Agenda - City of Santa Monica

To: Steve Mizokami, City of Santa Monica April 23, 2013
Subject: 1320 2 nd Street: Value Enhancement & Fiscal Impact Analysis Page 10
b. The retail building costs are estimated at $120 per square foot of retail
GBA.
5. The retail tenant improvement costs are estimated at $30 per square foot of retail
GBA.
6. The contractor fees and general requirements costs are estimated at 14% of
construction costs.
7. An allowance for builder’s risk insurance was provided equal to 2% of
construction costs.
8. A direct cost contingency allowance equal to 5% of other direct costs was
provided.
KMA estimates the total direct costs at $11.88 million, or $255 per square foot of GBA.
Indirect Costs
KMA utilized the following assumptions to estimate the Proposed Project indirect costs:
1. The architecture, engineering and consulting costs are estimated at 6% of direct
costs.
2. City staff estimated the public permits and fees costs at approximately $14.05
per square foot of GBA.
3. The taxes, insurance, legal and accounting costs are estimated at 2% of direct
costs.
4. The marketing and leasing costs are estimated as follows:
a. The residential marketing costs are estimated at 2% of direct costs; and
b. The retail leasing commissions are estimated at $3.00 per square foot of
retail GBA.
5. A development management fee estimated at 4% of direct costs is provided.
6. An indirect cost contingency allowance equal to 5% of other indirect costs is
provided.
KMA estimates the total indirect costs at $2.45 million.
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