Exhibit A
UNIVERSITY OF VIRGINIA
Preliminary
Feasibility Study
for
Addition to Observatory Dining Hall,
Approximately 200 Seats
Prepared by The
University of Virginia Budget Office
In Consultation with the
Director of Business Operations
December 1, 1981
UNIVERSITY OF VIRGINIA
Addition to Observatory Dining Hall, Approximately 200 Seats
Project Description
The University is planning to construct an addition to
Observatory Dining Hall. The project is expected to be completed
in July, 1984 at a cost of $871,500 including utilities. We have
requested approval of the total project by the General Assembly,
and we would like the project to be included in a revenue bond
issue for permanent financing.
In the vicinity of Observatory Dining Hall, the University
is constructing housing for 650 students. Since the present
contract facilities are operating at capacity, additional dining
space is needed at Observatory Dining Hall to accommodate the
students residing in the new housing. The addition will include
space for approximately 200 seats, another hot service line, a
walk-in cooler and/or freezer and a small storage area for
additional volumes of foodstuffs.
Payment of the debt will be from food service contract
sales. In calculating the debt payment schedule, an interest
rate of 12% was used and the payments were extended over 20
years which resulted in coverage of approximately 110%.
UNIVERSITY OF VIRGINIA
Addition to Observatory Dining Hall, Approximately 200 Seats
Estimated Annual Net Revenue Available for
Debt Service for $871,500 Bond Issue
| Estimated Revenues |
| Food Service Contract Sales (indicates that portion of increased contract sales which are reserved for operating costs and debt service on the new facility) |
$167,350 |
| Total Estimated Revenues |
$167,350 |
| Estimated Expenditures |
| Personnel Salaries & Fringe Benefits |
$ 16,650 |
| Maintenance |
19,450 |
| Supplies & Other Contractual Services |
2,250 |
| Total Estimated Expenditures |
$ 38,350 |
| Total Estimated Net Revenues |
$129,000 |
UNIVERSITY OF VIRGINIA
DEBT SERVICE SCHEDULE
ADDITION TO OBSERVATORY DINING HALL, APPROXIMATELY 200 SEATS
INTEREST RATE 12 %
| YEAR |
REMAINING PRINCIPAL |
PRINCIPAL PAYMENT |
INTEREST PAYMENT |
TOTAL DEBT SERV PAYT |
REVENUE |
COVERAGE |
|
871,500.00 |
| 1985 |
861,500.00 |
10,000.00 |
104,580.00 |
114,580.00 |
129,000.00 |
1.13 |
| 1986 |
846,500.00 |
15,000.00 |
103,380.00 |
118,380.00 |
129,000.00 |
1.09 |
| 1987 |
831,500.00 |
15,000.00 |
101,580.00 |
116,580.00 |
129,000.00 |
1.11 |
| 1988 |
816,500.00 |
15,000.00 |
99,780.00 |
114,780.00 |
129,000.00 |
1.12 |
| 1989 |
796,500.00 |
20,000.00 |
97,980.00 |
117,980.00 |
129,000.00 |
1.09 |
| 1990 |
776,500.00 |
20,000.00 |
95,580.00 |
115,580.00 |
129,000.00 |
1.12 |
| 1991 |
751,500.00 |
25,000.00 |
93,180.00 |
118,180.00 |
129,000.00 |
1.09 |
| 1992 |
726,500.00 |
25,000.00 |
90,180.00 |
115,180.00 |
129,000.00 |
1.12 |
| 1993 |
696,500.00 |
30,000.00 |
87,180.00 |
117,180.00 |
129,000.00 |
1.10 |
| 1994 |
661,500.00 |
35,000.00 |
83,580.00 |
118,580.00 |
129,000.00 |
1.09 |
| 1995 |
626,500.00 |
35,000.00 |
79,380.00 |
114,380.00 |
129,000.00 |
1.13 |
| 1996 |
586,500.00 |
40,000.00 |
75,180.00 |
115,180.00 |
129,000.00 |
1.12 |
| 1997 |
541,500.00 |
45,000.00 |
70,380.00 |
115,380.00 |
129,000.00 |
1.12 |
| 1998 |
491,500.00 |
50,000.00 |
64,980.00 |
114,980.00 |
129,000.00 |
1.12 |
| 1999 |
431,500.00 |
60,000.00 |
58,980.00 |
118,980.00 |
129,000.00 |
1.08 |
| 2000 |
366,500.00 |
65,000.00 |
51,780.00 |
116,780.00 |
129,000.00 |
1.10 |
| 2001 |
291,500.00 |
75,000.00 |
43,980.00 |
118,980.00 |
129,000.00 |
1.08 |
| 2002 |
211,500.00 |
80,000.00 |
34,980.00 |
114,980.00 |
129,000.00 |
1.12 |
| 2003 |
121,500.00 |
90,000.00 |
25,380.00 |
115,380.00 |
129,000.00 |
1.12 |
| 2004 |
0.00 |
121,500.00 |
14,580.00 |
136,080.00 |
129,000.00 |
0.95 |
| TOTAL |
|
871,500.00 |
1,476,600.00 |
2,348,100.00 |
