C153379 Feasibility Study - Laserfiche WebLink

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II I I COST ESTIMATES I I Appraisal-level cost estimates were developed for a Hardin Dam Project both with and without flood control as previously described. Total capi tal cost estimates include construction cost, land acquisition costs and an allowance for engineering, permitting and other ancillary costs. For a project with flood control, the total capital cost is estimated at $291,000,000 or $298,000,000 depending upon the method of short term con- struction financing used. For a project without flood control the total capital cost is estimated at $263,000,000 or $270,000,000 depending again upon the method of short term construction financing used. These costs are in January, 1982 dollars unadjusted for inflation during construction and financing costs. I I I I It should also be noted that these estimates do not include costs for recreational facilities or for environmental mitigation measures. These costs would have to be developed in a feasibility-level study for the Hardin Dam Project. I I I These total ~apital costs were escalated for inflation throughout an assumed planning and construction period. The escalated costs were then used to estimate total investment costs and the annual cost of assumed debt retire- ment. I Total investment costs were illustrated by assuming two different financ- ing approaches. Under the first approach, it was assumed that the project would be financed by use of the CWCB' s construction fund and that capital costs would be amortized at 5 percent for 40 years. The second approach assumed the issuance of tax-exempt revenue bonds by a political subdivision of the state, with capital costs amortized at 12 percent for 30 years. Interest during construction (i.e., the cost of short term construction financing) was added to capital costs under the revenue bonding approach, which is why the total capital costs noted above differ. I I I I I vii I