Memo Child's Play Theater Y �
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'� CITY OF HOPKINS
MEMORANDUM
DATE: October 9, 1992
TO: Honorable Mayor and City Council
FROM: Jim Kerrigan, Planning & Economic Dev. Director
SUBJECT: CHILD�S PLAY THEATRE
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Purpose of Discussion
The City Council recently received a letter from Steve Barberio,
Executive Director of Child's Play Theatre. In this letter �
Child's Play asked for some fairly immediate action concerning
the construction of a facility for Child's Play Theatre in
Hopkins. As a result, staff desires to discuss this issue at the
• October 20 workshop session. The purpose of this discussion is
to review efforts which have been undertaken thus far, the
requests which have been made by Child's Play, and the
development of a consensus as to future efforts and actions by
the City on this project. No formal action is proposed at this
meeting.
Background `
The following will summarize various steps and actions which have
been completed to date concerning the Child's Play project.
o January 14, 1992 - City Council meets in workshop
session to discuss various alternatives and related
costs to assist Child's Play Theatre to expand their
operation within the City of Hopkins. 5taff prepares
extensive report detailing various alternatives and
costs.
o February 4, 1992 - City Council approves the concept of
an entertainment complex in downtown Hopkins which
includes Child's Play Theatre and directs staff to
undertake the following:
� - Work with potential developers and Child's Play
Theatre
Honorable Mayor and City Council
October 9, 1992 �
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- Secure proposal to undertake a�feasibility market �
impact analysis of Child's Play
o February 9, 1992 - Copeland Inc. enters into a
letter of intent agreement to lease space to Child's
Play Theatre in a facility to be constructed in
Hopkins.
o March 31, 1992 - Completion of feasibility analysis of
Child's Play Theatre by Artspace.
o April 10, 1992 - Completion of audience survey of
Child's Play Theatre by Anderson Marketing Research.
o June 10, 1992 - Execution of preliminary development
agreement with Copeland-Mithun for development of an �
entertainment complex project in downtown Hopkins which
would include a movie theater, Child's Play and a
restaurant. The Suburban Chevrolet site was identified
as a strong candidate for such a project.
� o August 11, 1992 - Staff reviews with Council the status
of the project and discusses possible alternatives.
Council consensus is to continue to work to facilitate
project on Suburban Chevrolet site. Council authorizes
staff to attempt to negotiate purchase option agreement
with owners of 5uburban Chevrolet property.
o August/September, 1992 - City staff and Suburban
Chevrolet property owner exchange counter proposals as
relates to an option agreement. Both parties were able
to agree on most of the terms of the option, including
price. However, questions of when the City could take
possession of the property are still unresolved.
Status of Suburban Chevrolet Property
Over the last month and a half, staff has been attempting to
negotiate a purchase option agreement with John Grossman for the
Suburban Chevrolet property. For the most part both parties were
able to agree on all of the terms of an option except for the
time on which the City could take possession of the site.
Suburban Chevrolet is continuing to work with Eden Prairie in an
effort to relocate their facility. Eden Prairie Planning staff
� have indicated that a proposal by Suburban Chevrolet will be
reviewed during a Planning Commission meeting in late October.
Suburban Chevrolet is unsure as relates to a time table
concerning securing all the necessary approvals and obtaining
Honorable Mayor and City Council
October 9, 1992
� Page 3
financing. Mr. Tom Grossman, President of Suburban Chevrolet
still feels that a relocation in late fall 1993 is very
�realistic. He'did provide a letter to the City recently which
stated that he felt that within the next 60 days he would be able
to better identify a time schedule for his new project. However,
until that time he is unwilling to make a firm commitment as to
when he would be willing to vacate the property. As a result the
City staff and property owner have ceased any further
negotiations on the option agreement for the immediate present
time.
Issues
The general Council direction that has been provided to staff
thus far was to work with Copeland-Mithun and Child's Play
Theatre to construct an entertainment complex project in downtown
Hopkins with the preferred site being the Suburban Chevrolet
property. If the Council is willing to consider a Hopkins
performing arts facility with Child's Play Theatre as the major
tenant, and consider sites other than the Suburban Chevrolet
� property, this would represent a definite change in direction.
As a result, the following questions arise:
o Who would act as the developer and owner of such a
project?
- City/HRA
- Private for profit developer
- Private non-profit developer
o Who will manage the building if owned by the City/HRA,
in-house vs. private contractor?
o Other than Child's Play, is there sufficient
users/tenants in the area to support such a facility?
o Can Child's Play Theatre raise the $300,000 necessary
to complete interior improvements?
o What is the future reuse potential of such a building
should it no longer be viable as a theater operation?
o Is there public support to invest substantial public
dollars into such a facility?
� o How much time would have to be allocated to Child�s
Play for their use of such a facility?
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Honorable Mayor and City Council
October 9, 1992
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o Does Child's Play Theatre have the financial capability
to be the major tenant and pay $6 per square foot as
they have detailed in their proposal?
o Does this project have a significant enough positive
impact to the downtown and the community to justify the
necessary expenditures?
o Can sufficient dollars be generated from the use of the
facility to pay all operating costs?
o Is the City willing to compensate for any short-fall in
revenues to cover operating and maintenance expenses of
a City owned facility?
o Would a referendum be considered as an option for
determining public support as well as funding for all
or a portion of the project?
o If a referendum were not used should some other type of
public opinion survey be used?
� o Is the City willing to condemn property to assemble a
site?
o How does this project impact the feasibility of
undertaking other redevelopment projects?
Alternative Sites �
If the Council wishes to look at sites other than the Suburban
Chevrolet property, downtown sites could include the following
(see map):
o East of the parking ramp to include Fowlers, A&G
Drafting, and the office building north of the park and
south of the alley. This would probably require
condemnation of at least one of the properties.
o Jak's Antiques, Martin's, and Mashek's. The HRA
presently owns one property in this area and both Jerry
Mashek and Al Martin have stated that they would be
willing to consider the sale of their property.
o Rudy Luther block between 7th and 8th Avenue. In order
� to facilitate an adequate project site, Vick's Red Door
and a portion of the Rudy Luther property would
probably have to be acquired. Rudy Luther may or,may
Honorable Mayor and City Council
October 9, 1992
� Page 5
not be interested in a sale of his property. The HRA
owned property in this area would also be used.
o Bursch property.
All of the above sites would probably only be large enough to
accommodate Child's Play Theatre.
Sites outside of the downtown that could be considered include
the following:
o The R.L. Johnson property at County Road 3 and 11th
Avenue, presently zoned B-3. This property could
probably accommodate a Child's Play Theatre and
possibly a small restaurant facility.
o Central Park adjacent or attached to the Ice Pavilion.
Cost
� Staff recently asked RLK to prepare a cost estimate of
constructing a Performing Arts Theater based on the needs of
Child's Play Theatre. They estimated the cost to build the
structure and provide some interior finishing at $80 per square
feet. Child's Play has stated they need a facility of 12,500 to
15,000 square feet. This would give a construction cost of $1 to
$1.2 million. Child's Play would then complete interior
improvements to make the facility operational. This cost is
estimated at $300,000. Land acquisition would probably be
$400,000 to $800,000 depending on the site. If the project was
constructed at Central Park there would be no land cost.
A City owned facility would probably generate an operating cost
of $4 - $6 per square foot. ,
Alternatives �
It appears the City has the following alternatives:
o Maintain the position that the Suburban Chevrolet site
and an entertainment complex project is what the City
. wishes to pursue. This alternative may result in
Chi1d's Play not being involved with this project if
� they should find another location.
o Pursue an alternative site for Child's Play Theatre.
Under this alternative two scenarios are possible.
Honorable Mayor and City Council
October 9, 1992
� Page 6
- Undertake analysis process prior to committing to
the project. This could include the following:
1. Public opinion sur�ey and public hearings on
the support for a community theater project
with Child's Play as a major tenant.
2. Additional analysis of the financial
capability of Child's Play Theatre.
3. A market study of tenant/users within the
metro area that would use such a facility.
- Identify an alternative site, the parameters of
ownership of a facility, and authorize staff to
begin acquisition and negotiate a development
agreement with Child's Play Theatre. Under this
scenario it is assumed there would be minimal
additional analysis arid study completed.
� o Utilize a dual track approach. In this case the City
would maintain the position that a entertainment
complex project on the Suburban Chevrolet site is the
top priority. However, the City would identify an
alternative site for a Child's Play Theatre only
project and authorize staff to either acquire the
property or secure options. If it was determined that
by a certain date, i.e. spring of 1993, the Suburban
Chevrolet site would not become available, the City
would proceed with development of a community theater
facility on the alternative site location. If it was
determined Suburban Chevrolet would become available,
the entertainment project would be undertaken on that
site.
Conclusion
If the Council wishes to consider facilitating a single use
community performing arts facility, there should be a comfort
level as relates to the following:
o The large expenditure of public funds to facilitate
construction of such a facility will provide a strong
positive benefit to the community.
� o The community is in support of such a project.
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Honorable Mayor and City Council
October 9, 1992
� Page 7
o That Child's Play Theatre, which would serve as a major
tenant for this project, will have the financial
strength to carry thru with a long term lease
commitment.
Enclosures
JK10082A
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�•Child's Play
THEATRE COMPANY
September 29, 1992
ADMINISTRATION
Edina Community Center
5701 Normandale Road
Room 343 N�jVj��j�jJNj
Edina, MN 55424
(612)925-5250 ,
PERFORMANCE TO Mayor Berg; Hopkins City Councilmembers; Steve Mielke, City Manager
Eisenhower Community Center From: Steve Bazberio, Executive Director
1001 Highway 7, Theatre
Hopkins, MN 55343 RE Entertainment Complex in Downtown Hopkins
City staff has informed us that progress has been made regarding the purchase
BOARD OF DIRECTORS Price of Suburban Chevrolet, but that decisions regarding delivery date and
Benjam�n Aune
liability for environmental clean-up are issues that remain unresolved. We
Chairman believe these unresolved issues are relevant to the success of this project.
Michelle Bergsrud In addition, we have learned through other sources that development of a new
Vice Chair facility for the Grossman car dealership in Eden Prairie is tentative based on
avid A. Mahler financing, the City of Eden Prairie's willingness to participate, and internai
Treasurer
constraints within the Grossman Corporarion.
Betty Johnson
Secretary We are in a precarious position. At this time, we have no guarantee that we will
Julie Weiler be at Eisenhower beyond 7une 30, 1993. Also, if we do secure the space for
Past Chair the 1993/94 season, we must again wait until the final hour to secure space
beyond that time. Without knowing the location of our future home it is
Maye� ae�g difficult to raise money. Our prospective donors simply insist that we have a
Ba�ba�a co��e solid plan in place before commiting their support. We are running out of time
Cindy Fishman and can no longer. accept the uncertainty of Child's Play Theatre Company's
Betty Folliard future
Barry A. Gersick TIiTOUg�TOUi tt`�is p"r�,�,ess we have a11 explored the concept �f a large-scale
Barbara Haugen project that wouTd include a movie theater, a family restaurant and Child's Play
LeRona Redepenning Theatre Company. We are srill dedicated to the "renaissance on Mainstreet" that
Susan Segal was proposed last November. However, given our time constraints and the
uncertainry of the Suburban site, we need to know how and when the City will
Sallie Skinner be able to make our relocation to downtown Hopkins possible.
Steve Barberio
Executive Director, Ex Off.%cio 'I'herefore, based on the support of the council, city residents and city staff, we
request that serious consideration be given to alternative solutions. Within the
next 30 days, we would like to have the following communicated to us:
1. Selection of an alternative City-owned site that could accommodate a
. 12,500 to 15,000 square foot, stand-alone building for Child's Play
Theatre.
"Child's Play Theatre Company is a professionally staffed arts organization that provides young people, as participants and as
audience members, with production and educational experiences in theatre that are high-quality, creative and character-building."
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� City of Hopkins
Page 2
2. Commitment of up to $1.5 million dollars for the construction of this
building.
3. Commitment to a date no later than June 15, 1993 when construction
of this building would begin, allowing us to prepare for a move-in
date during the 1993/94 season.
Suggestions for sites include the City-owned portion of the Rudy Luther location, the Fowler
location, the Bursch's building and the County Road 3 and l lth Avenue site (the latter two requiring
acquisition from present owner). •
Child's Play Theatre Company is willing to invest up to $30Q,000 in this project and can commit up to
$S.G�Q pe: s�uare foo� per year for the first three years for utilities, maint�:�ance an� .insurare� on the
building. Issues regarding ownership of the building--whether it be owned by the City, Child's Play
Theatre Company or a pnvate developer--can be discussed. We are willing to discuss any ownership
anangement and other options that aze in the best interests of all concerned.
We wish to stay in Hopkins. Over the past several months we have identi�ed solutions that would
bring us out of Hopkins and have classified them as back-up alternatives. However, if we do not
receive a satisfactory response within 30 days, we must seriously consider those other options.
Finally, if this solution (or another raised within 30 days) is acceptable and together we find a way to
� facilitate such a project, we will work actively with the City to extend the renaissance by seeking other
arts and entertainment development projects in the downtown area. "Build it and they will come..." is
a phrase that was coined a few years ago, and we believe that if we make this dream come true, others
will follow.
Thank you very much for your consideration and continued support!
cc: Ben Aune, Chairman of the Board, Child's Play T'heatre Company
Robert Copeland, President, Copeland-Mithun
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� Metro olitan Cor oration
P P
Metro Plaza • 7625 Metro Btvd. • Suite 100 (612) 893-1277
Edina, Minnesota 55439
September 3, 1992 -
Jim Kerrigan
Director of Planning
1010 1st St. S. "
Hopkins, MN 55343
Dear Jim,
As we discussed on the phone the other day, we are not in a
position to commit to a time table for moving Suburban at this
� time. Our goal is to break ground on a new building in April, and
to vacate our current location in September or October at the
latest.
There are, however, two major obstacles to my making firm
commitments at this time. The first is that we have to go thrauqh
the zoning process again. The second is that I do not have final
approval on the financing. Althouqh both of these issues are
, obviously subject to problems, we have been through the entire
process successfully for both issues on the larger project, which
we decided not to proceed with. As a result, we don't expect any
major problems with them. Within sixty days, I should have a much
firmer feel for how they will come out. Hopefully, that will allow
us to make a commitment on vacating in Hopkins.
If I can give you any mora information, please give me a call.
Sincerely,
l
/
Thomas Grossman
President
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Child's Play Theatre Revenue, Support, Expense Projections to 1997 September 21, 1992
�
FY 1990 �Y 1991 FY 1992 �Y 1993 FY 1994_ f Y 1995 FY 1996 FY 1997
(actual) (actual� (forecast) (project.) (project.) (project.) (project.) (project.)
Expenses
Salaries 92,500 145,500 167,500 149,000 160,000 175,000 190,000 205,000
Contract Labor 76,400 64,400 67,200 74,400 80,000 83,000 85,000 87,000
Physical Plant 24,700 24,000 39,600 36,000 95,00� 10�,000 105,000 110,000
Supplies 21,300 22,500 19,900 19,500 25,00� 27,500 30,000 33,000
Marketing 34,000 36,300 35,000 39,300 46,000 48,000 52,000 54,000
�ministration 26.200 28.400 47.900 50.000 59A00 63.000 68.000 7Q.000
Expenses Totai: 275,100 321,100 377,100 368,200 465,000 496,500 530,000 559,000
REVENUE
Ticket Revenue 192,800 166,600 203,200 219,000 283,500 290,A00 3�0,000 315,000
Tuition 41,300 54,500 56,800 56,500 60,000 64,000 72,000 75,000
Tour/Residency Fees 7,500 17,700 12,700 15,000 18,000 20,000 22,000 24,000
T-Shirts/Costumes 3,200 3,300 3,100 3,500 4,000 4,500 5,0�0 5,000
Video Tape Sales 0 0 � 0 2,000 3,000 3,500 3,500 3,500
Program Advertising 5,400 3,900 5,100 7,500 8,000 8,500 8,500 9,000
Rentallncome 0 0 0 0 10,000 12,000 12,000 15,000
Qther Income 4.800 4.500 9.400 5.200 7.500 8.900 8.00� 8.500
�evenue TotaL' 255,000 250,500 290,300 308,700 394,000 410,500 431,000 455,000
SUPPORT
Corporate/Foundation 31,000 33,800 43,600 48,000 55,500 61,000 68,000 70,00�
• Individuals 6,400 10,600 6,000 5,500 8,500 9,000 9,500 10,50�
MSAB 8,500 8,300 15,000 15,000 18,000 18,000 20,000 20,000
�Qunicig�l 8.000 8.200 8.500 8.500 9.500 9.500 10.000 10.OQ0
Support TotaL 53,900 60,900 73,100 77,000 91,500 97,500 107,500 110,500
Total Revenue & ,
Support 308,900 311,400 363,400 385,700 485,500 508,000 538,500 565,500
SUMMARY
Revenues 308,900 311,400 363,400 385,700 485,500 508,000 538,500 565,500
E�[�enses 275.100 321.100 377.100 368.200 465.000 496.50Q 530.000 559.000
Revenue & Support
Over/(Under) Expenses 33,800 -9,700 -13,700 17,500 20,500 11,500 8,500 6,500
Notes: 1. Assumes 1994 is in a new facility
2. In physical plant, occupancy cost max. _$75k in 1994 (12,500 s. f. @$6.00/s.f.)
� 3. Ticket Sales based on 70% capacity @$5.40/ticket in 1994 w/slight increases in sales each year.
4. Ticket prices in 1994: $8 adults, $6 children; increase in 1996.
�' Ghild's Play Theatre Capital Campaign Support and Expenses September 22, 1!
� Antici�,ated Sources of Su�port
Source Budget Prospect
Major Players 62,500 250,000
Hopkins/Minnetonka Businesses 24,000 72,500
Second Ring Individuals 20,000 80,000
Foundations/Corporations 163,000 404,000
Fundraising Events 20,500 41,000
Government Agencies 15,000 40,000
Munici an I Groups 5.000 15.000
Support Total: $310,000 $902,500
(Note: Budgeted income reflects 34% of total prospects.)
Anticipated Expenditures
Expense Category Budaet
Lighting Equipment 115,000
Sound Equipment 20,000
� Computerized Ticketing System 25,000
Theatre Seating 25,000
Stage Curtains 22,000
Stage Rigging System 35,000
Stage Floors (Theatre & Rehearsal) 25,000
Scene & Costume Shop Equipment 10,000
Other 10,000
Moving Expenses 8,000
Campaign Ex�enses 15.000
Expense TotaL• $310,000
(Note: Expense projections based on quotes from Secoa Stage Equipment Company
and R.V. Anderson Seat Company and estimates from OPUS Development
Corporation and Tobin Real Estate, Inc.)
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' � September 8.1952 �
CNILD'S PLAY THEATRE CUMf'ANY
' cn PRELIMiI�fARY B�1DG�T ANAE.YSIS 0� SPACE PROGRAM
' � �ST�M1�f�I3 SPACE T�3TA4 COST
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o AR�A or FUf�CTtON: SfIUAR� F�ET; UNIT COST: COST EST�MA'fE: PE#i SpACE:
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TN�ATRE PRODUC7t AREAS: ,
StagelBac�cstagelWi�gs: 2,800 "•�'"t "�"•" 5308
Shell: 545.40 $126,40�A0
Firtish: S65.i�0 $182;U�0.�0
I}ressing Rooms: 480 «• «•'' • r••'� 524,000.40
St�eli: �35.fl0 �16,800.Oa
o Fin�sh: S 15.(}D $7,200.U4
�ctor Lavatori�s: 3a0 5100.00 �34,�OU.00 $34,04�.04
LightlSound Booth: 72 14 ' �• "* •'� * 513,320.00
� Sheli: �35.00 $2,520.00
Q Finis4�: S'� 50.00 � 14,800.i}0
J Rehsarsai Roam: 1.200 •'�«'• `•"• 57$,OQ�.�O '�
' Sheil: $35.t}0 S42,Oa0.00 ,
� Finish: 530.00 $36,040A0 ,
� Class Raom: 800 •t*•• «•"�" 548�000.00
0 5hefF. $35.U0 528,�00.00
!, �� Finish: $25.00 $2a,�00.00
', Y Green Room: 640 "• • •'� � *"•'� 530,DOO.aO ,
�I � S�e1L 535.00 S21,Q00.0� � ',
F�nish: $'i �.00 $9,{300.00
` ..�w: ...�«. � i
Scene Shap 2,�140 5120,000.40
I � She1L• S35A0 $84,000.00
' � F�nish: $15.OU �38 �
CO51ltfYlB ROC}[Tl: 4�fl E+: r• � w* f r
�
' �D Sfi�e1L• s35.00 �� 4,oaa.oa szo,oaa.aa �
, �,
', �� �inish: S15.fl0 $f,000.00 ��
', 'm Siorage: t,2�0 535.U0 542,000.00 �42,000.00 N
'� ; Stage Ci�cutatian: ti096i 1,fl25 �'E'� "'�" $51,250.00 ^ ' !
�
� Sfi�etl: 535.t1a 535,875.00 �I
, �' FJnish: 5�5.0� 515,375A0 . �
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QU��.�� ���5: �
; z Auditorium: 4,5a0 ••�'•t �"•" 5517,500.00
� Y Shell: S50A� 5225.�04.04
°- Finish: $65.a0 S2g2,5(�0.00
0
_ �o��Y 900 .�«�� �..�• s�$,5ao.00
Shell: 535.00 531, 504. U0
Finish: S30.00 S27,040.U0
Refreshment Loun�e: 900 '�* •'� • �' • � • • $ 67,540.fl0
ShelE: �35.00 $31,5G�0.40
Finish: 54fl.(}0 536�000.{�0
Box OffiCe. 3�0 •«�"• ••••• �21,t30i�.04
�' � Sh�iL• 535.�0 S 1 a,5�10.t�0
� Fi�rish: S35.U(} 510� �afl0.00
Public Rest Raorns: 1,2a0 $ i 1 a.00 S 132,OQ0.�0 S 132,400.04
� Q ADMit�ISTFiI�T'10l� Af�EAS:
� � Receptian: 50 ""`• ""'� �3,fl00.�0
SheN: 535.00 $i �750.00
' W Finish: $25.fl0 $ 7,25Q.�D
� 4Utreach; 20�D ' • � • + •'' • "� S 12,fl04.00 '
' ri Sl�eli: 935.00 S�,000.0(}
; � Finisfi�: �25.Od $5,400.00 � ,
', Y
Communication: 20� "'"• "`••'� S12,0(}O.O�D I
� St�etl: 535.00 S7,p00.00
Finisfi: �Z5AU �5�OO�.aO !
� Dev�elopment; 2(3U •• �•• • t• *'` 512,000.00
c
� Shelt, 535.00 S7.Q40.0�
�� Finish: SZ5.fl0 $5,404.4�
Production Managament: 204 "••• •«••# $12,040.a0
`� Sfieit: $35.00 $7,000.€�0 j
finish: 525.00 $5.00(}.QO
cn
� Ex�cutive DirBCtor. 2fl0 ""`" •r`"� 513,fl40.U0
; St�el1. 535.00 �7.000.00
`� �inish: 530.00 $fi
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Conferenc�: 3a0 �••• � •• �• t $ � 8,4a0.00 � �
5fieih, 535.40 510,5U0.4D =
Finish; �25.(30 S7,500.OQ o
General Work hrea: 400 * *•'�+ "• * • $24,a00.0{? ~
Shelt. 535.00 514�000.00
Finis�: . 525.00 S 10.00(3.00
C�rculatian: {209b� 35a '«... s M k�! $21,flD0.00
Shetl: 535.00 � 12,250.U0
Finish: 525.U4 �8,754.4��
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TOTAL 8lJDGET COST ES�IMAI'E: ".?_ .�-� � � 1,688.47U.00
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