Laserfiche WebLink
August 2, 1958 bond redemption premium of <br />5½% on call of remaining issue estimated <br />at 18,002 bonds <br /> <br />990,110~00 <br /> <br />$18,992~110.00 <br /> <br />In connection with the calculation set £or~h in Note below, it <br />is estimated that there will be an excess due to clearing out <br />of Bond Redemption Fund etc. of <br /> <br />- lO1,500.O0 <br /> <br />TOTAL REFINANCING COST <br /> <br />$18,890,610.00 <br /> <br /> NOTE: It is contemplated that under a new trust indenture it will be unnecessary to carry <br />an interest reserve in excess of one year. Based on this and the further assumption of a 4% interest rate on <br />a $45,000.00 bond issue, it will he necessary to have an interest reserve of $1,800,000. This bas been pro- <br />vided for in these calculations by assuming that the accumulations and excesses in the Bond Redemption Fund, <br />Bond Service Fund and Reserve Fund, plus any additio~nal or underestimates of revenues, will be sufficient to <br />produce this amount, and hence in calculating the needed funds out of the net realized from a future bond issue <br />it will not be necessary~to also borrow interest monies, as they would be on hand from the sources indicated. <br /> <br />CONSTRUCTIONCOST <br /> <br /> There would seem little ne3d in a paper such as this no analyze our E~gi~eers' cost estimates. <br />Suffice it to say that Mr. John O, Bickel of Messrs. Parsons, Brinckerhoff, Hall & Macdonald, in a letter to <br />commission's General Counsel hasstated that the Minimum Tunnel Project, including acquisition of right of way, <br />engineerin~d actual construction costs from High Street in Portsmouth To the interchange with the proposed <br />Waterfront Drive in Norfolk, are detailed as follows: <br /> <br />Contract No. 1 <br />Fabrication, concreting and sinking of ll precast tubes, including <br />dredging and backfill of the tunnel trench ..................... <br /> <br /> Contract No. 2 <br /> Construction of the cut"s~ud cover sectio ns, open approache~, <br /> ventilation building, electrical and mechanical work, and <br /> interior finish of the~tunnel <br /> <br /> Contract No: 3 <br /> ConstrucTion of the Norfolk interchange, consisting or-approach <br />' highway, ramps und structure (practically the entire Norfolk <br /> approach consists of the interchange since it will be directly <br /> adjacent To the~upgrade end of the open approach) ~ ............. <br /> <br /> Contract No. 4 <br /> Construction of thePortsmouth approach highway, from the inter~ <br /> change at the A.C.L. Railroad to its junctio~ with Contract No. <br /> Included'in this contract will be ramps .to local~ streets, the <br /> bridg~ structure, and t~e toll plaza and buildings ............ <br /> <br />$11,517,250. <br /> <br />7,296,750. <br /> <br />782,000. <br /> <br />1,733,000. <br /> <br />Contract No. 5. <br />Construction of an approach highway of two lanes 24 ft. wide ~on <br />a four 'lane right of way, so ~s to permit a fu~ui~e.enlargemenT to a <br />four lane divided highway from High Street in Portsmouth to its <br />connection with Contract No. 4 ................................. <br /> <br />784,000. <br /> <br />Contractors' bond premium and administration costs ............ <br /> <br />500,000. <br /> <br />Contingencies <br />tt should be noted that our Consulting Engineers, Parsons, Brinckerhoff, Hall <br />& ~acdonald, in makiug the above computation allowed for factors commonly <br />usedin arriving aT construction estimates~ and an such are~merely normal <br />leaway on the best calculations that can be made ~of probable cost of a <br />project of this size. However, our financial advisors, F.~. Craigie & ~Co. <br />recognize that suchdoes not include contingencies ~n a broader sense, namely <br />for needed changes in design, omissions or general 'elbow room' common in <br />all major constn{ction projects. They state tbat in order to market the/re- <br />quired bond issue, it is necessary to include a further contingency item <br />of ............................................................. 1,000.000. <br /> <br />Total estimated cost of minimu~ tunnel project <br /> <br />$23,613,000. <br /> <br />PROBLEM <br /> <br /> Based upon the estimates of our Traffic Engineers, DeLeuw, Cather & Company, and their calcu- <br />lations of toll revenue thereon, and the money market; our financial advisors have given us a top fig-are of <br />$45,000,000 as the most optimistic revenue bend issue we could hope to float at any time in the foreseeable <br />future. Our problem is therefore, immediately apparent: <br /> <br />Assume par is received frog <br />We-would have <br />Inescapable charges against this fund <br />Needed to retire balance of present bond issue <br />C~st of project <br />Balance available for payment of junior obligations, <br /> totaling $5,140,894. <br /> <br />the s~de of the maximu~ bond issue - <br /> <br /> 18,890,610 <br /> g3,613~000. <br /> <br />$45,000,000 <br /> <br /> 42,503,610. <br /> <br />2,496,390. <br /> <br /> <br />