Money Flows/Configurations
Two Building Configurations
Several alternative configurations have been presented by CSI. Two could be built under existing zoning rules, without variances: Scheme A, with two stories of luxury condominiums above a six-story Annex (4 above and 2 below ground); and Scheme C, with 5 condominiums above a minimal replacement. The profitability of Scheme A and Scheme C are shown on the next two pages. The third page shows $10 million in profit from the businesses enabled by the new building.
CSI rejected these two schemes on the grounds that the condos would not produce a reasonable financial return. The following pages show that they are indeed profitable commercial developments, even using CSI’s revenue and cost estimates. The basic, obvious analysis showing income minus expense is similar to a bank checking account. The amount left in the account at the end of the project is profit.
[See last page for sources of figures, references, and assumptions.]
If the BSA approves the CSI proposal in August 2008, as expected, the current four story Annex will be replaced with another four story Annex and five stories of residential condominiums above it. The ‘New Building’ will occupy the current building space and the vacant lot behind the one story wall to the right.
One stated purpose of the ‘New Building’ is to replace and expand the Annex entrance. The expansion is ‘needed’ because of inadequacies of the the four existing entrances.
The current Annex door is the open door and the West 70th entrance is between the lamps in the picture to the left.