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' Mr. Joel Hanson, Administrator <br />City of Little Canada <br />November 23, [990 <br />Page 5 <br />B. In- Process Cost Estimates. <br />Based upon data received from the developer and his architect, the following <br />work (included in item 3.A above) is in process: <br />Excluding <br />Description Total Refrigeration Costs <br />• Olson Construction Co. - Site work; <br />site utilides; new building for vehicle <br />maintenance; additions and changes to <br />existing milk processing plant. $ 928,577 $928,577 <br />• Horwitz, Inc. - Mechanical system <br />related to the above. 136,400 136,400 <br />• Peoples Electric Co. - Electrical <br />systems related to the above and <br />below. 178,015 178,015 <br />• American Industrial Refrigeration - <br />special refrigeration equipment for <br />milk processing plant 475.435 N/A <br />• Subtotal 1,718,427 1,242,992 <br />• Additional Estimates (See above): <br />• Contingency @ 5% 85,921 62,150 <br />• A/E Fees @ 6% 103.106 74,580 <br />Total $1,907,454 $1,379,722 <br />C. Future Project Costs: <br />Based upon our past communications, I have anticipated that the connection fee <br />for this project would be phased -in as this completed project is actually <br />constructed. Accordingly, I have used the above 3.A data for an estimate of the <br />total project and the 3.B data for an estimate of the first phase (i.e. now in <br />process). The difference results in the estimated future development. <br />D. Adjustment for Estimated Refrigeration Cost: <br />My conversations with the developer included an extensive discussion relating <br />to the components of a milk processing plant including a distinction between <br />"building" costs and "special use equipment" (i.e. refrigeration equipment) <br />which (according to the developer) should not be included as part of the total <br />value for real estate tax purposes. This distinction is important (to the <br />developer) because we are attempting to compute a "value" as would be used <br />for assessing real estate taxes. <br />To simplify, the developer stipulates that a major portion of the costs referred to <br />herein are equipment costs and not real estate costs (i.e. costs to refrigerate the <br />milk processing plant and warehouse). The developer has estimated that such <br />costs will total $1,110,000 of the estimated $4,628,081 total project costs. <br />These costs are reflected in the American Industrial Refrigeration contact <br />shown above for the In- Process/Phase I costs. <br />Page 46 <br />