Money Flows/
Combined Income
Here, two of Congregation Shearith Israel’s income-producing activities facilitated by the New Building are combined. Other income sources such as a day-care center, apartment rentals, and hall income are not included.
The development of two luxury condos, depicted in the top part of the diagram is the same as in “Scheme A Luxury Condos” page
The bottom part depicts the ongoing rental of classrooms to an unaffiliated school. To make it comparable to the two-year condo project, the rounded average of two methods of estimating Capital Value is used. See Business Analysis page for more detail. In effect, this discounts the revenue to be received during life of the rental contract back to the project completion date so
that the continuing stream can be compared to the more immediate sale of the condominiums. The Classrooms Net Capital value can be actualized (turned into cash) at the end of the project with a mortgage.
This combination conforms to the BSA’s principle for analysis of a dual use building: separate the mission-related use from the profit-making one. It corrects the failure of the CSI analysis where part of the income from the commercial activity is hidden within the mission-related figures, and part of the mission’s costs are assigned to the condo construction with the effect of making the condos appear unprofitable.