1. Houston Intermodal Center / Multimodal Terminal Pages: 108-120

2. D. Suggested Structure and Assignment of Roles Table 28 Comparison of Relative Capabilities of Participants

3. E. Estimated Facility Operation Cost/Revenues Purpose: To estimate the projected operating expenses, and future revenue from retail establishments in the METRO and National/International terminals.

4. Intermodal Center / Multimodal Terminal will consist of: Two Terminals: Two Terminals: -METRO services (primarily) – approx. 80,000 s.f. with 3,200 s.f. interior retail/food vendor space -National/International bus carriers – approx. 48,000 s.f. with no retail commercial space (Terminals physically connected at an upper concourse level) (Terminals physically connected at an upper concourse level)

5. Obtaining Comparable Statistical of Similar Facilities Many resources Many resources Researched multiple structures Researched multiple structures -American Public Transportation Association -Federal Transit Administration -Building owners and Management Association Information Varied (each unique) Information Varied (each unique) As program develops income and expenses will become more defined As program develops income and expenses will become more defined BOMA Experience Exchange Report was heavily relied upon for predevelopment BOMA Experience Exchange Report was heavily relied upon for predevelopment

6. Operating Expenses Building type category: Building type category: -Agency Managed (managed by occupying agency) BOMA report classifies this group into two sections: BOMA report classifies this group into two sections: -properties located “All Downtown” -properties located “All Suburban” Large sample of data averaged from this for operating expenses Large sample of data averaged from this for operating expenses Open day and night represents approx. a 37% average increase Open day and night represents approx. a 37% average increase “Agency Run” facilities reported at national level (living factor) “Agency Run” facilities reported at national level (living factor) Operating Expenses Cleaning/Janitorial Repair/Maintenance Utilities Roads/Grounds Security Administrative Total Expenses: $1.56 $1.64 $2.61 $0.21 $0.86 $0.97 $7.85

7. Lease Income from Retail / Food Vendors BOMA report was used to retail rental rates in the Houston area BOMA report was used to retail rental rates in the Houston area Obtained large sample size Obtained large sample size -all Downtown and Suburban office buildings in Private Sector Average Rate: $13.53/s.f. for retail/food vendor space within Intermodal facility Average Rate: $13.53/s.f. for retail/food vendor space within Intermodal facility

8. Cash Flow Model Lease Rate: $13.53/s.f. as base rent for each tenant at 800s.f. of leased area Lease Rate: $13.53/s.f. as base rent for each tenant at 800s.f. of leased area Triple-net lease was assumed which reimburses owners of buildings large percentage of operating expenses Triple-net lease was assumed which reimburses owners of buildings large percentage of operating expenses Assumptions used in financial model: Assumptions used in financial model: - 3% inflation factor -5 year lease renewal -$10.00/s.f. tenant improvements -4% leasing commissions on new leases and 2% on lease renewals -Vacancy rate of 7% -Assume lease will start 18 months after the analysis start, (operating expenses start at this point)

9. Comparative Analysis Results of incorporating the average Operating Expenses as determined by the analysis : Results of incorporating the average Operating Expenses as determined by the analysis : Metro Regional Terminal Metro Regional Terminal -annual operating cost - $649,857 or $8.21/s.f. National/International Terminal National/International Terminal -annual operating cost - $399,539 or $8.53/s.f. Operating Expenses

10. Cost Analysis Schedule of Prospective Cash Flow In Inflation Dollars for Fiscal Year Beginning 1/1/2006 Additional Tables