Landmark Research, Inc. / Occupancy study prepared for Anchor Bank
2. Detailed discussion, pp. 11-22
22 The disadvantages to this strategy are: (1) 30 employees would lose their parking stalls; and, (2) control over the development of the vacant parking lot would be more difficult, which could result in a negative impact on the 25 West Main property. Scenario Six (See Exhibits J and K) would result in the Bank selling all properties except the Provident Building. This is the fifth most attractive alternative with Scenario One (all properties are sold) being the only option which is less attractive. In this scenario the executive and retail presence would be maintained in the Provident Building rather than in the 25 West Main Building. The after-tax alternative income per year from the sale of the Provident Building ($470,000 x .055 = $25,850) plus the $76,000 per year in savings in the after-tax operating expenses of this building (1993 terms) equal $103,055. This amount is less than the $135,000 (6,500 square feet @ $16.50/S.F. plus 6,000 square feet @ $19.00/S.F.) in after-tax occupancy cost that would be paid to rent space in the 25 West Main Building in the alternative. All other comments regarding the construction of a suburban office building, the difficulty of realizing the appraised value of the properties that are sold, and the complexities of coordinating the activities required to implement the strategy to move out of downtown that were made in the discussions of Scenario One are equally applicable to this scenario.
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