Aspen Place at the Sawmill Fiscal Impact Analysis

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1 Aspen Place at the Sawmill Fiscal Impact Analysis PREPARED FOR: City of Flagstaff PREPARED BY: ESI CORPORATION 300 West Clarendon Avenue Suite 470 Phoenix, Arizona (602) February 14, 2007

2 Table of Contents Executive Summary...1 Key Study Findings... 1 Exhibit 1: Inputs to Impact Model...4 Exhibit 2: Absorption / Construction Scenario...7 Exhibit 3: Sales Taxes From Construction...9 Exhibit 4: Property Taxes...12 Exhibit 5: Sales and Commercial Lease Taxes...14 Exhibit 6: Permit and Development Impact Fees...17 Aspen Place at the Sawmill Fiscal Impact Analysis February ESI Corp Page i

3 Executive Summary This report summarizes the findings of the fiscal benefits resulting from the development of Aspen Place at the Sawmill. Aspen Place at the Sawmill is a proposed mixed use development located southwest of Butler Avenue and Sawmill Road and east of Lonetree Road in Flagstaff, Arizona. The parcel consists of nearly 40 acres and upon build-out will contain 155,000 square feet of retail and restaurant uses, including 255 residential units. The City of Flagstaff is considering entering into a 20 year development agreement with The Aspen Group, the developer of this proposed project. Under this agreement the City would agree to provide a sales tax rebate to the developer. To comply with state law, the City of Flagstaff retained the services of ESI Corp to conduct a fiscal analysis of the city tax and fee revenue that would be generated from this project over the 20 year time horizon. The sales, lease, transit and transportation taxes imposed by the City are scheduled to sunset over a 10 year period beginning in (Details are noted in Exhibit 1). However, for this analysis it was assumed that the taxes would be extended and therefore have been included for all 20 years of this analysis. Key Study Findings Based on this fiscal analysis, over the 20 year time horizon of the proposed tax incentive, Aspen Place would generate $36.2 million in tax and fee revenue to the city. The majority of the revenue would come from retail and restaurant Table 1 - Commercial and Residential Uses Aspen Place at the Sawmill Square Feet Commercial Grocery 23,300 Restaurant 15,935 Retail 52,895 Retail/Restaurant 63,170 Total Square Feet 155,300 Number of Residential Units Single Family 51 Townhouse 64 Condos 122 Lofts 14 Live/Work 4 Total Number of Units 255 tax receipts which totals $24.4 million, followed by property tax receipts of $8 million. The sales tax generated during the construction phase of the project will yield the City nearly $1.5 million. Table 2 provides a summary of the tax receipts by type of tax or fee for the first 9 years with a summarized total for years Approximately 94 percent of the tax revenue estimated to be generated by this project is recurring in nature. The additional residential units will provide a diversity of housing for the City and accommodate both new and existing residents. In addition, the city can expect to see an increase in the number of new jobs associated with the development of Aspen Place. ESI Corp Page 1

4 Table 2 - Aspen Place at the Sawmill Revenue Nominal Total Construction Sales Tax Flagstaff Tax $1,487,771 $318,400 $517,231 $399,805 $252,334 $0 $0 $0 $0 $0 $0 State Shared Revenue $9,443 $775 $2,846 $2,979 $2,843 $0 $0 $0 $0 $0 $0 Bldg Permit Fees & Development Impact Fees $712,848 $19,666 $211,351 $263,426 $218,405 $0 $0 $0 $0 $0 $0 Property Tax $8,010,644 $0 $19,622 $163,056 $342,809 $433,754 $442,429 $451,277 $460,303 $424,796 $5,272,600 Transaction Privilege Tax Retail Sales Tax $18,784,263 $10,020 $500,379 $853,428 $870,496 $887,906 $905,664 $923,778 $942,253 $961,098 $11,929,239 Food and Beverage Tax $5,574,108 $0 $0 $260,323 $265,529 $270,840 $276,256 $281,782 $287,417 $293,165 $3,638,796 Commercial Lease Tax $1,544,072 $3,340 $37,452 $70,206 $71,610 $73,043 $74,504 $75,994 $77,513 $79,064 $981,346 State Shared Revenue $103,532 $49 $2,436 $4,719 $4,813 $4,910 $5,008 $5,108 $5,210 $5,314 $65,964 GRAND TOTAL $36,226,682 $352,250 $1,291,319 $2,017,942 $2,028,840 $1,670,452 $1,703,861 $1,737,938 $1,772,697 $1,763,438 $21,887,946 Following is the proposed site plan for Aspen Place at the Sawmill. The remainder of this report consists of several detailed exhibits which include: Exhibit 1: Project Assumptions utilized in this analysis Exhibit 2: Construction and absorption schedule Exhibit 3: Sales tax generated from construction Exhibit 4: Property tax generation Exhibit 5: Sales and commercial lease tax Exhibit 6: Permit and development impact fees ESI Corp Page 2

5 ESI Corp Page 3

6 Exhibit 1: Inputs to Impact Model ESI Corp Page 4

7 EXHIBIT 1: ASSUMPTIONS LAND DEVELOPMENT Number of acres 37.5 Land Cost $3,808,655 Cost per SF $2.33 Demolition & infrastructure (excludes $25,918,875 soft costs) Bldg A Bldg B Bldg C Bldg D Bldg E Bldg F Bldg G Bldg H Bldg J Bldg K Bldg L COMMERCIAL Grocery Restaurant Restaurant Retail Retail / Rest Restaurant Retail Retail Retail / Rest Retail / Rest Retail/ Rest Square Feet 23,300 4,968 5,967 9,500 16,575 5,000 16,600 26,795 10,935 18,585 17,075 Value per SF $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 $ 400 Construction Cost per SF $ 175 $ 200 $ 195 $ 190 $ 230 $ 193 $ 221 $ 195 $ 184 $ 182 $ 189 Sales per square foot $ 450 $ 450 $ 450 $ 450 $ 450 $ 450 $ 450 $ 450 $ 450 $ 450 $ 450 Lease rate per square foot $ $ $ $ $ $ $ $ $ $ $ Bldg Permit and Plan Review Fees $ 19,666 $ 6,230 $ 6,230 $ 13,100 $ 21,070 $ 7,395 $ 15,216 $ 10,531 $ 20,098 $ 18,766 $ 21,120 Construction Timeframe Absorption Timeframe RESIDENTIAL SF TH Condos Lofts Live/Work Number of Units Square feet per unit 2,300 1,850 1,100 1,400 1,800 Construction Cost per SF $ 160 $ 160 $ 190 $ 210 $ 160 Ave/unit construction cost $ 368,000 $ 296,000 $ 209,000 $ 294,000 $ 288,000 Value per Unit $ 920,000 $ 740,000 $ 456,500 $ 630,000 $ 675,000 Building permit and plan review fees (Awaiting data from the City) Construction Timeframe Year >>>> Singe Family (units) Townhouse (units) Condos Lofts Live/Work Units Absorption Timeframe Year >>>> Singe Family (units) Townhouse (units) Condos Lofts Live/Work Units Commercial (square feet) ESI Corp Page 5

8 EXHIBIT 1: ASSUMPTIONS (CONTINUED) Property Tax Factors Assessor's Valuation Discount 80% Coconino County Assessor's Office Property Tax Due Lag Factor of 1 year Estimated Property Taxes for Tax Area City of Flagstaff Property Tax Rate (per $100) Sales Tax Factors Flagstaff Sales Tax (Retail) 1.601% City of Flagstaff Flagstaff Sales Tax (Amusements, Restaurant & Bar) 3.601% City of Flagstaff Flagstaff Sales Tax (Commercial Lease) 1.601% City of Flagstaff Flagstaff includes the value of land when calculating City of Flagstaff construction sales tax on residential State Sales Tax subject to distribution 5.0% Dept of Revenue Distribution to cities 25.0% Dept of Revenue Flagstaff share of the revenue sharing October 2006 Tax Facts, ADOR Distribution base for construction 0.2 Dept of Revenue Distribution base for retail 0.4 Dept of Revenue Distribution base for restaurants 0.4 Dept of Revenue Escalation Factors: Annual Escalation Factor - Rent 2% ESI Corp Annual Escalation Factor - Prices 2% ESI Corp Discount rate 5% ESI Corp Other Assumptions: Commercial Vacancy Factor 5% ESI Corp Reduction of 8,500 SF for Building A to reflect net new revenue Assessment ratio for commercial property declines from 25% to 20% in 2015 All dollar values in $2007 NOTE: The City of Flagstaff TPT, BBB, transit and transportation taxes are scheduled to sunset in the future. However, for this analysis an assumption was made that the taxes will be extended and therefore have been included for all years within this analysis. Rate Expiration Transaction Privilege Tax 1% 2014 Amusements, Restaurant & Bar 2% 2013 Transit Tax 0.175% 2010 Transportation Tax 0.426% 2020 ESI Corp Page 6

9 Exhibit 2: Absorption / Construction Scenario ESI Corp Page 7

10 EXHIBIT 2: CONSTRUCTION/ABSORPTION SCENARIO YEAR # NPV TOTAL Nominal Total 5% CONSTRUCTION Infrastructure Total Spending $24,684,643 $25,918,875 $25,918,875 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Commercial: Bdlg A - Grocery Total Square Feet Constructed 23, Square Feet Absorbed (period) 23,300 23, Total Square Feet Absorbed (cum) 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 Bldg B - Restaurant Total Square Feet Constructed 0 0 4, Square Feet Absorbed (period) 4, , Total Square Feet Absorbed (cum) 0 0 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 4,968 Bldg C - Restaurant Total Square Feet Constructed 0 0 5, Square Feet Absorbed (period) 5, , Total Square Feet Absorbed (cum) 0 0 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 5,967 Bldg D - Retail Total Square Feet Constructed 0 9, Square Feet Absorbed (period) 9, , Total Square Feet Absorbed (cum) 0 0 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 Bldg E - Retail & Restaurant Total Square Feet Constructed 0 16, Square Feet Absorbed (period) 16, , Total Square Feet Absorbed (cum) 0 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 16,575 Bldg F - Restaurant Total Square Feet Constructed 5, , Square Feet Absorbed (period) 0 0 5, Total Square Feet Absorbed (cum) 0 0 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Bldg G - Retail Total Square Feet Constructed 0 16, Square Feet Absorbed (period) 16, , Total Square Feet Absorbed (cum) 0 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 Bldg H - Retail Total Square Feet Constructed , Square Feet Absorbed (period) 26, , Total Square Feet Absorbed (cum) ,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 26,795 Bldg J - Retail & Restaurant Total Square Feet Constructed 0 10, Square Feet Absorbed (period) 10, , Total Square Feet Absorbed (cum) ,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 10,935 Bldg K - Retail & Restaurant Total Square Feet Constructed 0 18, Square Feet Absorbed (period) 18, , Total Square Feet Absorbed (cum) 0 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 18,585 Bldg L - Retail & Restaurant Total Square Feet Constructed 0 17, Square Feet Absorbed (period) 17, , Total Square Feet Absorbed (cum) 0 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 17,075 Residential: Single Family Units Absorbed (period) Total Units Absorbed (cum) Townhouse Units Absorbed (period) Total Units Absorbed (cum) Condos Units Absorbed (period) Total Units Absorbed (cum) Lofts Units Absorbed (period) Total Units Absorbed (cum) Live/Work Units Units Absorbed (period) Total Units Absorbed (cum) ESI Corp Page 8

11 Exhibit 3: Sales Taxes From Construction ESI Corp Page 9

12 EXHIBIT 3: SALES TAXES FROM CONSTRUCTION YEAR # NPV TOTAL Nominal Total Infrastructure Value $25,178,336 $26,437,253 $26,437,253 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $16,365,918 $17,184,214 $17,184,214 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $818,296 $859,211 $859,211 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $163,659 $171,842 $171,842 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $40,915 $42,961 $42,961 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $638 $670 $670 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $262,018 $275,119 $275,119 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 (Note: Commercial analysis doesn't include land) Commercial Bldg A - Grocery $3,961,000 $4,159,050 $4,159,050 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $2,574,650 $2,703,383 $2,703,383 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $128,733 $135,169 $135,169 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $25,747 $27,034 $27,034 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $6,437 $6,758 $6,758 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $100 $105 $105 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $41,220 $43,281 $43,281 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg B - Restaurant $910,844 $1,054,416 $0 $0 $1,054,416 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $592,049 $685,371 $0 $0 $685,371 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $29,602 $34,269 $0 $0 $34,269 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $5,920 $6,854 $0 $0 $6,854 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $1,480 $1,713 $0 $0 $1,713 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $23 $27 $0 $0 $27 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $9,479 $10,973 $0 $0 $10,973 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg C - Restaurant $1,066,653 $1,234,784 $0 $0 $1,234,784 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $693,325 $802,610 $0 $0 $802,610 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $34,666 $40,130 $0 $0 $40,130 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $6,933 $8,026 $0 $0 $8,026 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $1,733 $2,007 $0 $0 $2,007 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $27 $31 $0 $0 $31 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $11,100 $12,850 $0 $0 $12,850 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg D - Retail $2,061,927 $2,273,274 $0 $2,273,274 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $1,340,252 $1,477,628 $0 $1,477,628 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $67,013 $73,881 $0 $73,881 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $13,403 $14,776 $0 $14,776 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $3,351 $3,694 $0 $3,694 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $52 $58 $0 $58 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $21,457 $23,657 $0 $23,657 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg E - Retail & Restaurant $3,597,519 $3,966,265 $0 $3,966,265 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $2,338,387 $2,578,072 $0 $2,578,072 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $116,919 $128,904 $0 $128,904 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $23,384 $25,781 $0 $25,781 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $5,846 $6,445 $0 $6,445 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $91 $100 $0 $100 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $37,438 $41,275 $0 $41,275 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg F - Restaurant $884,626 $1,024,066 $0 $0 $1,024,066 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $575,007 $665,643 $0 $0 $665,643 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $28,750 $33,282 $0 $0 $33,282 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $5,750 $6,656 $0 $0 $6,656 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $1,438 $1,664 $0 $0 $1,664 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $22 $26 $0 $0 $26 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $9,206 $10,657 $0 $0 $10,657 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg G - Retail $3,461,960 $3,816,811 $0 $3,816,811 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $2,250,274 $2,480,927 $0 $2,480,927 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $112,514 $124,046 $0 $124,046 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $22,503 $24,809 $0 $24,809 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $5,626 $6,202 $0 $6,202 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $88 $97 $0 $97 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $36,027 $39,720 $0 $39,720 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg H - Retail $4,789,840 $5,544,838 $0 $0 $5,544,838 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $3,113,396 $3,604,145 $0 $0 $3,604,145 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $155,670 $180,207 $0 $0 $180,207 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $31,134 $36,041 $0 $0 $36,041 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $7,783 $9,010 $0 $0 $9,010 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $121 $140 $0 $0 $140 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $49,845 $57,702 $0 $0 $57,702 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ESI Corp Page 10

13 EXHIBIT 3: SALES TAXES FROM CONSTRUCTION (CONTINUED) YEAR # NPV TOTAL Nominal Total Bldg J - Retail & Restaurant $0 $2,093,326 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $1,234,161 $1,360,662 $0 $1,360,662 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $61,708 $68,033 $0 $68,033 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $12,342 $13,607 $0 $13,607 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $3,085 $3,402 $0 $3,402 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $48 $53 $0 $53 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $19,759 $21,784 $0 $21,784 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg K - Retail & Restaurant $3,191,947 $3,519,122 $0 $3,519,122 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $2,074,766 $2,287,429 $0 $2,287,429 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $103,738 $114,371 $0 $114,371 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $20,748 $22,874 $0 $22,874 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $5,187 $5,719 $0 $5,719 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $81 $89 $0 $89 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $33,217 $36,622 $0 $36,622 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Bldg L - Retail & Restaurant $3,045,399 $3,357,553 $0 $3,357,553 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $1,979,510 $2,182,409 $0 $2,182,409 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $98,975 $109,120 $0 $109,120 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $19,795 $21,824 $0 $21,824 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $4,949 $5,456 $0 $5,456 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $77 $85 $0 $85 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $31,692 $34,940 $0 $34,940 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Residential Single Family $17,209,658 $19,919,355 $0 $6,508,742 $6,638,917 $6,771,696 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Reduction of land $13,079,340 $15,138,710 $0 $4,946,644 $5,045,577 $5,146,489 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $11,186,278 $12,947,581 $0 $4,230,683 $4,315,296 $4,401,602 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $559,314 $647,379 $0 $211,534 $215,765 $220,080 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $111,863 $129,476 $0 $42,307 $43,153 $44,016 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $27,966 $32,369 $0 $10,577 $10,788 $11,004 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $436 $505 $0 $165 $168 $172 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax (includes land value $265,813 $306,538 $0 $124,193 $76,613 $105,732 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Townhouse $40,224,787 $20,112,394 $0 $6,467,126 $6,596,469 $7,048,798 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Reduction of land $30,570,838 $15,285,419 $0 $4,915,016 $5,013,316 $5,357,087 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $11,286,090 $13,073,056 $0 $4,203,632 $4,287,705 $4,581,719 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $7,335,959 $8,497,486 $0 $2,732,361 $2,787,008 $2,978,117 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $1,467,192 $1,699,497 $0 $546,472 $557,402 $595,623 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $366,798 $424,874 $0 $136,618 $139,350 $148,906 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $5,719 $6,624 $0 $2,130 $2,173 $2,322 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax (includes land value $319,277 $371,852 $0 $94,640 $130,610 $146,603 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Condos $54,658,537 $27,329,268 $0 $0 $13,529,341 $13,799,928 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Reduction of land $41,540,488 $20,770,244 $0 $0 $10,282,299 $10,487,945 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $14,976,252 $17,764,024 $0 $0 $8,794,072 $8,969,953 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $748,813 $888,201 $0 $0 $439,704 $448,498 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $149,763 $177,640 $0 $0 $87,941 $89,700 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $37,441 $44,410 $0 $0 $21,985 $22,425 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $584 $692 $0 $0 $343 $350 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax (includes land value $77,097 $87,073 $0 $43,537 $43,537 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Lofts $3,828,672 $4,325,109 $0 $2,141,143 $2,183,966 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Reduction of land $2,909,791 $3,287,083 $0 $1,627,269 $1,659,814 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $2,488,637 $2,811,321 $0 $1,391,743 $1,419,578 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $124,432 $140,566 $0 $69,587 $70,979 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $24,886 $28,113 $0 $13,917 $14,196 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $6,222 $7,028 $0 $3,479 $3,549 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $97 $110 $0 $54 $55 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax (includes land value $77,097 $87,073 $0 $43,537 $43,537 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Live/Work Units $1,071,582 $1,210,526 $0 $599,270 $611,256 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Reduction of land $814,402 $920,000 $0 $455,446 $464,554 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Based on 65% of Value $696,528 $786,842 $0 $389,526 $397,316 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 State Share of State Sales Taxes (5%) $34,826 $39,342 $0 $19,476 $19,866 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Distribution 20% $6,965 $7,868 $0 $3,895 $3,973 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 City 25% $1,741 $1,967 $0 $974 $993 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Share of State Sales Taxes $27 $31 $0 $15 $15 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax (includes land value $23,601 $26,655 $0 $13,328 $13,328 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL TAX RECEIPTS ON CONSTRUCTION Flagstaff Share of State Sales Taxes $8,232 $9,443 $775 $2,846 $2,979 $2,843 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Flagstaff Sales Tax $1,325,345 $1,487,771 $318,400 $517,231 $399,805 $252,334 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Const Sales Tax Receipts $1,333,577 $1,497,214 $319,176 $520,077 $402,784 $255,177 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ESI Corp Page 11

14 Exhibit 4: Property Taxes ESI Corp Page 12

15 EXHIBIT 4: PROPERTY TAXES YEAR # NPV TOTAL Nominal Total (LAGS ONE YEAR AFTER ABSORPTION) Grocery - Bldg A Cumul. SF Properties w\ Tax Liability Due 0 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 23,300 Reduction of 8,500 SF to reflect net new revenue 0 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 14,800 Average /SF Value $408 $416 $424 $433 $442 $450 $459 $469 $478 $488 $497 $507 $517 $528 $538 $549 $560 $571 $583 $594 Assessor's Valuation /SF $326 $333 $340 $346 $353 $360 $368 $375 $382 $390 $398 $406 $414 $422 $431 $439 $448 $457 $466 $476 Commercial Tax Base $0 $4,927,334 $5,025,881 $5,126,399 $5,228,927 $5,333,505 $5,440,175 $5,548,979 $5,659,958 $5,773,158 $5,888,621 $6,006,393 $6,126,521 $6,249,051 $6,374,032 $6,501,513 $6,631,543 $6,764,174 $6,899,458 $7,037,447 Assessment Ratio 25% 25% 25% 25% 25% 25% 25% 25% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% Assessed Value $0 $1,231,834 $1,256,470 $1,281,600 $1,307,232 $1,333,376 $1,360,044 $1,387,245 $1,131,992 $1,154,632 $1,177,724 $1,201,279 $1,225,304 $1,249,810 $1,274,806 $1,300,303 $1,326,309 $1,352,835 $1,379,892 $1,407,489 Retail - Blds. D, G, & H Cumul. SF Properties w\ Tax Liability Due ,600 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 52,895 Average /SF Value $408 $416 $424 $433 $442 $450 $459 $469 $478 $488 $497 $507 $517 $528 $538 $549 $560 $571 $583 $594 Assessor's Valuation /SF $326 $333 $340 $346 $353 $360 $368 $375 $382 $390 $398 $406 $414 $422 $431 $439 $448 $457 $466 $476 Commercial Tax Base $0 $0 $5,637,137 $18,321,680 $18,688,113 $19,061,876 $19,443,113 $19,831,975 $20,228,615 $20,633,187 $21,045,851 $21,466,768 $21,896,103 $22,334,025 $22,780,706 $23,236,320 $23,701,046 $24,175,067 $24,658,569 $25,151,740 Assessment Ratio 25% 25% 25% 25% 25% 25% 25% 25% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% Assessed Value $0 $0 $1,409,284 $4,580,420 $4,672,028 $4,765,469 $4,860,778 $4,957,994 $4,045,723 $4,126,637 $4,209,170 $4,293,354 $4,379,221 $4,466,805 $4,556,141 $4,647,264 $4,740,209 $4,835,013 $4,931,714 $5,030,348 Restaurant - Bldgs. B, C, & F Cumul. SF Properties w\ Tax Liability Due ,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 15,935 Average /SF Value $408 $416 $424 $433 $442 $450 $459 $469 $478 $488 $497 $507 $517 $528 $538 $549 $560 $571 $583 $594 Assessor's Valuation /SF $326 $333 $340 $346 $353 $360 $368 $375 $382 $390 $398 $406 $414 $422 $431 $439 $448 $457 $466 $476 Commercial Tax Base $0 $0 $0 $5,519,538 $5,629,929 $5,742,527 $5,857,378 $5,974,526 $6,094,016 $6,215,896 $6,340,214 $6,467,019 $6,596,359 $6,728,286 $6,862,852 $7,000,109 $7,140,111 $7,282,913 $7,428,572 $7,577,143 Assessment Ratio 25% 25% 25% 25% 25% 25% 25% 25% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% Assessed Value $0 $0 $0 $1,379,885 $1,407,482 $1,435,632 $1,464,344 $1,493,631 $1,218,803 $1,243,179 $1,268,043 $1,293,404 $1,319,272 $1,345,657 $1,372,570 $1,400,022 $1,428,022 $1,456,583 $1,485,714 $1,515,429 Retail & Restaurant - Bldgs. E, J, K, & L Cumul. SF Properties w\ Tax Liability Due ,235 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 63,170 Average /SF Value $408 $416 $424 $433 $442 $450 $459 $469 $478 $488 $497 $507 $517 $528 $538 $549 $560 $571 $583 $594 Assessor's Valuation /SF $326 $333 $340 $346 $353 $360 $368 $375 $382 $390 $398 $406 $414 $422 $431 $439 $448 $457 $466 $476 Commercial Tax Base $0 $0 $17,738,304 $21,880,717 $22,318,331 $22,764,698 $23,219,992 $23,684,391 $24,158,079 $24,641,241 $25,134,066 $25,636,747 $26,149,482 $26,672,472 $27,205,921 $27,750,039 $28,305,040 $28,871,141 $29,448,564 $30,037,535 Assessment Ratio 25% 25% 25% 25% 25% 25% 25% 25% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% Assessed Value $0 $0 $4,434,576 $5,470,179 $5,579,583 $5,691,174 $5,804,998 $5,921,098 $4,831,616 $4,928,248 $5,026,813 $5,127,349 $5,229,896 $5,334,494 $5,441,184 $5,550,008 $5,661,008 $5,774,228 $5,889,713 $6,007,507 Retail / Restaurant Single Family Cumulative Units with Tax Liability Due Average/Unit Value $938,400 $957,168 $976,311 $995,838 $1,015,754 $1,036,069 $1,056,791 $1,077,927 $1,099,485 $1,121,475 $1,143,904 $1,166,782 $1,190,118 $1,213,920 $1,238,199 $1,262,963 $1,288,222 $1,313,987 $1,340,266 $1,367,072 Assessor's Value/Unit $750,720 $765,734 $781,049 $796,670 $812,603 $828,856 $845,433 $862,341 $879,588 $897,180 $915,123 $933,426 $952,094 $971,136 $990,559 $1,010,370 $1,030,578 $1,051,189 $1,072,213 $1,093,657 Residential Tax Base $0 $0 $13,277,834 $27,086,782 $41,442,777 $42,271,633 $43,117,065 $43,979,407 $44,858,995 $45,756,175 $46,671,298 $47,604,724 $48,556,818 $49,527,955 $50,518,514 $51,528,884 $52,559,462 $53,610,651 $54,682,864 $55,776,521 Assessment Ratio 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Assessed Value $0 $0 $1,327,783 $2,708,678 $4,144,278 $4,227,163 $4,311,707 $4,397,941 $4,485,899 $4,575,617 $4,667,130 $4,760,472 $4,855,682 $4,952,795 $5,051,851 $5,152,888 $5,255,946 $5,361,065 $5,468,286 $5,577,652 Townhouse Cumulative Units with Tax Liability Due Average/Unit Value $754,800 $769,896 $785,294 $801,000 $817,020 $833,360 $850,027 $867,028 $884,369 $902,056 $920,097 $938,499 $957,269 $976,414 $995,943 $1,015,861 $1,036,179 $1,056,902 $1,078,040 $1,099,601 Assessor's Value/Unit $603,840 $615,917 $628,235 $640,800 $653,616 $666,688 $680,022 $693,622 $707,495 $721,645 $736,078 $750,799 $765,815 $781,131 $796,754 $812,689 $828,943 $845,522 $862,432 $879,681 Residential Tax Base $0 $0 $13,192,938 $26,913,593 $41,831,413 $42,668,042 $43,521,403 $44,391,831 $45,279,667 $46,185,261 $47,108,966 $48,051,145 $49,012,168 $49,992,411 $50,992,260 $52,012,105 $53,052,347 $54,113,394 $55,195,662 $56,299,575 Assessment Ratio 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Assessed Value $0 $0 $1,319,294 $2,691,359 $4,183,141 $4,266,804 $4,352,140 $4,439,183 $4,527,967 $4,618,526 $4,710,897 $4,805,115 $4,901,217 $4,999,241 $5,099,226 $5,201,210 $5,305,235 $5,411,339 $5,519,566 $5,629,957 Condos Cumulative Units with Tax Liability Due Average/Unit Value $465,630 $474,943 $484,441 $494,130 $504,013 $514,093 $524,375 $534,863 $545,560 $556,471 $567,600 $578,952 $590,531 $602,342 $614,389 $626,677 $639,210 $651,994 $665,034 $678,335 Assessor's Value/Unit $372,504 $379,954 $387,553 $395,304 $403,210 $411,275 $419,500 $427,890 $436,448 $445,177 $454,080 $463,162 $472,425 $481,874 $491,511 $501,341 $511,368 $521,596 $532,027 $542,668 Residential Tax Base $0 $0 $0 $24,113,558 $49,191,658 $50,175,491 $51,179,001 $52,202,581 $53,246,632 $54,311,565 $55,397,796 $56,505,752 $57,635,867 $58,788,585 $59,964,356 $61,163,643 $62,386,916 $63,634,655 $64,907,348 $66,205,495 Assessment Ratio 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Assessed Value $0 $0 $0 $2,411,356 $4,919,166 $5,017,549 $5,117,900 $5,220,258 $5,324,663 $5,431,156 $5,539,780 $5,650,575 $5,763,587 $5,878,858 $5,996,436 $6,116,364 $6,238,692 $6,363,465 $6,490,735 $6,620,549 Lofts Cumulative Units with Tax Liability Due Average/Unit Value $642,600 $655,452 $668,561 $681,932 $695,571 $709,482 $723,672 $738,145 $752,908 $767,966 $783,326 $798,992 $814,972 $831,272 $847,897 $864,855 $882,152 $899,795 $917,791 $936,147 Assessor's Value/Unit $514,080 $524,362 $534,849 $545,546 $556,457 $567,586 $578,938 $590,516 $602,327 $614,373 $626,661 $639,194 $651,978 $665,017 $678,318 $691,884 $705,722 $719,836 $734,233 $748,917 Residential Tax Base $0 $0 $3,743,942 $7,637,641 $7,790,394 $7,946,202 $8,105,126 $8,267,229 $8,432,573 $8,601,225 $8,773,249 $8,948,714 $9,127,688 $9,310,242 $9,496,447 $9,686,376 $9,880,103 $10,077,706 $10,279,260 $10,484,845 Assessment Ratio 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Assessed Value $0 $0 $374,394 $763,764 $779,039 $794,620 $810,513 $826,723 $843,257 $860,122 $877,325 $894,871 $912,769 $931,024 $949,645 $968,638 $988,010 $1,007,771 $1,027,926 $1,048,484 Live/Work Units Cumulative Units with Tax Liability Due Average/Unit Value $688,500 $702,270 $716,315 $730,642 $745,255 $760,160 $775,363 $790,870 $806,687 $822,821 $839,278 $856,063 $873,184 $890,648 $908,461 $926,630 $945,163 $964,066 $983,348 $1,003,014 Assessor's Value/Unit $550,800 $561,816 $573,052 $584,513 $596,204 $608,128 $620,290 $632,696 $645,350 $658,257 $671,422 $684,851 $698,548 $712,519 $726,769 $741,304 $756,130 $771,253 $786,678 $802,412 Residential Tax Base $0 $0 $1,146,105 $2,338,053 $2,384,815 $2,432,511 $2,481,161 $2,530,784 $2,581,400 $2,633,028 $2,685,689 $2,739,402 $2,794,190 $2,850,074 $2,907,076 $2,965,217 $3,024,521 $3,085,012 $3,146,712 $3,209,646 Assessment Ratio 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Assessed Value $0 $0 $114,610 $233,805 $238,481 $243,251 $248,116 $253,078 $258,140 $263,303 $268,569 $273,940 $279,419 $285,007 $290,708 $296,522 $302,452 $308,501 $314,671 $320,965 TOTAL ASSESSED VALUE $286,186,856 $502,896,872 $0 $1,231,834 $10,236,412 $21,521,046 $27,230,431 $27,775,039 $28,330,540 $28,897,151 $26,668,060 $27,201,422 $27,745,450 $28,300,359 $28,866,366 $29,443,694 $30,032,567 $30,633,219 $31,245,883 $31,870,801 $32,508,217 $33,158,381 ESTIMATED PROPERTY TAXES Prop Tax Rates/$100 of Assessed Value $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Total City Prop Tax Receipts $4,558,670 $8,010,644 $0 $19,622 $163,056 $342,809 $433,754 $442,429 $451,277 $460,303 $424,796 $433,291 $441,957 $450,796 $459,812 $469,009 $478,389 $487,957 $497,716 $507,670 $517,823 $528,180 ESI Corp Page 13

16 Exhibit 5: Sales and Commercial Lease Taxes ESI Corp Page 14

17 EXHIBIT 5: SALES AND COMMERCIAL LEASE TAXES YEAR # NPV TOTAL Nominal Total Grocery (Bldg. A Sq. Ft.) Absorption 23,300 23, Square Feet (Including Vacancy Factor) 22, Reduction of 8,500 SF to reflect net new revenue 13, Square Feet in Use at Each Time Period 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 13,635 Rent Per Square Foot $15 $16 $16 $16 $17 $17 $17 $18 $18 $18 $19 $19 $19 $20 $20 $21 $21 $21 $22 $22 Total Rent $3,059,430 $5,068,808 $208,616 $212,788 $217,044 $221,384 $225,812 $230,328 $234,935 $239,634 $244,426 $249,315 $254,301 $259,387 $264,575 $269,866 $275,264 $280,769 $286,384 $292,112 $297,954 $303,913 Flagstaff Commercial Lease Tax (1.601%) $48,981 $81,152 $3,340 $3,407 $3,475 $3,544 $3,615 $3,688 $3,761 $3,837 $3,913 $3,992 $4,071 $4,153 $4,236 $4,321 $4,407 $4,495 $4,585 $4,677 $4,770 $4,866 Retail Sales assumed at 10% of total SF $9,178,290 $15,206,424 $625,847 $638,363 $651,131 $664,153 $677,436 $690,985 $704,805 $718,901 $733,279 $747,945 $762,903 $778,161 $793,725 $809,599 $825,791 $842,307 $859,153 $876,336 $893,863 $911,740 Flagstaff Retail Sales Tax (1.601%) $146,944 $243,455 $10,020 $10,220 $10,425 $10,633 $10,846 $11,063 $11,284 $11,510 $11,740 $11,975 $12,214 $12,458 $12,708 $12,962 $13,221 $13,485 $13,755 $14,030 $14,311 $14,597 Restaurant (Bldg. B Sq.Ft.) Absorption 4, , Square Feet (Including Vacancy Factor) 0 0 4, Square Feet in Use at Each Time Period 0 0 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 4,720 Rent Per Square Foot $32 $32 $33 $34 $34 $35 $36 $36 $37 $38 $39 $39 $40 $41 $42 $43 $43 $44 $45 $46 Total Rent $1,908,379 $3,324,535 $0 $0 $155,263 $158,368 $161,535 $164,766 $168,061 $171,423 $174,851 $178,348 $181,915 $185,553 $189,264 $193,050 $196,911 $200,849 $204,866 $208,963 $213,143 $217,405 Flagstaff Commercial Lease Tax (1.601%) $30,553 $53,226 $0 $0 $2,486 $2,535 $2,586 $2,638 $2,691 $2,744 $2,799 $2,855 $2,912 $2,971 $3,030 $3,091 $3,153 $3,216 $3,280 $3,346 $3,412 $3,481 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $27,702,275 $48,259,386 $0 $0 $2,253,815 $2,298,891 $2,344,869 $2,391,766 $2,439,602 $2,488,394 $2,538,161 $2,588,925 $2,640,703 $2,693,517 $2,747,388 $2,802,335 $2,858,382 $2,915,550 $2,973,861 $3,033,338 $3,094,005 $3,155,885 Restaurant & Bar Sales Tax (3.601%) $997,559 $1,737,820 $0 $0 $81,160 $82,783 $84,439 $86,128 $87,850 $89,607 $91,399 $93,227 $95,092 $96,994 $98,933 $100,912 $102,930 $104,989 $107,089 $109,230 $111,415 $113,643 Restaurant (Bldg. C Sq.Ft.) Absorption 5, , Square Feet (Including Vacancy Factor) 0 0 5, Square Feet in Use at Each Time Period 0 0 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 5,669 Rent Per Square Foot $32 $32 $33 $34 $34 $35 $36 $36 $37 $38 $39 $39 $40 $41 $42 $43 $43 $44 $45 $46 Total Rent $2,292,129 $3,993,056 $0 $0 $186,484 $190,214 $194,018 $197,898 $201,856 $205,894 $210,011 $214,212 $218,496 $222,866 $227,323 $231,870 $236,507 $241,237 $246,062 $250,983 $256,003 $261,123 Flagstaff Commercial Lease Tax (1.601%) $36,697 $63,929 $0 $0 $2,986 $3,045 $3,106 $3,168 $3,232 $3,296 $3,362 $3,430 $3,498 $3,568 $3,639 $3,712 $3,786 $3,862 $3,939 $4,018 $4,099 $4,181 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $33,272,841 $57,963,719 $0 $0 $2,707,028 $2,761,168 $2,816,391 $2,872,719 $2,930,174 $2,988,777 $3,048,553 $3,109,524 $3,171,714 $3,235,148 $3,299,851 $3,365,848 $3,433,165 $3,501,829 $3,571,865 $3,643,303 $3,716,169 $3,790,492 Restaurant & Bar Sales Tax (3.601%) $1,198,155 $2,087,274 $0 $0 $97,480 $99,430 $101,418 $103,447 $105,516 $107,626 $109,778 $111,974 $114,213 $116,498 $118,828 $121,204 $123,628 $126,101 $128,623 $131,195 $133,819 $136,496 RETAIL (Bldg. D Sq. Ft.) Absorption 9, , Square Feet (Including Vacancy Factor) 0 0 9, Square Feet in Use at Each Time Period 0 0 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 9,025 Rent Per Square Foot $33 $34 $34 $35 $36 $36 $37 $38 $39 $39 $40 $41 $42 $43 $43 $44 $45 $46 $47 $48 Total Rent $3,801,132 $6,621,850 $0 $0 $309,254 $315,439 $321,748 $328,183 $334,747 $341,442 $348,271 $355,236 $362,341 $369,588 $376,979 $384,519 $392,209 $400,053 $408,055 $416,216 $424,540 $433,031 Flagstaff Commercial Lease Tax (1.601%) $60,856 $106,016 $0 $0 $4,951 $5,050 $5,151 $5,254 $5,359 $5,466 $5,576 $5,687 $5,801 $5,917 $6,035 $6,156 $6,279 $6,405 $6,533 $6,664 $6,797 $6,933 Retail Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $52,973,352 $92,283,447 $0 $0 $4,309,831 $4,396,028 $4,483,948 $4,573,627 $4,665,100 $4,758,402 $4,853,570 $4,950,641 $5,049,654 $5,150,647 $5,253,660 $5,358,733 $5,465,908 $5,575,226 $5,686,730 $5,800,465 $5,916,474 $6,034,804 Flagstaff Retail Sales Tax (1.601%) $848,103 $1,477,458 $0 $0 $69,000 $70,380 $71,788 $73,224 $74,688 $76,182 $77,706 $79,260 $80,845 $82,462 $84,111 $85,793 $87,509 $89,259 $91,045 $92,865 $94,723 $96,617 Retail / Restaurant (Bldg. E Sq. Ft.) Absorption 16, , Square Feet (Including Vacancy Factor) 0 15, Square Feet in Use at Each Time Period 0 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 15,746 Rent Per Square Foot $30 $31 $31 $32 $33 $33 $34 $35 $35 $36 $37 $37 $38 $39 $40 $40 $41 $42 $43 $44 Total Rent $6,492,888 $11,030,919 $0 $482,953 $492,612 $502,464 $512,514 $522,764 $533,219 $543,884 $554,761 $565,857 $577,174 $588,717 $600,491 $612,501 $624,751 $637,246 $649,991 $662,991 $676,251 $689,776 Flagstaff Commercial Lease Tax (1.601%) $103,951 $176,605 $0 $7,732 $7,887 $8,044 $8,205 $8,369 $8,537 $8,708 $8,882 $9,059 $9,241 $9,425 $9,614 $9,806 $10,002 $10,202 $10,406 $10,614 $10,827 $11,043 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $99,111,253 $168,382,410 $0 $7,372,079 $7,519,521 $7,669,911 $7,823,310 $7,979,776 $8,139,371 $8,302,159 $8,468,202 $8,637,566 $8,810,317 $8,986,524 $9,166,254 $9,349,579 $9,536,571 $9,727,302 $9,921,848 $10,120,285 $10,322,691 $10,529,145 Flagstaff Retail Sales Tax (1.601%) $1,586,771 $2,695,802 $0 $118,027 $120,388 $122,795 $125,251 $127,756 $130,311 $132,918 $135,576 $138,287 $141,053 $143,874 $146,752 $149,687 $152,680 $155,734 $158,849 $162,026 $165,266 $168,572 Restaurant (Bldg. F Sq. Ft.) Absorption 5, , Square Feet (Including Vacancy Factor) 0 0 4, Square Feet in Use at Each Time Period 0 0 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 Rent Per Square Foot $30 $30 $31 $31 $32 $33 $33 $34 $35 $35 $36 $37 $38 $38 $39 $40 $41 $41 $42 $43 Total Rent $1,796,757 $3,130,082 $0 $0 $146,181 $149,105 $152,087 $155,129 $158,231 $161,396 $164,624 $167,916 $171,275 $174,700 $178,194 $181,758 $185,393 $189,101 $192,883 $196,741 $200,676 $204,689 Flagstaff Commercial Lease Tax (1.601%) $28,766 $50,113 $0 $0 $2,340 $2,387 $2,435 $2,484 $2,533 $2,584 $2,636 $2,688 $2,742 $2,797 $2,853 $2,910 $2,968 $3,028 $3,088 $3,150 $3,213 $3,277 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $27,880,712 $48,570,236 $0 $0 $2,268,332 $2,313,699 $2,359,973 $2,407,172 $2,455,316 $2,504,422 $2,554,510 $2,605,601 $2,657,713 $2,710,867 $2,765,084 $2,820,386 $2,876,794 $2,934,329 $2,993,016 $3,052,876 $3,113,934 $3,176,213 Restaurant & Bar Sales Tax (3.601%) $1,003,984 $1,749,014 $0 $0 $81,683 $83,316 $84,983 $86,682 $88,416 $90,184 $91,988 $93,828 $95,704 $97,618 $99,571 $101,562 $103,593 $105,665 $107,779 $109,934 $112,133 $114,375 ESI Corp Page 15

18 EXHIBIT 5: SALES AND COMMERCIAL LEASE TAXES (CONTINUED) YEAR # NPV TOTAL Nominal Total Retail (Bldg. G Sq. Ft.) Absorption 16, , Square Feet (Including Vacancy Factor) 0 15, Square Feet in Use at Each Time Period 0 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 15,770 Rent Per Square Foot $30 $30 $31 $32 $32 $33 $33 $34 $35 $36 $36 $37 $38 $38 $39 $40 $41 $42 $42 $43 Total Rent $6,427,684 $10,920,143 $0 $478,103 $487,665 $497,418 $507,367 $517,514 $527,864 $538,422 $549,190 $560,174 $571,377 $582,805 $594,461 $606,350 $618,477 $630,847 $643,464 $656,333 $669,460 $682,849 Flagstaff Commercial Lease Tax (1.601%) $102,907 $174,831 $0 $7,654 $7,808 $7,964 $8,123 $8,285 $8,451 $8,620 $8,793 $8,968 $9,148 $9,331 $9,517 $9,708 $9,902 $10,100 $10,302 $10,508 $10,718 $10,932 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $99,260,742 $168,636,380 $0 $7,383,199 $7,530,863 $7,681,480 $7,835,109 $7,991,812 $8,151,648 $8,314,681 $8,480,974 $8,650,594 $8,823,606 $9,000,078 $9,180,079 $9,363,681 $9,550,955 $9,741,974 $9,936,813 $10,135,549 $10,338,260 $10,545,026 Flagstaff Retail Sales Tax (1.601%) $1,589,164 $2,699,868 $0 $118,205 $120,569 $122,980 $125,440 $127,949 $130,508 $133,118 $135,780 $138,496 $141,266 $144,091 $146,973 $149,913 $152,911 $155,969 $159,088 $162,270 $165,516 $168,826 Retail (Bldg. H Sq. Ft.) Absorption 26, , Square Feet (Including Vacancy Factor) , Square Feet in Use at Each Time Period ,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 25,455 Rent Per Square Foot $32 $32 $33 $34 $34 $35 $36 $36 $37 $38 $39 $39 $40 $41 $42 $43 $43 $44 $45 $46 Total Rent $10,292,877 $17,930,944 $0 $0 $837,413 $854,161 $871,244 $888,669 $906,443 $924,571 $943,063 $961,924 $981,163 $1,000,786 $1,020,801 $1,041,218 $1,062,042 $1,083,283 $1,104,948 $1,127,047 $1,149,588 $1,172,580 Flagstaff Commercial Lease Tax (1.601%) $164,789 $287,074 $0 $0 $13,407 $13,675 $13,949 $14,228 $14,512 $14,802 $15,098 $15,400 $15,708 $16,023 $16,343 $16,670 $17,003 $17,343 $17,690 $18,044 $18,405 $18,773 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $149,412,734 $260,287,892 $0 $0 $12,155,992 $12,399,112 $12,647,094 $12,900,036 $13,158,036 $13,421,197 $13,689,621 $13,963,413 $14,242,682 $14,527,535 $14,818,086 $15,114,448 $15,416,737 $15,725,071 $16,039,573 $16,360,364 $16,687,572 $17,021,323 Flagstaff Retail Sales Tax (1.601%) $2,392,098 $4,167,209 $0 $0 $194,617 $198,510 $202,480 $206,530 $210,660 $214,873 $219,171 $223,554 $228,025 $232,586 $237,238 $241,982 $246,822 $251,758 $256,794 $261,929 $267,168 $272,511 Retail / Restaurant (Bldg. J Sq. Ft.) Absorption 10, , Square Feet (Including Vacancy Factor) , Square Feet in Use at Each Time Period ,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 10,388 Rent Per Square Foot $34 $34 $35 $36 $37 $37 $38 $39 $40 $40 $41 $42 $43 $44 $44 $45 $46 $47 $48 $49 Total Rent $4,479,639 $7,803,857 $0 $0 $364,457 $371,746 $379,181 $386,764 $394,499 $402,389 $410,437 $418,646 $427,019 $435,559 $444,270 $453,156 $462,219 $471,463 $480,893 $490,511 $500,321 $510,327 Flagstaff Commercial Lease Tax (1.601%) $71,719 $124,940 $0 $0 $5,835 $5,952 $6,071 $6,192 $6,316 $6,442 $6,571 $6,703 $6,837 $6,973 $7,113 $7,255 $7,400 $7,548 $7,699 $7,853 $8,010 $8,170 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $60,975,116 $106,223,105 $0 $0 $4,960,842 $5,060,059 $5,161,260 $5,264,486 $5,369,775 $5,477,171 $5,586,714 $5,698,448 $5,812,417 $5,928,666 $6,047,239 $6,168,184 $6,291,548 $6,417,378 $6,545,726 $6,676,641 $6,810,173 $6,946,377 Flagstaff Retail Sales Tax (1.601%) $976,212 $1,700,632 $0 $0 $79,423 $81,012 $82,632 $84,284 $85,970 $87,690 $89,443 $91,232 $93,057 $94,918 $96,816 $98,753 $100,728 $102,742 $104,797 $106,893 $109,031 $111,211 Retail / Restaurant (Bldg. K Sq. Ft.) Absorption 18, , Square Feet (Including Vacancy Factor) 0 17, Square Feet in Use at Each Time Period 0 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 17,656 Rent Per Square Foot $34 $34 $35 $36 $36 $37 $38 $39 $39 $40 $41 $42 $43 $43 $44 $45 $46 $47 $48 $49 Total Rent $8,122,381 $13,799,302 $0 $604,158 $616,241 $628,566 $641,137 $653,960 $667,039 $680,380 $693,987 $707,867 $722,024 $736,465 $751,194 $766,218 $781,543 $797,173 $813,117 $829,379 $845,967 $862,886 Flagstaff Commercial Lease Tax (1.601%) $130,039 $220,927 $0 $9,673 $9,866 $10,063 $10,265 $10,470 $10,679 $10,893 $11,111 $11,333 $11,560 $11,791 $12,027 $12,267 $12,512 $12,763 $13,018 $13,278 $13,544 $13,815 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $111,130,174 $188,801,634 $0 $8,266,069 $8,431,390 $8,600,018 $8,772,019 $8,947,459 $9,126,408 $9,308,936 $9,495,115 $9,685,017 $9,878,718 $10,076,292 $10,277,818 $10,483,374 $10,693,042 $10,906,903 $11,125,041 $11,347,541 $11,574,492 $11,805,982 Flagstaff Retail Sales Tax (1.601%) $1,779,194 $3,022,714 $0 $132,340 $134,987 $137,686 $140,440 $143,249 $146,114 $149,036 $152,017 $155,057 $158,158 $161,321 $164,548 $167,839 $171,196 $174,620 $178,112 $181,674 $185,308 $189,014 Retail / Restaurant (Bldg. L Sq. Ft.) Absorption 17, , Square Feet (Including Vacancy Factor) 0 16, Square Feet in Use at Each Time Period 0 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 16,221 Rent Per Square Foot $34 $35 $35 $36 $37 $37 $38 $39 $40 $41 $41 $42 $43 $44 $45 $46 $47 $48 $48 $49 Total Rent $7,546,401 $12,820,756 $0 $561,315 $572,542 $583,992 $595,672 $607,586 $619,737 $632,132 $644,775 $657,670 $670,824 $684,240 $697,925 $711,884 $726,121 $740,644 $755,457 $770,566 $785,977 $801,697 Flagstaff Commercial Lease Tax (1.601%) $120,818 $205,260 $0 $8,987 $9,166 $9,350 $9,537 $9,727 $9,922 $10,120 $10,323 $10,529 $10,740 $10,955 $11,174 $11,397 $11,625 $11,858 $12,095 $12,337 $12,583 $12,835 Food & Beverage Sales per Square Foot $459 $468 $478 $487 $497 $507 $517 $527 $538 $549 $560 $571 $582 $594 $606 $618 $630 $643 $656 $669 Total Sales $102,101,034 $173,461,819 $0 $7,594,465 $7,746,354 $7,901,281 $8,059,307 $8,220,493 $8,384,903 $8,552,601 $8,723,653 $8,898,126 $9,076,088 $9,257,610 $9,442,762 $9,631,618 $9,824,250 $10,020,735 $10,221,150 $10,425,573 $10,634,084 $10,846,766 Flagstaff Retail Sales Tax (1.601%) $1,634,638 $2,777,124 $0 $121,587 $124,019 $126,500 $129,030 $131,610 $134,242 $136,927 $139,666 $142,459 $145,308 $148,214 $151,179 $154,202 $157,286 $160,432 $163,641 $166,913 $170,252 $173,657 TOTAL SALES / RENT Retail Sales $684,142,695 $1,173,283,112 $625,847 $31,254,175 $53,305,924 $54,372,042 $55,459,483 $56,568,673 $57,700,046 $58,854,047 $60,031,128 $61,231,751 $62,456,386 $63,705,513 $64,979,624 $66,279,216 $67,604,800 $68,956,896 $70,336,034 $71,742,755 $73,177,610 $74,641,162 Food and Beverage Sales $88,855,828 $154,793,341 $0 $0 $7,229,174 $7,373,758 $7,521,233 $7,671,658 $7,825,091 $7,981,593 $8,141,225 $8,304,049 $8,470,130 $8,639,533 $8,812,323 $8,988,570 $9,168,341 $9,351,708 $9,538,742 $9,729,517 $9,924,107 $10,122,589 Commercial Lease Revenue $56,219,698 $96,444,251 $208,616 $2,339,317 $4,385,155 $4,472,859 $4,562,316 $4,653,562 $4,746,633 $4,841,566 $4,938,397 $5,037,165 $5,137,909 $5,240,667 $5,345,480 $5,452,390 $5,561,437 $5,672,666 $5,786,120 $5,901,842 $6,019,879 $6,140,276 Total Retail Sales Tax $10,953,125 $18,784,263 $10,020 $500,379 $853,428 $870,496 $887,906 $905,664 $923,778 $942,253 $961,098 $980,320 $999,927 $1,019,925 $1,040,324 $1,061,130 $1,082,353 $1,104,000 $1,126,080 $1,148,602 $1,171,574 $1,195,005 Total Food & Beverage Tax $3,199,698 $5,574,108 $0 $0 $260,323 $265,529 $270,840 $276,256 $281,782 $287,417 $293,165 $299,029 $305,009 $311,110 $317,332 $323,678 $330,152 $336,755 $343,490 $350,360 $357,367 $364,514 Total Commercial Lease Tax $900,077 $1,544,072 $3,340 $37,452 $70,206 $71,610 $73,043 $74,504 $75,994 $77,513 $79,064 $80,645 $82,258 $83,903 $85,581 $87,293 $89,039 $90,819 $92,636 $94,488 $96,378 $98,306 State Share Revenue State Share of State Sales Taxes (5%) $38,649,926 $66,403,823 $31,292 $1,562,709 $3,026,755 $3,087,290 $3,149,036 $3,212,017 $3,276,257 $3,341,782 $3,408,618 $3,476,790 $3,546,326 $3,617,252 $3,689,597 $3,763,389 $3,838,657 $3,915,430 $3,993,739 $4,073,614 $4,155,086 $4,238,188 Distribution 40% $15,459,970 $26,561,529 $12,517 $625,084 $1,210,702 $1,234,916 $1,259,614 $1,284,807 $1,310,503 $1,336,713 $1,363,447 $1,390,716 $1,418,530 $1,446,901 $1,475,839 $1,505,356 $1,535,463 $1,566,172 $1,597,496 $1,629,445 $1,662,034 $1,695,275 City 25% $3,864,993 $6,640,382 $3,129 $156,271 $302,675 $308,729 $314,904 $321,202 $327,626 $334,178 $340,862 $347,679 $354,633 $361,725 $368,960 $376,339 $383,866 $391,543 $399,374 $407,361 $415,509 $423,819 Total State Shared Sales Taxes $60,260 $103,532 $49 $2,436 $4,719 $4,813 $4,910 $5,008 $5,108 $5,210 $5,314 $5,421 $5,529 $5,640 $5,753 $5,868 $5,985 $6,105 $6,227 $6,351 $6,478 $6,608 Total Tax Receipts $11,913,462 $20,431,868 $13,409 $540,268 $928,353 $946,920 $965,859 $985,176 $1,004,879 $1,024,977 $1,045,477 $1,066,386 $1,087,714 $1,109,468 $1,131,657 $1,154,291 $1,177,376 $1,200,924 $1,224,942 $1,249,441 $1,274,430 $1,299,919 ESI Corp Page 16