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4401 OldAirportRoad (~~) 262-6219 PO ~anr 388 (704) Z62-6141 Fc~ Cnncrard NC 2802h D388 t;ah~~rrus C~c~urln~ 5chc~c::~ls January s, 200 Dr. Harold Winkler Cabarrus County Schools 4401 Old Airport Road Concord, NC 28025 Re: Funding for Design Fees and Land Acquisition Dear Dr. Winkler: Enclosed is an explanation of the projected cash flow needs for the design phase of the project and the projected cost of the land. Design Fees - To demonstrate the anticipated cash flow needs during the design phase of the new high school, I have attached the design schedule which was included in our Design RFQ. This includes completion dates for the three different design phases based on the comract time allocated. Using a 6% anticipated design fees for a construction budget of $37,215,540 gives us a total design fee of $2,233,000. Our architectural design contract allocates 15% of the total design fee to this schematic design phase. This equals $334,950 and has a scheduled completion date of Apri123, 2007. Our contract allocates 20% of design fee for the design development phase. This equals $446,600. As we only have a starting budget of $500,000 for design fees, this only Ieaves $1b5,050 for us to start the design development phase. Assuming a linear relation between design time and expenditure of fees, we will exhaust the remaining $165,050 by May 20, 2007. It should be noted that this is only a projected cash flow analysis and assumes our design will stay on schedule. But, remaining on the design schedule is critical to completion of the high school in time for opening in August 2009. So while we haven't expended any of the design budget yet, this anticipated cash flow analysis indicates we could exhaust the available design fees around May 20, 2007. Hence my concern and question as to when the remaining design fees will be available to the School System. 2. Anticipated Cost for Acquisition of Land - We have identified a site in the northwest area of the County which appears to be suitable for a high school. We have contacted the owner of the land and they are willing to sell us part of their land at an asking price of $73,000 per acre. While they own 140 acres, they only wish to se1160 at this time. Typically, we need around 65- 70 usable acres fora 1500 student high school with all the standard parking areas and athletic amenities. This varies depending upon the actual configuration of the Land and may be reduced by 3 or 4 acres by a full two-story high ~~ ~~