from the sales of all 10 lots in order to make the development financially viable.
Development Costs
Land Basis
Construction Costs for the sites' Grading,
Drainage, Utilities, Paving, Erosion Control
and Stormwoter Improvements
Turn Lane Improvement
Stop Light Improvement
Permitting, Engineering & Surveying Costs
Price Point for 10 Turn Kev Commercial Lots
28.48 acres
$
55,000.00
cost per acre =
$
1,566,400.00
15.12 acres
$
350,000.00
cost per acre =
$
5,292,000.00
1 each
$
535,000.00
lump sum cost =
$
535,000.00
1 each
$
305,000.00
lump sum cost =
$
305,000.00
1 lumped services
$
220,000.00
lump sum =
$
220,000.00
Grand Total Development Costs =
$
7,918,400.00
10 lots
$
865,000.00
avg.priceperlot =
$
8,650,000.00
So, if you deduct the grand total of the development costs from the total revenue generated from all 10 lots' sales, you
will find a profit of $731,600.00, which is below the average price per lot shown for sales. Therefore, the simple analysis
shown above proves that even the loss of just one lot (such as having to recombine lots C7 & C8) could potentially hurt
this development's financial feasibility. All committed parties have noted that they require lots that are roughly 1.0 to
1.5 acres and that they are not interested in purchasing any lot that would require them to have to work around any
wetland inclusions on these turn key lots that they're purchasing.