Cost Approach to Value
|Cost Approach to Value|
estimates new are based upon cost analysis by Taylor of “Nevada
with F and E costs-estimated by Integrated Design Associates,
Inc. of Los Angeles. These two firms have been involved in some
of the larger hotel projects in recent years. These costs are
in line with Marshall Valuation Service. However, cost estimates
by Marshall Valuation Service are not considered to be highly
reliable since no costs for structures similar to the subject
the improvements are new, assumed to be developed in a good
quality and assumed to meet all County building codes, and since
the improvements are functionally well designed and in a good
location, there is no physical, functional or economic depreciation
to be subtracted from the estimated costs.
architecture and engineering fee is by contractual agreement
with the architectural firm. In addition, other professional
fees are added such as engineering, designing, special consultants,
surveying, soils tests,-,and other related similar type costs.
State of Nevada requires a deposit on the project taxes as gaming
fees. The estimate of these taxes is received from the attorney
for the subject development, through the architects. The bankroll
for the operation and opening costs including filling of the
slot machines, property taxes and insurance during construction,
general and administrative salaries during construction, preopening
expenses on entertainment, advertising and publicity, utilities
during construction, preincorporation expenses, and postincorporation
expenses, are as estimated by the architects for the project
and are considered to be reasonable.
the first previously submitted feasibility report, on the smaller
project, a number of these costs were included in the entrepreneur's
profit. Since these costs are more completely detailed in this
update, no entrepreneur's profit is shown.
and fixtures are estimated $2,500 per room by the architect
and this is in line with motor-motel facilities completed across
the country. However, costs in addition to this are added which
include the cost of the stage, stage lighting, decorating, convention
facilities, and other costs, not typical to hotels outside the
State of Nevada. In addition, the furnishings quality has been
upgraded from the original reports since this figure was obtained
from the architect. The gaming equipment costs are based upon
direct quotes from Jean Jones of Nevada Dice. Gaming equipment
costs are estimated as being
The following page sets forth a summary to the Cost Approach to value and includes the construction costs, equipment costs, and the total value indicated by the Cost Approach.
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Last modified Wednesday, 02-Dec-2009 11:10:30 PST