As per the California Public Records Act, I hereby request all documents referring or relating to the total costs of the Venice Beach Bridge Housing Project, to develop, build, open, and operate for the duration of the 3 year period, including but not limited to the following:
1A.The total Projected/Budgeted Hard Costs related to all construction for the temporary tent covering the property that can only last 3 years, as per zoning regulations.
1B.The actual (costs incurred to date) Hard Costs related to all construction for the temporary tent covering the property that can only last 3 years, as per zoning regulations.
2.The total Projected/Budgeted soft costs which include all FF&E
3. The total projected/budgeted annual operating costs to run Bridge Housing. This would be the annual dollar amount or value of the 3rd party contract to run the program and services annually on behalf of the City. Please indicate whether the dollar amount is annual, or if it is a three year total for the entire duration of the temporary 3 year Bridge Housing project.
4A. The fair market value of the land leased at the MTA lot for three (3) years. (We have had an independent valuator look at this 3.1 acre land and their valuation set at $220 million. Given this evaluation a 99 year ground lease over 3 years would amount to $6.8 million; a 50 year ground lease amount to $13.2 million; and a 20 year ground lease at $33 million over a 3 year span. Most developers today rely on a 20 year schedule. Please refer to the Fair Market value of land donated, as per IRS guidelines here.
4B. Real estate appraisal or opinion of value for the MTA lot
I am trying to understand the "true cost" to build, open, and operate a Bridge Housing Project for the entire 3 years.
The public was first told that the program would cost $5 million dollars, which is the amount of dollars you requested from the LA City Council. As per my CPRA that you responded to on 06/25/19, we now see that the hard and soft costs now total $16 million dollars. With 154 beds, this amounts to a cost of $104,000 per shelter bed. However, there is no mention of the operating costs, which are what the City will need to pay a 3rd party service provider to provide services.
Additionally, your office did not respond with the "fair market value" of the property. If this land is in fact worth $100-200 million, the public needs to understand what the land could be leased for at its highest and best use. From a project finance perspective and even if land is given to you at no cost, you must book the "fair market value" of the property to comply with US tax law.
I look forward to a prompt response.