Capital Costs Methodology and Assumptions Capital Cost Methodology and Assumptions | * Project budget is based on Hammes Company budget as follows: — Construction and Site Work $37,310,879 | — Soft Costs 9,026,630 — Equipment and Contingency 18,609,329 — Other Contingency 4,153,162 ~ Total $69,100,000 * Project expenditures are based on Hammes Company projections as follows: 5500255 5904705, Projet So Coste B2isaai 2811200 Fees, Perils & Move-n Cptalzoa inert EquipmentLong Term 721985 14887453 Egupment Shot Term CrP Aeon 15506513 595969487 20Capital Costs Methodology and Assumptions Capital Cost Methodology and Assumptions . Hospital is projected to commence operations on January 1, 2012. . The building is depreciated over a 30 year useful life. The equipment portion of the project is depreciated over a 10 year useful life. In addition to the project, there are projected expenditures for routine capital as follows. These expenditures are depreciated over a7 year useful life. ~ 2013 - $500,000 — 2014 ~ $750,000 — 2015 — $1,000,000Capital Costs Methodology and Assumptions Capital Cost Methodology and Assumptions + Equity is projected to come from the following sources, all funding in 2010: — CDBG - $41,000,000 — HRSA - $1,100,000 — State Capital Outlay - $17,000,000 * Inaddition, New Market Tax Credits are treated as debt as follows: — Loan from St. Bernard Redevelopment, LLC (CDE 1) to the project * A Loan: $32,845,560 ~ 7 years interest only at 2.5% * B Loan: $10,960,440 - 30 years interest only for 7 years, fully amortizing | thereafter at 2.5% — Loan from CDE 2 | A Loan: $8,154,440 - 7 years interest only at 2.5% * B Loan: $2,388,181 - 30 years interest only for 7 years, fully amortizing thereafter at 2.5%