An important client calls you on the phone and asks you to do a feasibility estimate for a development project that she has in mind. She owns a piece of property that is 400 feet wide by 130 feet deep.

Option 3: a parking lot - generating $45/month for each space.

Requirements:

1. Use a 9 x 18 space for a parking stall and a 13 lane between stalls. Diagonal parking does not meet the downtown building code.

2. One 50-foot high street light per every 5000 square feet of pavement

3. Access into and out of the lot must be from the street and the entire lot will be surrounded by an 8-foot chain link fence with two gates in front and one on the alley. The fence must be set back from the alley and street by 6 feet and from the sides by 3 feet.

4. A small building with a restroom for the parking lot attendant. The building should be big enough for a double-pedestal desk, a filing cabinet and a chair plus a toilet and sink in the restroom.

Questions:

What is the estimated construction cost for this alternative?

What is the estimated annual income of this alternative?