Summary of Results by Bond Issuance
Construction Costs
T-Hangars		$870,000	$43,500	per T-Hangar
Site Prep		$409,075
Admin & Engineering		$69,000
Construction Svcs		$30,000
Total Construction Costs		$1,378,075
Revenue Returns
Issue Year	2011
Rental Rate	$255	per month
Escalation	1%	rent rate escalates 1% per year, starting in Year 3, reflecting occasional lease renewals and
		new lease agreements.
Occupancy	95%	95% occupancy achieved in Year 3 and maintained thereafter.
Revenues	$1,990,706
Bond Term	Interest Rate	Interest Costs	Net Subsidy*	Average City Subsidy, First 12 Years	Breakeven Year	Present Value, 6% Discount**	Present Value, 5% Discount**
12 Year	4.00%	$433,930	($103,700)	($87,150)	2031	($67,493)	$31,221
20 Year	4.77%	$901,588	$363,958	($47,103)	2035	($95,569)	($38,675)
30 Year	5.11%	$1,479,114	$941,483	($27,175)	2036	($95,559)	($78,796)
Bonds valued over a 30 year period
*Represents total payments from other hangars needed to pay principal and interest on new debt.
A negative number means that the new hangars receive no subsidy to pay off principal and interest.
** Present value is revenue from all T-Hangars less ongoing expenses for all T-Hangars, less debt payments on new T-Hangars.
Recommendation:
*12 Year bond
*Policy: no T-Hangar can subsidize additional T-Hangars until the revenue received from the new t-hangars
has fully paid off the principal and interest on construction.