Financial Summary
The Bates Mill Complex revitalization is an enormous and exciting undertaking for the city of Lewiston. When fully completed it will encompass the buildout of almost 1 million square feet of former mill space. One million square feet of space that once employed this area's workforce will once again employ and service the people of Lewiston and beyond. This is no small task, and the planning and implementation are critical if it is going to be a success.
When fully executed, the rehabilitation of 1 million square feet, including tenant fitups and amenities, could cost between $70 million and $100 million. It is important to understand where this money will be spent, where it will come from, and when it will be spent. A project as large as this one in a community of our size must be broken up in to smaller pieces. The original mill is comprised of 11 separate buildings. Some of those have been or will be torn down. The remaining buildings may be developed as separate projects and some of the larger ones may be broken down and developed in sections.
What is most important to understand is that each project or phase of construction will not be undertaken until a sensible financial proforma is met. Tenant revenues must exceed the amortization of construction costs. Construction costs for each phase may be raised in a variety of ways. Bank loans, private capital, city loans and tenant participation are all likely sources for each phase. A typical phase will entail finding a tenant for a particular space, designing the space and obtaining construction costs for that user, negotiating a lease with the tenant, and finally obtaining financing for the construction. The typical lease to the tenant will be at an annual rate equal to 120 percent of the amount of the debt service. By staying the course with this formula, the total dollar amount spent on the mill development will be supported by tenant rents and therefore will not burden the city or the taxpayer. Conversely, the more money spent on the mill buildings, the higher the property tax base and, therefore, the more money going back to the city.
It is estimated that when the mill is fully completed it may be necessary to construct parking facilities at a cost of up to $12 million. This amount may vary depending on how much of the parking is in lots at grade and how much may have to be elevated parking in garages or decks.
Typically when cities and towns develop their downtown parking it is a municipal project. The amount needed to amortize the cost of these parking spaces is approximately $45 per space per month. This may vary depending on the city's financing abilities. Based on current parking rates this would leave the city with a shortfall of up to $20 per space per month or up to $500,000 a year. This amount of parking would only have to be built if the mill complex were fully built out. A fully built out mill complex including tenant fitups and tenant business property is likely to be assessed at $80 million. Using current tax rates this would yield the city $1.8 million in tax revenues, which would more than justify the cost of parking. These numbers do not take into account the additional monies that would be spent in the area because of the increased activities in the downtown area.
As one can see, the revitalization of the Bates Mill Complex can be a key to the financial resurgence of Lewiston and Auburn and the surrounding communities. This report has not addressed the potential offsite private development that is likely to be stimulated by this project. Undertaken in a careful, methodical and visioning manner, this project will not be a burden to the taxpayers of Lewiston; it will be the stimulus needed to take Lewiston into the next century.
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Mill Building #1
Total Area 150,200 sq. ft. Rentable Area 150,200 sq. ft. Construction Cost $6,520,730 Building Cost $959,778 Site Improvements $210,280 Total Cost $7,690,788 Annual Debt Service $876,125 Aver. Sq. Ft. Rental (NNN) $7 Total Annual Rent $1,051,350 Net Income $175,225 Tenant Fit-Up $2,403,200 Total Investment $10,093,988 Annual Real Estate Taxes $252,350
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Mill Building #2
Total Area 194,500 sq. ft. Rentable Area 171,500 sq. ft. Construction Cost $8,393,675 Building Cost $1,242,855 Site Improvements $272,300 Total Cost $9,908,830 Annual Debt Service $1,128,802 Aver. Sq. Ft. Rental (NNN) $7.90 Total Annual Rent $1,354,562 Net Income $225,760 Tenant Fit-Up $3,112,000 Total Investment $13,020,830 Annual Real Estate Taxes $325,521
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Wing/Storehouse #1
Total Area 43,920 sq. ft. Rentable Area 43,920 sq. ft. Construction Cost $2,205,308 Building Cost $280,649 Site Improvements $61,488 Total Cost $2,547,445 Annual Debt Service $290,202 Aver. Sq. Ft. Rental (NNN) $7.93 Total Annual Rent $348,242 Net Income $58,040 Tenant Fit-Up $702,720 Total Investment $3,250,165 Annual Real Estate Taxes $81,254
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Wing/Storehouse #2
Total Area 38,265 sq. ft. Rentable Area 38,265 sq. ft. Construction Cost $1,819,740 Building Cost $244,513 Site Improvements $53,571 Total Cost $2,117,824 Annual Debt Service $241,260 Aver. Sq. Ft. Rental (NNN) $7.57 Total Annual Rent $289,512 Net Income $48,252 Tenant Fit-Up $612,240 Total Investment $2,730,064 Annual Real Estate Taxes $68,252
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Mill Building #3
Total Area 161,200 sq. ft. Rentable Area 161,200 sq. ft. Construction Cost $7,163,020 Building Cost $1,030,068 Site Improvements $225,680 Total Cost $8,418,768 Annual Debt Service $959,056 Aver. Sq. Ft. Rental (NNN) $7.14 Total Annual Rent $1,150,867 Net Income $191,811 Tenant Fit-Up $2,579,200 Total Investment $10,997,968 Annual Real Estate Taxes $274,949
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Mill Building #4
Total Area 18,496 sq. ft. Rentable Area 18,496 sq. ft. Construction Cost $868,475 Building Cost $118,189 Site Improvements $25,894 Total Cost $1,012,559 Annual Debt Service $115,349 Aver. Sq. Ft. Rental (NNN) $7.48 Total Annual Rent $138,419 Net Income $23,070 Tenant Fit-Up $296,000 Total Investment $1,308,559 Annual Real Estate Taxes $32,714
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Mill Building #5 (Leasable Area Only)
Total Area 352,300 sq. ft. Rentable Area 80,000 sq. ft. Construction Cost $4,000,000 Building Cost $511,200 Site Improvements $112,000 Total Cost $4,623,200 Annual Debt Service $526,669 Aver. Sq. Ft. Rental (NNN) $7.90 Total Annual Rent $632,003 Net Income $105,334 Tenant Fit-Up $2,000,000 Total Investment $6,623,200 Annual Real Estate Taxes $165,580
The above forecast is for that portion of Mill Building #5 that is to be leased for complimentary retail and support service uses. The cost of the redevelopment of the entire Mill Building #5, including the convention center, is projected to be $26,902,404. For a discussion of the economic impact of a convention center, please see the Convention Center Feasibility Study.
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Mill Building #6
Total Area 53,400 sq. ft. Rentable Area 53,400 sq. ft. Construction Cost $2,489,890 Building Cost $341,226 Site Improvements $74,760 Total Cost $2,905,876 Annual Debt Service $331,034 Aver. Sq. Ft. Rental (NNN) $7.44 Total Annual Rent $397,241 Net Income $66,207 Tenant Fit-Up $854,400 Total Investment $3,760,276 Annual Real Estate Taxes $94,007
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Mill Building #7
Total Area 48,000 sq. ft. Rentable Area 48,000 sq. ft. Construction Cost $900,000 Building Cost $306,720 Site Improvements $67,200 Total Cost $1,273,920 Annual Debt Service $145,123 Aver. Sq. Ft. Rental (NNN) $4.20 Total Annual Rent $201,600 Net Income $56,477 Tenant Fit-Up $2,123,800 Total Investment $3,397,720 Annual Real Estate Taxes $84,943
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Economic Forecast
Parking
Total Spaces 2,000 Aver. Cost per Space $6,000 Total Cost $12,000,000
Go to: Definitions | Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
Definitions
Construction Cost: The cost of upgrading and improving this building, including exterior restoration; structural repairs; windows; heating, ventilation and air conditioning; core elements; electrical; plumbing; subflooring; sandblasting; and sprinklers.
Building Cost: The value of this building in its present condition.
Site Improvements: This building's share of the site improvements that benefit the entire complex, such as landscaping, pedestrian amenities, select demolition and moving the Executive Office Building.
Annual Debt Service The cost of financing the total cost, including equity.
Average Square Foot Rental (N.N.N.): The average square foot annual rental rate to be charged in this building. The rent is "triple net" (N.N.N.), meaning each tenant is responsible for his or her own utilities, pro rata share of real estate taxes and common-area maintenance charges.
Net Income: The total annual rent less the annual debt service.
Tenant Fit-Up: The improvements necessary to make a particular space ready for a specific tenant, such as flooring, ceilings, lighting, interior wiring and plumbing, and partitions. This cost is borne by the tenant rather than the developer.
Total Investment: The total of the construction cost, the building cost, site improvements and tenant fit-up.
Go to: Top of PageBack to: Mill 1 | Mill 2 | Mill 3 | Mill 4 | Mill 5 | Mill 6 | Mill 7 | Storehouse 1 | Storehouse 2 | Parking
| This site was designed and built by Lisa Giguere |