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Contractor’s Overhead and Profit (5%)236,850
Adjusted Total Construction Cost 5,305,440
Non-Construction Items
Design 530,000
Permits, Fees, Taxes, Insurance, Etc.200,000
Occupancy 0
Financing 328,980
Out-of-Pocket Replacement Cost 6,364,420
Entrepreneurial Incentive (10%) 636,442
Total Replacement Cost (Excluding Land)$7,000,862
Mitten/Reynolds then estimated total depreciation, both
physical and functional,26 to be 55 percent of the $7,000,862
replacement cost, or $3,850,474. Mitten/Reynolds estimated the
value of the theater component under the replacement cost method
as follows:
Total Replacement Cost $7,000,862
Depreciation (55%) 3,850,474
Depreciated Replacement Cost $3,150,388
Land Value Allocation 461,000
Value Indication $3,611,388
Mitten/Reynolds concluded that the value of the theater component
of the Redwood City Fox, indicated by the replacement cost
approach, was $3,600,000 (rounded), for a value of $147.80 per
square foot ($3,600,000 divided by 24,358 square feet of building
area).
26 Mitten/Reynolds cited issues relating to seating, toilet
facilities, air-conditioning, the age of the structure, and its
systems and surfaces as elements of depreciation that affected
their appraisal of the property.
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