The Voodoo project had the misfortune of starting when construction costs and interest rates were significantly higher.

COST OF THE PROJECT

The total budget for the 27 residential units (≈approximately 24,000 sq. ft. of livable space), 3,700 sq. ft. of commercial space, and garage/other (≈approximately 15,000 sq. ft.) for a fixed-price bid with Shaw Construction for $27,428,928, of which $21.5 million was financed with bonds against the project. The per-square-foot cost of livable space (excluding commercial) is approximately $1009 per square foot.

Below are estimates breaking out the cost of the commercial from residential and assuming 90% of the parking is built for residents of the building. The total "residential space" would be 23,896 livable sf, plus 90% of the parking for a total gross residential area of 37,593. Applying a reduced overall cost to remove the estimated commercial space, that works out to about $1,009 per square foot of livable space. This means that the average unit, with a size of 1,012 square feet, costs approximately $1,021,152 before financing costs.

The Town received a grant of $2,000,000 to reduce the project's cost. Assuming they reduce the financed portion by the same amount, the amount financed with a 6% loan over 20 years is $19.5 million.

This amount results in a monthly cost of just under $150,000 for financing the loan. The total interest owed on $19.5 million over 20 years is $14,000,000 or an additional $583 per livable sf for a total of $1,595 per sf. Or another way to look at it is that the average unit size of 1012 sf costs $1,614,796 per unit to build and finance.

INCOME

The anticipated income for VooDoo is approximately $83,000 per month, assuming full occupancy, which VooDoo has struggled to achieve. The following are the initial rents anticipated at full occupancy, along with the amount each unit type would generate. This also includes the monthly payment of Coffee Cowboy for the commercial space at about $11,500 per month.

We do not have an explanation for how this project is funded, given that the monthly income appears to be about half the monthly cost. It is certainly possible that a large balloon payment is added at the end of the loan, but this is unknown.

Now, again, these costs and financing are not necessarily good or bad, but they should be available to voters before a project is approved. According to the available information, $1,600 per square foot (including financing) is a substantial amount for building affordable housing, but the voters should ultimately determine this.