Client: Roseville (CA) Community Development Corporation

Gruen Gruen + Associates conducted real estate economic analysis of prototypical redevelopment alternatives or potential development projects located on four sites in Downtown Roseville and prepared a report summarizing the results of the following:

• An evaluation of the current real estate economics that apply to the type and scale of redevelopment alternatives envisioned for the sites;

• An evaluation of the extent to which the proposed Roseville Community Development Corporation (RCDC) investment in certain of these projects may improve the financial feasibility of the envisioned redevelopment alternatives;

• An evaluation of whether the potential returns from the envisioned redevelopment alternatives would be sufficient for the RCDC to recover its capital investments and earn a return on such capital investments; and

• Estimates of the portion of the property taxes and sales taxes potentially associated with the envisioned redevelopment projects that would accrue to the City of Roseville and consideration of whether the potentially generated taxes would be sufficient to offset the amount of subsidy needed to bridge estimated feasibility gaps.

The report summarized the principal conclusions drawn from the research and analysis and included (a) a description of the development alternatives evaluated; (b) estimates of potential development costs for each alternative; (c) operating revenue and expense estimates for the type of uses included in each alternative; and (d) equity, debt, and other financing-related assumptions, all of which were drawn from interviews with real estate developers and brokers and analysis of secondary real estate market and capital markets data.