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IJooking at the May I, lot)6 I~atchin report on <br />page 65 the market benefit analysis compares <br />commercial lots or'two acres in size, one lot served <br />with municipal utilities and the other with private well <br />and septic. <br /> The total lot selling price of the served lot is <br />estimated at $261,360, while the unserved lot is <br />$108,900 The served lot is estimated to cost a <br />potential buyer $ ! 52,460 more. <br /> $261,360 <br />minus $108,900 <br />equals $152~460 <br /> Let's look at how.just this additional cost might <br />affect the profitability of this new business. If this <br />$152,460 is financed at 10% interest and amortized <br />over l0 years, the $2014 monthly payment would <br />add $24,177 per year to overhead costs. Also the <br />added value to the property would create an <br />additional property tax burden of $7,336 per year. <br /> The $24,177 plus $7336 property tax equal an <br />additional $31,513 annual cost. Assuming a 10% <br />profit margin, this business will nccd to gcncratc an <br />additional $315,130 in annual sales to meet these <br />costs. <br /> Assuming a 2% annual rise in the additional <br />property tax portion, these costs will total $159,060 <br />in 5 years, and $322,093 in l0 years. <br /> <br /> <br />