1. Team Members: Mary Anne Benvenutti Chad Brown Roger Carr Elizabeth Franklin Dave Free

2. Financial Feasibility

4. Project Capital Cost

5. Base Cost (Worst Case Scenario) The tax assessed value of Fluvanna real estate totaled $3.35 billion in 2008. A $0.05 tax increase, from $0.48 to $0.53 per $100, would be required to cover project debt service (assuming no revenue generation). For the average $250,000 home, this represents an annual obligation of $125, or $10.42 per month. With this increase, Fluvanna County would retain one of the lowest real estate tax rates in the area.

6. Project Revenues Wholesale Rate: forecast at $3.50 per 1,000 gallons. Retail Rate: forecast at $7.00 per 1,000 gallons. Wholesale and retail combined operating costs projected at $4.50 per 1,000 gallons. Although not accounted for in the financial model, operating costs benefit from economies of scale: Connection fees projected to average $754,000 annually - assumed to cover costs only. Availability fees, estimated as high as $2.93 million, have been excluded from the projection.

7. Real Estate Appreciation Utilities foster commercial development which accelerates real estate appreciation directly and indirectly. Density example (1 home per 2 acres vs. 2 homes per 1 acre): 300 homes X $350,000 = $105 million 1,200 homes X $350,000 = $420 million Louisa example: Lowe’s tax assessed value: $13 million Best Western tax assessed value: $8 million An increase of $373 million in taxable value, or 11.1%, would cover debt service entirely, independent of any other revenue sources. Annual appreciation of approximately 2.5% would generate sufficient incremental cash flow to cover debt service in just over 4 years.

8. Sales Tax Revenue 1% sales tax retained by Fluvanna County. Perspective on development in Louisa: An average Lowe’s store generates annual revenue of approximately $30 million. An average Wal-Mart super-center generates annual revenue of $65 million. 1% retained sales tax revenue equates to $950,000. Assuming growth of $15 million in sales per year results in annual sales tax revenue of $750,000 in year five.

9. Louisa County Example

10. Other Capital Sources Other capital sources may include state and federal grant assistance. Fluvanna County has requested a $10 million participation in the Economic Stimulus Package. Financing programs available through USDA Rural Development. FUSD may be eligible for a grant.

12. Assumptions Detail