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r <br />MOK 98 PA, 227 <br />Dr. Dearing advised that prior to the 30 year lease with the <br />County, the school system was receiving $20,000 per year of "race <br />track" money, which totalled $446,500 per year. Under the terms of <br />the lease, the School Board forfeited the $20,000 and had to pay <br />$45,000 per year to lease the building. At that time, it was <br />beneficial for both the County and the School Board. <br />Dr. Dearing estimated the value for the present space in <br />today's market would run between $8-$12 per square foot, or <br />approximately $243,000 (using $10/square foot). Then, he <br />calculated the future value on the remaining 14 years of the lease: <br />$243,000 - $45,000 = $198,000 x 14 years = over $4 million in value <br />(using 5% per year amortizing growth costs) if they rented space <br />elsewhere. <br />Dr. Dearing advised that they -also researched the "race track" <br />money because it is an income possibility. Of the 67 school <br />districts in the state, 60 currently pledge from 5% to 100% of <br />their "race track" funds to the school system. The average is 60%. <br />Of the 7 districts that are not, 3 receive impact fees and 2 <br />receive sales tax. The 3 districts that do not receive any "race <br />track" funds are Indian River County, Dade County, and one he could <br />not remember. <br />Dr. Dearing saw a 2 -part problem: the County needs the space <br />and it would cost the School Board over $4 million (value of lease) <br />and $3.2 million minimum to rebuild in today's dollars. If the <br />School Board breaks the lease, all rights to the "race track" money <br />would be forfeited as long as the lease is in effect. But, if the <br />County is willing to give the state average of "race track" money <br />to the School Board, the School Board could go out and bond it for <br />a 20- year period and replicate the 24,000 square feet and give up <br />the space. <br />Dr. Dearing pointed out that the offer from the County, <br />however, is to move out and move into the old courthouse and other <br />buildings. Restoration costs create another problem, so, the <br />School Board requested Tony Donadio to research those costs because <br />he was familiar with the building. <br />FACILITY ANALYSIS AND RECOl UMNDATIONS - MR. DONADIO <br />Tony Donadio, Donadio & Associates Architects, P.A., presented <br />his findings by reviewing the following information in detail and <br />using an area map of the site: <br />4 <br />Mai &301996 - <br />