Deconstructing the Development Pro Forma

APA Minnesota Chapter

#9130898

Thursday, September 28, 2017
9:15 a.m. - 10:15 a.m. CDT

CM | 1

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Overview

Sources, Uses, Rents, Expenses, Return on Investment! Gap? The pro forma is a development budget that is central to every project. This skills-building session walks through the components of rental housing and commercial/industrial pro formas, analyzing risk and return, and the key factors when reviewing requests for local financial assistance. 

This session focuses on advancing real estate development knowledge, building analytical skills, and problem solving. Many communities are faced with requests from developers for local financial assistance through tax increment financing, tax abatement, or other local sources. Before one can determine if the financing assistance request is justified, it is important to understand the basic components of the development pro forma. This session deconstructs a rental housing and commercial development pro forma to explain: 1) the types of development sources; 2) typical project costs; 3) information that banks require to finance a project; 4) how developers analyzes risk and return; 5) developer fees; and, 6) key factors a community should consider when reviewing a request for local financing assistance. Attendees will gain a better technical and analytical understanding of pro forma components, questions to ask developers requesting assistance, and how assistance can impact a housing development project. 

Speakers

James Lehnoff

James joined Ehlers in October 2016 with 14 years of local government and real estate development experience, including extensive work in land use planning, economic development, housing development, Pro Forma analysis, community engagement, and project management. James has successfully implemented complex and nationally recognized development projects to advance community goals ... Read More

Jason Aarsvold

Jason has been with Ehlers since September 2013 assisting Minnesota cities to design and implement financial solutions. Prior to joining Ehlers, he had 16 years of municipal development and finance experience. Jason has analyzed and negotiated some of the most complicated municipal development and redevelopment projects in our region, navigating ... Read More

Contact Info

Jane Kansier, janeka@bolton-menk.com