What costs will occur prior to long-term financing and how will they be funded?
There are many tasks to accomplish during the pre-finance period prior to the CCRC being eligible for long-term financing, including: – 70-75% of the planned independent living units must be pre-sold (a pre-sale is represented by a 10% deposit of the residents entrance fee plus a signed reservation agreement) – Completed community design, zoning approvals and building permits – Signed Guaranteed Maximum Price construction contract – Evidence of liquidity support – Feasibility Study completed by an accounting firm We currently estimate the pre-finance period will require approximately 30 months following funding of pre-finance capital. Pre-finance capital requirements are estimated to be approximately $7.6 million, which covers planning, marketing, design, zoning and other required costs. The $7.6 million of pre-finance capital will be raised from local, accredited investors (first offered to members of Federation). Investors will receive an annual tax-exempt return of 11%-12%, that wil
