Appendix A Assumptions for Cost Analysis, Additional Calculations

Transcription

1 Appendix A Assumptions for Cost Analysis, Additional Calculations Competitiveness Study of Office and Industrial Development

2 AA.1 Assumptions For the purpose of the DC impact analyses, the following assumptions were made. 1. The typical industrial building is assumed to be a single storey factory building with a covered area of 75,000 sq. ft. developed on a 4.3-acre plot area. 2. The typical commercial building is assumed to be a two three storey office building with a covered area of 75,000 sq. ft. developed on a 4.3-acre plot area. 3. The typical high end commercial office building is assumed to be storey building with a covered area of 75,000 sq. ft. developed on a 4.3-acre plot area. 4. Developer profit is assumed at 5.0% for the assessment of total development costs. 5. Mortgage style financing rate is assumed at 6.96%. This is based on Bank of Canada data trends for a 5 year interest rates amortized over 25 years. 6. The rate for annualizing development costs is also taken at 6.96% based on long term financing rate trends. 7. The total building cost per square foot of building area is the sum of the square foot costs including substructure, shell, interiors, services, equipment & furnishings, special construction and building sitework plus the contractor's general requirements, overhead and profit, and architects fees. 8. Building costs for industrial construction are $73.24 per sq. ft. (Source: R.S. Means). 9. Building costs for commercial building construction are $ per sq. ft. (Source: R.S. Means). 10. Building costs for high end commercial office building construction are $ per sq. ft. (Source: R.S. Means). 11. Taxes per square foot are calculated by multiplying by the total development costs per square foot (as a proxy for assessed value) square feet per employee is assumed as an estimate for floor area per employee for an industrial building. 13. Average worker salary was assumed at $40, per annum based on statistics Canada estimate of hourly wage rate of $20.74 for Ontario. - Competitiveness Study of Office and Industrial Development 103

3 AA Development Charge Rates in Notes: Halton Hills has different rates for industrial and other non-residential uses. Regional rate structure is extremely complex; HUSP charges are area specific water/wastewater charges and differ between North Oakville and Milton/Halton Hills Discounts apply as follows: o Water/wastewater discounts are 12.5% but do not apply in HUSP areas o General services discounts are 12.5% and apply in all areas o Roads discounts are 45% and apply in all areas Competitiveness Study of Office and Industrial Development

4 AA.3 Sensitivity Analysis Residual Value Analysis, Profit Rates TABLE AA-3 ASSESSMENT OF LAND COSTS, DEVELOPMENT CHARGES, TAXES USING INDUSTRIAL TAX RATES SENSITIVITY ANALYSIS - SCENARIO PROFITS ASSUMED AT 6% Land Value Per Sq. Ft. Costs Charges Profit (6%) Dev't Costs Dev't Sq. Ft. Annualized Mississauga 700, Brampton 650, Caledon 418, Oshaw a 200, Whitby 235, Pickering 275, Ajax 255, Vaughan 760, Markham 700, Richmond Hill 650, New market 450, Aurora 450, Hamilton 269, Brantford 120, Guelph 250, Cambridge 200, Waterloo 200, Kitchener 180, Barrie 250, Oakville - HUSP 495, Burlington 400, Milton - HUSP 390, Halton Hills - HUSP 400, Oakville - HUSP 495, Burlington 400, Milton - HUSP 390, Halton Hills - HUSP 400, Toronto 400, All of 's HUSP and non-husp discounted and undiscounted rates are presented in Appendix AA2. - Competitiveness Study of Office and Industrial Development 105

5 TABLE AA-4 ASSESSMENT OF LAND COSTS, DEVELOPMENT CHARGES, TAXES USING INDUSTRIAL TAX RATES SENSITIVITY ANALYSIS - SCENARIO PROFITS ASSUMED AT 7% Land Value Per Sq. Ft. Costs Charges Profit (7%) Dev't Costs Dev't Sq. Ft. Annualized Mississauga Brampton Caledon Oshaw a Whitby Pickering Ajax Vaughan Markham Richmond Hill New market Aurora Hamilton Brantford Guelph Cambridge Waterloo Kitchener Barrie Oakville - HUSP Burlington Milton - HUSP Halton Hills - HUSP Oakville - HUSP Burlington Milton - HUSP Halton Hills - HUSP Toronto Note: All of 's HUSP and non-husp discounted and undiscounted rates are presented in Appendix AA Competitiveness Study of Office and Industrial Development

6 TABLE AA-5 ASSESSMENT OF LAND COSTS, DEVELOPMENT CHARGES, TAXES USING INDUSTRIAL TAX RATES SENSITIVITY ANALYSIS - SCENARIO1 PROFITS ASSUMED AT 8% Land Value Per Sq. Ft. Costs Charges Profit (5%) Dev't Costs Dev't Sq. Ft. Annualized Mississauga Brampton Caledon Oshaw a Whitby Pickering Ajax Vaughan Markham Richmond Hill New market Aurora Hamilton Brantford Guelph Cambridge Waterloo Kitchener Barrie Oakville - HUSP Burlington Milton - HUSP Halton Hills - HUSP Oakville - HUSP Burlington Milton - HUSP Halton Hills - HUSP Toronto Note: All of 's HUSP and non-husp discounted and undiscounted rates are presented in Appendix AA2. - Competitiveness Study of Office and Industrial Development 107

7 TABLE AA-6 ASSESSMENT OF LAND COSTS, DEVELOPMENT CHARGES, TAXES USING INDUSTRIAL TAX RATES SENSITIVITY ANALYSIS - SCENARIO PROFITS ASSUMED AT 9% Land Value Per Sq. Ft. Costs Charges Profit (5%) Dev't Costs Dev't Sq. Ft. Annualized Mississauga 700, Brampton 650, Caledon 418, Oshaw a 200, Whitby 235, Pickering 275, Ajax 255, Vaughan 760, Markham 700, Richmond Hill 650, New market 450, Aurora 450, Hamilton 269, Brantford 120, Guelph 250, Cambridge 200, Waterloo 200, Kitchener 180, Barrie 250, Oakville - HUSP 495, Burlington 400, Milton - HUSP 390, Halton Hills - HUSP 400, Oakville - HUSP 495, Burlington 400, Milton - HUSP 390, Halton Hills - HUSP 400, Toronto 400, Note: All of 's HUSP and non-husp discounted and undiscounted rates are presented in Appendix AA Competitiveness Study of Office and Industrial Development

8 TABLE AA-7 ASSESSMENT OF LAND COSTS, DEVELOPMENT CHARGES, TAXES USING INDUSTRIAL TAX RATES SENSTIVITY ANALYSIS - SCENARIO1 PROFITS ASSUMED AT 10% Land Value Per Sq. Ft. Costs Charges Profit (5%) Dev't Costs Dev't Sq. Ft. Annualized Mississauga Brampton Caledon Oshaw a Whitby Pickering Ajax Vaughan Markham Richmond Hill New market Aurora Hamilton Brantford Guelph Cambridge Waterloo Kitchener Barrie Oakville - HUSP Burlington Milton - HUSP Halton Hills - HUSP Oakville - HUSP Burlington Milton - HUSP Halton Hills - HUSP Toronto Note: All of 's HUSP and non-husp discounted and undiscounted rates are presented in Appendix AA2. - Competitiveness Study of Office and Industrial Development 109