Economic Feasibility Study of The Princess Theatre

The Princess Theatre Economic Feasibility Study Annelise L. Kouns Preservation Economics and Development-­‐HIPR-­‐704-­‐OL Professor J. Gunther 07 March 2014

Table of Contents History ............................................................................................................................................ 1 Assessment ..................................................................................................................................... 2 Proposal .......................................................................................................................................... 4 Market Study .................................................................................................................................. 5 Pro Forma Analysis ....................................................................................................................... 19 Conclusion .................................................................................................................................... 30 Bibliography .................................................................................................................................. 31 Appendix 1 .................................................................................................................................... 34 Appendix 2 .................................................................................................................................... 35 Appendix 3 .................................................................................................................................... 36 Appendix 4 .................................................................................................................................... 39 Appendix 5 .................................................................................................................................... 40

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Annelise L. Kouns Preservation Economics & Development-­‐HIPR-­‐704-­‐OL Professor J. Gunther 07 March 2014

The Princess Theatre Economic Feasibility Study History The building chosen for a rehabilitated use for this Economic Feasibility Study is that of the Princess Theatre, situated within the historic downtown district, located at 130 W. Fifth Avenue, Mount Dora, Florida. Originally built in the early 1920s, it was positioned on Fifth Avenue, one of the main thoroughfares of the budding town. The building is constructed of hollow clay tiles and cement block with an exterior finish of Fig. 2 Map of Mount Dora highlighting building and main brick and stucco in a row-­‐style layout. thoroughfares of Fifth Avenue and Donnelly Street This rectangular, 8,880-­‐square-­‐foot, two-­‐story building (with a small projection room disguised as a partial third story attic space) features two bathrooms, a main lobby, a two story central area and a box office. When the theatre first opened it hosted seating for 600 patrons on two different stories. At that time segregation was still very much a factor, and the seating was separated by the floors with whites on the ground floor and blacks on the second floor.

On 4 July 1928, while a film was playing in the theatre, it caught on fire in the projection booth and completely burned the front of the theatre. At this time, a Mr. Charles Woodbridge from Gainesville, Florida, owned the theatre and commissioned the architect L. J. Pierce, a local Mount Dora builder, to complete the repairs.1 The building was redone in a Spanish Revival

1 Melanie V. Barr Associates, Historic Resource Survey: Downtown Mount Dora, Florida, 1980.

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architectural theme (which continues to distinguish the building from its surroundings). Special equipment was purchased for the theatre, including a piece of sound equipment that was called a Phototone, which was a leading non-­‐ synchronous instrument, unique in its time that allowed for silent movies to be played.

Around the mid-­‐1940s, Woodbridge used this technology and connected synchronous films to the Phototone, so talking movies would be featured at the theatre. Both Florida State Theatres and MCM Theatres later operated the theatre.

Fig. 3 Historic photo of Mount Dora from the 1940s. The Princess Theatre is situated on the right side of the road (see marquees).

In the mid to late 1970s the theatre was sold and remodeled into an evening club, called Arabian Nights. This did not last very long before the building was again retrofitted to become a multi-­‐stalled antique mall, which is the condition that it now remains. The building has been vacant for the last 5-­‐8 years. It was taken over by Main Street Leasing, a local leasing company, nearly two years ago. They recently removed the original entry doors of the theatre, closed off the front entrance and replaced it with a large screen television, which plays movies in the evenings as people walk by on the sidewalk. The front entrance has been completely gated, so no one can enter the building through the portico. When I was interviewing one of the partners from Main Street Leasing, she informed me that they do not have much hope that the building will be rented or bought in the near future, especially since it has remained vacant for so long.2 Map of historic downtown district of Mount Dora see Appendix 1.

Assessment The building is in good condition, but it is noticeable that it has been vacant and neglected for some time. It appears to have sound structure, roof and foundation. The interior needs some attention and if it is to be rehabilitated into a theatre, then the following will need to be addressed:

2 (Main Street Leasing), Michelle Middleton. Interview by author. Personal interview. Mount Dora, FL, January 16, 2014.

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§ § § § § § § § § § § § § § § § § § § §

Stalls will need to be removed, Second-­‐story dismantled, Full cleaning, Painting, Bathrooms will need to be addressed and updated, Fire codes met, Carpet removed, Stage will need to be rebuilt, Countertops will need to be installed for concession area, Rehabilitation of the box office, Installation of brand new carpet (where needed), Refinishing of wood floors, Rewiring of electricity, Lighting, Marquees Replacement of main entrance doors, Update of HVAC system, Installation of projector and sound system, Rehabilitation of projector booth, Soundproofing, etc.

Quite a lot of work will be needed to realize this project. Emphasis will be put on getting the building in leasing order within 6-­‐9 months. A lot of this is dependent upon the building and zoning departments of Mount Dora and the cooperation of the building and fire inspectors and the police chief. Of course, the building review committee will need to be on board with this as well.

Existing floor plans see Appendix 2.

Images see Appendix 3.

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Proposal It is hoped, that through the findings of this feasibility study, that the now vacant building can be transformed into the once vibrant and community-­‐centered theatre. As the building and property fall within the C-­‐2 Zoning Code, it allows for practically any business use or combination of uses, including a theatre. The local schools could be approached to use the building for their school recitals, plays, and other fundraising activities requiring such a space.

The building presents itself perfectly to be reused as a theatre and its location alone makes this a prime location for such a use, as Fifth Avenue remains one of the main streets within the historic downtown district. Limitations that will be encountered will be that of traffic control, demolition trash removal and pick-­‐up when rehabilitation occurs. Parking issues can easily be remedied by utilizing the local public parking garage located two blocks away, the parking lot immediately behind the building and various public parking spaces along the streets. Also, the fire code will need to be addressed according to expected occupancy rates.

In accordance with The Secretary of the Interior’s Standards for the Rehabilitation, the 10 Standards for Rehabilitation basically provides for this property to be rehabilitated with very minimal problems. The second standard, “The historic character of a property will be retained and preserved. The removal of distinctive materials or alteration of features, spaces, spatial relationships that characterize a property will be avoided…,”3 may present a problem as the whole interior has been changed and the original seating, light fixtures, etc. have been removed and sold. Also there are no historic photos, blueprints or historic records of any kind other than deeds to draw historical direction from as these records were all destroyed in a devastating fire in Mount Dora in the mid-­‐1920s. All other Standards are achievable and should pose no problem in their implementation.

Through the later investigation of similar case studies of historic theatres that have been rehabilitated, it is anticipated that The Princess Theatre will also be able to follow suit as a non-­‐ profit managed organization. Repertory and classic films will be showcased, as well as specialty themed films for special occasions or events. This will cover the distributor licensing fees while still allowing for an income for the theatre.

3 Weeks, Kay D., and Anne E. Grimmer. The Secretary of the Interior's Standards for the Treatment of Historic Properties: with guidelines for preserving, rehabilitating, restoring & reconstructing historic buildings. Washington, D.C.: U.S. Department of the Interior, National Park Service, Cultural Resource Stewardship and Partnerships, Heritage Preservation Services, 1995.

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Program Proposal see Appendix 4.

Market Study National Market Factors Current national public policy initiatives in place that could possibly impact a rehabilitation project are laws, regulations and guidelines, like those of Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA), and the National Park Service (NPS), which stipulate what, when, where, why and how these projects should be carried out and realized. OSHA requires that certain measures be taken with regard to realizing the rehabilitation such as safety procedures, construction techniques, etc.; EPA regulates the method and means of disposal of building materials such as asbestos, piping, etc.; and NPS requires that certain preservation policies and guidelines be followed with great attention.

Table 1 Average annual expenditures and characteristics of all consumer units and percent changes, 2010-­‐2012

Average Annual Expenditures

2010

Total: Food -­‐ At home Away from home Housing Apparel and services Transportation Health care Entertainment Cash contributions Personal insurance and pensions All other expenditures

$48,109 6,129 3,624 2,505 16,557 1,700 7,677 3,157 2,504 1,633 5,373

3,379

2011

2012

Percentage change 2010-­‐2011

$49,705 6,458 3,838 2,620 16,803 1,740 8,293 3,313 2,572 1,721 5,424

3,382

$51,442 6,599 3,921 2,678 16,877 1,736 8,998 3,558 2,605 1,913 5,591

3,557

2011-­‐2012

3.3 5.4 5.9 4.6 1.5 2.4 8.0 4.9 2.7 5.4 0.9

0.1

3.5 2.2 2.2 2.2 0.5 -­‐0.2 8.5 7.3 1.3 11.2 3.1

5.2

Bureau of Labor Statistics, US Department of Labor. Consumer Expenditures-­‐2012.

Since 2010 there has been a steady rate of 4% of income targeted to entertainment purposes.4 Both the unemployment rate and the labor market have been in a slow decline. More people

4 U.S. Bureau of Labor Statistics. "CONSUMER EXPENDITURES-­‐-­‐2012." U.S. Bureau of Labor Statistics. http://www.bls.gov/news.release/cesan.nr0.htm (accessed January 28, 2014).

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are purchasing their homes outside city limits as to avoid heavier taxes, while they shop within nearby areas provided to them through new development. As it is important to consider national market factors in this study, the local market deviates more from national trends to heavier community support and involvement.

The current state of the national economy has adversely affected our community due to the fact that there is less cash flow and consequently less disposable income to spend as before the recession and depression hit. The real estate investment market, while very soft, has remained mixed – residential property values are holding, while some of the commercial properties are weakening in value.5 Regional and Local Market Factors Mount Dora is situated within Lake County, located in Central Florida. Lake County is responsible for 17% of the economic activity within Florida and it represents 5.1% of the region of Central Florida’s economy.6 The main towns that neighbor Mount Dora are Eustis, Tavares and Leesburg. The population within these areas has increased only nominally. The median age for Mount Dora is 48, while the surrounding towns average in the 40 and above range. There are several 55 and older communities in the area and surrounding vicinity.

Table 2 Local Comparisons

City

Pop.,

Economic Activity,

Median

Households

Median Household

2010

2007 (Millions)

Age

Eustis

18,558

$272

41.5

7,513

$45,170

Leesburg

20,117

$1,058

40.7

8,485

$36,061

Mount Dora

12,370

$495

47.9

5,585

$45,104

Tavares

13,951

$136

52.5

6,143

$39,395

Income, 2011

US Census Bureau: State and County QuickFacts, 2010

5 (City of Mount Dora – Cultural & Special Events), Christopher Carson. Interview by author. Personal interview.

Mount Dora, FL, January 29, 2014.

6 "Florida Real Estate Market Data." Florida Real Estate Market Data.

http://visulate.com/rental/visulate_search.php?REPORT_CODE=CITY&state=FL&county=LAKE&city=MOUNT%20D ORA®ion_id= (accessed February 1, 2014).

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Table 3 Demographics: Age

Age

Mount Dora

Lake County

Florida

USA

Persons under 5 years

5.6%

5.2%

5.5%

6.4%

Persons under 18 years

18.6%

20.3%

20.7%

23.5%

Persons 65 years and over

26.8%

25.2%

18.2%

13.7%

US Census Bureau: State and County QuickFacts, 2010 Table 4 Demographics: Race

Race

Mount Dora

Lake County

Florida

USA

White

77.5%

85.0%

78.3%

77.9%

Black

15.6%

10.5%

16.6%

13.1%

American Indian

0.4%

0.6%

0.5%

1.2%

Asian

1.8%

2.1%

2.7%

5.1%

Hawaiian or Pacific Islander

0.1%

0.1%

0.1%

0.2%

Hispanic or Latino

11.7%

13.0%

22.5%

16.9%

Two or More Races

1.8%

2.5%

1.9%

2.4%

US Census Bureau: State and County QuickFacts, 2010 Table 5 Demographics: Education

Education (2008-­‐2012)

Mount Dora

Lake County

Florida

USA

High school graduate or higher

87.8%

87.1%

85.8%

85.7%

24.9%

20.2%

26.2%

28.5%

(percent of persons age 25+) Bachelor’s degree or higher (percent of persons age 25+) US Census Bureau: State and County QuickFacts, 2010

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Table 6 Demographics: 55+ Communities

City

Number of 55+ Communities

Lake County

100

Mount Dora

9

Eustis

4

Tavares

14

Leesburg

29

Florida Commission on Human Relations: Directory of 55+ Communities, 2007

Focusing on the data collected within Lake County, the labor force has remained rather constant (at about 131,956). The most productive industry within the local economy has been that of the Service-­‐Providing sector with a distant following by the Education and Health Services sector. The Construction and Information sectors have had the largest increases from 2012 to 2013. The Agricultural sector has seen significant decline over the past two decades, which has had an impact on the shifted industry within the area.7 The local community is in favor of preservation efforts, especially within Mount Dora. With regard to new growth, as long as it does not compromise local heritage and culture, it is a welcome endeavor.8 Resources for Local Market Factors: Tourism Top annual events in the Eustis-­‐Leesburg-­‐Mount Dora-­‐Tavares area, are heavy tourists draws, which aid in the local economies, as most of these are Friday evening through Sunday afternoon events.

7 "Employment by Industry." Economic Indicators.

http://www.businessinlakefl.com/communityprofile/economicindicators (accessed January 28, 2014).

8 (City of Mount Dora – Cultural & Special Events), Christopher Carson. Interview by author. Personal interview.

Mount Dora, FL, January 29, 2014.

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Events 9

Mount Dora

Annual Christmas Parade – 6 December

City Christmas Light Up – 1 December

Lighted Boat Parade – 6 December

Leesburg

Food Trucks – 3 Thursday every month

Christmas Tour of Homes – 6-­‐7 December

Food-­‐N-­‐Flick (Food Trucks) – 2 Saturday of every month

Renninger’s Antique Extravaganza – 17-­‐19 January

Children’s Christmas in the Park – 13 December

Movie Night – last Friday of every month

Annual Arts Festival – 1-­‐2 February

Mount Dora Half Marathon – 21 December

Mardi Gras – 22 February

nd

Mount Dora Art Strolls – 2 Friday every month rd

Annual Mount Dora Music Festival – 20-­‐23 February Mount Dora Spring Show – 22-­‐23 March

12

nd

Eustis

Annual Fine Arts Festival – 8-­‐9 March

Georgefest – 1 March

Fish Fry – 3 April

Annual Jazz Revue – 21 March

Leesburg Bike Fest – 25-­‐27 April

Annual Lake County Folk Festival – 12-­‐13 October

Corn Fest – 7 June

10

Annual Sail Boat Regatta – 5-­‐6 April Independence Day Celebrations – 4 July

th

4 of July Celebrations Lake County Fair – 3-­‐12 April

Annual Bicycle Festival – 10-­‐12 October Annual Craft Fair – 25-­‐26 October

11

Chili Cook-­‐Off – 2 November

Tavares Sunnyland Antique Boat Festival – 22-­‐25 March

Craft Beer, Wine & Food Festival – 21 November

Annual Mount Dora Plant & Garden Fair – 1-­‐2 November

July 4 Celebrations

Leesburg Main Street Christmas Stroll – 29 November

Annual Mount Dora Scottish Highland Festival – 8-­‐9 November

Wings and Sunflowers Festival – 28-­‐ 30 September

Main Street Christmas Parade Festival – 7 December

Annual Mount Dora Patriot Cruise & Salute – 9 November

Taste of Tavares – 14 November

Venetian Garden Light-­‐Up/Boat Parade – 8 December

Annual Light Up Mount Dora – 29 November Christmas Walk – 5 December

9 "Special Events." Welcome to Mount Dora, FL. http://ci.mount-­‐ dora.fl.us/index.aspx?NID=229 (accessed January 28, 2014).

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10 "Eustis, FL Events." American Towns. http://www.americantowns.co m/fl/eustis/events/radius:0 (accessed January 28, 2014).

11 "Activities: Annual Festivals, Fairs & Events." What To Do In Tavares, FL. http://www.visittavares.com/ac tivities/festivals.shtml (accessed January 28, 2014).

12 "Calendar of Events."

Leesburg Events. http://leesburgevents.com/ (accessed January 28, 2014).

9

Annelise L. Kouns Preservation Economics & Development-­‐HIPR-­‐704-­‐OL Professor J. Gunther 07 March 2014

Real Estate Market Factors This building falls within the C-­‐2 Commercial Zoning, which allows for any commercial endeavor to be pursued and realized.

Rent Levels Within the commercial zoning district of historic downtown Mount Dora rental real estate located on Donnelly Street costs about $30 per square foot, while everything else within that district costs $26 per square foot. Since several vacancies are spotted around town, many of the buildings are technically not appreciating in their value.13 Financing There are three different means through which financing of the rehabilitation of the theatre could take place: owner financing, commercial bank/mortgage company and (individual) investors.

Supply Analysis There is not an oversupply of theatres, especially located within the main commercial core of downtown areas within this region.

Competitive Analysis In the immediate area of Eustis, Leesburg, Mount Dora and Tavares there are various arts and cultural outlets, including: three community theatres (one in Mount Dora); three Centers for the Arts (one in Mount Dora); two orchestras (one in Mount Dora); a movie theatre in Leesburg; and seven Historical Museums (one in Mount Dora). In Mount Dora there is the Ice House Theatre, where live, community theatre is performed; although as of late the theatre has

13 (Main Street Leasing), Michelle Middleton. Interview by author. Personal interview. Mount Dora, FL, January 16, 2014.

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not been that successful. Also there is an active Community Center in Mount Dora that hosts various events in the community, including the local orchestra. These two outlets along with the closest movie theatre located in Leesburg (which is not that economically successful) would be the most competitive outlets in the local market.

Case Studies of Nearby, Small Community Theatres “You can find performing arts centers in most any town, but Florida has many venues that are unlike any others in the world. The gems come in all sizes and ages – grandiose movie palaces from the 1920s, small bohemian mid-­‐century film houses and even stages transplanted from 18th-­‐century Europe.”14 Enzian Theater -­‐ 1300 S. Orlando Avenue, Maitland, FL (27 miles away) (www.enzian.org) Events

Showings

Admission

Venue

Special Events

Various

Various

Enzian Theater

Peanut Butter Matinee Family Film

4th Sunday of every month – 12:00PM

$5 General Admission Enzian Theater

Popcorn Flicks

2nd Thursday of every month – 8:00PM

Free

Cult Classics

2nd and Last Tuesdays $5 General Admission Enzian Theater of every month – 9:30PM

Saturday Matinee Classics

2nd Saturday of every month – 12:00PM

$8 General Admission Enzian Theater

Wednesday Night Pitcher Show

Every Wednesday -­‐ 7:30PM

Free

Outdoor Movie in Central Park, Winter Park

$5 Members Outdoor Movie at Enzian Theater

14 Waddell, Lynn. "Florida's Historic Theaters Take Center Stage." Visit Florida. http://www.visitflorida.com/en-­‐

us/articles/2009/february/1163-­‐florida039s-­‐historic-­‐theaters-­‐take-­‐center-­‐stage.html (accessed January 28, 2014).

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The Enzian Theater, a 200 person capacity single screen theatre founded by a local family, provides food and drinks through Eden Bar, a restaurant and bar that is open 7 days a week, from 11:00AM to 11:00PM Sundays through Thursdays and 11:00AM to 1:00AM Fridays and Saturdays. Food and drinks can be enjoyed outside and inside the movie showing. On Wednesday Night Pitcher Show, Happy Hour runs from 7:00PM to 11:00PM. Annual member dues range from $60 to $2,200, with student and senior pricing of $30. The theater is run as a non-­‐profit and relies on sponsorships, donations and volunteer efforts. As an ancillary effort of raising funds, gift certificates, memberships and merchandise can be purchased from their ‘shop.’ The theatre can be rented at any time: Facility Rentals $2,500 (Mondays through Thursdays), cancelling one evening show or $1,500 (Fridays through Sundays), cancelling one matinee show; Room rentals are $250 per hour at a two-­‐hour minimum, available until 5:00PM. Also, Eden Bar can cater events for set prices.

Garden Theatre – 160 W. Plant Street, Winter Garden, FL (22 miles away) (www.gardentheatre.org) Events

Showings

Admission

Milk Money Movies

Summers, Tuesdays -­‐ 10:00AM

$1 Children Admission ($1 popcorn & fruit juice)

Summer Movie Series

Summers, Thursdays and Fridays – 7:00PM

$5 General Admission

Starlite Film Festival

Annually for a 4 days run, Thursdays through Sundays – various times

$5 General Admission

Plays

Various Showings and Times

Various Prices ($25+)

Ballet

Various Showings and Times

Various Prices

Concerts

Various Showings and Times

Various Prices

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Spearheaded by the Winter Garden Heritage Foundation, the Garden Theatre operates as a non-­‐profit, showcasing movies, plays, concerts and dances. The theatre relies on donations, subscribers and seasonal vouchers to boost income. Tickets can range from $10 -­‐ $29.

Subscriptions are available in the form of 6-­‐packs for 6 tickets for the price of $144, 12-­‐packs for $264 and 22-­‐packs for $440 – all of which can be applied towards theatre, ballet or concerts. Seating capacity is available for 299 guests. Rentals are available and prices start at $500, usually ranging from $750 to $2000 per event. Field trips and tours are also available for minimal fees.

The Polk Theatre – 121 S. Florida Avenue, Lakeland, FL (74 miles away) (www.polktheatre.org) Events

Showings

Admission

Films

Fridays and Saturdays – 7:30PM

$7 – Adults

Sundays – 2:00PM Plays

Various Showings and Times

$5 – Seniors and Students $4 – Children 12 under Various Prices

Interested patrons within the Lakeland community joined forces to create a non-­‐profit to purchase the theatre. The theatre is maintained with the help of donations, sponsorships and memberships. Plays and movies are showcased interchangeably. Tours are given for groups of 10+ individuals at a suggested contribution of $10. Annual memberships are available ranging from $50 to $1000, with discounted rates of $25 for seniors and students. Rentals are also available. Seating capacity is available for 1,400 patrons.

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Target Market Profile

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Table 7 American Adults’ Movie-­‐Going Trends, January 2014

American Adult Movie Trends

All Adults

18-­‐ 36

37-­‐ 48

49-­‐ 67

68+

Males Females

Went to any movie

68%

83%

73%

59%

44% 70%

66%

Went to 10+ movies

17%

24%

21%

11%

9%

20%

14%

Mean number attended

4.8

6.3

5.3

3.6

3.2

5.5

4.1

Prefer watching movies at home

57%

52%

56%

60%

60% 53%

60%

Agree: I am going to the movies less 66% often than a few years ago

67%

59%

66%

74% 61%

70%

Harris Interactive

As mentioned earlier, in Table 2, the median age of residents in Mount Dora and the surrounding target area is mid-­‐to-­‐late-­‐40s, not to say other demographics are not accounted for, as stated in Table 3. It is expected that there will be a sufficient number of supporters in the necessary demographics to support and visit the theatre frequently enough. These numbers are expected to increase during area events as well as during the heightened winter and summer tourist seasons that runs from December through April brings in many snowbirds (visitors from the north) and visitors, and the second from June through August.15 Space and Amenity Preference The building meets the necessary space requirements to host a theatre, as it was a theatre in its original use. There is available parking within proximity through street parking and a nearby parking lot. A space is available for a concession area, but the necessary amenities would need to be added. There are two bathrooms that would need to be retrofitted and perhaps enlarged.

The box office space is already in place and amenities would need to be introduced to return it to its original use. The area designated for the theatre is already provided, again only seating, lighting, soundproofing, sound equipment, curtains and carpeting would need to be added to transform it back into a functioning theatre.

15 "Sunsational Off-­‐Seasons." About.com Florida Travel.

http://goflorida.about.com/od/planningyourtrip/a/offseasons.htm (accessed January 27, 2014).

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Magnitude of the Target Market There is sufficient support from the local area to rehabilitate the Princess Theatre, as it is considered a valuable asset within the community. Considering the theatre would also be available to those within the surrounding area it will have the required target market necessary to function. Between retail shops, restaurants and activities within the historic downtown Mount Dora area, there are enough local and visiting patrons who would take advantage of the Princess Theatre. Also only the restaurants and bars remain open past 6:00PM, otherwise there is no other entertainment provided unless there is an ongoing event or live entertainment from the restaurants/bars.

Capture Rate A)

Mount Dora, 12,370 pop.

3 days/week x 440 seats = 1320 patrons/week 1320 patrons/12370 pop. = 10% Capture Rate at full capacity (8% at 75% capacity)

B)

Eustis – Leesburg – Mount Dora – Tavares, 64,996 pop.

3 days/week x 440 seats = 1320 patrons/week 1320 patrons/64996 pop. = 2% Capture Rate at full capacity (1.5% at 75% capacity)

Pro Forma Analysis Initial Amounts The Acquisition Cost was developed through talks with the owners, Main Street Leasing. The building was originally listed at $495,000, but because it has been vacant and on the market for the past 5+ years, an Area Modification of a -­‐7% was subtracted, making the Acquisition Cost $460,350.16

16 (Main Street Leasing), Michelle Middleton. Interview by author. Personal interview. Mount Dora, FL, January 16, 2014.

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A. Costs of Rehabilitation a. Hard Costs b. Soft Costs

Sub-­‐total

$825,559.50

$743,750.00 $81,809.50

Costs of Rehabilitation ($825,559.50) were the additions of Hard Costs ($743,750) and Soft Costs ($81,809.50).

a. Hard Costs

Total SF Rehabbed

4440

Cost per SF

$125.00

Total Hard Costs Seating Sound System Projection System Screen (Installed) Fireproof Curtains

$555,000.00 $15,000.00 $4,000.00 $40,000.00 $18,000.00 $50,000.00

Concession Carpet (approx. 110 sq.yd) Used Chandeliers

$3,000.00 $2,600.00 $5,000.00

Bathrooms Lighting/Dimmers

$40,000.00 $50,000.00

Area Modification (-­‐7%)

$(31,080.00)

Sub-­‐total

$743,750.00

The Hard Costs were calculated using the total amount of square-­‐footage to be rehabilitated, 4,440-­‐square-­‐foot, multiplied by the going rate of $125 per square-­‐foot.

Also other construction and amenity costs were added in to this calculation. The Area Modification was at a rate of -­‐7% (-­‐$31,080), leaving the total $743,750.

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Soft Costs consisted of: b. Soft Costs A & E Fees Legal Fees Permit Fees Construction Start-­‐up

$52,062.50 $2,000.00 $12,872.00 $14,875.00

Sub-­‐total

$81,809.50

1) Architectural and Engineering Fees at 7% of $743,750-­‐ $52,062.50 2) Legal Fees-­‐ $2,000 3) Permit Fees17-­‐ $12,872 (Commercial Property Insurance-­‐ $1,800 (City of Mount Dora Fees-­‐ $75

(Demolition Fees-­‐ $75

(Fire Alarm Inspection-­‐ $71.50

(Fire Sprinkler Inspection-­‐ $107.50

(Standard Fire Inspection-­‐ $75

(Standpipe Inspection-­‐ $50

(Fire Suppression System-­‐ $50

(Commercial Final Fire Inspection-­‐ $30

(Fire Inspection (Annual)-­‐ $43

(Utility Reconnection Fee-­‐ $75

17 "CITY OF MOUNT DORA FEE SCHEDULE ." City of Mount Dora Fees. http://ci.mount-­‐ dora.fl.us/DocumentCenter/Home/View/410 (accessed February 20, 2014).

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(Electric Meter-­‐ $125

(Water Meter-­‐ $450

(City Impact Fees-­‐ $6,940

4) Construction Start-­‐Up at 2% of $743,750-­‐ $14,875 Initial Amounts Purchase Price A. Costs of Rehabilitation

$460,350.00 $825,559.50

Total Project Costs

$1,285,909.50

Loan to Value Ratio

75%

Mortgage Amount

$964,432.13

Cash Investment

$321,477.37

Total Project Costs ($1,285,909.50) were equivalent to the sum of the Acquisition Cost ($460,350) and the Costs of Rehabilitation ($825,559.50). The Loan to Value Ratio was calculated at 75% (because 25% must be put towards a commercial property), this multiplied by the Total Project Costs made the Mortgage Amount $964,432.13. To discover the amount of Cash Investment, the Mortgage Amount was subtracted from the Total Project Cost equating to $321,477.37.

Annualized Incomes Annualized Amounts INCOME Less assumed 25% vacancy

$1,232,000.00 $(308,000.00)

Gross Effective Income C. Less Operating Expenses D. Less Annual Debt Service

$924,000.00 $(329,200.23) $(62,127.36)

ROI #1 Before Tax Cash Flow

$532,672.41

ROI #1 Percent

165.70%

E. ROI #2 Return on Taxes

$8,356.50

ROI #2 Return on Taxes 2.60% Percent F. ROI #3 Appreciation $38,577.29 ROI #3 Percent TOTAL ANNUAL ROI (1, 2, 3)

12.00% 180.29%

Income was derived from the following calculations: There is a total seating capacity of 440 seats, but for this project it will be calculated at a 75% fill rate, which would be 330 seats. Tickets would be available for $8 and this multiplied by 330 The Princess Theatre

22

seats would be $2,640. With a plan of 7 showings per week, this would bring in an income of $18,480. If the theatre can run for 50 weeks a year, with the 7 showings per week, this would give an annual income of $924,000. If the theatre were at full capacity (440 seats) for each showing during those 50 weeks, there would be a total income of $1,232,000, or a difference of $308,000.

Additional income will be earned through the showing of movie trailers and advertisements on a regular basis. The going rate for advertisements is $250 a month, with a minimum of 2 airings per screening, which would be a minimum of 14 screenings per week and a minimum of 56 screenings a month. At this price of $250, it averages to cost less than $4.50 a showing to a captive audience.

Additional income will be derived from concession sales. Another possibility for income would be an increase in the number of showings and the renting out of the facilities for special events, lectures, field trips, concerts, themed events, film festivals, etc. Also, annual memberships offering discounted entry and special offers could be provided at a starting rate of $75.

Operating Expenses totaled $329,200.23 and were based on the calculations of the following: C. Operating Expenses Insurance Management Legal/Accounting Lease-­‐up Fee Maintenance Employment Film Licensing Fees (Distributor) Trash Removal Utilities-­‐ Water, Electric, Sewer (Best Estimate) Sub-­‐total

$4,500.68 $45,000.00 $2,000.00 $1,000.00 $6,429.55 $42,000.00 $181,350.00 $3,000.00 $43,920.00 $329,200.23

As the theatre is assuming non-­‐profit management, it will comply with “Section 501(c)(3) which refers to organizations formed exclusively to accomplish "religious, charitable, scientific, literary

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or educational" purposes. Community theaters fall into this classification.”18 Because of this, The Princess Theatre can qualify for exemption of federal income taxes. Insurance ($4,500.68) was figured by multiplying the Total Project Cost by the Insurance Rate of 0.35%. 19 Management Costs were estimated at $45,000. The Legal and Accounting Fees were estimated at $2000. Lease-­‐up Fee was estimated at $1000. Maintenance Fees ($6,429.55) were figured by multiplying the Total Project Cost by 0.5%. Employment was estimated for 5 employees at $10 per hour for 3 employees working for 14 hours and 2 employees working for 21 hours. Film Licensing Fees were estimated at $181,350.00, at $1,209 per film20 for 3 different movies every week for 50 weeks out of the year. Trash Removal is $3,000, at $60 per week for 3 pick-­‐ups a week. Utilities (water, electric and sewer) were estimated at $43,920, at $3660 per month.21 Debt Service: D. Debt Service Mortgage

$964,432.13

Interest Rate %

5%

Number of Years

30

Monthly Payment Annual Debt Service

$5,177.28 $62,127.36

Mortgage Amount is $964,432.13. Number of Years is 30. It is assumed that the loan period will be for 30 years at a 5% interest rate with a Monthly Payment of $5,177.28. Therefore, the Annual Payments would be $62,127.36.22

18 "Why a Non-­‐Profit Theater Company -­‐ Community Theater Green Room -­‐-­‐ Why a NonProfit Theater Company?."

Why a Non-­‐Profit Theater Company -­‐ Community Theater Green Room -­‐-­‐ Why a NonProfit Theater Company?. http://www.communitytheater.org/articles/business/nonprofit.asp (accessed March 1, 2014).

19 ProForma Analysis, J. Gunther.

20 "2012 Income & Expenditures." Film Streams Annual Report. http://news.filmstreams.org/wp-­‐ content/uploads/2013/03/Film-­‐Streams_Annual-­‐Report_2012.pdf (accessed February 23, 2014).

21 (City of Mount Dora – Property Maintenance & Housing Inspection), Niki Eversen. Interview by author. Personal interview. Mount Dora, FL, February 28, 2014.

22 "Small Business Loan Calculator." Small Business Loan Calculator. http://www.amortization-­‐calc.com/small-­‐ business-­‐loan-­‐calculator/ (accessed February 20, 2014).

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Return on Taxes: ROI #1 Before Tax Cash Flow ROI #1 Percent

$532,672.41 165.70%

The ROI #1 Before Tax Cash Flow ($532,672.41) was calculated by deducting Operating Expenses ($329,200.23) and Annual Debt Services ($62,127.36) from the Gross Effective Income ($924,000). The ROI #1 Percentage (165.70%) was figured by dividing the Cash Flow ($532,672.41) by the Cash Investment ($321,477.37).

The ROI #2 Return on Taxes without Tax Credit was calculated using the following: E. Return on Taxes w/o Tax Credit Total Property Value Less Value of Land Depreciable Base Number of Years Annual Depreciation Tax Bracket Return on Taxes ROI #2 Percent

$1,285,909.50 $(121,968.00) $1,163,941.50 39 $29,844.65 28% $8,356.50 2.60%

Total Project Costs -­‐ $1,285,909.50 Value of the Land -­‐ $121,968 Depreciable Base (deduct the Land Value from the Property Value)-­‐ $1,163,941.50 Since the property is commercial the Number of Years of Depreciation is 39.

Annual Depreciation (Depreciable Base divided by 39)-­‐ $29,844.65 Assuming a Tax Bracket of 28%.

Return on Taxes (Annual Depreciation divided by Tax Bracket)-­‐ $8,356.50

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ROI #2 Return on Taxes Percent (Return on Taxes divided by Cash Investment ($321,477.37))-­‐ 2.60% Appreciation was calculated using the following: F. Appreciation Property Value

$1,285,909.50

Annual Appreciation % Appreciation Return ROI #3 Percent

3% $38,577.29 12.00%

Total Project Costs -­‐ $1,285,909.50 Annual Appreciation is assumed to be 3% Appreciation Return (Property Value multiplied by Annual Appreciation)-­‐ $38,577.29 ROI #3 Percent (Appreciation Return divided by Cash Investment ($321,477.37))-­‐ 12% TOTAL ANNUAL ROI (1, 2, 3)

165.70%

TOTAL ANNUAL ROI (1,2,3)-­‐ ROI #1 Percent (165.70%)+ ROI #2 Percent (2.60%) + ROI #3 Percent (12%)-­‐ 180.29% Pro Forma Analysis see Appendix 5.

Conclusion There are many variable factors involved with this project that should be considered extensively if it is to be realized. It is assumed that The Princess Theatre will be bought and operated through the management of a non-­‐profit organization. There is already enough support and interest garnered for the rehabilitation of The Princess Theatre that makes it a welcome and positive addition to the historic downtown fabric of Mount Dora. The theatre will provide a much-­‐needed outlet for entertainment and community involvement, as only local restaurants and bars remain open past 6:00PM. With the right amount of community support, donations, sponsorships and volunteer efforts, it is expected that The Princess Theatre will be a feasible project.

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Bibliography "2012 Income & Expenditures." Film Streams Annual Report. http://news.filmstreams.org/wp-­‐ content/uploads/2013/03/Film-­‐Streams_Annual-­‐Report_2012.pdf (accessed February 23, 2014).

"Activities: Annual Festivals, Fairs & Events." What To Do In Tavares, FL. http://www.visittavares.com/activities/festivals.shtml (accessed January 28, 2014).

"Calendar of Events." Leesburg Events. http://leesburgevents.com/ (accessed January 28, 2014).

(City of Mount Dora – Cultural & Special Events), Christopher Carson. Interview by author.

Personal interview. Mount Dora, FL, January 29, 2014.

"CITY OF MOUNT DORA FEE SCHEDULE ." City of Mount Dora Fees. http://ci.mount-­‐ dora.fl.us/DocumentCenter/Home/View/410 (accessed February 20, 2014).

City of Mount Dora Historic Preservation Board, City of Mount Dora: Historic Design Guidelines (Florida Department of State, 2001).

(City of Mount Dora – Property Maintenance & Housing Inspection), Niki Eversen. Interview by author. Personal interview. Mount Dora, FL, February 28, 2014.

"Employment by Industry." Economic Indicators. http://www.businessinlakefl.com/communityprofile/economicindicators (accessed January 28, 2014).

"EPIC Theaters to build 14-­‐screen multiplex with 'earth-­‐shaking' sound in Mount Dora." Orlando Sentinel. http://articles.orlandosentinel.com/2014-­‐02-­‐13/news/os-­‐epic-­‐theatre-­‐mount-­‐ dora-­‐20140213_1_movie-­‐theater-­‐epic-­‐theatres-­‐epic-­‐theaters (accessed January 30, 2014).

"Eustis, FL Events." American Towns. http://www.americantowns.com/fl/eustis/events/radius:0 (accessed January 28, 2014).

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"Florida Real Estate Market Data." Florida Real Estate Market Data. http://visulate.com/rental/visulate_search.php?REPORT_CODE=CITY&state=FL&county =LAKE&city=MOUNT%20DORA®ion_id= (accessed February 1, 2014).

"From Coast to Coast Cities Are Growing Faster Than Suburbs -­‐ The Wire." The Wire. http://www.thewire.com/national/2012/07/coast-­‐coast-­‐cities-­‐are-­‐growing-­‐faster-­‐ suburbs/54516/ (accessed January 28, 2014).

Kouns, Annelise, Mount Dora Building Survey: No. 19, The Princess Theatre, 2013.

"Main Street Leasing Co. Inc.." Lake County GIS. http://gis.lakecountyfl.gov/gisweb/default.aspx?owner=&altkey=1465401&subdivision= (accessed January 13, 2014).

(Main Street Leasing), Michelle Middleton. Interview by author. Personal interview. Mount Dora, FL, January 16, 2014.

Melanie V. Barr Associates, Historic Resource Survey: Downtown Mount Dora, Florida, 1980.

"On Average, American Adults Say They Went to 5 Movies Last Year." MarketingCharts. http://www.marketingcharts.com/wp/traditional/on-­‐average-­‐american-­‐adults-­‐say-­‐they-­‐ went-­‐to-­‐5-­‐movies-­‐last-­‐year-­‐39161/ (accessed January 30, 2014).

"Popcorn People: Profiles of the U.S. Moviegoer Audience." Neilsen. http://www.nielsen.com/us/en/newswire/2013/popcorn-­‐people-­‐profiles-­‐of-­‐the-­‐u-­‐s-­‐ moviegoer-­‐audience.html (accessed January 30, 2014).

"Small Business Loan Calculator." Small Business Loan Calculator. http://www.amortization-­‐ calc.com/small-­‐business-­‐loan-­‐calculator/ (accessed February 20, 2014).

"Special Events." Welcome to Mount Dora, FL. http://ci.mount-­‐dora.fl.us/index.aspx?NID=229 (accessed January 28, 2014).

"State and County QuickFacts." US Census Bureau. http://quickfacts.census.gov/qfd/index.html# (accessed January 28, 2014).

"Sunsational Off-­‐Seasons." About.com Florida Travel. http://goflorida.about.com/od/planningyourtrip/a/offseasons.htm (accessed January 27, 2014).

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U.S. Bureau of Labor Statistics. "Latest CE News Releases." U.S. Bureau of Labor Statistics. http://www.bls.gov/cex/ (accessed January 30, 2014).

Waddell, Lynn. "Florida's Historic Theaters Take Center Stage." Visit Florida. http://www.visitflorida.com/en-­‐us/articles/2009/february/1163-­‐florida039s-­‐historic-­‐ theaters-­‐take-­‐center-­‐stage.html (accessed January 28, 2014).

Weeks, Kay D., and Anne E. Grimmer. The Secretary of the Interior's Standards for the Treatment of Historic Properties: with guidelines for preserving, rehabilitating, restoring & reconstructing historic buildings. Washington, D.C.: U.S. Department of the Interior, National Park Service, Cultural Resource Stewardship and Partnerships, Heritage Preservation Services, 1995.

"Why a Non-­‐Profit Theater Company -­‐ Community Theater Green Room -­‐-­‐ Why a NonProfit Theater Company?." Why a Non-­‐Profit Theater Company -­‐ Community Theater Green Room -­‐-­‐ Why a NonProfit Theater Company?. http://www.communitytheater.org/articles/business/nonprofit.asp (accessed March 1, 2014).

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Appendix 1 Map of Historic Downtown Mount Dora (The Princess Theatre is highlighted)

Essential Therapies Garden Spa To W.T. Bland Public Library, Renniger’s Antiques Market & Orlando (Turn right [South] on Hwy 441)

Design Interiors International, Inc.

Historic Downtown Mount Dora

NINTH AVE.

Healthy Alternatives Day Spa

EIGHTH AVE. Post Office

First National Bank $ ATM SEVENTH AVE.

Maison En Ville

DONNELLY ST.

All of our shops and restaurants are within easy walking distance of each other. We hope you visit every one of us!

Visit us at www.VisitMountDora.com

Pierce Realty

Tremain Street Cottages

Adora Inn

SIXTH AVE.

PARKING

Historic Donnelly House Order of the Eastern Star #103

Heron Cay Lakeview Bed & Breakfast

MAP IS NOT TO SCALE

Daisy a Day Florist

Community Building

Madga & Malena's Boutique

City Hall

TREMAIN ST.

The Merchants and Businesses of Mount Dora Welcome You!

Donnelly Park Main Street Leasing Cupca

5th the Arts r ns on Artisa Center fo

lights ke De

Patrick’s Fine Art

Old Jail and Museum

Julianne’s Coastal Cottage

ell k utsh n rsoc ’s e De Cody th Bowe llery In a N iatures Min Ga on 4

Win

FOURTH AVE. TREMAIN ST.

ntry t’s Pa

Pigle

ora nt D n ra Moutoric In unt Do s His Mo ottage C

PARKING

Fiesta Grande Mexican Grill

Euro Donnelly Footwear

Tree Frog Artisan Boutique

Goblin Market

Mt Dora Visitor’s Center Saucy Spoon Merrill’s Market

PARKING

Downtown Yoga

ROYELLOU LANE

Windsor Rose Tea Room

Designer Exchange International

MCDONALD ST.

Lancaster’s

Rusty Anchor Boat Tours

PARKING Mon-Sat Hobscot United Pet Supply Methodist Church

$ ATM Suntrust

Gold in Art Jewelers

Craig Cat Tours

Piece of Mine

FIFTH AVE.

One Flight Up

PARKING Pisces Rising Cecile’s French Rest.

Corner

PARKING

Secret Garden Painting Outside the Lines

Whispering Winds

DONNELLY ST.

Segway Tours

et rm ttic ou s y G ct ’s A Ka rodu ggie e a De en P M a K tch Ki

Fourth St. Docks

DORA DRAWDY WAY

Bavarian Haus

ALEXANDER AVE.

MCDONALD ST.

Under the Cherry Blossoms

BAKER ST.

Barrel Operation of Books Deep & Games Freeze

Pure Aveda Em’z Salonspa on Fifth

vka io e Sli tud Jan ry & S e Gall

Conch House Cottages

Award Winning Magnolia Inn Bed & Breakfast

t tree er S dio Bak ts’ Stu is Art

THIRD AVE. Lakeside Inn Docks

The Gatehouse Gift Gallery

Premier Boat Tours

Mt Dora Tavern Tour and Mt Dora Ghost Walk START HERE

Lakeside Inn

Future Sto p Blossom Caof Orange nnonball

PARKING GARAGE

Tremain’s Tavern Beauclaire Restaurant

Lawn Bowling

Sundays 9 am to 2pm

The Princess Theatre

TO ELIZABETH EVANS PARK

PARKING To G CHARL Lighthilbert Pa ES AVE. ouse rk, Palm Point & BoaIsland t Dock

34

Appendix 2 Existing Floor Plans of The Princess Theatre

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35

Appendix 3 QPSUJDP TJEF FOUSZ JOUFSJPS HSPVOE øPPS FOUSZ Assessment Images of the Building JOUFSJPS HSPVOE øPPS FOUSZ QPSUJDP TJEF FOUSZ

Fig. 2 Main entrance of the building, under the portico, facing Fifth Avenue. Entry has been replaced with large screen TV.

Fig. 3 Interior of the ground floor, facing north, towards the main entry. Foyer has been barricaded with plywood.

Fig. 4 Open space to the left of the main entrance, formerly provided secondary entrance, but has been closed off.

PQFO TQBDF BDSPTT GSPN CPY PóDF

PQFO TQBDF BDSPTT GSPN CPY PóDF

CPY PóDF

Fig. 5 Box office, situated across from the open space and right of the main entrance. Currently a storeroom for the components that power the exterior TV screen.

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36

CPY

JOUFSJPS HSPVOE øPPS TUBMMT

JOUFSJPS HSPVOE øPPS SFBS PQFO TQBDF

Fig. 6 One of several stalls, towards the front of the building.

Formerly an ice-­‐cream stand within the shopping mall.

Fig. 8 Stall, facing towards the rear of the building, situated left of the main hall’s staircase.

Fig. 7 Another stall behind that of Fig. 6. Makeshift wood partitions separate the stalls from one another.

Fig. 9 Main hall and staircase of the building, facing the rear of the building. There is a slight, sloping decline as the rear of the building is approached.

Fig. 10 Stall to the right of the main hall’s staircase, facing towards the rear of the building.

The Princess Theatre

DPSSJEPS HSP

Fig. 11 The rear of the building that was originally the area that was the base of the theatre’s stage. There is a back door to the left.

DPSSJEPS HSPVOE øPPS TUBMMT 37

TFDPOE øPPS PQFO TQBDF GBDJOH XFTU

TFDPOE øPPS PQFO TQBDF GBDJOH TPVUI

TFDPOE øPPS PQFO TQBDF GBDJOH XFTU

Fig. 42 Second floor, looking towards the rear of the building.

Not on original part of the building. Makeshift metal gates have been added. Original proscenium arch of the theatre.

Fig. 24 Sectioned off area of the second floor.

Fig. 33 Second floor, looking towards the front of the building.

Original balcony of the theatre, but it has been sectioned off by plywood.

TFDPOE øPPS GBDJOH OPSUI

Fig. 15 Former projection booth, located on a semi-­‐built third floor. Doors were a later addition and lead to an exterior balcony.

UIJSE øPPS QSPKFDUJPO CPPUI GBDJOH OPSUI

TFDPOE øPPS GBDJOH OPSUI

UIJSE øPPS QSPKFDUJPO CPPUI GBDJOH OPSUI

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Appendix 4 Program Proposal of The Princess Theatre

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Appendix 5 Pro Forma Analysis PROOFORMA)for)The)Princess)Theatre)Rehabilitation INITIAL)AMOUNTS Purchase)Price A.)Cost)of)Rehabilitation Total)Project)Costs Loan)to)Value)Ratio Mortgage)Amount Cash)Investment

$)))))))))460,350.00 $)))))))))825,559.50 $))))))1,285,909.50 75% $)))))))))964,432.13 $)))))))))321,477.37

ANNUALIZED)AMOUNTS INCOME Less)assumed)25%)vacancy Gross)Effective)Income C.)Less)Operating)Expenses D.)Less)Annual)Debt)Service ROI)#1)Before)Tax)Cash)Flow ROI)#1)Percent E.)ROI)#2)Return)on)Taxes ROI)#2)Return)on)Taxes)Percent F.)ROI)#3)Appreciation ROI)#3)Percent TOTAL)ANNUAL)ROI)(1,)2,)3)

$((((1,232,000.00 $))))))))(308,000.00) $)))))))))924,000.00 $))))))))(329,200.23) $))))))))))(62,127.36) $)))))))))532,672.41 165.70% $))))))))))))))8,356.50 2.60% $))))))))))))38,577.29 12.00% 180.29%

The Princess Theatre

Projected)Typical)Year

A.)Cost)of)Rehab a.)Hard)Costs b.)Soft)Costs c.)RentOup)Costs SubOtotal

B.)Income Ticket)Prices Seating)Availability Weekly)Income,)7)showings)per)week Annual)Income,)50)weeks Annual)Memberships Concession)Sales Theatre)Rental School)Fieldtrips Special)Events Total)Income

$)))))))))))743,750.00 $))))))))))))))81,809.50 $)))))))))))825,559.50

$))))))))))))))))))))))))8.00 440 $))))))))))))))24,640.00 $))))))))1,232,000.00 TBD TBD TBD TBD TBD $))))))))1,232,000.00

C.)Operating)Expenses Insurance Management Legal/Accounting LeaseOup)Fee Maintenance Employment Film)Licensing)Fees)(Distributor) Trash)Removal UtilitiesO)Water,)Electric,)Sewer)(Best)Estimate) SubOtotal

$))))))))))))))))4,500.68 $))))))))))))))45,000.00 $))))))))))))))))2,000.00 $))))))))))))))))1,000.00 $))))))))))))))))6,429.55 $))))))))))))))42,000.00 $)))))))))))181,350.00 $))))))))))))))))3,000.00 $))))))))))))))43,920.00 $)))))))))))329,200.23

D.)Debt)Service Mortgage Interest)Rate)% Number)of)Years Monthly)Payment Annual)Debt)Service

$)))))))))))964,432.13 5% 30 $))))))))))))))))5,177.28 $))))))))))))))62,127.36

E.)Return)on)Taxes)w/o)Tax)Credit Total)Property)Value Less)Value)of)Land Depreciable)Base Number)of)Years Annual)Depreciation Tax)Bracket Return)on)Taxes ROI)#2)Percent

$))))))))1,285,909.50 $))))))))))(121,968.00) $))))))))1,163,941.50 39 $))))))))))))))29,844.65 28% $))))))))))))))))8,356.50 2.60%

F.)Appreciation Property)Value Annual)Appreciation)% Appreciation)Return ROI)#3)Percent

$))))))))1,285,909.50 3% $))))))))))))))38,577.29 12.00%

a.)Hard)Costs Total)SF)Rehabbed Cost)per)SF Total)Hard)Costs Seating Sound)System Projection)System Screen)(Installed) Fireproof)Curtains Concession Carpet)(approx.)110)sq.yd) Used)Chandeliers Bathrooms Lighting/Dimmers Area)Modification)(O7%) SubOtotal

4440 $)))))))))))))))))))125.00 $)))))))))))555,000.00 $)))))))))))))15,000.00 $)))))))))))))))4,000.00 $)))))))))))))40,000.00 $)))))))))))))18,000.00 $)))))))))))))50,000.00 $)))))))))))))))3,000.00 $)))))))))))))))2,600.00 $)))))))))))))))5,000.00 $)))))))))))))40,000.00 $)))))))))))))50,000.00 $))))))))))))(38,850.00) $)))))))))))743,750.00

b.)Soft)Costs A)&)E)Fees Legal)Fees Permit)Fees Construction)StartOup SubOtotal

$)))))))))))))52,062.50 $)))))))))))))))2,000.00 $)))))))))))))12,872.00 $)))))))))))))14,875.00 $)))))))))))))81,809.50

40