Monday, June 16, 2008

Schenley pt Deux

And then there was this proposal from Councilman Otis "Am-I-Really-On-The-Stadium-Authority-Or-Not-Or-Should-I-Go-To-Norway?" from Mayberry to use the proceeds from selling off Reizenstein Middle School and using the the proceeds/taxes to fix Schenley, which isn't all it's really cracked up to be:

Back of the envelope:
$37.9 Million in taxes over 20 yrs works out to be about $1.895 million/year. Assuming the School District doesn't raise it's millage rate (13.92), that would logically be about $13.6 million in, apparently, housing sale on the Reizenstein site. As of 2000, over half of the structures in that census tract are valued at between $150,000 and $300,000, so I'm going to assume that everything that's built on the Reizenstein site will be worth $200,000 to be safe, which works out to be about 68 houses.

For comparison purposes Summerset at Frick Park is supposed to have 710 houses/condos/townhouses.

What this doesn't take into consideration is the construction of public roads, utilities, infrastructure, etc. and the cost to other City/County/State departments to provide these items.

And, of course, is this $37.9 million the aggregate amount of yearly payments over 20 years or is in the present value of those series of payments. I'm guessing aggregate value, so I figure that the real value of the series of tax payments is closer to $24 million (at a 5% discount rate) than $37.9 million.

Let us not forget that this all apparently assumes full collection of taxes for 20 years and that contractors have given Billy P. accurate numbers... because no contractor has ever low balled an estimate, ever.

But that's just me, my envelope, and about a six pack of Tröegs talking.

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