Laserfiche WebLink
l,ooking at the Patchin report on page 47, <br />the market benefit analysis compares industrial lots of <br />tbur acres in size, one lot served with municipal <br />utilities and the other with private well and septic. <br /> 'l'he total lot selling price ot'the served lot is <br />estimated at $104,544, while the unserved lot is <br />$55,757. The served lot is estimated to cost a <br />potential buyer $48,787 more. <br /> $104,544 <br />minus $ 55,757 <br />equals $ 48,787 <br /> l,et's look at how just this additional cost might <br />affect the profitability of this new business. If this <br />$48,787 is financed at 10% interest and amortized <br />over 10 years, the $644 monthly payment would add <br />$7,736 to overhead costs. Also the added value to <br />the property would create an additional property tax <br />burden of $2,347 per year. <br /> The $7,736 plus $2,347 property tax equal an <br />additional $10,083 annual cost. <br /> Assuming a 10% profit margin, this business will <br />need to generate an additional $100,830 in annual <br />sales to meet these costs. <br /> Assuming a 2% annual risc in the property tax <br />portion, these costs will total $62,626 in 5 years, <br />and $126,523 in l0 years. <br /> <br /> <br />