Thanks for finding that, here's a breakdown of the Development cap scenario:
Above are the areas that we could essentially fill in with development. Red = retail only | Orange = mixed-use | Black outline = area that would need decking/structural support.
Columbus project cost $10 million
- 28,800 sq. ft. of retail
- Cost per sq. ft. = $347
- Approximate retail building cost = $147 per sq. ft.
- Decking and structural costs = $200 per sq. ft.
4 Areas capable of air rights development
- Denver Ave | $10.8 million decking/structural cost
- Cheyenne Ave to Boston Ave | $64.82 million decking/structural cost
- East Village | $46.61 million decking/structural cost
- Peoria Ave | $16.55 million decking/structural cost
Total decking/structural costs = $138.78 millionDevelopment Potential Breakdown2.16 million sq. ft. of mixed-use (likely multifamily, ground floor retail)
0.30 million sq. ft. of retail
Ad Valorem Taxes2.46 million sq. ft. of new real estate
Construction value of $150 per sq. ft. = $369 million of new real estate
Property tax estimate via Tulsa County Assessor site = $5.41 million per year
25 year capture rate = $135.2 millionSales Taxes * Note that the Return on Investment analysis I did for the removal of the IDL was using Ad Valorem/Property Taxes ONLY. I did not include revenues from any potential retail that would be in the developments.
Retail sq. ft. total = 568,000 sq. ft.
- Sales per sq. ft. @ $250 = $142 million in sales
- 8.517% sales tax rate = $12.09 million in new tax revenue
- Capture rate for 15 years = $302.4 million
- Capture rate for City of Tulsa for 15 years = $110.05 million in new tax revenues
Total New RevenuesSales - $12.1 million per year
Ad Valorem - $5.41 million per year
= $17.42 million per yearConclusion - the removal of the south/east sections of IDL and reconstruction of them into at-grade boulevards would provide a higher return. The development capping scenario you would essentially break even at year 25-26 capturing property taxes. Adding retail sales taxes into the revenue equation would give a nice return, however. I would need to add some retail projections for the reconstruction scenario as well to properly compare the two - which I will try to do some point shortly.