4. Scandia Internet costs and benefitsAssumptions Dollar Estimates As of 12/12/2018:
Estimated Demographics:
Nbr of Households 1,863 911 Address List from Neil
Average Home Value 403,687 minnesota.hometownlocator.com
Average Household Income 103,975 minnesota.hometownlocator.com
MidCo Customers 400 MidCo - Jason Sachs
MidCo Take Rate 50%MidCo - Jason Sachs
MidCo Territory Percent in Scandia 43%
Estimate Project Costs:
Total Construction Estimate 13,377,782 13,377,782 CTC - Joe Buttweiler
Non-MidCo Cost 7,633,163 57% of Total Construction Estimate
DEED Grant 50%3,816,581 MN DEED participatin in Non-MidCo Cost
City Need to Finance 9,561,201 Total Cost minus DEED Grant
CTC Participation 50%4,780,600 CTC - Joe Buttweiler
City Participation 4,780,600 Total Cost minus DEED Grant minus CTC participation
City Reserved Funds 200,000 City money from reserve fund
Total Cost per Household 2,459 City Participation minus reserves divided by Nbr of Households
Estimated Financial Benefits:
Annual Household Benefit 1,850 3,446,550 Purdue University Study
Market Value Increase FTTH 3.1%12,514 FTTH Council Study
Market Value Increase Broadband 1.8%7,266 FTTH Council Study
Estimated Timeline:
Apply for DEED Grant 9/1/2019
Receive DEED Grant 12/1/2019
City starts paying for Bond 1/1/2020
CTC Construction Begins 1/1/2020
CTC Construct ends 7/1/2021
CTC Lease payments begin 1/1/2022