2.01 am GMT – Friday 3rd February 2011

Oops, I’ve used the wrong figures for the land development; I’m just going to check some infrastructure budgets.

Cost of a road: http://www.publicarchitecture.co.uk/knowledge-base/files/indicative_building_costs.pdf

These are 2006 prices; however as building cost more in 2006, I think they are fair.

One lane: About GBP2,750,000 per linear KM for Rural design 2 lanes, we have 2 KM’s of housing, with windy roads desired, this said most of the houses are big, let’s say 5KM Rural 2 land roads = 13,750,000, in $ we will call it 20M
Let’s add the street lights, sewerage, water supply, eclectic cables, CCTV cams and some traffic lights.

Note: External works refer to elements such as: Drainage, Paving, Driveways, Walling, Decking, Ballustrading, Topsoil, Turfing, Tarmac surfacing, and Exterior lighting. In other words all work on outside the footprint of the work.

Business parks: 5-13%, Hospitals 10% to 20%, Houses 6% to 20% (big projects have lower percentages.

Hang on these prices are in pounds.

Its going to take too long to find proper stats, I’m going to have to estimate.

I will however put a 4 land road into the housing area, so I’ll add another 5 Million

1. Housing areas (2KM2)
5KM Rural 2 and 4 land roads = $25Million
pavements = $2.5 Million
Sewers, water and eclectic under same = $15Million
Traffic Lights, Street Lights & CCTC cams = $2.5 Million
TOTAL: $45 Million

2. Parkland (1KM)

Plants, soil, Irrigation, paths, lights, CCTV, cycling tracks and earthworks =

TOTAL: $20 Million

3. Commercial area (1KM2)
4KM Urban 2 and 4 land roads = $25Million
pavements = $2.5 Million
Sewers, water and electric under same = $15Million
Traffic Lights, Street Lights & CCTC cams = $2.5 Million

Campus/Hospital (1/2 KM2) = $25 Million
Commercial Retail = (1/2 KM2) = $25 Million

Total: $95 Million

SUB TOTAL: $160 Million

Alternate power (300,000 per 100 houses) – 700 houses + offices + shops + University = 2000 houses equivalent as such 10 Million should easily cover it,

Alternate Power: $10 Million

Water Works could be expensive, as will running pipes from the nearest town, sewerage will be the same. Building a small town is proving far more expensive than a big one, and multiplying the land by 4 has much the same effect. Hmm better to know now than later, we can afford it, there are not so many frills, and I don’t have the desired budget for a spectacular shopping mall or a luxury res hall for the students.

I suppose with 2000 residents in the houses plus 2000 people in the Uni, a big shopping Mall is not necessary, so I’ll plan to make ¼ now and the rest when the next plot is taken up. This will however lower the money in from selling the shops and offices. Hmmmm

I’m going to have to go $10 Million for the waterworks and the same for the sewerage and include fire police and council building and two it all under municipal expenses and call it an even $25 Million.

It may be an idea to channel the Give half back model to $1Billion not $4B, it will make it less scary, and target more achievable. It may be an idea to divert the first 25% of company profit before GHB to infrastructure.

Municipal Expenses: $25 Million

I need to consider public transport, all be it it’s a long term project as in a small town there will be little point in having a train that goes, nowhere, as such we can just allocate space for the train tracks and build them out on the next company/plot money. Good, a saving at last.

I’m going to lighten the budget of the commercial district roads etc as at least half will be the shops and Campus, and include pavements into the Housing Budget for free

So what have we got so far?

1. Housing areas (2KM2): Roads, Pavements, Sewers, Pipes, Electrical, Lights & CCTV = $45 Million
2. Parkland (1KM): Plants, Soil, Earthworks, Irrigation, Paths, Tracks, lights, CCTV = $20 Million
3 a. Commercial area Basic (1KM2:) Roads, Pavements, Sewers, Pipes, Electrical, Lights & CCTV = $30 Million
3 b. Alternate Power = $10 Million
3 c. Municipality: Waterworks, Sewage Refinery, Reservoirs, Fire Station, Police Station, Council Offices, Community Buildings: $35 Million
3 d. Campus/5* Hospital/5* Student residences: $50 Million

TOTAL: 45+20+30+10+35+50= $190Million

Ok now we are getting somewhere, a good budget for the municipality, and enough for the luxury student quarters, and $60Million to spare.

We need to consider that the next development will be taking advantage of the Municipality services and part of the Campus. As such a $50 Million rebalance sounds fair, let’s work on the principal, the land cost will be $150 Million and 50% of that goes to Municipality and Campus improvements, the other $100 Million into building credits, plus they pay the train costs.

As such we have $60 Million for luxury projects, no lets switch it, and the $60M is spent on Commercial real estate, Mall, shops, offices, down town area, then the $100 Million from the land is spent on luxury projects.

The contingency will be simple; whatever is over budget will be absorbed by the first profits made, before we go to POP.

So let’s make something to insert into the “AM” presentation

A typical founding town/district infrastructure budget

1. Housing areas (2KM2): Roads, Pavements, Sewers, Pipes, Electrical, Lights & CCTV = $45 Million
2. Parkland (1KM2): Plants, Soil, Earthworks, Irrigation, Paths, Tracks, lights, CCTV = $20 Million
3 a. Commercial area basic infrastructure (1KM2) Roads, Pavements, Sewers, Pipes, Electrical, Lights & CCTV = $30 Million
3 b. Alternate Power = $10 Million
3 c. Equipped Municipality: Waterworks, Sewage Refinery, Reservoirs, Fire Station, Police Station, Council Offices, Community Building, Schools, Crèches, Montessori schools s: $45 Million
3 d. Equipped Campus: Rooms, Labs 5* Hospital, 5* Student & Teacher residences = $50 Million
3 e. Downtown & Shopping Mall: Commercial, Retail & Offices = $50 Million

Founding company, sells next plot for $150 Million of which $50 Million is to bolster Municipal services, $50 to $100 is for luxury “WOW” items (Stadiums, Ski etc) the balance (up to $50) is to add to the Commercial district or Campus.

Any overspends in initial infrastructure costs will be recouped from company profits before POP.