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f,g �ndi'a'�iareGqu�t��ln ° �,�e�i� m�r"$►'��� <br />� •�of "'�': �n r sl >5'J tt-,r J 7 ' <br />Land <br />Value/Square <br />Sector Property Cata o Foot <br />1 <br />Governmental <br />$3.48 <br />2 <br />Governmental <br />$5.07 <br />Single Family Residential <br />$11.59 <br />3 <br />Governmental <br />$4.29 <br />Single Family Residential <br />$11.46 <br />Multi -Family Residential <br />$19.48 <br />Time Share <br />$29.90 <br />5 <br />Governmental <br />$9.35 <br />Single Family Residential <br />$10.81 <br />Multi -Family Residential <br />$20.16 <br />Commercial <br />$18.33 <br />Time Share <br />$29.90 <br />7 <br />Single Family Residential <br />$9.91 <br />2.3 TOTAL STORM PROTECTION BENEFITS <br />The storm protection benefits of the proposed beach restoration projects were <br />calculated over a 30 -year project horizon and reduced to net present value. In <br />order to reduce the annual value to net present values, we utilized a "corrected" <br />interest rate. At the present time, the typical interest rate is five (5) percent. If <br />this five (5) percent rate is used as the discount factor, it would leave out the <br />impact of future inflation. Therefore, the inflation rate must be subtracted from <br />the bonds interest rate. Though the inflation rate has fluctuated over time, the <br />average rate of inflation for the past two (2) years has been (2) two percent. <br />Table 4 presents the results of the storm protection benefits analysis by beach <br />sector for beach restoration improvement projects along Indian River County. On <br />the basis of these calculations, the net present value of the storm protection <br />benefit over a 30 -year project horizon calculated for the proposed beach <br />restoration projects are estimated at $27,444,286 attributed solely to land loss <br />prevention, new seawall construction, and cost savings for seawall maintenance. <br />JANUARY 19, 1999 <br />-49- BOOK 108 WE <br />