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NEARBY COMPETITION-conrfnued Remember, whatever the population is in a three-mile radius, divide that into how many tunnel washes, including your potential site, that are in the area. For instance, it the population is 30.000 and you will be the third tunnel wash in the area, that reduces the population to approximately 10,000 for each location. In our opinion, there is too much competi- tion for the population in this example. SPACE FOR DIVERSIFICATION Is there space for diversified or additional services or sales? A drive-thru fast food restaurant or a quick coffee shop could be compatible with an express exterior model. COST OF PROPERTY OR LEASE The cost of property or proposed ground rental on a lease agreement certainly has to be taken into consideration regard- ing your total investment cost or the monthly expense of your operation. In the article "Site planning; Adding to the carwash experience," featured in a past issue of Professional Carwashing & Oetailing, an expert interviewed for the article noted that sitEs selection Is no time to penny -pinch, adding, "Never be cheap when choosing a property-" He could not be more accuratel If the site is right and projections show it could gen- erate high volume, it is worth paying an additional amount to obtain the property or to agree to a higher monthly lease rate simp$V because there is no substitute in obtaining a great site. Whatever amount you have to pay for the desired property will be amortized over many years of operating. Inthe scheme of things, it will only require a minimum amount of increased vaiume to offset a high cost for the property or additional lease rate. REPORTS AND REVIEWS You certainly want to check with the city or county planning department to determine the required entitlements, per- mits, setbacks, landscaping requirements, etc. You also want to review a preliminary title report to determine recorded underground easements, existing property liens or encumbrances. You or your architect do not want to be surprised to discover underground easements where you are planning your im- provements. Typically, it is difficult to get utility companies to agree to rerouting existing easements. It is also extremehr expensive to do so even with their permission. Utility and sewer locations have to be determined because bringing these lines into the proposed site could be expensive. Your Architect will need a site survey and a topographical survey in order to review your site. Legal boundaries and grades need be reviewed — are the grades too high or too Icw7 If you have to remove or bring in dirt, it adds to the cost of your development. OFF -SITE IMPROVEMENTS The same is true for off -site improvements. If there are no sidewalks, curbs, gutters or area lighting, this cost could easily run into the hundreds of thousands of extra dollars. UTILITY AND SEWER - FEES AND LOCATIONS Understanding the location of incoming utilities is a must. They could determine your specific site layout as well as add unexpected costs to the project. Water and sewer tap fees can have a wide range, from 510,000 to upwards of $150,000 or more. LOCAL SIGN ORDINANCES Are you planning on having a programmable LE.I). sign at She street You better check the local ordinance with city council, because many municipalities do not allow L.E.D. street signs. What size sign are you allowed to have? How high can It be? All are questions you will need to ask and understand moving forward. ENVIRONMENTAL TESTING AND FEASIBILITY Your proposed site needs to be tested. It needs to be investigated and tested to ensure that there is no environmental contamination, such as buried fuel oil tanks, or gasoline leaks. If it is contaminated, hnd out how much will it cost to clean up and re -mediate the site, Also, a geological report will analyze the soil on the property so the architect and en- gineer can properly design the building's foundation and determine drainage requirements. Hire local engineering firms who specializing in environmental testing to obtain this Information You need to uncover these potential hidden costs. d CwY'$VIt 1016 Grandnew Media, Reprinted w4hh permission From Projessionoi cama3hinq & ✓1ernFr0np" Mar•N •'� 75A-45