A Feasibility Study for Urban Edge Agricultural Parks - SAGE

Example Pro Forma for Martial Cottle AgPark DevelopmentAgPark AssumptionsAgPark Development Pro FormaSite Data:Development Costs:Land in Ag Production 175 acres Total Hard Costs $ 1,707,500Number of Ag Production Parcels 15 parcels Soft Costs:Average Acreage of Ag Park Parcel 12 acres Design/Architectural 6% $ 102,450Land in Pasture 75 acres Fees/Permits 2% $ 34,150Central Activity Zone (house, visitor center, garden, 9 acres Acct/Legal 3% $ 51,225lawn, gazebo) Development Mgt 10% $ 170,750Paths/Trails, Unpaved Roads 15 acres Total Development Costs $ 2,066,075Linear Feet - Paths, Unpaved Roads580,000 linear ft.Park & Picnic Areas 9 acres Annual Revenues:Paved Roads & Parking 7 acres Ag Leases ($ per acre) $ 500 $ 87,500Total Size 290 acres Pasture Land ($ per acre) $ 100 $ 7,500Event Rentals ($ per event) (a) $ 3,000 $ 60,000Building Development: Revenue - Restaurant Lease/Mkt Stand $ 35,000Rehab Existing House - Event Rentals 7,500 sq. ft. Other Revenue (c) $ 2.50 $ 25,000Shared Barn 3,000 sq. ft. Subtotal Revenue $ 215,000Shared Equipment Storage1,000 sq. ft.Cooperative Market Stand & Restaurant 2,500 sq. ft. Operating Expenses:Management Staff $ 70,000Hard Costs - AgPark Improvement: Utilities ($ per month) $ 750 $ 9,000Grading & Landscaping $ 50,000 Maintenance ($ per month) $ 2,000 $ 24,000Irrigation System $ 100,000 Training/Education $ 1,000 $ 12,000Paths/Trails, Unpaved Roads ($ per linear ft) $ 0.50 $ 290,000 Security $ 1,200 $ 14,400Paved Roads & Parking ($ per acre) $ 65,000 $ 455,000 Subtotal Op Expenses $ 129,400Park & Picnic Areas ($ per acre) $ 10,000 $ 90,000Rehab Existing House ($ per sf) $ 35 $ 262,500 Cash Available for Debt Service $ 85,600Shared Barn ($ per sf) $ 40 $ 120,000 Supportable Debt Service $1,315,882Shared Equipment Storage ($ per sf) $ 40 $ 40,000Cooperative Market Stand & Restaurant ($ per sf) $ 120 $ 300,000 Gap Requiring Grant Funding/Other Support $ 750,193Total Hard Costs $ 1,707,500Notes:Visitor Fees (per visitor) $ 2.50Number of Visitors per year 10,000Interest Payment on Debt5% per year(assumes simple annual interest, 30 years)DRAFT 1.6.05 40