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A revised financial analysis released today provides a murkier picture of the financial costs of redeveloping the City Hall complex compared to waiting 10 years to rebuild.
The analysis, which follows a review by Ernst & Young, includes a range of potential costs because multiple calculations were run using different assumptions.
For instance, some scenarios assumed developer Gerding Edlen completed the whole project while others assumed only the first phase was completed. The scenarios included different assumptions about whether the city would receive tax-exempt financing on all, part or none of the building.
Analysts from Jones Lang LaSalle compared those options to a “hold steady” scenario in which the city built a new City Hall in 10 years.
Many of the scenarios found that going with the development plan rather than waiting to build would likely cost the city in the first 10 years, but would save money in 15 or 50 years.
However, other scenarios found the development proposal would save in the short run and cost in the long run. Still others found that Gerding Edlen’s plan would save money in all three timeframes.
The analysts included ranges for all the scenarios because the money the city will have to spend on capital expenses could vary widely, depending on the building costs that surface in the next few years.
Jones Lang LaSalle’s report and a PowerPoint presentation summarizing the report is available on the CCDC website.
A public meeting will be held to discuss the results of the revised analysis at 6 p.m. Thursday at the Centre City Development Corp. office, 401 B. St, fourth floor.
The matter is expected to come before a City Council committee in June and go to the full council in July.