Cash Flow Analysis & Project Proforma
Zimmerman Group has experience preparing project cash flows and proformas to assist clients understand the feasibility of any project. Our cash flow modeling provides the flexibility for various scenarios to assist in analyzing changing land use assumptions. Among other things, our cash flows identify anticipated revenues, land and development costs, loan and equity requirements, interest reserve requirements, lender and/or investor IRRs, and overall project profitability.
Zimmerman Group’s preparation of project cash flows and proformas considers all factors and assumptions impacting a project’s revenues and costs such as fee credits and reimbursements, land secured financing proceeds, infrastructure phasing options, and cost sharing arrangements.
Fiscal Impact Analysis
A fiscal impact analysis evaluates a project’s net fiscal effect (revenues less costs) on a local agency and determines whether or not development will benefit or burden the existing level of service (e.g., public safety services, library services, public maintenance). The fiscal impact analysis evaluates each component of a municipality’s revenue and cost related to specific land use assumptions.
Demonstrating a projects positive fiscal impact can be a powerful tool in accelerating project approvals with agency staff and bolstering community support. Conversely, there are certain conditions in which projects may have an unfavorable fiscal impact on the governing municipalities. In these instances, Zimmerman Group will propose funding alternatives for addressing such fiscal shortfalls.
Zimmerman Group gathers all the relevant facts based on current and past jurisdictional practices in order to make sure a project’s net fiscal effect is accurately represented and solutions are provided for project success.
With development standards continuing to get more stringent, the conditions placed on projects seeking land use approvals can sometimes be prohibitive and/or overbearing. These types of conditions may be in the form of oversized infrastructure requirements or ongoing charges for public services that go far beyond the need or obligation of the proposed development.
Zimmerman Group works with public agency staff to identify solutions for phasing and allocating infrastructure burdens and/or charges for services. These solutions are then implemented through the project conditions of approval, specific plan documents, or memorandums of understanding (MOUs) with agency policy makers.