RE:RE:RE:schnepsI never stated it was $45M before one house is built.
If you look at the "Cummulative Cash Flow" on page 12 of the report.
Year one is (-$10.67M)
Year two is (-$34.95M)
Year three is ( +2.02M) Does Captiva get 10% of that? No because it is not net profit.
Add to this the 15%+ inflationary increase, water rights, bonuses, offsite infrastructure requirement, and most of all the financing requirements that are not included in the "proforma report". Bump everything by probably 30%+, IMHO.
It is not VOYA that's saying they want finance the initial project infrastructure needs. That is a mandatory requirement by the City for each phase to have those items in place before a single building permit is issued. The reasoning being the City wants the entire phase having completed serviced lots. You can reference the Altus Report starting at page 90 for the Statutory Conditions for Approval.
Why?
Exactly because of what happened to Alta Estates (which is the major builder Jeff referenced a few blocks away). That subvision went belly up and the City was at least left with the serviced lots to sell to KHovananian Homes for $55,000 per lot.
Housing developments are not 100% recession proof as Jeff has previously stated. They are actually very vulnerable and the reason why they cost so much money to develop.