| Parking FAQs |
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i. Who will be responsible for signing the advertising contracts? * IBC will identify an advertising/marketing company that will act on behalf of the project. This company will have the mandate to find the clients for the advertising opportunities within the project. ii. What will be the percentage paid to the management company? * The parameters of the business relationship with the management company will be determined based on the market conditions at the time of signing the contract. IBC thinks that will be able to convince the management company to charge a lower percentage due to the additional revenue generated by the advertising. IBC’s goal is to turn the advertising revenue into the paramount revenue for the parking component. iii. What is the suggested annual ROI? The ROI will mostly depend on the agreement that will be reached with the management company. * Our calculations show a potential return between 10-12%/year from parking alone not including the advertising. iv. What happens if one parking space generates more revenue than the others based on a better position with the parking lot? How is the revenue going to be shared? * We are aware that some parking spaces will be positioned better than others, but we will apply the model of “evenly distributed revenue.” ((total revenue – management fee)/ # of owners). We also expect a high percentage of parking occupancy due to the variety of uses our project will host. v. Will IBC have any involvement with the management company? * IBC will have not involvement in the management company. The relationship between the two companies will be at arm-length. vi. What happens if we decide to sell the parking space? * If you decide to sell your ownership of the parking space, you will have the following options: 1. The management company will have the right of first refusal to buy it at the fair market value; 2. The other owners will have the right of first refusal to buy it at the fair market value; 3. Assign the ownership to any family member. |
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