4.8.25 Attachment 6. 33433 Summary Report — San Marcos City Council, April 8, 2025

PROJECT AREA 2

SAN MARCOS, CALIFORNIA

SUMMARY REPORT PERTAINING TO THE PROPOSED CONVEYANCE OF

CERTAIN REAL PROPERTY INTEREST WITHIN THE

REDEVELOPMENT PROJECT AREA
California Community Redevelopment Law
Section 33433

PURSUANT TO THE PROPOSED

AMENDED AND RESTATED DEVELOPMENT AND LOAN AGREEMENT

BETWEEN THE CITY OF SAN MARCOS IN ITS CAPACITY AS THE SUCCESSOR HOUSING AGENCY

TO THE FORMER SAN MARCOS REDEVELOPMENT AGENCY
AND

NCRC RICHMAR SENIOR VILLAGE, LP
City of San Marcos, California
March 2025

TABLE OF

CONTENTS
Page
I. Introdu
ction ........................................................................................................................................ 1 II. Costs of the Agreement to the SHA .................................................................................................... 5 III. Estimated Value of the Interest to be Conveyed at the Highest and Best Use Permitted Under the Redevelopment Plan ........................................................................................................................... 6 IV. Estimated Value of the Interest to be Conveyed at the Use and with the Conditions, Covenants, and Develop
ment Costs Required by the Agreement ........................................................................ 7 V. Compensation which the Developer will be Required to Pay ........................................................... 10 VI. Explanation of the Difference, if any, between the Compensation to be Paid to the SHA by th e Proposed Transaction and
the Fair Market Value of the Interest to be Conveyed at the Highest and Best Use Con
sistent with the Redevelopment Plan .......................................................................... 11 VII. Explanation of Why the Conveyance of the Interest will Assist with the Elimination of Blight ....... 12 VIII. Limiting Conditions............................................................................................................................ 13 Section 33433 Summary Report – March 2025 Page 1
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I. INTRODUCTION
A. Purpose of Report
This Summary Report was prepared in accordance with Section 33433 of the California Community Redevelopment Law in order to inform the City of San Marcos (City) in its capacity as the Successor Housing Agency to the Former San Marcos Redevelopment Agency (SHA) and the public about the proposed sales transaction for a proposed 0.94-acre development site in the Richmar neighborhood of San Marcos (Property) between the City and NCRC Richmar Senior Village, LP formerly known as Richmar Station San Marcos, LP (Developer). The Property is comprised of three (3) parcels, located at the northwest corner of Richmar Avenue and Firebird Lane.

As background, the SHA and Developer entered into a Development and Loan Agreement in August 2015 (amended September 2017 and July 2018) (Original DLA) for development of the Property. At that time, the development site encompassed a larger site area (3.07 acres) and the proposed project included 120 units. The Original DLA provided the Developer with a SHA Loan (Prior SHA Loan) to assist in the purchase of four (4) parcels along West Mission Road (Developer Properties).

The development site has now been reduced to three (3) parcels and the proposed development has been redesigned to accommodate 52 units. The three (3) parcels are comprised of the following:
 City Property – APN 220-082-03, 0.46 acres
 Developer Property – APN 220-082-04, 0.22 acres
 SHA Property – APN 220-084-05, 0.26 acres
The City, SHA, and Developer are now seeking to restate the Original DLA in its entirety. The Amended and Restated Development and Loan Agreement (Agreement) will allow for the following essential business terms:
 Developer agrees to transfer the Developer Property and the Prior SHA-funded Developer Properties to the SHA in consideration for the release of the Prior SHA Loan;  City agrees to transfer the City Property to the SHA, which will be held in fee by the SHA;  SHA, in such capacity as the Ground Lessor, will ground lease the Property to the Developer;  Developer agrees to construct a residential development on the Property; and  SHA agrees to provide the Developer with a $6,000,000 loan (New SHA Loan).

As stated above, the City Property and Developer Property will be transferred to the SHA. The Developer is proposing to develop the Property with 51 affordable rental apartment units and one manager's unit named Richmar Senior Village (Project). The Developer proposes to finance the Project using the 9% Low Income Housing Tax Credit (LIHTC) program and other local public agency gap financing.

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This Report describes and specifies:

1. The costs to be incurred by the SHA under the Agreement;

2. The estimated value of the interest to be conveyed by the SHA to the Developer at the highest and bes
t use permitted under the Redevelopment Plan;

3. The
estimated value of the interest to be conveyed at the proposed use and with the conditions, covenants, a
nd development costs pursuant to the proposed Agreement;

4. The compensation to be paid to the SHA pursuant to the proposed transaction;

5. An explanation of the difference, if any, between the compensation to be paid to the SHA under the
proposed transaction, and the fair market value at the highest and best use consistent with the Redevelopment Plan; and

6. An explanati
on of why the conveyance of the interest will assist with the elimination of blight.

B. Summary of Findings
The SHA eng
aged its economic consultant, Keyser Marston Associates, Inc. (KMA), to analyze the financial terms contained in the proposed Agreement. KMA reviewed the draft Agreement under discussion between the SHA and the Developer as of the date of this Report. KMA supplemented this review through discussions with City staff and legal counsel to gather a fuller understanding of the proposed transaction. The KMA conclusions are summarized as follows:
 The estimated costs of the Agreement to the SHA total $7,111,300.  The
estimated fair market value of the interest to be conveyed at its highest and best use is $1,855,000.
 The
estimated fair re-use value of the interest to be conveyed is negative $6,000,000.  The
estimated value of the compensation to be received by the SHA is negative $5,491,000.

C. Description of the Proposed Project
Table 1
describes the physical characteristics of the Project. The Project will be developed on the

0.94-acre Property in the Richmar neighborhood of San Marcos. The Project will consist of 52 apartments in one (1) three-story building. The apartments will comprise 10 studio units, 41 one- Section 33433 Summary Report – March 2025 Page 3
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bedroom units, and 1 three-bedroom unit with an overall average size of 494 square feet (SF). Fifty- one (51) units will be affordable to Very Low- and Low-Income family households earning up to 60% of AMI. The average affordability level is 50% of AMI. The three-bedroom unit is designated for the on-site manager. Twenty-five (25) surface parking spaces will be provided on-site.

D. Proposed Transaction Terms
This section s
ummarizes the salient aspects of the business terms contained in the proposed Agreement.
 The Developer Property will be conveyed to the SHA in “as-is” physical and environmental condition
.
 The Developer will ground lease the Property from the SHA for a term of 99 years at $1.00 per year.
 The Develope
r will construct 51 residential units affordable to Low-Income households and one (1) manager
unit. Affordability restrictions on the 51 units will remain in effect for a term of 55 years.
 It is
the responsibility of the Developer to ensure that applicable City zoning and land use requirements
will permit construction of the proposed Project.
 The Developer will be responsible for all development costs, including construction of the Project and on- a
nd off-site improvements.
 It is the responsibility of the Developer to conform to all applicable Federal and State labor laws including requirements, if
any, to pay prevailing wages.
 The Develope
r will construct a high-quality development, built in a manner to receive a Leadership in Energy Environmental Design (LEED) rating.  The SHA will provide the Developer with a New SHA Loan in the amount of $6,000,000 in the form of a resi
dual receipts loan.
 The
New SHA Loan will bear a simple annual interest rate of 3% commencing on the date of disburseme
nt.
 The
SHA will receive 50% of residual receipts toward repayment of the New SHA Loan. Residual receip
ts will be calculated as the Project's annual cash flow after payment of operating expenses, debt service,
management fees, and repayment of the Deferred Developer Fee (if any).

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 Upon repayment of the Deferred Developer Fee (if any), the Developer agrees to pay to the SHA its pro rata s
hare of 50% of residual receipts toward repayment of the SHA Loan.  The Ci
ty and SHA will have an option to purchase the Project after the expiration of the 15-year tax
credit compliance period. If the City or SHA exercises this option, the total amount payable is equal
to the greater of: (1) fair market value of the Project; or (2) the sum of the Limited Partner Project Related Ta
x Liability plus the principal and all accrued interest on any outstanding loans.

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II. COSTS OF THE AGREEMENT TO THE SHA

The SHA’s original acquisition-related costs totaled $1,078,000. The SHA has incurred costs related to City staff time and other third-party consultants, totaling $33,300. The SHA will be providing a New SHA Loan in the amount of $6,000,000.

Costs Incurred by SHA Amount
Original Acquisition $1,078,000
City Staff Time and SHA Third-Party Consultants (1) $33,300 New SHA Loan $6,000,000
Total Costs Incurred $7,111,300
(1) Includes City staff time ($5,800), appraisal costs ($2,500), and legal/financial consultants ($25,000).

Based on the foregoing, the total costs of the proposed Agreement to the SHA are estimated at $7,111,300.

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III. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE

PERMITTED UNDER THE REDEVELOPMENT PLAN AND COMMUNITY PLAN

This section presents an analysis of the fair market value of the Property at its highest and best use.

In appraisal terminology, the highest and best use can be defined as the legal uses that will yield the highest value to the Property. Therefore, the definition of highest and best use is based solely on the value created and not on whether or not it enhances or carries out the redevelopment goals and policies for the City of San Marcos Redevelopment Plan. As described below, KMA finds the fair market value of the Property at its highest and best use to be $1,855,000.

The Property is zoned as R-3-10, which allows for medium density residential uses. Current land use regulations in the R-3-10 zone include a maximum density of 20 units per acre and a maximum building height of 35 feet. To increase allowable density for the proposed Project, the Developer is relying on State Density Bonus Law (Government Code Section 65915).

The City contracted independent real estate appraiser David Burningham, MAI (Appraiser) for an appraisal of the Property. KMA reviewed the appraisal prepared for the City as of November 12, 2024. KMA further supplemented this information with our own independent survey of comparable land sales in the surrounding area.

The appraisal relied on the comparable sales approach to determine the market value of the Property as vacant land. The appraisal concluded that potential buyers would be willing to pay a fair market value of $1,855,000 ($45 per SF of land area) for the Property.

KMA conducted an independent survey of comparable land sales for sites of less than five (5) acres within a 7.5 -mile radius from the Property for the time period from 2023 to the present. As shown in Table 2, the land sales ranged between $13 and $99 per SF, with a median of $39 per SF land and an average of $50 per SF land. Surveyed sales were generally concentrated between $30 and $55 per SF land. KMA found a number of the comparables to be superior to the Property in terms of location, surrounding uses, allowable density, and proposed development plans. One surveyed sale containing

3.5 acres, located directly east of the Property, sold for a price of $39 per SF land in November 2023.

Based on the findings of the KMA survey, including appropriate adjustments, KMA concurs with the Appraiser’s conclusion of land value of $45 per SF.

On this basis then, KMA finds that the fair market value of the Property at its highest and best use is $1,855,000.

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IV. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE USE AND WITH THE

CONDITIONS, COVENANTS, AND DEVELOPMENT COSTS REQUIRED BY THE AGREEMENT

This section explains the principal conditions and covenants which the Developer of the Property must meet in order to comply with the Agreement. The Agreement contains specific covenants and conditions designed to ensure that the conveyance of the Property will be carried out in a manner to achieve the City’s objectives, standards, and criteria under the Redevelopment Plan. Based on a detailed financial feasibility analysis of the Project, KMA concludes that the fair re-use value of the interest to be conveyed is negative $6,000,000.

KMA estimated the re-use value of the interest to be conveyed based on the anticipated income characteristics of the proposed Project. Re-use value is defined as the highest price in terms of cash or its equivalent which a property or development right is expected to bring for a specified use in a competitive open market, subject to the covenants, conditions, and restrictions imposed by the Agreement.

KMA reviewed and analyzed the financial pro forma submitted by the Developer for the Project.

Tables 3 through 5 present the KMA residual value analysis for the proposed Project.

Estimated Development Costs

Table 3 summarizes estimated development costs for the Project. Total development costs for the Project, excluding acquisition, are estimated at $31,315,000 or $773 per SF of gross building area (GBA). This figure equates to approximately $602,000 per unit, as shown below:

Development Costs – Excluding Acquisition Project Costs Per Unit Direct Costs $23,710,000 $456,000
Indirect Costs $5,773,000 $111,000
Financing Costs $1,832,000 $35,000
Development Costs – Excluding Acquisition $31,315,000 $602,000

Total development costs, excluding acquisition, consist of the following:

 Direct construction costs, such as on-sites/landscaping; building shell; furniture, fixtures, and equipment (FF&E); and contingency. The total direct costs are estimated to be $23,710,000, or $585 per SF GBA. The estimate of direct costs includes the payment of prevailing wages.

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 Indirect costs, such as architecture and engineering, permits and fees, legal and accounting, taxes and insurance, developer fee, marketing/lease-up, and contingency. These are estimated to be $5,773,000, or 24% of direct costs.

 Financing costs, including loan fees, interest during construction/lease-up, title/recording/escrow fees, Tax Credit Allocation Committee (TCAC) costs, and operating reserves. Total financing costs are estimated at $1,832,000, or 8% of direct costs.

Net Operating Income

Table 4 presents an estimate of stabilized Net Operating Income (NOI) for the Project, as follows:

 Rental rates are proposed to range from 30% AMI to 60% AMI in accordance with the LIHTC program.

 The Developer has assumed an award of 25 Project-Based Vouchers (PBVs) from the County of San Diego (County) to subsidize the affordable rental income. Notification is pending in April 2025.

 Other income, such as laundry and vending, is estimated at $15 per unit per month.

 A vacancy factor of 5.0% is assumed for standard rental income and 10% for voucher subsidy.

 Total expenses have been estimated at approximately $10,700 per unit per year. These consist of operating expenses, voter approved taxes and fixed charge assessments, replacement reserves, tenant services, City Community Facilities District (CFD) assessments, and monitoring fees. It is anticipated that the Project will qualify for the property tax welfare exemption.

Based on these assumptions, stabilized annual NOI for the proposed Project is estimated at $460,000.

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Supportable Funding Sources

As shown in Table 5, the Developer has identified a proposed mix of public and private funding sources for the Project comprised of the following:

Sources of Funds Amount
Supportable Permanent Loan $5,222,000
Tax Credit Equity Investment $16,093,000
County of San Diego Loan (1) $4,000,000
Total Sources of Funds $25,315,000
(1) Developer is anticipating notification of funding in April 2025.

Total funding sources equal $25,315,000. These figures represent reasonable to optimistic estimates of the maximum amounts available for each funding source. The Developer assumes all risk for securing the funding sources necessary for development of the Project, including approximately $4,000,000, or $77,000 per unit, from the County.

Residual Land Value

Table 5 also presents the KMA estimate of residual land value. Residual land value can be estimated as the difference between total available funding sources and total development costs. The comparison of total funding sources of $25,315,000 and total development costs excluding acquisition of $31,315,000 yields a residual land value of negative $6,000,000.

Residual Land Value Amount
Total Sources of Funds $25,315,000
(Less) Development Costs – Excluding Acquisition ($31,315,000) Residual Land Value ($6,000,000)

Conclusion

Based on the foregoing analysis, KMA concludes that the fair re-use value of the interest to be conveyed is negative $6,000,000.

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V. COMPENSATION WHICH THE DEVELOPER WILL BE REQUIRED TO PAY

This section summarizes the total compensation to be paid by the Developer to the SHA for the interest to be conveyed.

Developer compensation to the SHA will take form of the repayment of a New SHA Loan, repaid through residual receipt payments. Table 7 presents the KMA estimate of SHA compensation from the Project’s annual cash flow, inclusive of the unpaid balance of the New SHA Loan and any accrued interest due and payable at the end of Year 55. As summarized below, the residual receipts revenue stream and loan payoff at Year 55 are estimated to have a net present value (NPV) of approximately $509,000, assuming a 10.0% discount rate.

Effective Compensation to SHA Amount
Present Value of Loan Payments (1) $509,000
(Less) New SHA Loan ($6,000,000)
Total Effective Compensation to SHA ($5,491,000)
(1) Present value is expressed in 2025 dollars, at a 10.0% discount rate.

Includes payoff at Year 55.

Conclusion

Based on the foregoing analysis, KMA concludes that the effective compensation to be paid to the SHA for the interest to be conveyed is negative $5,491,000.

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VI. EXPLANATION OF THE DIFFERENCE, IF ANY, BETWEEN THE COMPENSATION TO BE PAID TO

THE CITY BY THE PROPOSED TRANSACTION AND THE FAIR MARKET VALUE OF THE

INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE CONSISTENT WITH THE

REDEVELOPMENT PLAN

The fair market value of the interest to be conveyed at its highest and best use consistent with the Project Area 2 Redevelopment Plan is estimated to be $1,855,000.

The compensation to be paid to the SHA pursuant to the Agreement is negative $5,491,000.

Factors affecting the difference in compensation to the SHA and fair market value of the interest to be conveyed at highest and best use include:

 The Property will be developed on a long-term ground lease rather than fee simple ownership.

 The Property will be subject to long-term land use restrictions, operating covenants, and affordability covenants restricting its use solely as permitted in the Ground Lease.

 The Project will consist of apartment units restricted to Extremely Low-, Very Low-, and Low- Income households for 55 years.

 The Project is proposed to receive subsidies from the Low Income Housing Tax Credit program and the County. Anticipated funding from the County includes a soft loan repaid through residual receipts and Project Based Vouchers. These funding sources impose additional specific covenants and restrictions on development and operation of the Project.

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VII. EXPLANATION OF WHY THE CONVEYANCE OF THE INTEREST WILL ASSIST WITH THE

ELIMINATION OF BLIGHT

The City’s Redevelopment Plan contains the goals and objectives and the projects and expenditures proposed to eliminate blight within Project Area 2. These blighting factors include:

 Unsafe, deteriorating, and dilapidated buildings and properties.

 Physical conditions that limit the economic viability and use of lots or buildings such as substandard design, inadequate size, lack of parking, or other similar factors.

 Incompatible adjacent or nearby uses that prevent economic development.

 Residential overcrowding.

Implementation of the proposed Agreement can be expected to assist in the alleviation of blighting conditions through the following:

 Provision of affordable housing opportunities for San Marcos residents.

 Creation of viable housing options within the Project Area that span a range of incomes.

 Encouragement new and continuing private investment.

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VIII. LIMITING CONDITIONS

The estimates of re-use value and fair market value at the highest and best use contained in this Summary Report assume compliance with the following assumptions:

1. The ultimate development will not vary significantly from that assumed in this Report.

2. The title of the Property is good and marketable; no title search has been made, nor have we attempted to determine the ownership of the Property. The value estimates are given without regard to any questions of title, boundaries, encumbrances, liens or encroachments. It is assumed that all assessments, if any, are paid.

3. The Property will be in conformance with the applicable zoning and building ordinances.

4. Information provided by such local sources as governmental agencies, financial institutions, realtors, Developers, sellers, and others was considered in light of its source, and checked by secondary means.

5. If an unforeseen change occurs in the economy, the conclusions herein may no longer be valid.

6. Both parties are well informed and well advised and each is acting prudently in what he/she considers his/her own best interest.

7. KMA is not advising or recommending any action be taken by the City with respect to any prospective, new, or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues).

8. KMA is not acting as a Municipal Advisor to the City and does not assume any fiduciary duty hereunder, including, without limitation, a fiduciary duty to the City pursuant to Section 15B of the Exchange Act with respect to the services provided hereunder and any information and material contained in KMA’s work product.

9. The City shall discuss any such information and material contained in KMA’s work product with any and all internal and/or external advisors and experts, including its own Municipal Advisors, that it deems appropriate before acting on the information and material.

TABLE 1

PROJECT DESCRIPTION

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Site Area 0.94 Acres
II. Gross Building Area
Net Residential Area 25,664 SF 63%
Common Area/Circulation 14,854
SF 37%
Total Gross Building Area 40,518 SF 100%
III. Construction Type Type V
IV. Number of Stories 3 Stories
V. Target Population Seniors
VI. Unit Mix
Studio 10 Units 19% 328 SF
One Bedroom 41 Units 79% 520 SF
Three Bedroom 1
Unit 2% 1,064 SF
Total/Average 52 Units 100% 494 SF
VII. Density 55 Units/Acre
VIII. Affordability Mix
9 Units 17%
8 Units 15%
8 Units 15%
26 Units 50%
Manager 1
Unit 2%
Total/Average 52 Units 100%
Average Affordability 50% of AMI
(excluding Manager units)
IX. Parking
Number of Spaces 25 Spaces 0.48 Spaces/Unit
Surface
Units @ 60% of AMI
Units @ 30% of AMI
Unit SizeNumber of Units
Average
Units @ 50% of AMI
Units @ 40% of AMI
Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

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TABLE 2
SURVEY OF COMPARABLE LAND SALES, 2023 TO PRESENT (1)

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
$/SF
Sale Date Address City Sale Price Acres Land Proposed Use 12/20/24 2608 S Escondido Blvd Escondido $7,650,000 1.78 $99 Residential 01/31/24 Viejo Castillo Way Carlsbad $3,565,000 0.87 $94 Multi-Family 07/10/23 Romeria St Carlsbad $2,500,000 0.72 $79 Multi-Family 02/18/25 1100 W San Marcos Blvd San Marcos $6,500,000 2.72 $55 Residential 01/16/24 1102-1104 S Escondido Blvd Escondido $1,130,000 0.50 $52 Residential 05/24/23 600 E Vista Way Vista $2,650,000 1.20 $51 Residential 11/02/23 Twin Oaks Valley Rd & Richmar Ave San Marcos $5,800,000 3.37 $39 Residential 08/08/24 1058 Old Taylor St Vista $6,200,000 3.64 $39 Residential 02/29/24 350 10th Avenue Escondido $530,000 0.33 $37 Multi-Family 11/02/23 619 Civic Center Dr Vista $1,170,000 0.73 $37 Residential 08/17/23 880 W San Marcos Blvd San Marcos $1,250,000 0.88 $33 Multi-Family 07/03/24 841 Saint Paul Dr San Marcos $1,301,287 1.29 $23 Residential 12/18/24 552 W Bobier Dr Vista $1,000,000 1.72 $13 Multi-Family Minimum $530,000 0.33 $13
Maximum $7,650,000 3.64 $99
Median $2,500,000 1.20 $39
Average $3,173,000 1.52 $50
(1) Survey reflects sales under 5 acres within a 7.5-mile radius from the subject Property.

Source: CoStar Group, Inc.

Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

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TABLE 3

ESTIMATED DEVELOPMENT COSTS

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
Totals
Per Unit Comments
I. Direct Costs (1)
Off-Site Improvements (2)(3)
$2,770,000 $53,269 $68 Per SF Site
On-Sites/Landscaping (2)
$3,838,000 $73,808 $94 Per SF Site
Parking $0 $0 Included Above
Shell Construction (2)
$15,916,000 $306,077 $393 Per SF GBA
FF&E/Amenities $60,000 $1,154 Allowance
Contingency $1,126,000 $21,654 5.0% of Directs
Total Direct Costs $23,710,000 $455,962 $585 Per SF GBA II. Indirect Costs
Architecture & Engineering $1,425,000 $27,404 6.0% of Directs Permits & Fees (3)
$1,180,000 $22,692 $29 Per SF GBA
Legal & Accounting $230,000 $4,423 1.0% of Directs
Taxes & Insurance $67,000 $1,288 0.3% of Directs
Developer Fee $2,500,000 $48,077 10.5% of Directs
Marketing/Lease-Up $145,000 $2,788 0.6% of Directs
Contingency $226,000
$4,346 4.1% of Indirects
Total Indirect Costs $5,773,000 $111,019 24.3% of Directs III. Financing Costs
Loan Fees $231,000 $4,442 1.0% of Directs
Interest During Construction $1,142,000 $21,962 4.8% of Directs Interest During Lease-Up $0 $0 Included Above
Title/Recording/Escrow $110,000 $2,115 0.5% of Directs
TCAC/Syndication Fees $109,000 $2,096 0.5% of Directs
Operating Lease-Up/Reserves $240,000 $4,615 1.0% of Directs Transition Reserves $0
$0 0.0% of Directs
Total Financing Costs $1,832,000 $35,231 7.7% of Directs IV. Total Costs - Excl. Acquisition $31,315,000 $602,212 $773 Per SF GBA (1) Includes the payment of prevailing wages.
(2) Includes pro rata share of general conditions, contractor fee, and overhead. (3) Estimate; not verified by KMA or the City of San Marcos.

Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

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TABLE 4

NET OPERATING INCOME

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
# of PBV Total Total
I. Gross Scheduled Income Units
$/Month (1) Subsidy (2) $/Month Annual
Studio @ 30% AMI 2 $718 $1,092 $1,810 $43,440
Studio @ 40% AMI 1 $984 $826 $1,810 $21,720
Studio @ 50% AMI 3 $1,249 $561 $1,810 $65,160
Studio @ 60% AMI 4 $1,514 $0 $1,514 $72,670
One Bedroom @ 30% AMI 7 $761 $1,204 $1,965 $165,060
One Bedroom @ 40% AMI 7 $1,045 $920 $1,965 $165,060
One Bedroom @ 50% AMI 5 $1,329 $636 $1,965 $117,900
One Bedroom @ 60% AMI 22 $1,613 $0 $1,613 $425,830
Three Bedroom Manager 1 $0 $0 $0 $0
Total/Average 52 $841 $884 $1,726 $1,076,840
Add: Other Income $15 /Unit/Month $9,360
Total Gross Scheduled Income (GSI) $1,086,200
II. Effective Gross Income (EGI)
(Less) Vacancy 6.2% of GSI (3) ($67,490)
Total Effective Gross Income (EGI) $1,018,710
III. Operating Expenses
(Less) Operating Expenses (4)
$7,602 /Unit/Year ($395,300)
(Less) Property Taxes/Assessments (5)
$48 /Unit/Year ($2,500)
(Less) Replacement Reserves $500 /Unit/Year ($26,000)
(Less) Tenant Services $1,538 /Unit/Year ($80,000)
(Less) City CFD Fee $88 /Unit/Year ($4,600)
(Less) City Monitoring Fee $883 /Unit/Year ($45,900)
(Less) County Monitoring Fee $77 /Unit/Year ($4,000)
Total Expenses $10,737 /Unit/Year ($558,300)

54.8% of EGI
IV. Net Operating Income (NOI) $460,410
(1)
(2)
(3) Reflects 5% vacancy for standard rental income and 10% for voucher subsidy. (4) Includes management fee of $43,680 or $70 per unit per month. (5) Assumes that the project will qualify for property tax welfare exemption.

Reflects 2024 Tax Credit Allocation Committee (TCAC) rents less monthly utility allowance of $77 for studio, $91 for one-bedroom.

Utility allowances per San Diego County Utility Allowance Schedule effective 03/01/25.

Reflects 2025 Housing Choice Voucher (HCV) payment standards for zip code 92069. Developer is anticipating notification of award in April 2025.

Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 17 ends

TABLE 5

RESIDUAL LAND VALUE

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Sources of Funds Total
Per Unit
Supportable Permanent Loan (1)
$5,222,000 $100,000
Tax Credit Equity Investment - Federal (2)
$16,093,000 $309,000
Tax Credit Equity Investment - State $0 $0
Deferred Developer Fee (3)
$0 $0
General Partner Equity Contribution (3)
$0 $0
County of San Diego Loan (4)
$4,000,000 $77,000
Total Sources of Funds $25,315,000 $487,000
II. (Less) Development Costs - Excl. Acquisition ($31,315,000) ($602,000) III. Residual Land Value ($6,000,000) ($115,000)
Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 18 ends

TABLE 5 (CONT'D.)

RESIDUAL LAND VALUE

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
(1) Supportable Permanent Loan
NOI $460,410
Interest Rate 7.00%
Term (years) 35
Debt Coverage Ratio 1.15
Annual Debt Service $400,327
Supportable Permanent Loan $5,221,922
(2) Low Income Housing Tax Credits (Federal)
A. Estimate of Eligible Basis:

Total Development Costs $33,170,000
(Less) Ineligible Costs 9.3% ($3,080,565)
Eligible Basis $30,089,435
Threshold Basis $23,821,684
B. Tax Credit Proceeds:

Maximum Eligible Basis $23,821,684
(Less) Voluntary Reduction 18.4% ($4,386,537)
Requested Eligible Basis $19,435,147
Impacted Bonus Factor 100.0% $19,435,147
Tax Credit Qualified Units/Applicable Factor 100.0% $19,435,147 Tax Credit Rate 9.0% $1,749,163
Total Tax Credits @ 10 $17,491,632
Limited Partner Share 100% $17,491,632
Tax Credit Equity Investment @ 92.0% $16,092,300
(3) Estimate of Deferred Developer Overhead Fee
Eligible Basis $23,821,684
(Less) Developer Fee ($2,500,000)
Unadjusted Eligible Basis $21,321,684
Total Developer Overhead Fee 11.7% $2,500,000
Deferred Developer Fee $0
General Partner Contribution $0
Total Deferred Developer Overhead Fee 0.0% $0
Upfront Developer Fee $2,500,000
Per Unit $48,000
(4) County of San Diego
Loan Status Anticipated Notification April 2025
Loan Amount $4,000,000
Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 19 ends

TABLE 6

CASH FLOW PROJECTION

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
1 2 3 4 5 6 7 8 9 10
I. Gross Scheduled Income (GSI) 2.5% $1,086,20 0 $1,113,355 $1,141,189 $1,169,719 $1,198,962 $1,228,936 $1,259,659 $1,291,150 $1,323,429 $1,356,515 (Less) Vacancy (1)

6.2% ($67,490) ($69,177) ($70,907) ($72,679) ($74,496) ($76,359) ($78,268) ($80,224) ($82,230) ($84,286) II. Effective Gross Income (EGI) $1,018,710 $1,044,178 $1,070,282 $1,097,039 $1,124,465 $1,152,577 $1,181,391 $1,210,926 $1,241,199 $1,272,229 (Less) Operating Expenses (2)
($558,300) ($575,026) ($592,335) ($610,248) ($628,786) ($647,972) ($667,827) ($688,375) ($709,640) ($731,648) III. Net Operating Income $460,410 $469,152 $477,94 8 $486,791 $495,679 $504,605 $513,565 $522,55 1 $531,559 $540,582 (Less) Debt Service - Permanent Loan ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) IV. Cash Flow $60,083 $68,825 $77,621 $86,46 4 $95,352 $104,27 8 $113,238 $122,224 $131,232 $140,255 V. Asset Management Fees
(Less) Limited Partner Fee 3.5% ($7,500) ($7,763) ($8,034) ($8,315) ($8,606) ($8,908) ($9,219) ($9,542) ($9,876) ($10,222) (Less) General Partner Fee 3.5% ($7,500) ($7,763) ($8,034) ($8,315) ($8,606) ($8,908) ($9,219) ($9,542) ($9,876) ($10,222) Total Asset Management Fees ($15,000) ($15,525) ($16,068) ($16,631) ($17,213) ($17,815) ($18,439) ($19,084) ($19,752) ($20,443) VI. Net Cash Flow $45,083 $53,30 0 $61,552 $69,83 4 $78,139 $86,463 $94,799 $103,14 0 $111,480 $119,811 VII. Cash Flow Available for Distribution (3)
$45,083 $53,300 $61,552 $69,834 $78,139 $86,463 $94,799 $103,140 $111,480 $119,811 (1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses and tenant services; 2.0% for property
taxes; 1.0% for County monitoring fees; and 0.0%
for replacement reserves, City monitoring fees, and
CFD fees.

Reflects 5% vacancy for standard rental income and
10% for voucher subsidy.

Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 20 ends

TABLE 6

CASH FLOW PROJECTION

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy
(1)

6.2%
II. Effective Gross Income (EGI)
(Less) Operating Expenses (2)
III. Net Operating Income
(Less) Debt Service - Permanent Loan
IV. Cash Flow
V. Asset Management Fees
(Less) Limited Partner Fee 3.5%
(Less) General Partner Fee 3.5%
Total Asset Management Fees
VI. Net Cash Flow
VII. Cash Flow Available for Distribution
(3)
(1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects 5% vacancy for standard rental income and
10% for voucher subsidy.
11 12 13 14 15 16 17 18 19 20
$1,390,428 $1,425,189 $1,460,818 $1,497,339 $1,534,772 $1,573,141 $1,612,470 $1,652,782 $1,694,101 $1,736,454 ($86,393) ($88,553) ($90,767) ($93,036) ($95,362) ($97,746) ($100,189) ($102,694) ($105,261) ($107,893) $1,304,035 $1,336,636 $1,370,052 $1,404,303 $1,439,411 $1,475,396 $1,512,281 $1,550,088 $1,588,840 $1,628,561 ($754,424) ($777,995) ($802,389) ($827,635) ($853,762) ($880,802) ($908,786) ($937,747) ($967,720) ($998,739) $549,611 $558,641 $567,663 $576,66 8 $585,648 $594,594 $603,495 $612,34 1 $621,120 $629,822 ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) $149,284 $158,314 $167,336 $176,341 $185,321 $194,267 $203,168 $212,014 $220,793 $229,495 ($10,579) ($10,950) ($11,333) ($11,730) ($12,140) $0 $0 $0 $0 $0 ($10,579) ($10,950) ($11,333) ($11,730) ($12,140) ($12,565) ($13,005) ($13,460) ($13,931) ($14,419) ($21,159) ($21,900) ($22,666) ($23,459) ($24,280) ($12,565) ($13,005) ($13,460) ($13,931) ($14,419) $128,125 $136,415 $144,67 0 $152,882 $161,04 1 $181,702 $190,163 $198,55 4 $206,862 $215,07 6 $128,125 $136,415 $144,670 $152,882 $161,041 $181,702 $190,163 $198,554 $206,862 $215,076 Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 21 ends

TABLE 6

CASH FLOW PROJECTION

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy
(1)

Reflects 5% vacancy for standard rental income and
10% for voucher subsidy.
21 22 23 24 25 26 27 28 29 30
$1,779,865 $1,824,362 $1,869,971 $1,916,720 $1,964,638 $2,013,754 $2,064,098 $2,115,700 $2,168,593 $2,222,808 ($110,590) ($113,355) ($116,189) ($119,094) ($122,071) ($125,123) ($128,251) ($131,457) ($134,743) ($138,112) $1,669,275 $1,711,007 $1,753,782 $1,797,627 $1,842,567 $1,888,631 $1,935,847 $1,984,243 $2,033,849 $2,084,696 ($1,030,842) ($1,064,067) ($1,098,451) ($1,134,037) ($1,170,866) ($1,208,982) ($1,248,429) ($1,289,254) ($1,331,505) ($1,375,233) $638,433 $646,94 0 $655,331 $663,589 $671,701 $679,650 $687,419 $694,989 $702,344 $709,462 ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) $238,106 $246,613 $255,00 4 $263,262 $271,37 4 $279,323 $287,092 $294,662 $302,01 7 $309,135 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($14,923) ($15,446) ($15,986) ($16,546) ($17,125) ($17,724) ($18,345) ($18,987) ($19,651) ($20,339) ($14,923) ($15,446) ($15,986) ($16,546) ($17,125) ($17,724) ($18,345) ($18,987) ($19,651) ($20,339) $223,182 $231,16 8 $239,017 $246,717 $254,249 $261,598 $268,747 $275,676 $282,366 $288,796 $223,182 $231,168 $239,017 $246,717 $254,249 $261,598 $268,747 $275,676 $282,366 $288,796 Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 22 ends

TABLE 6

CASH FLOW PROJECTION

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy
(1)

Reflects 5% vacancy for standard rental income and
10% for voucher subsidy.
31 32 33 34 35 36 37 38 39 40
$2,278,378 $2,335,337 $2,393,721 $2,453,564 $2,514,903 $2,577,775 $2,642,220 $2,708,275 $2,775,982 $2,845,382 ($141,565) ($145,104) ($148,732) ($152,450) ($156,261) ($160,168) ($164,172) ($168,276) ($172,483) ($176,795) $2,136,813 $2,190,233 $2,244,989 $2,301,114 $2,358,642 $2,417,608 $2,478,048 $2,539,999 $2,603,499 $2,668,587 ($1,420,489) ($1,467,326) ($1,515,799) ($1,565,967) ($1,617,887) ($1,671,622) ($1,727,234) ($1,784,790) ($1,844,358) ($1,906,008) $716,324 $722,908 $729,190 $735,147 $740,755 $745,98 6 $750,814 $755,209 $759,141 $762,579 ($400,327) ($400,327) ($400,327) ($400,327) ($400,327) $0 $0 $0 $0 $0 $315,997 $322,581 $328,863 $334,82 0 $340,428 $745,986 $750,814 $755,209 $759,141 $762,579 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($21,051) ($21,788) ($22,550) ($23,340) ($24,156) ($25,002) ($25,877) ($26,783) ($27,720) ($28,690) ($21,051) ($21,788) ($22,550) ($23,340) ($24,156) ($25,002) ($25,877) ($26,783) ($27,720) ($28,690) $294,946 $300,793 $306,313 $311,48 1 $316,271 $720,984 $724,937 $728,426 $731,421 $733,889 $294,946 $300,793 $306,313 $311,481 $316,271 $720,984 $724,937 $728,426 $731,421 $733,889 Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 23 ends

TABLE 6

CASH FLOW PROJECTION

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy
(1)

Reflects 5% vacancy for standard rental income and
10% for voucher subsidy.
41 42 43 44 45 46 47 48 49 50
$2,916,516 $2,989,429 $3,064,165 $3,140,769 $3,234,992 $3,332,042 $3,432,003 $3,534,963 $3,641,012 $3,750,243 ($181,215) ($185,745) ($190,389) ($195,149) ($201,003) ($207,033) ($213,244) ($219,642) ($226,231) ($233,018) $2,735,301 $2,803,684 $2,873,776 $2,945,620 $3,033,989 $3,125,009 $3,218,759 $3,315,322 $3,414,781 $3,517,225 ($1,969,812) ($2,035,846) ($2,104,188) ($2,174,919) ($2,248,123) ($2,323,885) ($2,402,295) ($2,483,447) ($2,567,435) ($2,654,360) $765,490 $767,838 $769,588 $770,701 $785,866 $801,124 $816,463 $831,875 $847,34 6 $862,865 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$765,490 $767,838 $769,588 $770,701 $785,866 $801,124 $816,463 $831,875 $847,34 6 $862,865 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($29,694) ($30,734) ($31,809) ($32,923) ($34,075) ($35,268) ($36,502) ($37,780) ($39,102) ($40,470) ($29,694) ($30,734) ($31,809) ($32,923) ($34,075) ($35,268) ($36,502) ($37,780) ($39,102) ($40,470) $735,795 $737,10 4 $737,778 $737,778 $751,791 $765,856 $779,961 $794,095 $808,24 4 $822,394 $735,795 $737,104 $737,778 $737,778 $751,791 $765,856 $779,961 $794,095 $808,244 $822,394 Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 24 ends

TABLE 6

CASH FLOW PROJECTION

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy
(1)

Reflects 5% vacancy for standard rental income and
10% for voucher subsidy.
51 52 53 54 55
$3,862,750 $3,978,632 $4,097,991 $4,220,931 $4,389,768
($240,008) ($247,209) ($254,625) ($262,264) ($272,754)
$3,622,742 $3,731,424 $3,843,367 $3,958,668 $4,117,014
($2,744,323) ($2,837,432) ($2,933,795) ($3,033,528) ($3,136,747) $878,418 $893,992 $909,57 1 $925,140 $980,267
$0 $0 $0 $0 $0
$878,418 $893,992 $909,57 1 $925,140 $980,267
$0 $0 $0 $0 $0
($41,887) ($43,353) ($44,870) ($46,441) ($48,066)
($41,887) ($43,353) ($44,870) ($46,441) ($48,066)
$836,531 $850,639 $864,701 $878,699 $932,201
$836,531 $850,639 $864,701 $878,699 $932,201
Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 25 ends

TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
1 2 3 4 5 6 7 8 9 10
I. Cash Flow Available for Distribution $45,083 $53,300 $61,552 $69,834 $78,139 $86,463 $94,799 $103,140 $111,480 $119,811 II. Allocated to Pay Down Public Loans (1)

50.0% $22,542 $26,650 $30,776 $34,917 $39,070 $43,232 $47,399 $51,570 $55,740 $59,906 III. County of San Diego Loan
Beginning Balance $4,000,000 $4,110,983 $4,220,323 $4,328,013 $4,434,046 $4,538,418 $4,641,126 $4,742,166 $4,841,538 $4,939,242 Interest 3.0%
$120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 (Less) Cash Flow Credit (1)

40.0% ($9,017) ($10,660) ($12,310) ($13,967) ($15,628) ($17,293) ($18,960) ($20,628) ($22,296) ($23,962) Ending Balance $4,110,983 $4,220,323 $4,328,013 $4,434,046 $4,538,418 $4,641,126 $4,742,166 $4,841,538 $4,939,242 $5,035,280 IV. City of San Marcos Loan
Beginning Balance $6,000,000 $6,166,475 $6,330,485 $6,492,019 $6,651,069 $6,807,628 $6,961,689 $7,113,249 $7,262,307 $7,408,863 Interest 3.0%
$180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 (Less) Cash Flow Credit (1)

60.0% ($13,525) ($15,990) ($18,466) ($20,950) ($23,442) ($25,939) ($28,440) ($30,942) ($33,444) ($35,943) Ending Balance $6,166,475 $6,330,485 $6,492,019 $6,651,069 $6,807,628 $6,961,689 $7,113,249 $7,262,307 $7,408,863 $7,552,919 V. Total Cash Flow to City - NPV Years 1-55 (2)
Discount Rate @ 10% $509,000
(1)
(2)
After repayment of deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow for Years 1-55.

Includes payoff in Year 55.

Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 26 ends

TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1)

50.0%
III. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

40.0%
Ending Balance
IV. City of San Marcos Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

60.0%
Ending Balance
V. Total Cash Flow to City - NPV Years 1-55 (2)
Discount Rate @ 10% $509,000
(1)
(2)
After repayment of deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow for Years 1-55.

Includes payoff in Year 55.
11 12 13 14 15 16 17 18 19 20
$128,125 $136,415 $144,670 $152,882 $161,041 $181,702 $190,163 $198,554 $206,862 $215,076 $64,063 $68,207 $72,335 $76,441 $80,521 $90,851 $95,081 $99,277 $103,431 $107,538 $5,035,280 $5,129,655 $5,222,372 $5,313,438 $5,402,861 $5,490,653 $5,574,313 $5,656,280 $5,736,569 $5,815,197 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 ($25,625) ($27,283) ($28,934) ($30,576) ($32,208) ($36,340) ($38,033) ($39,711) ($41,372) ($43,015) $5,129,655 $5,222,372 $5,313,438 $5,402,861 $5,490,653 $5,574,313 $5,656,280 $5,736,569 $5,815,197 $5,892,182 $7,552,919 $7,694,482 $7,833,557 $7,970,157 $8,104,292 $8,235,980 $8,361,469 $8,484,420 $8,604,854 $8,722,796 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 ($38,438) ($40,924) ($43,401) ($45,865) ($48,312) ($54,511) ($57,049) ($59,566) ($62,059) ($64,523) $7,694,482 $7,833,557 $7,970,157 $8,104,292 $8,235,980 $8,361,469 $8,484,420 $8,604,854 $8,722,796 $8,838,273 Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 27 ends

TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1)

50.0%
III. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

40.0%
Ending Balance
IV. City of San Marcos Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

Includes payoff in Year 55.
21 22 23 24 25 26 27 28 29 30
$223,182 $231,168 $239,017 $246,717 $254,249 $261,598 $268,747 $275,676 $282,366 $288,796 $111,591 $115,584 $119,509 $123,358 $127,125 $130,799 $134,373 $137,838 $141,183 $144,398 $5,892,182 $5,967,545 $6,041,312 $6,113,508 $6,184,165 $6,253,315 $6,320,996 $6,387,246 $6,452,111 $6,515,638 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 ($44,636) ($46,234) ($47,803) ($49,343) ($50,850) ($52,320) ($53,749) ($55,135) ($56,473) ($57,759) $5,967,545 $6,041,312 $6,113,508 $6,184,165 $6,253,315 $6,320,996 $6,387,246 $6,452,111 $6,515,638 $6,577,879 $8,838,273 $8,951,318 $9,061,968 $9,170,263 $9,276,248 $9,379,973 $9,481,493 $9,580,869 $9,678,167 $9,773,457 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 ($66,955) ($69,350) ($71,705) ($74,015) ($76,275) ($78,480) ($80,624) ($82,703) ($84,710) ($86,639) $8,951,318 $9,061,968 $9,170,263 $9,276,248 $9,379,973 $9,481,493 $9,580,869 $9,678,167 $9,773,457 $9,866,818 Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 28 ends

TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1)

50.0%
III. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

40.0%
Ending Balance
IV. City of San Marcos Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

Includes payoff in Year 55.
31 32 33 34 35 36 37 38 39 40
$294,946 $300,793 $306,313 $311,481 $316,271 $720,984 $724,937 $728,426 $731,421 $733,889 $147,473 $150,396 $153,156 $155,740 $158,136 $360,492 $362,468 $364,213 $365,711 $366,944 $6,577,879 $6,638,889 $6,698,731 $6,757,468 $6,815,172 $6,871,918 $6,847,721 $6,822,734 $6,797,048 $6,770,764 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 ($58,989) ($60,159) ($61,263) ($62,296) ($63,254) ($144,197) ($144,987) ($145,685) ($146,284) ($146,778) $6,638,889 $6,698,731 $6,757,468 $6,815,172 $6,871,918 $6,847,721 $6,822,734 $6,797,048 $6,770,764 $6,743,986 $9,866,818 $9,958,334 $10,048,096 $10,136,202 $10,222,758 $10,307,877 $10,271,581 $10,234,100 $10,195,573 $10,156,146 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 ($88,484) ($90,238) ($91,894) ($93,444) ($94,881) ($216,295) ($217,481) ($218,528) ($219,426) ($220,167) $9,958,334 $10,048,096 $10,136,202 $10,222,758 $10,307,877 $10,271,581 $10,234,100 $10,195,573 $10,156,146 $10,115,980 Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 29 ends

TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1)

50.0%
III. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

40.0%
Ending Balance
IV. City of San Marcos Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

Includes payoff in Year 55.
41 42 43 44 45 46 47 48 49 50
$735,795 $737,104 $737,778 $737,778 $751,791 $765,856 $779,961 $794,095 $808,244 $822,394 $367,898 $368,552 $368,889 $368,889 $375,896 $382,928 $389,981 $397,048 $404,122 $411,197 $6,743,986 $6,716,827 $6,689,406 $6,661,851 $6,634,295 $6,603,937 $6,570,766 $6,534,773 $6,495,954 $6,454,306 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 ($147,159) ($147,421) ($147,556) ($147,556) ($150,358) ($153,171) ($155,992) ($158,819) ($161,649) ($164,479) $6,716,827 $6,689,406 $6,661,851 $6,634,295 $6,603,937 $6,570,766 $6,534,773 $6,495,954 $6,454,306 $6,409,827 $10,115,980 $10,075,241 $10,034,110 $9,992,776 $9,951,443 $9,905,905 $9,856,148 $9,802,160 $9,743,931 $9,681,458 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 ($220,739) ($221,131) ($221,334) ($221,334) ($225,537) ($229,757) ($233,988) ($238,229) ($242,473) ($246,718) $10,075,241 $10,034,110 $9,992,776 $9,951,443 $9,905,905 $9,856,148 $9,802,160 $9,743,931 $9,681,458 $9,614,740 Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 30 ends

TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

RICHMAR SENIOR VILLAGE

CITY OF SAN MARCOS
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1)

50.0%
III. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

40.0%
Ending Balance
IV. City of San Marcos Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1)

Includes payoff in Year 55.
51 52 53 54 55
$836,531 $850,639 $864,701 $878,699 $932,201
$418,266 $425,320 $432,350 $439,349 $466,100
$6,409,827 $6,362,520 $6,312,393 $6,259,452 $6,203,713
$120,000 $120,000 $120,000 $120,000 $120,000
($167,306) ($170,128) ($172,940) ($175,740) ($186,440)
$6,362,520 $6,312,393 $6,259,452 $6,203,713 $6,137,272
$9,614,740 $9,543,781 $9,468,589 $9,389,178 $9,305,569
$180,000 $180,000 $180,000 $180,000 $180,000
($250,959) ($255,192) ($259,410) ($263,610) ($279,660)
$9,543,781 $9,468,589 $9,389,178 $9,305,569 $9,205,909
Prepared by: Keyser Marston Associates, Inc.

Filename: San Marcos_Richmar Senior Village_v1;3/25/2025;mdr

Page 31 ends

San Marcos City CouncilApril 8, 2025

San Marcos City Council
April 8, 2025