DATE: SUBJECT:

October 14, 2011 Bolton Green Project Summary, Eight Revision October 14, 2011

Partners for Planning, a citizens task group that is exploring solutions for the contaminated Smith garage property in the center of town (715-723 Main Street), proposes that the town purchase the 8.3-acre site, clean up the contamination, and implement a redevelopment plan. Purchase of this site is a unique opportunity to control what is built at this keystone location and to leverage many benefits only available to municipalities for redevelopment projects such as this. The proposal features the creation of a Town Green and the building of market rate and affordable housing on the currently blighted site. The proposal requires an investment by the town that, unlike many town expenditures, has a direct economic benefit with few ongoing operational expenses. Because the plan involves housing that will generate property and excise taxes, the project will produce a positive cash flow by year 7 and a complete payback by year 13. Over 20 years, the project will generate a significant positive cash contribution to the town, while permanently enhancing the beauty, character, and use of the town center.

The redevelopment proposal splits the property into two areas: the front section would be kept by the town and developed as a Town Green; and the rear would be sold to a private developer to build market rate and affordable housing in scale and style complementary to the architecture of the National Register Historic District, in which it is located. The proposal to purchase the property and to include market rate and affordable housing on the site means that the town can: apply for grants available to municipalities to fund the clean up activities; protect itself from lawsuits through an agreement with the Massachusetts Attorney General; purchase subsidized insurance to cover unknowns related to clean up; accept $125,000 from the Affordable Housing Trust to support the overall project; defray costs through the sale of a portion of the property to a developer for development of housing.

Bolton Green, Pro Forma October 14, 2011

Page 1

The result is an attractive and functional solution that will have a positive impact on property values, contribute to tax revenue, clean up a contaminated site, and create a vibrant new center in the heart of the town. What more perfect place is there for a long-desired Town Green than in the very heart of the town? To implement this project, we propose that a Bolton Town Green Development Commission be established by the Board of Selectmen. This Commission will manage the project, including approving the design of the site, applying for grants, selecting developers and contractors, and approving expenditures in a manner similar to that of the construction of other Town projects. The total project cost to the Town is expected to be $765,000. A sum of $125,000 will be transferred from the Affordable Housing Trust and grants from MassDevelopment and the EPA will total $200,500, which results in the request to authorize borrowing up to $440,000 to fund the project. The grant assumptions have been rigorously vetted and funding agencies could provide additional grants of over $800,000, if necessary. With the addition of $440,000 of borrowing for Bolton Town Green, town debt will still decrease every year from $16.7 million in 2012 to $10.9 million in 2016. Tax revenues (property and excise taxes) received from the housing are projected to be $81,000 at occupancy and will exceed the present property taxes of $14,000. Over 20 years, this project will generate a positive cash flow of $410,000 at a Net Present Value of 3%. Tax receipts will exceed costs and the investment will have an Internal Rate of Return projected to be 16%. An average single family home assessed at $455,800 with taxes of $8,852 will experience a increased taxes of $15 per year ($73 for the first five years). The same single family home will experience a tax decrease of and average of $19 per year ($370 over 20 years). Breakeven occurs in year 2044. The FY2012 town budget will increase by approximately $1,000 and the FY2013 budget will increase by approximately $3,000. On October 12th, because of a recent change in the Municipal Relief Act of 2010, Bolton Bond Counsel advised the Selectmen that the Town must approve borrowing for total project costs. Bond Counsel said that no matter how strong the assurances by State and Federal officials that grant funds will be available for the Towns clean up costs, if the voters approve the purchase, borrowing for clean up also must be approved by
Bolton Green, Pro Forma October 14, 2011 Page 2

the voters. Warrant Article 5 has been revised, therefore, to request borrowing approval for $640,000 instead of $440,000, the figure proposed by Partners for Planning in consultation with all of the relevant Town Boards, Commissions, and Committees. A high degree of confidence exists that clean up costs will be fully covered by grants, based on conferences with key officials. Should even the full $640,000 have to be borrowed, however, the average cost per single family home would increase from an average of $15 per year ($73 five-year total) to $19 per year ($97 five-year total) The 20 year Town revenue for a single family home would drop from the old estimate by $119 (from $370 to $251). For more information, go to http://wp.me/PZyLq-WD

GRANT AND LOAN PROGRAMS FOR BOLTON GREEN MASS DEVELOPMENT Brownfields Site Assessment Program provides grants and unsecured, interest-free financing up to $100,000 for assessment. Bolton will submit an application for this program in Q4 of 2011 to cover the cost of the Phase II review of the site. An applicant must have site control (P&S Agreement) to submit an application. Brownfields Remediation Loan Program provides grants and flexible loans up to $500,000 for environmental clean-up. Bolton would submit an application for this program in Q3 of 2012 to cover the cost of the clean up of the site. MassDevelopment has indicated this project is eligible for the site assessment program and the remediation program. US EPA Brownfields Cleanup Grants Cleanup grants provide funding for a grant recipient to carry out cleanup activities at brownfield sites. An eligible entity may apply for up to $200,000 per site ($400,000 for the two sites on the Smith property). Funds may be used to address sites contaminated by petroleum and hazardous substances, pollutants, or contaminants. Cleanup grants require a 20 percent cost share for eligible and allowable costs and cannot include administrative costs. An applicant must own the site for which it is requesting funding at time of application. This is a complimentary program to MassDevelopment and Bolton could apply to both programs. Parkland Acquisitions and Renovations for Communities (PARC) Program The FY12 PARC Grant Round to assist cities and towns in acquiring and developing land for park and outdoor recreation purposes. Communities that do not meet the population criteria (35,000) may still qualify under the "small town," "regional," or "statewide" project provisions of the program. Only projects that are to be developed for suitable outdoor recreation purposes, whether active or passive in nature, shall be considered for funding. Grants are available for the acquisition of land and the construction, or renovation of park and outdoor recreation facilities. Access by the general public is required. Business Development Corp of New England Brownfields Redevelopment Access to Capital Program (BRAC) BRAC is administered by the Business Development Corporation of New England and offers low-cost, often state-subsidized, environmental insurance to help mitigate risk associated with brownfields redevelopment. Insurance for unknowns is $100K and grants of $50k are available.

Bolton Green, Pro Forma October 14, 2011

Page 3

Bolton Green Long Term Schedule

2012 2013 2014 2015 2016

Apply for Grants Phase II Supplement Phase III Evaluate Alternatives Phase IV Remediation (Cleanup) Construct Housing Occupy Housing

2012 Bolton Green Road Map

Closing Dec 30, 2011 October 2012

ASTM Phase I
2 wks, $2.5K

Supplement Phase II

Retest Contamination 3-4 Months, $25K to $50K

Phase III

Evaluate Alternatives 2 mo $25K

Phase IV

Remediation 2 -3 yrs $200K

AG-Covenant Not to Sue

Liability Protection 2 Months

Apply to MassDevelopment

Below Ground Remediation Grant $400,000 for 2 sites, apply anytime

Tier 1 Permit Application

Reset the DEP 5 yr Clock

Apply to EPA Grants

Above/Below Ground Contamination Up to $500,000, apply October 2012

Apply to MassDevelopment
Phase II Site Assessment Grant $50,000 1 month

Purchase Insurance
Apply for BRAC Grants

Bolton Green, Pro Forma October 14, 2011

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Bolton Green, Pro Forma October 14, 2011

Page 5

Bolton Town Green Cash Flow

Most Likely Scenario Town of Bolton Bolton Project Expenses Purchase Land from Smith ASTM Phase I Evaluation Demolition and Site Work Phase I and II Cleanup Costs Brownfield Insurance Project Expenses to Implement Plan Contingency Bolton Direct Project Expenses Sources of Bolton Funds Transfer from Affordable Housing Trust MassDevelopment Grants Net Cash Flow to Town Borrowing Request from Town Meeting Cleanup Funded by Grants Federal, State and Local Federal, State and Local Expenses Phase I and II Cleanup Costs $ Partners for Planning Expenses $ Total Federal and State Expenses $

14-Oct-11 Revision Eight

$ $ $ $ $ $ $ $

230,000 2,500 80,000 200,000 100,000 97,000 55,500 765,000

7,400 7,400

$ $ $ $

125,000 200,500 439,500 440,000

Federal, State and Local Grants MassDev Site Assessment Mass Dev Remediation Loan/Grant EPA Grant Partners for Planning Donations Total Grants

$ $ $ $ $

7,400 7,400

High Confidence, Max $100,000 High Confidence, Max $500,000 Max $400,000 Complete

Other Grants Available if Needed $

894,500

Bolton Green Cash Flow after Property Tax Receipts

$120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 ($20,000) ($40,000) ($60,000)
2012 ($13,157) ($14,168) 2013 ($13,486) ($16,638) 2014 ($13,823) ($40,353) 2015 ($14,169) ($43,122) 2016 $3,357 ($26,811) 2017 $70,568 $120 2018 $72,332 $1,570 2019 $74,140 $4,951

Bolton Green Cash Flow

Financing Cost (P&I) 2012 Cost $ (1,011) 2013 Cost $ (3,153) 2014 Cost $ (26,530)
Total Cash Flow from Taxes Total Cash Flow after Financing

Cash Flow
Payback Yr IRR NPV Cash Flow 2024 16% $410,000

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Borrowing
Requested $ 440,000

Total Cash Flow from Taxes Total Cash Flow after Financing

Biz Model for Smith Property Oct 14.xls

Most Likely Scenario Taxes per Average Single Family Home (After Property Tax Receipts)
$30 $20 $10 $0 ($10) ($20) ($30) ($40) ($50) ($60)
Average Incremental Tax per SFH 2012 $7

Cleanup Funded by Grants

Revision Eight

Bolton Green Taxes per Average Single Family Home

Increase in Taxes

Total Tax Payments Average Tax Bill Average Valuation $8,852 $455,800

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Taxes Paid in first 5 yrs Taxes Rreduced over 20 yrs Breakeven in Yr

Average Tax Bill (After Tax Receipts) Average Tax Bill Average Valuation 5 year Average Tax/ SFH 20 year Average Revenue/ SFH

($73) $370 12

Reduction in Taxes

$8,852 $455,800 ($15) $18

2019 ($3)

2013 $9

2014 $21

2015 $22

2016 $14

2017 ($0)

2018 ($1)

Status of P&I and Town Debt

$100,000 $80,000 $60,000 $40,000 $20,000 $2012 2014 2016
2012 Town Principal & Interest $ Bolton Green Principal & Interest $ Total P&I (including Bolton Green) $ 2,249,545 1,011 2,250,556 $ $ $

Bolton Green Principal & Interest Payments

$2,500,000 $2,000,000 $1,500,000 $1,000,000 2018

2013 2,172,790 3,153 2,175,943 $ $ $ 2014 2,115,580 26,530 2,142,110 $ $ $ 2015 2,058,403 28,953 2,087,355

Total Town Principal & Interest Payments

Bolton Green Principal & Interest

Town Principal & Interest

2012
2016 $ $ $

2014

2016
2017 $ $ $ 1,886,206 70,447 1,956,654 $ $ $

2018
2018 1,749,525 70,762 1,820,287 $ $ $ 2019 1,189,319 69,189 1,258,508

1,963,894 30,168 1,994,062

Average Bolton Green Debt

$600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $2012 2014 2016
2012 Town Debt $ Bolton Green Debt $ Total Debt (including Bolton Green) $ 16,688,514 202,250 16,890,764

$18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 2018

2013 $ 15,132,949 $ 315,250 $ 15,448,199 $ $ $ 2014 13,582,384 379,000 13,961,384 $ $ $

Total Town Debt

Bolton Green Debt Town Debt

$6,000,000 2012
2015 12,036,819 398,800 12,435,619 $ $ $ 2016 10,533,000 399,573 10,932,573 $ $ $

2014
2017

2016
2018 $ $ $ 9,055,000 377,397 9,432,397

2018
2019 $ $ $ 6,770,000 251,598 7,021,598 7,660,000 314,497 7,974,497

Biz Model for Smith Property Oct 14.xls

Most Likely Scenario

Cleanup Funded by Grants Purchase 2012 Apply Grants 2013 $ $ $ $ Clean up 2014 $ $ $ 2015 -

Revision Eight Build out 2016 $ $ $ Occupancy 2017 $ $ $ $ $ $ $

Federal, State and Local Cash Flow Summary Federal, State and Local Expenses Phase I and II Cleanup Costs $ Partners for Planning Expenses $ Total Federal and State Expenses $ Federal, State and Local Grants MassDev Site Assessment Mass Dev Remediation Loan/Grant EPA Grant Parkland and Renovation (PARC) Brownfield Insurance (BRAC) Partners for Planning Donations Private Donations Total Federal and State Grants Available Bolton Cash Flow Summary Purchase Land from Smith ASTM Phase I Evaluation Demolition and Site Work Phase I and II Cleanup Costs Brownfield Insurance Project Expenses to Implement Plan Contingency Bolton Direct Project Expenses Transfer from Affordable Housing Trust MassDevelopment Grants Brownfield Insurance (BRAC) Grants Net Cash Flow to Town Borrowing Request from Town Meeting

Total

Note

Total (7,400) (7,400)

(7,400) (7,400)

$ $

(7,358) $ (7,358) $

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

100,000 199,500 500,000 25,000 50,000 7,400 20,000 901,900 (230,000) (2,500) (80,000) (200,000) (100,000) (97,000) (55,500) (765,000) 125,000 200,500 (439,500) (440,000) Note
2.50% 2.50% 2.50% 2.50%

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 7,358 7,358 $ $ $ $ $ 20,000 20,000 $ $ $ $ $ $ $ $ $ $ $ $ $ (65,000) (17,500) (20,500) (8,000) ($111,000) 17,500 $ $ $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $

25,000 25,000 -

$ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

25,000 7,400 20,000 52,400 (230,000) (2,500) (80,000) (200,000) (100,000) (97,000) (55,500) (765,000) 125,000 200,500 (439,500) Total

(230,000) $ (2,500) $ $ (15,000) (25,000) $ (157,500) $ (100,000) (27,000) $ (11,000) (2,000) $ (6,500) (286,500) ($290,000) 125,000 25,500 $ $ 157,500

$ (29,000) $ (5,000) $ ($34,000) $ $

(9,500) (34,000) $ ($43,500) $ $

$0 2017

$ $

$ $

(136,000) $ 2012

(132,500) $ 2013

(93,500) $ 2014

(34,000) $ 2015

(43,500) $ 2016 $ $

Cash Flow from Taxes and Permits Total Time Frame (yrs occupancy) 20 Excise Tax RE Taxes for Condo units Building Permits Loss of Tax Payments from Smith Total Cash Flow from Taxes $ 1,751,400 NPV of Cash Flow after Financing (20 yr, 3%) $ 1,081,000

$ $

(13,157) $ (13,157) $

(13,486) $ (13,486) $

(13,823) $ (13,823) $

$ (14,169) $ (14,169) $

17,880 (14,523) $ 3,357 $

$ 403,000 $ 3,348,600 $ 17,900 (14,886) $ (722,700) 70,568 $ 1,751,400

9,180 76,274

3%

Biz Model for Smith Property Oct 14.xls

Most Likely Scenario Interest and Principal Payments on Borrowing Interest and Principal Payments Total Borrowing Requested from Town Meeting Bolton Direct Project Expenses Transfer from Affordable Housing Trust Total Grants Received Net Cash Flow to Town Averge Cumlative Bolton Green Borrowing State House Note Interest Rate Interest Principal Payment % Principal Payment Amount $ $ $ $ $ Total (440,000) (765,000) 125,000 200,500 (439,500) FY FY

Cleanup Funded by Grants Note $ $ $ $ $ $ $ (498,300) Total 11 (498,300) (399,000) Note $ $

3%

Revision Eight 2013 $ $ $ $ $ $ $ (290,000) 157,500 (132,500) (315,250) 1% (3,153) 0.00% $ $ $ $ $ $ $ 2014 (111,000) 17,500 (93,500) (379,000) 2% (7,580) 5.00% (18,950) $ $ $ $ $ $ $ 2015 (34,000) (34,000) (398,800) 2% (7,976) 5.26% (20,977) $ $ $ $ $ $ $ 2016 (43,500) (43,500) (399,573) 2% (7,991) 5.55% (22,176) $ $ $ $ $ $ $ 2017 (377,397) 2.0% (7,548) 16.67% (62,899) Total $ (765,000) $ 125,000 $ 200,500 $ (439,500) $ (3,015,800) $ $ (58,800) $ $ (439,500) (498,300) Total (498,300) (498,300)

2012 (286,500) 125,000 25,500 (136,000) (202,250) 0.5% (1,011) 0.00% -

Total Interest and Principal Payments $ Cash Flow After Financing Time Frame BAN Payment Total Cash Flow after Financing $ NPV of Cash Flow after Financing (20 yr, 3%) $ Impact on Average Tax Bill before Tax Receipts Total Cash Flow after Financing Average Tax Bill Average Valuation Number of SFH (per Assessors) % Taxes allocated to SFH Average Incremental Tax per SFH 5 year Average Incremental Tax Cost/ SFH 11 year Average Incremental Tax Cost/ SFH Cash Flow After Financing and Taxes Time Frame Total Cash Flow from Taxes Total Interest and Principal Payments Total Cash Flow after Financing $ Internal Rate of Return after Financing (IRR) NPV of Cash Flow after Financing (20 yr, 3%) $ Cum Cash Flow after Taxes Payback after Financing and Taxes (Year) Impact on Average Tax Bill after Tax Receipts Total Cash Flow after Taxes and Financing Average Tax Bill Average Valuation Number of SFH (per Assessors) % Taxes allocated to SFH Average Incremental Tax per SFH 5 year Average Incremental Tax Increase/ SFH 20 year Average Incremental Tax Decrease/ SFH

(1,011) $ 2012 (1,011) $ (1,011) $

(3,153) $ 2013 (3,153) $ (3,153) $

(26,530) $ 2014 (26,530) $ (26,530) $

(28,953) $ 2015 (28,953) $ (28,953) $

(30,168) $ 2016 (30,168) $ (30,168) $

(70,447) $ 2017 (70,447) $ (70,447) $

($498,300) $8,852 $455,800 1,569 81% ($9) ($23) Total 20 Note

2012 (1,011)

2013 ($3,153)

2014 ($26,530)

2015 ($28,953)

2016 ($30,168)

2017 ($70,447)

Total ($498,300)

($0.52)

($1.63)

($13.70)

($14.95)

($15.57)

($36.37)

($257.25)

2012 $ $ $ (13,157) $ (1,011) $ (14,168) $

2013 (13,486) $ (3,153) $ (16,638) $

2014 (13,823) $ (26,530) $ (40,353) $

2015 (14,169) $ (28,953) $ (43,122) $

2016 3,357 $ (30,168) $ (26,811) $

2017

Total

715,800 16% 410,000 2024

70,568 $ 1,751,400 (70,447) $ (498,300) 120 $ 715,800

3%

(14,168) $

(30,807) $

(71,160) $

(114,281) $

(141,092) $

(140,972) $ 12,661,000

$715,800 $8,852 $455,800 1,569 81% ($15) $18 ($73) $370

2012 ($14,168)

2013 ($16,638)

2014 ($40,353)

2015 ($43,122)

2016 ($26,811)

2017 $120

Total $715,800

($7.31)

($8.59)

($20.83)

($22.26)

($13.84)

$0.06

$369.53

Biz Model for Smith Property Oct 14.xls

Bolton Town Green Cash Flow

Worst Case Scenario Town of Bolton Bolton Project Expenses Purchase Land from Smith ASTM Phase I Evaluation Demolition and Site Work Phase I and II Cleanup Costs Brownfield Insurance Project Expenses to Implement Plan Contingency Bolton Direct Project Expenses Sources of Bolton Funds Transfer from Affordable Housing Trust MassDevelopment Grants Borrowing Request from Town Meeting Total Sources of Bolton Funds Cleanup Funded by Debt Federal, State and Local Federal, State and Local Expenses Phase I and II Cleanup Costs $ Partners for Planning Expenses $ Total Federal and State Expenses $

14-Oct-11 Revision Eight]

$ $ $ $ $ $ $ $

230,000 2,500 80,000 225,000 100,000 97,000 30,500 765,000

7,400 7,400

$ $ $ $

125,000 640,000 640,000

Federal, State and Local Grants MassDev Site Assessment Mass Dev Remediation Loan/Grant EPA Grant Partners for Planning Donations Total Grants

$ $ $ $ $

7,358 7,358

High Confidence, Max $100,000 High Confidence, Max $500,000 Max $400,000 Complete

Other Grants Available if Needed $ 1,095,000

Bolton Green Cash Flow after Property Tax Receipts

$120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 ($20,000) ($40,000) ($60,000)
2012 ($13,157) ($14,815) 2013 ($13,486) ($18,806) 2014 ($13,823) ($56,138) 2015 ($14,169) ($57,767) 2016 $3,357 ($40,296) 2017 $70,568 ($31,370) 2018 $72,332 ($30,061) 2019 $74,140 ($25,978)

Bolton Green Cash Flow

Financing Cost (P&I) 2012 Cost $ (1,658) 2013 Cost $ (5,320) 2014 Cost $ (42,315)
Total Cash Flow from Taxes Total Cash Flow after Financing

Cash Flow
Payback Yr IRR NPV Cash Flow 2026 9% $226,000

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Borrowing
Requested $ 640,000

Total Cash Flow from Taxes Total Cash Flow after Financing

Biz Model for Smith Property Oct 14.xls

Worst Case Scenario Taxes per Average Single Family Home (After Property Tax Receipts)
$30 $20 $10 $0 ($10) ($20) ($30) ($40) ($50) ($60)
Average Incremental Tax per SFH 2012 $8

Cleanup Funded by Debt

Revision Eight]

Bolton Green Taxes per Average Single Family Home

Increase in Taxes 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Total Tax Payments Average Tax Bill Average Valuation $8,852 $455,800

Taxes Paid in first 5 yrs Taxes Rreduced over 20 yrs Breakeven in Yr

Average Tax Bill (After Tax Receipts) Average Tax Bill Average Valuation 5 year Average Tax/ SFH 20 year Average Revenue/ SFH

($97) $251 14

Reduction in Taxes

$8,852 $455,800 ($19) $13

2019 $13

2013 $10

2014 $29

2015 $30

2016 $21

2017 $16

2018 $16

Status of P&I and Town Debt

$100,000 $80,000 $60,000 $40,000 $20,000 $2012 2014 2016
2012 Town Principal & Interest $ Bolton Green Principal & Interest $ Total P&I (including Bolton Green) $ 2,249,545 1,658 2,251,203 $ $ $

Bolton Green Principal & Interest Payments

$2,500,000 $2,000,000 $1,500,000 $1,000,000 2018

2013 2,172,790 5,320 2,178,110 $ $ $ 2014 2,115,580 42,315 2,157,895 $ $ $ 2015 2,058,403 43,598 2,102,001

Total Town Principal & Interest Payments

Bolton Green Principal & Interest

Town Principal & Interest

2012
2016 $ $ $

2014

2016
2017 $ $ $ 1,886,206 101,938 1,988,145 $ $ $

2018
2018 1,749,525 102,393 1,851,918 $ $ $ 2019 1,189,319 100,118 1,289,437

1,963,894 43,653 2,007,547

Average Bolton Green Debt

$600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $2012 2014 2016
2012 Town Debt $ Bolton Green Debt $ Total Debt (including Bolton Green) $ 16,688,514 331,500 17,020,014

$18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 2018

2013 $ 15,132,949 $ 532,000 $ 15,664,949 $ $ $ 2014 13,582,384 604,500 14,186,884 $ $ $

Total Town Debt

Bolton Green Debt Town Debt

$6,000,000 2012
2015 12,036,819 600,525 12,637,344 $ $ $ 2016 10,533,000 578,187 11,111,187 $ $ $

2014
2017

2016
2018 $ $ $ 9,055,000 546,098 9,601,098

2018
2019 $ $ $ 6,770,000 364,065 7,134,065 7,660,000 455,082 8,115,082

Biz Model for Smith Property Oct 14.xls

Worst Case Scenario

Cleanup Funded by Debt Purchase 2012 Apply Grants 2013 Clean up 2014 $ $ $ (7,358) $ (7,358) $ $ $ $ $ 2015

Revision Eight] Build out 2016 $ $ $ Occupancy 2017 $ $ $ $ $ $ $

Federal, State and Local Cash Flow Summary Federal, State and Local Expenses $ Phase I and II Cleanup Costs $ Partners for Planning Expenses $ Total Federal and State Expenses $ Federal, State and Local Grants MassDev Site Assessment Mass Dev Remediation Loan/Grant EPA Grant Parkland and Renovation (PARC) Brownfield Insurance (BRAC) Partners for Planning Donations Private Donations Total Federal and State Grants Available

Total (7,400) (7,400)

Note

Total (7,400) (7,400)

0 Bolton Cash Flow Summary Purchase Land from Smith ASTM Phase I Evaluation Demolition and Site Work Phase I and II Cleanup Costs Brownfield Insurance Project Expenses to Implement Plan Contingency Bolton Direct Project Expenses Transfer from Affordable Housing Trust MassDevelopment Grants Brownfield Insurance (BRAC) Grants Net Cash Flow to Town Borrowing Request from Town Meeting 0 Cash Flow from Taxes and Permits Time Frame (yrs occupancy) Excise Tax RE Taxes for Condo units Building Permits Loss of Tax Payments from Smith Total Cash Flow from Taxes NPV of Cash Flow after Financing (20 yr, 3%) 0

$ 100,000 $ 400,000 $ 500,000 $ 25,000 $ 50,000 $ 7,358 $ 20,000 $ 1,102,358 $ $ $ $ $ $ $ $ $ (230,000) (2,500) (80,000) (225,000) (100,000) (97,000) (30,500) (765,000) 125,000

$ $ $ $ $ $ $ $ $ $ $ $ $

7,358 7,358 (230,000) (2,500) (50,000) (27,000) (2,000) ($311,500) 125,000

$ $ $ $ $ $ $ $ $ $ $

(15,000) (157,500) (100,000) (11,000) (6,500) ($290,000) -

$ $ $ $ $ $ $ $ $ $ $ $ $

(65,000) (17,500) (20,500) (8,000) ($111,000) -

$ $ $ $ $ $ $ $ $ $ $ $ $

(29,000) (5,000) ($34,000) -

$ $ $ $ $ $ $ $ $ $ $ $

(9,500) (9,000) ($18,500) -

$ $ $ $ $ $ $ $ $ $ $ $ $ $

$0

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

7,400 7,400 (230,000) (2,500) (80,000) (225,000) (100,000) (97,000) (30,500) (765,000) 125,000

$ $

(640,000) (640,000) Total 20 Note

2.50% 2.50% 2.50% 2.50%

(186,500) $ 2012

(290,000) $ 2013

(111,000) $ 2014

(34,000) $ 2015

(18,500) $ 2016 2017 $ $ $ $ $ $

(640,000) Total

$ 1,751,400 $ 1,081,000

$ $ $ $ $ $

(13,157) (13,157)

$ $ $ $ $ $

(13,486) (13,486)

$ $ $ $ $ $

(13,823) (13,823)

$ $ $ $ $ $

(14,169) (14,169)

$ $ $ $ $ $

17,880 (14,523) 3,357

9,180 76,274 (14,886) 70,568

$ 403,000 $ 3,348,600 $ 17,900 $ (722,700) $ 1,751,400

3%

Biz Model for Smith Property Oct 14.xls

Worst Case Scenario Interest and Principal Payments on Borrowing Interest and Principal Payments Total Borrowing Requested from Town Meeting Bolton Direct Project Expenses Transfer from Affordable Housing Trust Total Grants Received Net Cash Flow to Town Averge Cumlative Bolton Green Borrowing State House Note Interest Rate Interest Principal Payment % Principal Payment Amount $ $ $ $ $ Total (640,000) (765,000) 125,000 (640,000) FY FY

Cleanup Funded by Debt Note $ $ $ $ $ $ $ (727,700) Total 11 Note $ $

3%

Revision Eight] 2013 $ $ $ $ $ $ $ (290,000) (290,000) (532,000) 1% (5,320) 0.00% $ $ $ $ $ $ $ 2014 (111,000) (111,000) (604,500) 2% (12,090) 5.00% (30,225) $ $ $ $ $ $ $ 2015 (34,000) (34,000) (600,525) 2% (12,011) 5.26% (31,588) $ $ $ $ $ $ $ 2016 (18,500) (18,500) (578,187) 2% (11,564) 5.55% (32,089) $ $ $ $ $ $ $ 2017 (546,098) 2.0% (10,922) 16.67% (91,016) Total $ (765,000) $ 125,000 $ $ (640,000) $ (4,558,100) $ $ (87,700) $ $ (640,000) (727,700) Total (727,700) (727,700)

2012 (311,500) 125,000 (186,500) (331,500) 0.5% (1,658) 0.00% -

Total Interest and Principal Payments $ 0 0 Cash Flow After Financing Time Frame BAN Payment

(1,658) $ 2012 (1,658) $ (1,658) $

(5,320) $ 2013 (5,320) $ (5,320) $

(42,315) $ 2014 (42,315) $ (42,315) $

(43,598) $ 2015 (43,598) $ (43,598) $

(43,653) $ 2016 (43,653) $ (43,653) $

(101,938) $ 2017 (101,938) $ (101,938) $

Total Cash Flow after Financing $ (727,700) NPV of Cash Flow after Financing (20 yr, 3%) $ (583,000) 0 0 Impact on Average Tax Bill before Tax Receipts Total Cash Flow after Financing ($727,700) Average Tax Bill $8,852 Average Valuation $455,800 Number of SFH (per Assessors) 1,569 % Taxes allocated to SFH 81% Average Incremental Tax per SFH 5 year Average Incremental Tax Cost/ SFH ($14) 11 year Average Incremental Tax Cost/ SFH ($34) $0 0 Cash Flow After Financing and Taxes Time Frame Total Cash Flow from Taxes Total Interest and Principal Payments Total Cash Flow after Financing $ Internal Rate of Return after Financing (IRR) NPV of Cash Flow after Financing (20 yr, 3%) $ Cum Cash Flow after Taxes Payback after Financing and Taxes (Year) 0 0 Impact on Average Tax Bill after Tax Receipts Total Cash Flow after Taxes and Financing Average Tax Bill Average Valuation Number of SFH (per Assessors) % Taxes allocated to SFH Average Incremental Tax per SFH 5 year Average Incremental Tax Increase/ SFH 20 year Average Incremental Tax Decrease/ SFH Total 20

2012 (1,658)

2013 ($5,320)

2014 ($42,315)

2015 ($43,598)

2016 ($43,653)

2017 ($101,938)

Total ($727,700)

($0.86)

($2.75)

($21.85)

($22.51)

($22.54)

($52.63)

($375.68)

Note $ $ $
3%

2012 (13,157) $ (1,658) $ (14,815) $

2013 (13,486) $ (5,320) $ (18,806) $

2014 (13,823) $ (42,315) $ (56,138) $

2015 (14,169) $ (43,598) $ (57,767) $

2016 3,357 $ (43,653) $ (40,296) $

2017

Total

486,400 9% 226,000 2026

70,568 $ 1,751,400 (101,938) $ (727,700) (31,370) $ 486,400

(14,815) $

(33,621) $

(89,759) $

(147,525) $

(187,822) $

(219,192) $ 6,124,800

$486,400 $8,852 $455,800 1,569 81% ($19) $13 ($97) $251

2012 ($14,815)

2013 ($18,806)

2014 ($56,138)

2015 ($57,767)

2016 ($40,296)

2017 ($31,370)

Total $486,400

($7.65)

($9.71)

($28.98)

($29.82)

($20.80)

($16.20)

$251.11

Biz Model for Smith Property Oct 14.xls