demolition strategy work
TRANSCRIPT
![Page 1: Demolition Strategy Work](https://reader030.vdocument.in/reader030/viewer/2022021318/577dab5c1a28ab223f8c527b/html5/thumbnails/1.jpg)
8/14/2019 Demolition Strategy Work
http://slidepdf.com/reader/full/demolition-strategy-work 1/3
Values
Row Labels Number of Parcels Sum of Units Sum of Assess Average of Assess2 Average of Market
210 1 Family Res 12 12 $524,000 $43,667 $60,996
220 2 Family Res 31 62 $1,138,750 $36,734 $51,548
230 3 Family Res 2 6 $68,000 $34,000 $47,493
280 Multiple res 1 2 $80,000 $80,000 $111,747
311 Res vac land 4 0 $10,200 $2,550 $3,562
312 Vac w/imprv 1 0 $17,100 $17,100 $23,886
411 Apartment 4 17 $150,000 $37,500 $52,382
Grand Total 55 99 $1,988,050 $36,146 $50,624
Baseline Data (from Montgomery County Tax Rolls and Web Site)
City Tax Rate per tho $13.89
User Fees per Unit 769
Total Number of Parc 55
Total Number of Unit 99
Avg Units/Parcel 1.8
Avg Assessed Value $36,146
Avg Market Value $50,624
Assumptions
Demolition Cost 9000
Discount Rate 5%
Analysis Approach Net Present ValueSchool Tax and County Tax Ignored
Tax Incentive Plan for 50% of assessed value first 5 years, +10%/year for each year after
Single Family Homes Constructed at 120% of average market value 2008 120% $60,748. 95
City Tax Rate Constant Over 10 years
User Fees Constant over 10 years
Scenario 1: Perfect World
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Number of Parcels 55 55 55 55 55 55 55 55 55 55
Number of Demolitions 0 0 0 0 0 0 0 0 0 0
Net Parcels 55 55 55 55 55 55 55 55 55 55
Net Units 99 99 99 99 99 99 99 99 99 99
Revenue City Tax $27,614 $27,614 $27,614 $27,614 $27,614 $27,614 $27,614 $27,614 $27,614 $27,614
Revenue User Fees $76,131 $76,131 $76,131 $76,131 $76,131 $76,131 $76,131 $76,131 $76,131 $76,131
Total Revenue $103,745 $103,745 $103,745 $103,745 $103,745 $103,745 $103,745 $103,745 $103,745 $103,745
City Revenue NPV $801,091. 50
Scenario 2: 5 Foreclosures/ 5 Demo
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Number of Parcels 55 50 50 50 50 50 50 50 50 50
![Page 2: Demolition Strategy Work](https://reader030.vdocument.in/reader030/viewer/2022021318/577dab5c1a28ab223f8c527b/html5/thumbnails/2.jpg)
8/14/2019 Demolition Strategy Work
http://slidepdf.com/reader/full/demolition-strategy-work 2/3
Number of Demolitions 5 0 0 0 0 0 0 0 0 0
Net Parcels 50 50 50 50 50 50 50 50 50 50
Net Units 90 90 90 90 90 90 90 90 90 90
Revenue City Tax $25,104 $25,104 $25,104 $25,104 $25,104 $25,104 $25,104 $25,104 $25,104 $25,104
Revenue User Fees $69,210 $69,210 $69,210 $69,210 $69,210 $69,210 $69,210 $69,210 $69,210 $69,210
Total Revenue Existing $94,314 $94,314 $94,314 $94,314 $94,314 $94,314 $94,314 $94,314 $94,314 $94,314
Demolition Cost $45,000
New Construction 5 0 0 0 0 0 0 0 0 0
New Construction Units 5 5 5 5 5 5 5 5 5 5
New Construction Market Value $303,745 $303,745 $303,745 $303,745 $303,745 $303,745 $303,745 $303,745 $303,745 $303,745
City Tax Incentive Discount 0.5 0.5 0.5 0.5 0.5 0.6 0.7 0.8 0.9 1.0
Revenue City Tax $2,110 $2,110 $2,110 $2,110 $2,110 $2,531 $2,953 $3,375 $3,797 $4,219
Revenue User Fees $3,845 $3,845 $3,845 $3,845 $3,845 $3,845 $3,845 $3,845 $3,845 $3,845
Total Revenue New Construction -$39,045 $5,955 $5,955 $5,955 $5,955 $6,376 $6,798 $7,220 $7,642 $8,064
Total Revenue $55,268 $100,268 $100,268 $100,268 $100,268 $100,690 $101,112 $101,534 $101,956 $102,378
City Revenue NPV $735,541. 07
Scenario 3: 10 Foreclosures/10 Demo
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Number of Parcels 55 45 45 45 45 45 45 45 45 45
Number of Demolitions 10 0 0 0 0 0 0 0 0 0
Net Parcels 45 45 45 45 45 45 45 45 45 45
Net Units 81 81 81 81 81 81 81 81 81 81
Revenue City Tax $22,593 $22,593 $22,593 $22,593 $22,593 $22,593 $22,593 $22,593 $22,593 $22,593
Revenue User Fees $62,289 $62,289 $62,289 $62,289 $62,289 $62,289 $62,289 $62,289 $62,289 $62,289Total Revenue Existing $84,882 $84,882 $84,882 $84,882 $84,882 $84,882 $84,882 $84,882 $84,882 $84,882
Demolition Cost $90,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Construction 10 0 0 0 0 0 0 0 0 0
New Construction Units 10 10 10 10 10 10 10 10 10 10
New Construction Market Value $607,490 $607,490 $607,490 $607,490 $607,490 $607,490 $607,490 $607,490 $607,490 $607,490
City Tax Incentive Discount 0.5 0.5 0.5 0.5 0.5 0.6 0.7 0.8 0.9 1.0
Revenue City Tax $4,219 $4,219 $4,219 $4,219 $4,219 $5,063 $5,907 $6,750 $7,594 $8,438
Revenue User Fees $7,690 $7,690 $7,690 $7,690 $7,690 $7,690 $7,690 $7,690 $7,690 $7,690
Total Revenue New Construction -$78,091 $11,909 $11,909 $11,909 $11,909 $12,753 $13,597 $14,440 $15,284 $16,128
Total Revenue $6,791 $96,791 $96,791 $96,791 $96,791 $97,635 $98,479 $99,323 $100,167 $101,010
City Revenue NPV $669,990. 64
Scenario 4: 15 Foreclosures/15 Demo
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Number of Parcels 55 45 40 40 40 40 40 40 40 40
Number of Demolitions 10 5 0 0 0 0 0 0 0 0
Net Parcels 45 40 40 40 40 40 40 40 40 40
Net Units 81 72 72 72 72 72 72 72 72 72
Revenue City Tax $22,593 $20,083 $20,083 $20,083 $20,083 $20,083 $20,083 $20,083 $20,083 $20,083
![Page 3: Demolition Strategy Work](https://reader030.vdocument.in/reader030/viewer/2022021318/577dab5c1a28ab223f8c527b/html5/thumbnails/3.jpg)
8/14/2019 Demolition Strategy Work
http://slidepdf.com/reader/full/demolition-strategy-work 3/3
Revenue User Fees $62,289 $55,368 $55,368 $55,368 $55,368 $55,368 $55,368 $55,368 $55,368 $55,368
Total Revenue Existing $84,882 $75,451 $75,451 $75,451 $75,451 $75,451 $75,451 $75,451 $75,451 $75,451
Demolition Cost $90,000 $45,000 $0 $0 $0 $0 $0 $0 $0 $0
New Construction 10 5 0 0 0 0 0 0 0 0
New Construction Units 10 15 15 15 15 15 15 15 15 15New Construction Market Value $607,490 $911,234 $911,234 $911,234 $911,234 $911,234 $911,234 $911,234 $911,234 $911,234
City Tax Incentive Discount 0.5 0.5 0.5 0.5 0.5 0.6 0.7 0.8 0.9 1.0
Revenue City Tax $4,219 $6,329 $6,329 $6,329 $6,329 $7,594 $8,860 $10,126 $11,391 $12,657
Revenue User Fees $7,690 $11,535 $11,535 $11,535 $11,535 $11,535 $11,535 $11,535 $11,535 $11,535
Total Revenue New Construction -$78,091 -$27,136 $17,864 $17,864 $17,864 $19,129 $20,395 $21,661 $22,926 $24,192
Total Revenue $6,791 $48,314 $93,314 $93,314 $93,314 $94,580 $95,846 $97,112 $98,377 $99,643
City Revenue NPV $609,792. 32