Here is how the math works. Most investors would be looking for a 10% rate of return, maybe more in this environment. So if we calculate how much money the meters could generate in a given year, we could also figure out how much an investor would be willing to put up in an upfront payment for the rights to that future stream of cash flow. I believe there are about 2000 spots. If we assume they each collect 50 cents an hour for 12 hours for each day of the summer we get the following numbers (again these are just assumptions). 16 weeks of summer times 7 days per week is 112 prospective days. At 2000 meters, 12 hours per day at 50 cents (nothing assumed for off season) you generate 1.344 million per year (the town could keep the fees from parking tickets not assumed here). The present value of that stream of free cash flows (assuming a 10 year deal with a 10% rate of return to the investor would be 8.258 million. After 10 years the meters would revert back to the town's ownership. So using those numbers an investor would be willing to put up 8.258 million to the town up front for the right to collect 1.344 million per year for 10 years. The investor gets a 10% return, Asbury get's a big up front payment to bridge a budget gap and the meters revert back to the town after year 10 so Asbury doesn't mortgage its future earnings power.
Dan S. --- In AsburyPark@yahoogroups.com, "oakdorf" <[EMAIL PROTECTED]> wrote: > > --- In AsburyPark@yahoogroups.com, "oakdorf" <oakdorf@> wrote: > > > > > here's another read. > > Realize for once, that those parking spaces are GOLD. > > But don't take the money upfront, cause it would just get pissed away. > ------------------------------------ Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/AsburyPark/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/AsburyPark/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/