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NEWS RELEASES
City of Knoxville, Tennessee
Madeline Rogero, Mayor
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For Immediate Release
Theater Comparisons for Construction of New Movie Theatre Downtown
REHAB FRONT 60 FEET AND NEW CONSTRUCTION - COST SUMMARIES
 
DEVELOPMENT COSTS

REHAB

NEW

Building $9,207,900 $5,115,500
Sitework/Demolition $1,576,983 $1,547,190
Rehab Cost $1,297,175 N/A
New Retail $690,400 N/A
FF & E (Regal) $2,500,000 $2,500,000
Soft Costs $214,000

$184,000

Total Cost $15,486,458 $9,346,690
 
POTENTIAL FUNDS TO OFFSET COSTS
Historic Tax Credit $620,256 N/A
New Market Tax Credits $157,787 N/A
Additional New Market Tax Credits - New Construction $2,327,187 $1,351,194
Sale of Shops $1,330,595

N/A

Potential Funds Available $4,435,825 $1,351,194
Net Development Costs $11,050,633 $7,995,496
Difference in Cost $3,055,137
 
REHAB FRONT 60 FEET - COST DETAILS
 
SITEWORK AND STABILIZATION
Utilities   $75,000
Walks and Landscaping   $458,280
Excavation   $64,468
Gabion Walls   $55,000
Segmented Walls   $141,873
Miscellaneous   $75,000
General Conditions   $60,000

Subtotal   $929,621
10% Contingency   $92,962

Total   $1,022,583
 
DEMOLITION WHILE SAVING THE FRONT 60 FEET
Base   $325,000
Protect Buildings - Allowance   $179,000

Subtotal   $504,000
10% Contingency   $50,400

Total   $554,400
 
REHAB COST FOR 60 FEET
(This would be all new construction except for the front and side walls. Contingency is built into square foot costs.)
Basement 10,725 x $30   $321,750
Back Wall 179 x 25 x $40   $179,000
Roof 10,725 x $6   $64,350
Store Front 179 x 15 x $25   $67,125
Mechanical 10,725 x $18   $193,050
Plumbing 10,725 x $3   $32,175
Electrical 10,725 x $8   $85,800
Structural 10,725 x $15   $160,875
Finishes 10,725 x $18   $193,050

Subtotal   $1,297,175
 

NEW RETAIL SPACE

(Contingency is built into square foot costs.)
Structural Back Wall Allowance   $100,000
New Basement 2,880 x $85   $244,800
New Structure 2,880 x $120   $345,600

Subtotal   $690,400
 
SOFT COSTS (ESTIMATED)
Architect   $130,000
Engineer   $15,000
Testing   $10,000
Environmental   $6,000
Survey   $8,000
Legal   $25,000
Other Closing Expenses   $20,000

Subtotal   $214,000
 
TOTAL REHAB COSTS: $3,778,558  
NEW THEATER CONSTRUCTION 40,924 x $225 $9,207,900  
REGALS FF&E   $2,500,000
TOTAL PROJECT COST $15,486,458  
 
REHAB FRONT 60 FEET - ASSUMPTIONS
 
Building: The building is 40,924 square feet. Regal estimates that the cost per square foot would increase by $125 plus per foot to construct a two-story theater. It is impossible to get the exact cost difference without complete plans and specifications. In our comparison, we have used $100 per square foot cost difference ($125 per square foot to $225 per square foot).

Sitework/Demolition: These are numbers produced by Johnson & Galyon, General Contractors. See attached.

Rehab Cost: These are numbers produced by Johnson & Galyon, General Contractors. See attached.

New Retail: These are numbers produced by Johnson & Galyon, General Contractors. See attached.

FF & E: This is Regal's contribution to the project.

Soft Costs: To be on the conservative side we are estimating the same soft costs for both projects except $30,000 extra for Architect on the rehab portion due to the small shops.

Tax Credits: Given by John Leith-Tetrault at NTHP Commercial Partners. We used the 20% historic tax credit, the maximum possible.

Additional New Market Tax Credits - New Construction: 39% of the total new construction cost x 52%. (Rehab: $11,475,283 x 39% x 52% = $2,327,187) (New: $6,662,690 x 39% x 52% = $1,351,194)

Sale of Shops: Estimate a net operating income from the shops of $130,316 with a sales capitalization rate of 9.50%.

For Immediate Release
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