Geometric center of the town with predominantly all grass

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A town center is in the geometric center of the town with predominantly all grass and a few walkways through it. They are willing to spend $30,000 (split evenly with one payment now, and then at the end of the year and the year after that) to build the gazebo and the finance committee indicates it should be feasible to fund maintenance of the gazebo at $3,000 a year after it is built. There is a planning window of 10 years after the gazebo is done. Borrowing the funds would have an interest rate of 6.25% per year, but if they take it from the rainy-day fund it can be had for a 2% interest rate (why is that?). It should be multipurpose to meet the needs of several segments of the people who returned the surveys (which had a very good response rate of 62%). During town celebrations it would serve as a podium for speech making and award presentations. As the high school music programs provides music for many community events, the gazebo would need to be large enough to hold a portion of the high school band (typically either the twelve-piece brass section or perhaps the eight-piece string section). Some of the contractors have agreed to defer their payment over two years. A quick review indicates that their “at-cost” price is about 40% of their market charge. As the consulting engineer, the selectman turn to you to determine what benefits need to be accounted for to make the project justifiable.

Reference no: EM13917503

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