Cost-Benefit Analysis for the Proposed Annexation and Development of Draper Farm (The Granary)

PROJECT SYNOPSIS

The analysis put forward by the University of Delaware Institute for Public Administration projects expected revenues for the Town of Milton related to the proposed annexation and development of the Draper Farm property over the course of 20 years. This analysis utilizes budgetary information provided by the Town of Milton and development projections from the owner of Draper Farm, Convergence Investments, Inc. to form the basis of expected revenues to the Town of Milton over the next 20 years. Other factors in these projections include expected new employees and equipment for town police, public works, and water systems as well as projected persons per household, prices for units sold, and town tax rates.

Overall, the analysis shows that the town is likely to earn over $15,000,000 between 2024 and 2043 after factoring in all projected costs related to the development. This projection assumes a sale price for detached units at approximately $585,000 for each new 3,000-square-foot house and approximately $380,000 for each 2,500-squarefoot attached unit. The projected sizes of these units were provided by the developer at the September 14, 2021 Special Review Committee meeting and projected prices were formulated through a market analysis of recent completed sales for comparable home types in the immediate area in and around Milton.