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Site preparation and building construction constitute the major anticipated costs of the Extension. The HOK study indicates that these costs will differ slightly at the two sites, but by amounts which are small compared to the uncertainties of the estimated Phase I construction cost of about $ 162 million, escalated to 1993 dollars (the approximate midpoint of construction, used as a consistent basis of cost comparison). Construction of the completed Extension will cost approximately $330 million (1993 dollars). The cost of moving the existing collections from the Garber Facility will be about $9.8 million for BWI and $5.3 million for Dulles, based on a study by senior Museum consultant David Scott. The difference is due to the additional cost of transporting artifacts now stored at Dulles (including the Space Shuttle Orbiter) to BWI. An itemized comparison of Phase I costs for the two sites is given in the attached Table 2.

Faced with these costs, construction phasing must be based on the availability of funds. The following four sources of funding have been investigated:

° The State of Maryland and the Commonwealth of Virginia were asked whether they would be able to help defray the on-site costs of site preparation at the Extension and the off-site costs of access roads and near-by interchanges. The value of the on-site services offered, as estimated by HOK, amounts to approximately $ 35.2 million at the BWI site and $40.2 million at the Dulles site; deduction of these sums would reduce the remaining Phase I construction budget to $127 million for both sites.

° A Museum survey of leading executives of aerospace industries and airlines has suggested the extent to which industry might underwrite the costs of the Extension. A report of the fund raising counsel, Snelling, Kolb & Kuhnle shows that $15-20 million might be raised in a well-planned funding drive. The report finds that aerospace executives outside the Virginia and Maryland areas believe that the Dulles site has a greater fund raising potential, but that most of the funds would have to be raised on a national or even international scale with only minor contributions from either state. A precedent may be found in the drive which led to the raising of $26 million for the Museum of Flight in Seattle, which opened in 1987. To supplement the fund raising efforts, the [[underlined]] Air & Space/Smithsonian [[/underlined]] Magazine (with a circulation of more than 300,000) could help reach potential supporters of the Extension.

° Provided the Extension project were able to obtain 2:1 matching funds from Federal sources, this would permit the construction and opening of Phase I at a cost of $174-178 million. A summary of these figures is given in the tables. The State of Maryland has evaluated its proposed contributions to the Extension (land value plus on-site and off-site improvements) at $64 to 69 million (1989 dollars). The Commonwealth of Virginia did not place an evaluation on the land or the improvements offered.

° For an additional funding option, an estimate of financing possibilities, based on anticipated revenues at either site, was kindly prepared for the Museum by Kenneth D. Fullerton of Lazard Frères & Co and James R. Johnson of Wheat, First Securities, Inc. Their finance schedule indicates that income from parking, a large format film theater, restaurant services and museum shops would enable us to borrow $50 million dedicated entirely to a first phase, or else to undertake a sequence of bonds in the amounts of $35, $20 and $12 million, respectively for Phases I, II and III.