Complementary Services Costs & Benefits
The project budget provides the development team hard data as the project evolves from concept towards reality. The goal is to provide a thoughtful, informed budget that predicts the project’s future cost as closely as possible. Because there are some unknowns and many uncertainties, budgets must be both accurate based on the Scope of Work and at the same time conservative to account for unknowns and uncertainties.
Project Budget Advanced to Cost/Benefit Analysis
The Project Budget is an essential building block, yet the data by itself does not help owners make the thoughtful informed decisions they need for wise investments. For owners to make a truly thoughtful and informed decision about the future of their property, the Budget must be advanced to a Cost/Benefit Analysis–which compares the total expected cost of each scenario (investment) against the total expected benefits (value), to see whether the benefits outweigh the costs, and by how much. We offer this unique and powerful tool as (1) a means to determine if potential Scenarios are sound financial investments and (2) a basis for comparing Scenarios to each other–to set the stage for an informed, understandable and defensible decision.
Standard financial models assess project viability with respect to Owner’s equity and traditional loans, and projections of building operating expenses and revenues. Our dynamic spreadsheet model includes these aspects but also layers additional factors unique to revitalization development. The spreadsheet model generates a Development Budget, Pro Forma, Project Lease Up schedule, and Debt Service details. This model combined with presentation expertise (which helps make complex topics easily understandable) makes for unusually informative and productive meetings with banks.
Reconciling use expectations plus physical and code improvements with demanding budgets often requires grants to “close the gap”. Lachman Architects & Planners is highly experienced in implementing and applying for grants. In addition, we are particularly skilled at “co mingling” grants and “cross leveraging” them with other programs to creatively obtain optimum financial benefit.