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PROJECTED. IMPACT OF PROPERTY TAXES a Under normal conditions , with no taxing relief , we have projected the following: i Current Assessment : $ 130,000 . 00 One Third Improvements : 166 ,000 . 00 . Improved Assessment : $ 296 ,000 . 00 Current Tax Rate : X 10 . 69% Projected Annual Taxes $ 131 ,640. 00/year University City Assessment Per Ordinance No . 5420 : $ 31 ,500. 00/year With only 13 , 680 square feet of usable area , we are looking at a surcharge of $2 . 30 per square foot per year just to pay the taxes. The following proforma indicates that the additional tax assessment would turn a situation of minimal cash flow from the project into a large loss : I. PROJECTED PROFORMA "Tax -Relief" FY85 Net Rentable Area 13 ,680 S.F. Net Rent $ 9. 13 S . F. /YR Gross Income $.125 ,000 . 00* Operating Expenses (Less) $ 4 ,600 . 00 Net Income $120 ,400. 00 Debt Service ($ 1 ,000 ,000 @ 11% @ 25 Years) (Less) $117 ,613 . 00 Projected Cash Flow $ 2, 787 .00 * Imputes $6 , 100 . 00 paid by tenant in a net lease. II. PROJECTED PROFORMA "With No Tax Relief" FY85 Net Rentable Area 13,680 S .F. Net Rent $ 9. 13 S.F. /YR _ Gross Income _ $125 ,000.00 Operating Expenses (Less) $ 31 , 100. 00** Net Income $ 93 ,900. 00 Debt Service (S1 ,000 ,000 .'00 @ 1.1% @ 25 Years) (Less) $117 , 613 . 00 Projected Cash Loss ($ 23 ,713. 00) ** Imputes $31 ,500. 00 paid by tenant or $26 ,500 more operating ' expense to the property than under "Tax Relief" scenario .